Contract extensions remain strong, but new business activity continues to be subdued for longer than expected, according to SThree plc, a London-based staffing firm focused on providing STEM talent.

The company reported today that revenue was flat on a constant currency basis in its fiscal year ended Nov. 30, 2023. However, the increase was 1.4% on a reported basis.

“Notwithstanding the broader challenging economic environment, our delivery this year has been resilient, especially against the context of a record prior year,” CEO Timo Lehn said in a press release.

Full-year revenue was up 1.4% on a reported basis to £1.66 billion (US$2.11 billion).

SThree’s contract staffing business saw revenue rise by 3% year over year on a reported basis to £1.58 billion (US$2.01 billion). However, permanent placement revenue fell 20% to approximately £79.0 million (US$100.3 million).

Contract gross profit also edged up, while permanent placement gross profit fell.

Gross profit growth SThree’s contract business was driven by “robust contract extensions from clients with demand for candidates with STEM skills across most of our regions, with [gross profit] growth of 1% [in constant currency],” CFO Andrew Beach said in a press release. Leading the way was the Netherlands region, which was up 7% in constant currency. In addition, Rest of Europe gross profit rose 3%, and Middle East & Asia gross profit increased 29%. Gross profit in the Germany, Austria and Switzerland region fell by 1% in constant currency, and US gross profit fell by 4%.

Permanent gross profit fell 22%, reflecting challenging market conditions across all regions, Beach said.

SThree’s US revenue fell 3% year over year in constant currency to £328.3 million (US$416.9 million).

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Share prices

Shares in SThree closed down 0.13% today in London to £397.50 (US$504.73); they were 22.31% above their 52-week low.