Daily News
View All NewsSThree revenue up 9% in constant currency; Continental Europe and US lead growth
SThree plc, which ranks on SIA’s list of largest global staffing firms, reported revenue rose 9% in constant currency during its fiscal year ended Nov. 30, 2017. Revenue growth outpaced gross profit growth as the London-based firm’s business mix moved more toward temporary placements from permanent placements. SThree is also moving ahead with plans to move support functions to Glasgow, Scotland, from London.
| (£ thousands) | FY 2017 | FY 2016 | % growth | % growth constant currency | FY 2017 (USD thousands) |
| Revenue | £1,114,530 | £959,861 | 16% | 9% | $1,493,192 |
| Gross profit | £287,672 | £258,681 | 11% | 4% | $385,409 |
| Gross margin | 25.8% | 26.9% | |||
| Profit for the year attributable to owners of the company | £33,066 | £27,242 | 21% | $44,300 |
Full-year revenue rose 28% in the company’s Continental Europe segment, and rose 24% in the US. However, revenue fell 7% in the UK and Ireland.
Revenue by geography
| (£ thousands) | FY 2017 | FY 2016 | % growth | FY 2017 (USD thousands) | |
| UK and Ireland | £269,777 | £290,285 | -7% | $361,434 | |
| Continental Europe | £576,018 | £448,606 | 28% | $771,720 | |
| US | £212,737 | £171,313 | 24% | $285,014 | |
| Asia Pacific and Middle East | £55,998 | £49,657 | 13% | $75,023 |
Looking at industry segments, gross profit rose by 1% in SThree’s information and communications technology segment, where the company generates the lion’s share of its gross profit, 43%.
Gross profit also rose 25% in its global energy segment, increased 7% in its life sciences segment and was up 5% in its engineering segment.
On the other hand, gross profit fell 2% in the banking and finance segment.
Quote
“We have delivered an encouraging overall result for the year, with a strong finish in the final quarter,” CEO Gary Elden said in a statement. “Pleasing performances in the USA and Continental Europe, particularly from our market-leading businesses in the Netherlands and Germany, were key to this result.”
Share price and market cap
Shares in SThree closed down 0.94% at £368.50, and the company had a market cap of £479.4 million.