International recruitment firm SThree (STHR: LSE) reported revenue of £341.7 million for the six months ending 1 June 2014, an organic increase of +20.9% compared with £291.9 million during the same period last year.

The company achieved gross profit of £100.8 million, up by +13.4% in constant currency from £94 million a year ago. Operating profit for the period rose organically by +27.3% to £8.4 million, up from £6.7 million from H1 2013.

Gary Elden, Chief Executive Officer, commented: "As expected, the Group performance improved during the first half, as the economic recovery gained momentum in a number of our markets. Contract made further progress in all territories, as it continued to benefit from a greater strategic focus and increasing exposure to new global high growth markets, particularly Energy and Life Sciences. Contract gross profit increased [organically] by +22%, year-on-year, and now accounts for 60% of Group gross profit.”  

"The Americas had a very strong first half, growing +62% [in constant currency], year-on-year, and we are doubling our office space in San Francisco and Houston to accommodate our expansion plans. During the second half, we are focusing on driving up the productivity of new hires, particularly in Permanent, with headcount growth moderating.” 

"As we look forward, the strength of our Contract book, investment in headcount and benefits of the restructuring in the second half of last year will provide the Group with a solid platform for growth and operational gearing into recovery.  Our seasoned home-grown management team and strong financial position give us confidence in the medium term prospects for the business," Mr Elden concluded.

Revenue derived from the United Kingdom and Ireland, SThree’s home market, increased by +11% in reported currency to £129.8 million, up from £117.2 million last year.

Continental Europe; which includes Belgium, France, Germany, Luxembourg, Netherlands, and Switzerland, reported a rise of +11% in reported currency to £147.7 million, up from £133.6 million a year ago.

SThree previously reported its Americas region and its Asia Pacific & Middle East (APME) region as one segment. The two regions have now been divided and will henceforth be reported separately.

The Americas; which includes the USA, Brazil, and Canada, reported revenue growth of +80% in reported currency to £45.6 million, up from £25.3 million in H1 2013.

APME; which includes Australia, Hong Kong, India, Singapore, Dubai, Qatar, Japan, Malaysia, Russia, and Thailand, reported revenue for the six month period of £18.5 million, an increase of +18% in reported currency from £15.7 million a year ago.

Gary Elden concluded: “As we look forward, the strength of our Contract book, investment in headcount, and benefits of the restructuring in the second half of last year will provide the Group with a solid platform for growth and operational gearing into recovery. Our seasoned home-grown management team and strong financial position give us confidence in the medium term prospects for the business.”

Despite the positive trading update, the company’s share price fell during early trading by -3.8% to £3.80, an increase of +8.7% compared with a year ago. Based on its current share price, the company has a market value of £491.3 million.