Specialist recruiter SThree plc reported revenue of £1.2 billion for the full year ended 30 November 2018, an increase of 13% on a constant currency basis.

SThree said gross profit growth was driven by Continental Europe (up 20%) USA (up 8%), and APAC & Middle East (up 11%), in constant currency.

Gross profit in Continental Europe was driven by strong growth in both DACH (Germany, Austria and Switzerland) (up 21%) and Benelux, France & Spain (together up 18%), in constant currency.

The group commented, “Our key aims in this region are to dominate the STEM space in both Germany and the Netherlands. We delivered a particularly strong performance in the Netherlands, which is a key business hub for many multi-national companies, with GP up 25%, in constant currency”.

The group added that the restructured UK & Ireland region delivered in line with expectations, with gross profit down 5% and productivity up 5%, in constant currency. SThree added that 83% of gross profit is now generated outside of the UK & Ireland (2017: 81%).

“The UK is a mature recruitment market and is seeing slower industry growth than other geographies, although it remains a strategic priority for the group,” SThree said. “In the first half of 2018, we restructured parts of our permanent business, consolidating into key hubs and implemented a change of management. These actions showed clear signs of delivery with Permanent productivity in the region up by 7% on the prior year. As expected, the contract business demonstrated its resilience, remaining broadly stable.”

Gross profit growth in the Asia Pacific & Middle East was driven largely by an excellent performance from the team in Japan, delivering gross profit growth of 85% year on year.

Meanwhile, contract gross profit was up 14% YoY, with growth across all sectors, in constant currency. Contract accounted for 72% of Group GP (2017: 71%). Permanent gross profit was up 6% in constant currency, with permanent productivity up 7%.

Across sectors, the largest sector continued to be ICT, however the Energy sector reported the biggest growth over the year with an increase of 30% in constant currency.

Last month, the group also announced that CEO Gary Elden will step down early in the new year. Elden’s departure is expected to be by the time of the Company's AGM on 24 April 2019. A process to appoint his successor is now underway.

“I am very proud of everything that we have achieved as a business in that time and, as these results demonstrate, I will be handing over the reins of a business that is in very good shape,” Elden said. “I will be fully committed to the role until that time and will work with the Board and the leadership team to ensure a smooth handover to my successor.”

Revenue for the group was broken down as follows.

Revenue by recruitment classification was as follows.

Recruitment by sector was broken down as follows.

Elden commented: "The group continued to make good progress throughout 2018. This resulted in a strong financial performance which, demonstrating our resilience, was delivered despite the ongoing macro-economic and political uncertainties. Alongside the financial metrics, we delivered further structural and operational progress which will enable us to attain our vision of being the number one Science, Technology, Engineering and Mathematics ('STEM') recruiter in the best STEM markets. We are on track with the delivery of the five-year plan as set out at the November 2017 Capital Market Day."

“At the start of 2018, I stated that after two years of political, market and economic pressure, we entered the year in good shape. That turbulence and pressure increased throughout the year and yet we delivered a creditable performance. As we enter 2019, I believe that we are in even better shape,” Elden said.

“The STEM markets in which we operate continue to be affected by the ongoing global shortage of skilled workers and the resulting supply and demand imbalances which underpin the need for our services,” Elden said.

"Looking forward to the year ahead, our post-year end trading is in line with expectations and we remain well positioned to benefit from the growth opportunities in our chosen STEM markets,” Elden added.

The company stated that it planned to invest and grow in key markets, particularly in the USA, Germany, Netherlands and Japan.

As of last trade, SThree traded at £280.50, up 2.94% on the day and 14.49% above the 52 week low of £245.00 set on 28 December 2018. Based on its current share price the company has a market value of £356.54.