International recruitment firm, SThree (STHR: LSE) published a trading update for the third quarter ended 31 August 2018 with group gross profit up 13% year-on-year in constant currency (CC).

SThree reported group gross profit was as follows:

Gross profit broken down by region was as follows:

Gross profit broken down by sector was as follows:

SThree stated that growth in gross profit was boosted by improved performances in Continental Europe which was driven by record performances in DACH (Germany, Austria and Switzerland) and Benelux (Belgium, Netherlands, and Luxembourg).

Contract Gross Profit was also boosted by growth in Continental Europe and USA, but was offset by a slight decline in the UK & Ireland.

Permanent GP in Continental Europe grew 23% in constant currency (CC) while USA grew 1% (CC) against tough comparatives and Japan more than doubled (CC). 

This progress was offset by a decline in UK & I where GP was down by 33% (CC), following the planned restructure of the group’s UK Permanent business in early Q2, which reduced UK Permanent average sales headcount by 37% in Q3.  According to SThree, the restructuring is already having a positive impact on both UK and group Permanent productivity, which improved by 5% (CC) and 11% (CC) respectively, in the third quarter.

Contract and Permanent split was 73% (2017: 72%) for Contract and 27% (2017: 28%) for Permanent. SThree added that 84% of group gross profit was generated outside the UK & Ireland, compared to 80% last year.

Gary Elden, Chief Executive, commented, "We are pleased to have delivered another strong quarter, continuing the momentum of Q2, which was also up 13% (CC). The group is benefiting both from the broad geographic reach of its operations, with 84% of GP now generated in international markets, and from its focus on the best STEM (Science, Technology, Engineering and Maths) markets.”

"Continental Europe, our largest region, continued to grow strongly, with both DACH and Benelux delivering record performances, and the USA posted a solid result against strong prior year comparatives,” Elden said. “We are investing in growing our highest performing teams and remain on track with the delivery of our five-year growth strategy.”

"Looking ahead, trading conditions in the majority of our markets are encouraging and we enter Q4, our most significant trading quarter, with confidence in our full year prospects,” Elden said.

As of last trade SThree PLC (STHR:LSE) traded at £357.00, up 3.48% on the day and 8.46% below its 52-week high of £390.00, set on 12 January 2018. Based on its current share price the company has a market value of £450.18.