SThree PLC (STHR: LSE) released a trading update for the year ending 30 November 2016.

Group gross profit was up 2%, on a constant currency basis (CC), compared to the previous year and ahead by 6% (CC), excluding the Energy division. The company saw growth in Continental Europe, with an increase of 13% (CC) compared to last year. This growth was driven by the DACH countries (Germany, Austria and Switzerland), which saw a 17% growth (CC).

“We have delivered a solid overall performance for the year, in the face of mixed trading conditions,” Gary Elden, Chief Executive, said. “Our Contract business continued to perform well, with GP increasing by 8% (CC) year on year.”

“Looking ahead to 2017, global political and macro-economic uncertainties have increased across a number of our key regions,” Elden said. “We are managing the business prudently in the light of these market conditions, and continue to invest in our highest performing teams. The momentum of our Contract business, the strength of our performance in Continental Europe and the benefit of restructuring measures taken earlier in the year, leave us well-positioned for the future.”

Growth across ICT was up 12% (CC), while engineering also increased by 9% (CC), when compared to the same period last year.

Meanwhile, the UK market was impacted by slowdown in Banking & Finance sector, Public Sector reforms and the EU referendum result, which led to Gross Profit decreasing by 8% (CC) when compared to last year.

Contract Gross Profit was up 8% (CC) or up 11% (CC) excluding Energy. A large proportion of this growth was driven by Continental Europe, which was up 17% (CC) and which now represents more than half of the firm’s contract runners, offsetting UK and Ireland’s 3% (CC) decrease. US Contract Gross Profit was up by 10% (CC).

Permanent GP was down 8% (CC), when compare to the previous year. Excluding Energy, Permanent GP was down 1% (CC). Continental Europe posted a 7% (CC) increase, driven by DACH up 11% (CC), offsetting weaker performances in UK and Ireland, which showed a decrease of 21% (CC), as well as a decrease from the US, which was down 15% (CC). 

In the light of challenging market conditions in Energy and Banking & Finance, and the result of the EU referendum, SThree states that they have further focussed on productivity in their Permanent business.

SThree will issue its results for the financial year ended 30 November 2016 on 23 January 2017.

As of last trade, SThree PLC traded at £285.00, up 3.64% on the day and 28.96% above the 52 week low of £221.00 set on 26 October 2016. Based on its current share price the company has a market value of £354.8 million.