International recruitment firm, SThree (STHR: LSE), published a trading update for the six months ending 31 May 2017.

The company reported group gross profit for the half year was up 2% in constant currency, compared to last year. In particular, Q2 gross profit was up by 4% (CC) though permanent placement declined.

Group gross profit was as follows:

Broken down by region as follows:

Broken down by sector as follows:

According to SThree, performance in the UK and Ireland was adversely impacted by the UK’s decision to leave the EU as well as reforms in the public sector. Gross profit was down 16% (CC), year-on-year.

For the first half of 2017, 80% of group gross profit was generated outside of the UK. This was compared to 73% in the previous year.

In Continental Europe, the group reported gross profit was up 7% (CC), year-on-year. Meanwhile, in the US, group gross profit was up 16% (CC), year-on-year.

Contract gross profit was up 8% (CC), year-on-year with Engineering showing growth of 17% (CC), year-on-year. Life Sciences was up 15% (CC) and Energy was also up 9% (CC). A large proportion of the growth in Contract at the half year was driven by Continental Europe, up 16% (CC) and US up 17% (CC), compared to last year.

SThree also reported that Permanent gross profit was down 10% (CC), year-on-year, with permanent productivity up 8% (CC). UK and Ireland Permanent gross profit was down 25% (CC), Continental Europe was down 9% (CC), year-on-year. This was offset by an increase of 14% for the US (CC), year-on-year. Life Sciences was up 6% (CC), compared to last year.

"We are encouraged by the improvement in momentum across the business in the period, particularly the strong performances in Continental Europe and the USA, which is now our second largest region,” Gary Elden, Chief Executive, said. "Our Contract business continues to deliver good growth across almost all regions, with Continental Europe and the USA again being the highlights.

"'Our Permanent business benefited from a further improvement in productivity, driven by the particularly strong performance in USA,” Elden said. “Further productivity gains remain the priority for our Permanent business in 2017.

"Looking ahead, the continued momentum of our Contract business and improved Permanent yields give us a solid base from which to grow in a macro-economic environment which remains uncertain," Elden said.

In trading today, SThree traded at £316.25, up 4.2% on the day and 6.43% below its 52-week high of 338.00, set on 9 February 2017. Based on its current share price the company has a market value of £388.0 million.