International recruitment firm, SThree (STHR: LSE), has released a trading update for the half year ending in 31 May 2016.

Group gross profit was up 6% Year-on-Year (YoY) in constant currency (CC) and ahead by 11% (CC) excluding Energy.

According to SThree, the UK market was impacted by EU referendum uncertainties and a slowdown in Banking & Finance sector, with gross profit down by 5% (CC) YoY.

The company saw continued growth across the ICT (Information and Communications Technology), which grew 18% YoY at CC.

The biggest growth was seen in Continental Europe with an 18% CC increase YoY. In the US, gross profit increased by 6% YoY at CC (+20% excluding Energy), reflecting positive trading conditions in the Energy and Banking & Finance sectors.

Gross profit in the Energy market was down 31% YoY at CC, while Contract gross profit was up 11% YoY at CC, and ahead by 14% CC excluding Energy.

Permanent gross profit was down 2% YoY at CC, but productivity improved by 5% YoY following a decrease in average sales headcount of 7%. Permanent gross profit excluding Energy was up 6% YoY and at CC.

"The group experienced mixed trading conditions in the period,” Gary Elden, Chief Executive of SThree, said. “Our Contract business continued to perform well, with GP increasing by 11% (CC) year on year.  ICT growth was strong, with GP ahead by 18% (CC) year on year, and Continental Europe was once again our fastest growing region, underpinned by a strong performance in DACH, where GP was ahead by 22% (CC) year on year.  However, it is also clear that the uncertainty created by the forthcoming EU Referendum has led to a slowdown in our UK business, and weak Energy and Banking & Finance markets impacted our US growth rate.  Our US ICT and Life Sciences Contract businesses continued to report good growth but we have moved to address some short term execution issues.  These measures will begin to take effect over the second half.”       

"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; in addition restructuring measures taken in our Energy, Banking & Finance and UK businesses will benefit future periods.  We remain confident that there are significant growth opportunities for us across the diverse geographies and sectors that we serve," Elden said. 

SThree will issue its interim results for the six months (ended 31 May 2016) on 11 July 2016.

In trading today, SThree traded at £324.14, down 7.65% on the day and 12.04% above the 52 week low of £289.31 set on 22 February 2016. Based on its current share price, the company has a market value of £450.61 million.