SThree H1 net fees and revenue down, FY in line with expectations
SThree H1 net fees and revenue down, FY in line with expectations

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SThree (STEM: LSE), the International recruitment firm, reported revenue of £763.4 million, down 5% on a like-for-like (LFL) basis when compared to the prior year, for the six months ended 31 May 2024.
The group delivered net fees of £188.7 million, down 7% (LFL) year-on-year despite the ongoing challenging backdrop and against a strong prior year performance.
Contract net fees, now representing 84% of group net fees (H1 2023: 81%), were down 4% as the ongoing softness in new business activity continues to be partially offset by strong client extensions.
Timo Lehne, Chief Executive Officer, said in a press release, “Given the challenges faced across the sector, our resilient performance in the first six months of the financial year has been pleasing. Strong contract extensions have continued to underpin performance despite subdued new business activity. Our unique business model focused on specialist STEM skills and flexible talent solutions, continues to power our performance, supported by global mega-trends driving long-term demand for the skills we place.”
(£ millions) | H1 2024 | H1 2023 | Change | Like-for-like |
Revenue | 763.4 | 825.2 | -7% | -5% |
Net fees | 188.7 | 208.6 | -10% | -7% |
Operating profit | 37.7 | 38.1 | -1% | 3% |
Profit before tax | 39.0 | 38.5 | 1% | 5% |
Within the core skill verticals engineering was up 8% driven primarily by the energy sector, while technology was down 9% and life sciences was down 16% driven by global sector trends.
Net fees across the three largest countries, representing 72% of group are the Netherlands up 3%, Germany down 12%, and USA down 13%.
Profit before tax of £39.0 million was up 5% (LFL) due to lower average headcount for the half, tight cost control and the benefit of higher interest income.
The group said the Technology Improvement Programme (TIP) remains on track, with the US live and deployments well under way in both Germany and the UK. The group said it will continue focus on investment and sequenced roll-out of the TIP across rest of the group, strengthening the group’s position for long-term growth.
Looking ahead, contract extensions remain strong while new business activity continues to be subdued.
At the same time, while market conditions have remained challenging for longer than anticipated, performance for FY24 currently expected to be in line with market expectations. The Current consensus profit before tax expectation is £69.2 million.
“We continue to progress with the Technology Improvement Programme, which overall remains on track and on budget, and we are delighted with the progress we have made so far with our phased roll out,” Lehne said. “Three of our largest markets are now transacting business through the platform and we are already starting to see early evidence of operational efficiencies, and we are excited by the additional scale benefits to be realised as we continue on our journey to becoming a digital-first innovator.”
“As we enter the second half of the year, market sentiment remains largely unchanged,” he added. “Contract extensions continue to be robust as clients seek to retain much-needed STEM expertise, and we are well covered in our focussed skills specialism and markets for when macroeconomic conditions ease. Through this, we remain laser focussed on executing our vision and we continue to be bold in our ambition. With our people, position and processes coming together in line with our digital-first vision, the long-term future is bright.”
As of last trade SThree shares traded at £422.00, up 0.96% on the day and 7.76% below its 52-week high of £457.50, set on 31 May 2024. The company has a market cap of £580.70 million.