SThree, a London-based global staffing firm focused on STEM skills, reported revenue fell 5% year over year on a like-for-like, or constant currency, basis to 763.4 million British pounds (US$971.0 million) for the six months ended May 31.

The group delivered net fees (gross profit) of 188.7 million pounds (US$240.0 million), down 7% like-for-like 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.

“Given the challenges faced across the sector, our resilient performance in the first six months of the financial year has been pleasing,” CEO Timo Lehne said in a press release. “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.”

Net fees across the three largest countries, representing 72% of group, are the Netherlands, up 3%; Germany, down 12%; and the US, down 13%.

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 the fiscal year is currently expected to be in line with market expectations.

“As we enter the second half of the year, market sentiment remains largely unchanged,” Lehne said. “Contract extensions continue to be robust as clients seek to retain much-needed STEM expertise, and we are well covered in our focused skills specialism and markets for when macroeconomic conditions ease. Through this, we remain laser focused 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.”

SThree – H1 2024

Revenue by Geography

Share Price

Shares in SThree closed up 1.08% today in London to 422.50 British pounds (US$537.22). They were down 7.65% below their 52-week high.