SThree expects to hit market forecasts despite net fees dip

  • Net fees were down 7% YOY to £188.7m for the six months to 31 May

SThree expects to be ‘in line with market expectations’ for the financial year despite reporting a dip in net fees amid a ‘challenging market’.   

The recruitment firm said net fees were down 7 per cent year-on-year to £188.7million for the six months to 31 May.

The London-based group put the decline down to an ‘ongoing challenging backdrop’ and ‘a strong prior year performance’.

The recruitment firm said net fees were down 7 per cent year-on-year to £188.7million for the six months to 31 May

The group’s largest region, comprising Germany, Austria and Switzerland, saw a 12 per cent drop to £64.2million.

Territories, such as the UK and the US, also dipped by 9 per cent and 13 per cent respectively.  

The firm, which specialises in providing recruits to STEM-related positions, said that it continued to see strong demand for engineering roles, driven primarily by the energy sector. 

The company added that performance for the 2024 financial year is ‘currently expected to be in line with market expectations’.

Timo Lehne, chief executive of SThree, said: ‘Against the challenges experienced by the sector, we are pleased with our trading performance over the past six months, with strong contract extensions partially offsetting continued soft new business activity. 

‘The group’s unique business model, centred on scarce STEM skills and flexible talent solutions, continues to be a source of strength, aligned to the strategic priorities of our clients and providing sizeable growth opportunities across all our key markets. 

‘We are well placed to take full advantage when the market returns.’

In January, SThree posted a net fee decline of 4 per cent on a like-for-like basis to £418.8million in the year ending November, following a record comparative performance the prior year.

SThree shares were down 0.71 per cent to 419.00p in early afternoon trading on Tuesday.