September 20, 2022
SThree plc, a UK-based professional staffing provider focused on STEM skills, reported net charges or gross profit in the third quarter ended August 31, up 19% year-on-year in constant currency.
The Group also noted continued growth in the technology, engineering and life sciences sectors.
SThree now expects pre-tax profit for the year ended November 30 to be at least 7% higher than market expectations.
“Our group recorded another excellent quarter of growth, driven by successes in all key regions and STEM disciplines. Thanks to this solid performance, combined with the visibility of orders from subcontractors, we are again ahead of market expectations for the year 2022,” said Managing Director Timo Lehne.
Lehne was named CEO in April.
|(in millions of £)||Q3 2022||Q3 2021||% change in constant currency|
|Three in total||111.8||91.0||19%|
Lehne noted that the year-over-year growth for the third quarter builds on the strong performance achieved in the first half of the year and that the new period of growth is driven by the strategic focus on STEM. and flexible working, through independent contractors and employees.
SThree said gross profit from its contract staff business increased 21% in constant currency, while gross profit from permanent placement increased 10%.
In the United States, revenue increased 9% year-on-year at constant currency, with strong contract growth of 16%. However, revenue fell 10% in permanent contracts, following the company’s strategic focus on contracts and very strong comparatives to the prior year.
U.S. engineering gross profit increased 37% in constant currency, while technology gross profit increased 15%, driven by increased demand from Adobe, Microsoft.Net developers, mobile applications and infrastructure.
Gross profit of the top five countries
|The top five countries|
|(in millions of £)||Q3 2022||Q3 2021||% change constant currency|
|Rest of the world||£15.0||£11.9||23%|
Stock price and market capitalization
Shares of SThree closed up 4.14% at £364.50 ($363.82) today in London; they were 16.64% above their 52-week low. The company had a market capitalization of £468.26 million.