SThree’s gross margin increases 22% in second quarter, appoints new CFO

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June 14, 2021

SThree plc, the UK-based provider of professional personnel, reported net fees, or gross margin, up 22% year-on-year in its second quarter ended May 31. The gross margin increased by 10% comparing the first half of this year to the first half. from last year. The company also announced its new chief financial officer.

“We are delighted to report that our teams performed very well in the second quarter, driving significant growth across the group in the first half of 2020,” said Managing Director Mark Dorman. “Very encouraging, given the impact of Covid-19 in the second quarter of last year, the net expenses in the second quarter of 2021 were 8% higher than the equivalent period in 2019.”

Gross profit

(millions of pounds sterling) S1 2021 H1 2020 % constant currency exchange H1 2021 (US $ millions)
Contract £ 121.9 £ 113.5 8% $ 172.9
Permanent £ 42.4 £ 36.4 18% $ 60.1
Total £ 164.3 £ 149.9 ten% $ 233.0

SThree is focused on providing STEM skills. He noted that the gross margin of its contract staffing activities increased by 8% year-on-year at constant exchange rates. He also noted that its contractor backlog grew 33% year-over-year in the second quarter, reflecting strong demand.

The gross margin on permanent investments in the second quarter increased 18% year-on-year at constant exchange rates, with growth of 57% in the United States and 13% in Germany, Austria and Switzerland.

Gross margin of the top five countries

(millions of pounds sterling) S1 2021 H1 2020 % constant currency exchange H1 2021 (US $ millions)
Germany £ 54.0 £ 46.0 15% $ 76.6
Netherlands £ 25.6 £ 23.2 8% $ 36.3
UK £ 17.3 £ 18.6 -8% $ 24.5
we £ 40.9 £ 35.3 24% $ 58.0
Japan £ 3.3 £ 2.8 23% $ 4.7

Three saw strong demand in key industries in the United States. Its largest segment in the United States, Life Sciences, saw its gross margin in the second quarter increase 30% year-on-year at constant exchange rates. The company cited strong demand in clinical operations, quality assurance and product development. Engineering gross margin in the United States increased 12%, driven by construction focused on renewables. Technology gross margin increased 33% with increased demand in mobile apps, Adobe, Salesforce, and software development.

For more in-depth coverage of SThree’s results, please read the European issue of the Staffing Industry Daily News.

Share price and market capitalization

SThree shares hit a new 52 week high in trading today when they hit £ 475.00 (US $ 669.81); the company had a market capitalization of 620.6 million pounds sterling (875.1 million US dollars).

Separately, SThree announced that Andrew Beach will join the company as CFO on July 5. Beach was previously CFO of Hyve Group plc. Current CFO Alex Smith will step down but stay with the company while transferring responsibilities; the departure had already been announced.

André Beach


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