Three Gross Profits Down 8% in 2020, But US Only Region to Record Increase

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December 14, 2020

SThree plc, a UK-based STEM recruiting company active in the US, reported net fees, or gross profit, down 8% in its 2020 fiscal year ended November 30 in mid-March. Covid-19 pandemic. However, the company noted that business trends strengthened in the fourth quarter compared to the third quarter.

(millions of pounds sterling) FISCAL 2020 FISCAL 2019 % cash Fiscal year 2020 (millions of US dollars)
Germany, Austria and Switzerland £ 105.8 £ 109.3 -3% $ 140.8
EMEA excluding Germany, Austria and Switzerland £ 117.8 £ 141.2 -16% $ 156.8
we £ 77.2 £ 76.7 2% $ 102.7
Asia Pacific £ 10.1 £ 15.2 -26% $ 13.4
Total £ 310.9 £ 342.4 -8% $ 413.7

The United States was a beacon of hope for SThree with a gross margin up 2% for the full year; it was the only geographic area to report an increase. US gross profit also increased year-over-year when looking at the fourth quarter alone; it increased by 11%.

Performance in the US was bolstered by SThree’s life sciences business, whose gross profit for the year increased 16%; the company cited strong demand in clinical operations, product development and quality assurance. The company also said that its technology business’s gross profit increased 9% with increased demand for mobile apps and software development. Engineering grew 1% in the United States.

However, the gross margin is down in the other geographies. The company noted that the decline in Asia-Pacific was due to the more transactional nature of its business in Japan, which is 94% direct leasing.

Gross margin by contract and permanent staff

(millions of pounds sterling) FISCAL 2020 FISCAL 2019 % cash Fiscal year 2020 (millions of US dollars)
Contract £ 235.3 £ 254.6 -7% $ 313.1
Permanent £ 75.6 £ 87.8 -13% $ 100.6

Share price and market capitalization

SThree shares closed 0.85% higher at £ 295.50 (US $ 390.81), but were still 24.71% below their 52-week high. The company had a market capitalization of 389.5 million pounds sterling (515.1 million US dollars).


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