SThree Raises Full-Year Profit Guidance Amid Improved Q3 Performance
SThree (LON:STEM) reported improved third-quarter performance, leading to an upward revision of its full-year profit-before-tax guidance from approximately £10 million to at least £12 million. The improvement was driven by working-capital efficiencies, productivity gains, and cost actions. Net-fee declines moderated in Q3 compared to previous quarters, with contract fees remaining stable while permanent recruitment fees fell 8%. U.S. operations led the recovery with an 11% year-over-year increase in net fees, supported by strong demand in life sciences and technology. Europe showed mixed results but overall improvement, particularly in countries like the Netherlands and the UK where declines moderated. Germany remained challenging despite a slower rate of decline. The company's contract order book grew 5%, offering visibility for about five months of future fee generation. Interim CFO Damian Fehrenberg highlighted stronger demand trends and broader recovery signals across markets.
Tickers: $STEM
Topics: contract recruitment performance financial guidance market recovery