Recruiter SThree’s profits up 20 per cent last year despite a troubled UK staffing market
SThree’s share price was up four per cent in early trading as it posted better-than-expected profits.
In its final year results, the specialist staffing company said pre-tax profits were up 20 per cent for the year despite “slower industry growth” in the UK market than elsewhere.
The figures
Profit before tax was £53.4m for the year ending 30 November 2018, up 20 per cent year-on-year from £44.5m. Annual revenue was up 13 per cent, at £1.26bn.
Read more: Brexit uncertainty spurs financial services firms to shift £800bn in assets to EU
The company slipped into the red on cash flow, however, racking up a net debt of £4.1m compared to £5.6m net cash last year.
Why it’s important
SThree’s profit growth shows resilience at a time when recruiters are coming under increasing strain in the UK, where SThree earns 17 per cent of its profits. As politicians continue squabbling over the terms of the Brexit deal, companies are increasingly shifting operations abroad.
Earlier this month it emerged Manufacturers are struggling with the worst drought of workers in 30 years, as fewer EU workers come into the country in the wake of the Brexit vote.
What SThree said
Chief executive Gary Elden hailed “a strong financial performance which, demonstrating our resilience, was delivered despite the ongoing macro-economic and political uncertainties.”
Read more: Manufacturers face worst staff scarcity since 1989 after Brexit leads to exodus of EU workers
“Alongside the financial metrics, we delivered further structural and operational progress which will enable us to attain our vision of being the number one Science, Technology, Engineering and Mathematics ('STEM') recruiter in the best STEM markets.
“Looking forward to the year ahead, our post-year end trading is in line with expectations and we remain well positioned to benefit from the growth opportunities in our chosen STEM markets.”