Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Sthree Plc LSE:STHR London Ordinary Share GB00B0KM9T71 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +5.50p +1.88% 297.50p 296.00p 298.00p 297.50p 292.00p 293.00p 278,006 16:29:55
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 1,258.2 47.0 26.6 11.2 387.13

SThree: Q1 Trading Update

15/03/2019 7:01am

UK Regulatory (RNS & others)


Dow Jones received a payment from EQS/DGAP to publish this press release.

 
 
 SThree (STHR) 
SThree: Q1 Trading Update 
 
15-March-2019 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
15 March 2019 
 
    Q1 Trading Update 
 
    Encouraging start to the year with good momentum in Contract 
 
  SThree plc ("SThree" or the "Group"), the international specialist STEM(1) 
 staffing business, is today issuing a trading update(2) covering the period 
  from 1 December 2018 to date; financial information relates to the quarter 
         ended 28 February 2019. 
 
         Highlights 
 
  · Encouraging start to the new financial year 
 
  · Group gross profit ("GP") up 9% YoY (Q1 2018: up 8%) 
 
  · 85% of Group GP generated from markets outside the UK&I (2018: 82%) 
 
  · Growth in both Contract and Permanent GP 
 
    · Contract GP up 12% 
 
    · Permanent GP up 1% 
 
    · Contract represented 74% of Group Q1 GP (Q1 2018: 72%) 
 
  · Group period-end sales headcount up 5% YoY 
 
  · Continued strong balance sheet 
 
  · Mark Dorman to join as CEO on 18 March 2019 
 
         (1) STEM - Science, Technology, Engineering and Mathematics 
 
      (2) All year on year financial growth rate %s in this announcement are 
         expressed at constant currency 
 
         (3) DACH - Germany, Austria and Switzerland 
 
         Gary Elden, Chief Executive, commented: 
 
 "We have made an encouraging start to the year, with robust Group GP growth 
         in what is our seasonally least significant quarter. 
 
        "It is pleasing to see growth in both Contract and Permanent, with a 
particularly strong performance in Contract, driven by continued progress in 
         our key markets, Continental Europe and the USA. 
 
"Looking ahead, SThree will continue to invest in our teams to drive growth, 
 consistent with our vision to be the number one STEM talent provider in the 
  best STEM markets. Our focus on Contract and the continued strength of our 
   performance across key regions and sectors provides resilience in today's 
       more turbulent market conditions. Set against this context, we remain 
         confident in achieving good growth in the current year." 
 
Financial Highlights - 
 
                            Q1     Q4   Q3    Q2   Q1 
                           2019   2018 2018  2018 2018 
Gross       Q1 2019   Q1   YoY %  YoY  YoY % YoY  YoY % 
Profit               2018          %          % 
 
Contract     GBP57.6m GBP50.5m +12%   +15% +14%  +16% +11% 
Permanent    GBP20.5m GBP19.8m  +1%   +6%   +8%  +7%   +2% 
Group        GBP78.1m GBP70.3m  +9%   +12% +13%  +13%  +8% 
 
Continental  GBP45.5m GBP40.3m +12%   +20% +24%  +20% +15% 
Europe 
USA          GBP16.4m GBP13.1m +17%   +8%   +8%  +16%  +1% 
UK&I         GBP11.7m GBP12.7m  -7%   -4%  -10%  -2%   -3% 
Asia Pac &    GBP4.5m  GBP4.2m  +5%   +13% +16%  +1%  +15% 
Middle East 
Group        GBP78.1m GBP70.3m  +9%   +12% +13%  +13%  +8% 
 
ICT          GBP34.8m GBP31.8m +10%   +18% +14%  +13%  +5% 
Life         GBP15.8m GBP14.8m  +4%   +1%  +13%  +12%  +9% 
Sciences 
Banking &     GBP9.6m  GBP9.5m  -3%   +2%   -7%  +1%   -0% 
Finance 
Energy        GBP8.6m  GBP6.1m +25%   +26% +32%  +28% +35% 
Engineering   GBP7.8m  GBP6.7m +19%   +16% +15%  +20% +14% 
Other(4)      GBP1.5m  GBP1.4m  +8%   +24% +33%  +25% +32% 
Group        GBP78.1m GBP70.3m  +9%   +12% +13%  +13%  +8% 
 
         (4) Other includes Procurement & Supply Chain and Sales & Marketing 
 
         Business performance 
 
 Group GP for the year was up 9% with robust growth in Continental Europe up 
  12% and USA up 17%. The growth in Continental Europe was driven by Benelux 
      and DACH(3) up 11% and 12% respectively. UK&I GP was down 7%, although 
      productivity in the region improved by 2%. ICT, Engineering and Energy 
         delivered very good growth in the period. 
 
 Contract GP was up 12%, with strong performances across ICT, Life Sciences, 
   Energy and Engineering, and double digit growth in all regions outside of 
 UK&I. Continental Europe and USA combined now represent 79% of our Contract 
 GP (Q1 2018: 76%) in line with our strategy to focus on the world's biggest 
         STEM recruitment markets. 
 
 Permanent GP was up 1%, driven by DACH up 7% and Japan up 38%, both against 
  tough comparatives. This progress was offset by USA which was down 1%, and 
 by UK&I which, as expected, was down 16% reflecting the previously reported 
  restructuring. Permanent productivity across the Group improved by 5% over 
         last year, as a result of the Group's strategy to focus on the best 
         performing Permanent markets. 
 
  The planned relocation of the majority of our London based central support 
  functions to Glasgow is now complete, with the expected benefits now being 
         realised. 
 
         Offices and People 
 
      The Group has a network of 44 offices in 16 countries, of which 37 are 
   outside the UK. The Group generated 85% of GP for the period from markets 
         outside the UK&I (Q1 2018: 82%). 
 
  Average Group sales headcount was up 4% YoY with Continental Europe up 8%, 
USA up 4% and UK&I down 8%. Average sales Contract headcount was up 8% which 
was partially offset by a 4% reduction in average Permanent headcount. Group 
  sales period end headcount was up 5% YoY with Contract up 8% and Permanent 
 down 1%. Contract headcount now represents 68% of Group sales headcount (Q1 
         2018: 66%). 
 
         Balance sheet 
 
 SThree remains in a strong financial position. Net debt at 28 February 2019 
       was circa GBP12m (28 February 2018: Net debt GBP2m). The Group has a GBP50m 
revolving credit facility ("RCF") with HSBC and Citibank, which is committed 
         to 2023. 
 
         Appointment of new Chief Executive 
 
We were pleased to announce on 28 February the appointment of Mark Dorman as 
      Chief Executive Officer of the Group. Mark brings a wealth of relevant 
 experience in scaling international business service operations and he will 
 join SThree on 18th March 2019. As previously announced Gary Elden, current 
  Chief Executive Officer, will be stepping down from his role and the Board 
  on that date, and will remain with the Company until the AGM on 24th April 
         2019 in order to ensure a smooth and orderly handover. 
 
         Analyst conference call 
 
 SThree is hosting an analyst conference call today at 0830 GMT. The details 
         are as follows: 
 
         Telephone number: 0800 358 9473 
 
         For access to the call please enter PIN: 41130199# 
 
A replay facility will be available for 90 days on 0800 358 2049 Passcode: 
301282034# 
 
The Group will issue its trading update for six months ended 31st May 2019 
on 14th June 2019. 
 
    - Ends - 
 
                                  Enquiries: 
 
                                  SThree plc 020 7268 6000 
Gary Elden, Chief Executive Officer 
Alex Smith, Chief Financial Officer 
Kirsty Mulholland, Senior Company Secretary 
Assistant/ IR Enquiries 
 
                                     Alma PR 020 3405 0205 
Rebecca Sanders-Hewett                       SThree@almapr.co.uk 
 
Hilary Buchanan 
 
         Notes to editors 
 
        SThree is a leading international STEM specialist staffing business, 
  providing permanent and contract specialist staff to a diverse client base 
 of over 9,000 clients. From its well-established position as a major player 
   in the information and communications technology ('ICT') sector the Group 
  has broadened the base of its operations to include businesses serving the 
         Banking & Finance, Energy, Engineering and Life Sciences sectors. 
 
 Since launching its original business, Computer Futures, in 1986, the Group 
  has adopted a multi-brand strategy, establishing new operations to address 
        growth opportunities. SThree brands include Computer Futures, Huxley 
    Associates, Progressive and The Real Staffing Group. The Group has circa 
         3,000 employees in sixteen countries. 
 
 SThree plc is quoted on the Official List of the UK Listing Authority under 
     the ticker symbol STHR and also has a US level one ADR facility, symbol 
         SERTY. 
 
         Important notice 
 
  Certain statements in this announcement are forward looking statements. By 
         their nature, forward looking statements involve a number of risks, 
   uncertainties or assumptions that could cause actual results or events to 
      differ materially from those expressed or implied by those statements. 
Forward looking statements regarding past trends or activities should not be 
 taken as representation that such trends or activities will continue in the 
        future. Certain data from the announcement is sourced from unaudited 
        internal management information and is before any exceptional items. 
         Accordingly, undue reliance should not be placed on forward looking 
         statements. 
 
ISIN:           GB00B0KM9T71 
Category Code:  QRF 
TIDM:           STHR 
LEI Code:       2138003NEBX5VRP3EX50 
OAM Categories: 2.2. Inside information 
Sequence No.:   7825 
EQS News ID:    787801 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

March 15, 2019 03:01 ET (07:01 GMT)

1 Year Sthree Chart

1 Year Sthree Chart

1 Month Sthree Chart

1 Month Sthree Chart
Your Recent History
LSE
STHR
Sthree
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20190619 19:03:54