Business
FY23 Q1 Trading Update
FY23 Q1 Trading Update.
About this update from Sthree Plc
[{"type":"text","content":"\n \n\n\nSThree (STEM)\n\n\n\nSThree: FY23 Q1 Trading Update21-March-2023 / 07:00 GMT/BST\n\n21 March 2023\n\n \n\n \n\nSThree plc\n\n \n\nFY23 Q1 Trading Update\n\n \n\nNet fee growth driven by our Contract business\n\n \n\nSThree plc (\"SThree\" or the \"Group\"), the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics (‘STEM’), today issues a trading update covering the period 1 December 2022 to 28 February 2023.\n\n \n\nHighlights\n\nGroup net fees for the quarter up 4% YoY(1), in line with expectations. \n Contract net fees up 8% YoY with growth across all regions, with Contract now representing 81% of Group net fees (Q1 2022: 77%, Q4 2022: 78%).\n Permanent net fees down 12% YoY, reflecting market conditions, performance in USA and Life Sciences, and the planned transition from Permanent to Contract in several markets.\n In our largest three markets, which represent 73% of net fees, Germany and the Netherlands grew 7% and 4% respectively, while USA was down 6%.\n Technology up 8% and Engineering up 19%, while Life Sciences was down 15%. \n Contractor order book (2) up 5% YoY (Q4 2022: up 19% YoY).\n Robust balance sheet, with £64 million net cash as at 28 February 2023 (28 February 2022: £41 million, 30 November 2022: £65 million).\n \n\n \n\nTimo Lehne, Chief Executive, commented: \n\n“The Group has delivered a robust net fee performance in the first quarter of FY23 with fees up 4% YoY, in line with expectations, and supported by the strength of our well-established strategy, focused on STEM and flexible talent. The macro-economic environment remains uncertain, and we continue to see varied effects across our markets impacting new placements, offset by strong Contract extensions. Our Contractor Order Book underpins our near term visibility and continues to be a source of strength for the business, with Contract now representing 81% of Group net fees. \n\nWe have continued to make progress against our clear strategy which is centred on an analytical and fact-based approach of knowing where to play and playing where we can win. Our targeted investment in talent and digital infrastructure is progressing as planned, positioning the Group to scale with sustainable margins, in line with our 2024 ambition...