Business
RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2023
RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2023.
About this update from Sthree Plc
[{"type":"text","content":"\n\nSThree plc\n \nRESULTS FOR THE six months ENDED 31 MAY 2023\n \nResilient performance in H1 driven by our contract business\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 announces its financial results for the six months ended 31 May 2023.\n \nFINANCIAL HIGHLIGHTS\n\nHALF-YEAR HIGHLIGHTS \n\n\n\n\n· \n\n\nA resilient performance, with Group net fees down 2% YoY(3) on a constant currency basis, against the strong post-Covid comparative period (H1 FY22 YoY growth: 25%) and backdrop of global macro-economic conditions.\n\n\n\n\n\no \n\n\nAcross our three largest countries: Netherlands up 3%, Germany down 1% and USA down 11%, together accounting for 73% of net fees.\n\n\n\n\n\n\n\no \n\n\nGrowth seen across Technology, up 1% and Engineering, up 17%, while Life Sciences was down 21% driven by global sector trends.\n\n\n\n\n· \n\n\nReflecting both our strategic focus on flexible talent together with global market conditions, Contract net fees were up 3%, supported by strong extensions, robust pricing and increased contract lengths, while Permanent was down 19%.\n\n\n\n\n· \n\n\nContract net fees represented 81% of Group net fees (H1 FY22: 77%), with the contractor order book(4) value of £190.3 million, which is flat YoY, providing good visibility for the remainder of FY23.\n\n\n\n\n· \n\n\nMargin of 18.3% remains above FY22 levels delivering profit before tax of £38.5 million, down 20% YoY (H1 FY22: £44.3 million), due to the planned investment in the Technology Improvement Programme and headcount.\n\n\n\n\n· \n\n\nStrong balance sheet, with £72.4 million in net cash as at 31 May 2023 (H1 FY22: £48.4 million).\n\n\n\n\n· \n\n\nInterim dividend approved at 5.0 pence per share (H1 FY22: 5.0 pence). We intend to remain in line with our dividend policy of cover in the range of 2.5x to 3.0x for the full year.\n\n\n\n\n· \n\n\nTechnology Improvement Programme on track and on budget, with the integrated platform passing through business user testing with excellent fee...