Shares in SThree rose almost 8% today after the STEM recruitment specialist reported that full-year performance is expected to be in line with guidance and highlighted improving momentum towards the end of its financial year.
The AIM-listed group said profit before tax for the year to 30th November 2025 is expected to be around £25 million, in line with previous guidance, despite a prolonged period of soft market conditions.
Group net fees fell 12% year-on-year, although the London-based business pointed to a sequential improvement in the rate of decline through the year, strengthened by its US arm returning to growth.
Contract recruitment, which accounts for 84% of group net fees, declined 12% year-on-year, while permanent recruitment was down 9%, an improvement on the prior year’s rate of decline.
The US was a standout performer, returning to growth after two years of contraction, supported by strong demand for skills in energy and finance.
Growth was also reported in Japan, while Germany and the Netherlands continued to face more challenging conditions.
A key milestone during the year was the successful delivery of the company’s Technology Improvement Programme across all 11 markets, completed on time and within budget.
The programme has introduced a single global platform designed to improve efficiency and support scalable growth.
SThree ended the year with a strong balance sheet, reporting net cash of £68m after taking account of a £20m share buyback completed earlier in the year.
Headcount at the end of the period was 18% lower than a year earlier, reflecting its ongoing efficiency measures.
“We are pleased to report a positive close to FY25, which is expected to be in line with guidance,” said Timo Lehne, chief executive of SThree.
“As anticipated, we have not yet seen a widespread market recovery, however we have exited the year with a period of improving new placement activity, complemented by continued resilient extensions. Whilst navigating a challenging macroeconomic backdrop, we have focused this year on what is within our control: positioning the business to capture emerging pockets of growth – achieving growth in two of our top five countries – sharpening our proposition, and maintaining a disciplined focus on operational efficiency.
“A milestone this year was the successful completion of our TIP rollout, delivered on time and within budget, and marking a seminal moment in the group’s evolution. This journey has not been without challenges, it has been bold and strategic.
“It is enabling our transformation into an agile, digitally-enabled STEM workforce consultancy that is efficient, scalable and ready to respond rapidly to new technologies.
“Whilst we look forward to sharing the details of key deliverables enabled by the TIP at our full-year results, we are pleased with the progress and initial impact it is delivering.
“With early signs of momentum and encouraging productivity improvement, we enter the new year in a stronger, more advanced position to drive long-term growth.”
[the_ad id=”104803
An update on capital allocation, including the board’s intention to initiate a further share buyback programme, will be provided alongside full-year results in January.
Its share price was up at 185.6p at the close of trading today – the highest it has been since September – and the firm currently has a market cap of £234m.
‘Indefatigable’ Neuven Solutions managing director passes away