SThree has announced that, following a review of its UK-based global support structure, it is commencing a consultation with employees on the proposed relocation of support functions away from its London headquarters to a new facility located within another UK city.
An exceptional charge of circa £13m will be booked in the financial year ending 30 November 2017.
The Group estimates the cash cost of the move would be circa £12m in the financial year ending 30 November 2018, with annualised cost savings of circa £4-5m.
The relocation programme is expected to complete during the fourth quarter of 2018, with cost savings in FY2018 expected to be circa £1m, with the full benefit expected from 2019.
Gary Elden, Chief Executive Officer, said:
"SThree has grown and changed significantly over the last decade, with the scope of our business shifting from a primary focus on permanent candidates to managing ongoing relationships with close to 10,000 contractors globally. Moving our support functions to a new location within another UK city would enable us to provide the same quality of support to the business while generating significant cost savings. This more sustainable cost structure will be crucial if we are to continue to grow for the benefit of our people, our customers and our shareholders."
At 3:04pm: (LON:STHR) SThree PLC share price was +10.38p at 365.38p