Specialist recruiter SThree (STEM) advanced 6.7% to 585.7p as it upgraded its annual profit forecast after a strong third quarter showing.
The update offers further proof that the services of staffing agencies are in demand as businesses struggle to find skilled staff to fill vacant roles.
SThree focuses on providing staff with science, technology, engineering and mathematics skills. Last month (26 Aug) the company’s more generalist peer Hays (HAS) also reported robust trading in its annual results as it returned to the dividend list.
SThree’s third-quarter net fee revenue rose 29%, underpinned by strong growth in Germany, the US and the Netherlands.
PROFIT ‘SIGNIFICANTLY ABOVE’ CONSENSUS
Pre-tax profit for the year through November is now expected to be ‘significantly above’ market consensus of £51.4 million.
Net fees for the three months through August increased to £91 million, up from £75.1 million.
SThree said growth was strongest in its three largest countries, with Germany up 35%, the US up 31% and the Netherlands up 24%.
It is also worth noting that performance is being flattered by a one-off boost with the upgrade also based on ‘the timing of the planned increase in investment shifting from the second half of the 2021 financial year to the 2022 financial year and beyond’.
