Information  X 
Enter a valid email address

SThree plc (STHR)

  Print      Mail a friend       Annual reports

Friday 28 March, 2008

SThree plc

Interim Management Statement

SThree plc
28 March 2008

                                   SThree plc



                          Interim Management Statement





SThree plc ('SThree' or the 'Group'), the international specialist staffing
business, is today issuing an Interim Management Statement covering the period
from 3 December 2007 to 27 March 2008.  The financial and operational data
relates to the three-month period ended 3 March 2008, being the first quarter of
the financial year ended 30 November 2008.



The Group has continued to record encouraging placement levels during the period
with the contract and permanent sides of the business both posting strong growth
on the equivalent period in 2007.  The Board is pleased with the Group's overall
performance which is in line with its expectations and internal key performance
indicators (KPIs)*.



At the end of the first quarter SThree had 5,581 active contractors, an increase
of 21.6% on the prior year (2007: 4,589).  Average contractor gross profit per
day rates also remained strong in the first quarter of the year.



During the first quarter SThree made a total of 2,289 permanent placements, an
increase of 21.6 % over the prior year (2007: 1,881).  Average placement fees
have continued to improve.



Both UK and non-UK geographies performed as expected as did the ICT and non-ICT
sectors.



The performance achieved in the first quarter positions the Group well to
deliver a strong result for the year. As in previous years the Group performance
will be weighted significantly towards the second half.  This normal level of
seasonality may be somewhat more pronounced in the current year reflecting the
phasing of planned headcount growth, with the majority of targeted staff
recruitment expected to take place in the first half. In addition, as announced
in the preliminary results, the Group will recognise a £1.9m loss resulting from
the closure of derivatives related foreign exchange contracts in the first half
results.



Russell Clements, Chief Executive, commented:



'Recent trading conditions remain unchanged from the beginning of the financial
year and overall demand for our services remains robust.  Candidates continue to
have the confidence to move jobs, creating further vacancies as employers look
to replace them on a like-for-like basis.  This factor, coupled with the
structural growth characteristic of our international markets, creates a strong
platform for the Group to continue to post significant growth for the rest of
the year.



'In the light of recent events, demand in the investment banking market remains
subdued.  However, these markets are not of sufficient significance to the Group
to have a major negative impact on the overall performance of the Group.  We
remain aware of concerns that negative sentiment could spread beyond the
financial arena, but have yet to see any evidence of this actually happening.
That said, the Group's seasoned management team is closely focused on ensuring
that our strategy remains consistent with the prevailing market conditions.'





All Data sourced from SThree MIS. * KPIs include Drop out Rates, Time to Hire
and Interview to Placement ratios



SThree is hosting an analyst conference call today at 0830 GMT.  The dial in
number is + 44 20 3003 2666 and the password is SThree.



                                    - Ends -



Enquiries:


SThree plc                                                         020 7292 3838
Russell Clements, Chief Executive Officer
David Tilston, Interim Chief Financial Officer

Citigate Dewe Rogerson                                             020 7638 9571
Kevin Smith / Nicola Smith





Notes to editors



SThree, founded in 1986, is an international specialist staffing business,
providing both permanent and contract staff to a diverse, client base of well
over 6,000 clients.  From its well-established position as a major player in the
information and communications technology ('ICT') sector the Group has broadened
the base of its operations by building fast-growing businesses serving the
banking and finance, accountancy, human resources, engineering, energy and
pharmaceuticals sectors.



Following the establishment of its first business, Computer Futures, in 1986,
the Group adopted a multi-brand strategy. SThree currently operates 12
separately managed brands, the four largest being Computer Futures, Huxley
Associates, Progressive and Pathway, and has 33 offices in the UK and 19
overseas offices, 15 elsewhere in Europe, the Netherlands, Belgium, France,
Germany and Ireland.  In 2006, the Group opened its first North American office,
in New York, and recently opened offices in Australia, Hong Kong and Dubai.



SThree has a selective approach to clients and focuses on high margin
opportunities, predominantly within the small to medium-sized enterprises ('SMEs
') market and, from its inception, the Group has avoided the high volume, low
margin business model in favour of a focus on high quality business.




                      This information is provided by RNS
            The company news service from the London Stock Exchange