Staffing group SThree saw group gross profit drop 6% year-on-year in the six months to 26 May (H1 2013), the same day independent recruiter HR GO reported a profit for 2012.

And the SThree diversification away from the UK and its core ICT markets, as noted previously by recruiter.co.uk, continued. UK business accounted for 32% of GP, down from 35% in the same period last year, while non-ICT business made up 46% of the group. However, while diversification continued in year-on-year comparisons, the balance of business in H1 remained what it was for 2012 as a whole.

This is according to a company trading update ahead of interim results for the period which will be released on 15 July.

Permanent GP dropped 15% year-on-year to £43.4m, making up 46% of the group, while contract GP was up 3% to £50.6m, even though contractor GP per day rates dropped by 6%.

Particularly strong markets were permanent recruitment in the Middle East (GP up 19%) and the Americas (up 16%), and contractor recruitment in energy (up 24%) and pharmaceuticals & biotech (up 15%).

HR GO

The commercial, industrial and public sector recruiter saw turnover drop by 6.3% in 2012, yet saw profit for the year compared with 2011's loss, as it reduced overhead costs and abandoned low margin business.

At £89.6m, turnover was lower than 2008 and 2010 volumes as well as last year’s total, albeit ahead of 2009, as the high street division, making up three quarters of the group, was in decline, as were IT and financial and business services, although engineering and sales grew.

In addition to an operating profit after exceptional items of £772k, the firm made a final profit of £359k, compared to losses in both categories in 2011, of £178k and £498k respectively.