FINANCIALS: Gross profits up 9% at SThree but UK performance lags
17 March 2014
Gross profits (GP) at international staffing business SThree rose by 9%, according to an interim management statement covering the quarter ended 2 March 2014 (Q1). This compares with a decline of 5% in Q4 2013.
Mon, 17 Mar 2014Gross profits (GP) at international staffing business SThree rose by 9%, according to an interim management statement covering the quarter ended 2 March 2014 (Q1). This compares with a decline of 5% in Q4 2013.
UK and Ireland (UK&I) GP was 1% higher than in Q1 of 2013 at £14.2m, but this represents a 10% fall on Q4 of 2013.
It was a similar picture for permanent GP, where there was a 4% fall year-on-year for the group as a whole but UK&I declined 12%.
In contrast, the Rest of World grew by 15% driven by strong performances in the Americas and Asia.
Group sales headcount at 2 March 2014 was up 6% versus the year end and up 18% year-on-year. Year-on-year, UK&I sales headcount was up 15%.
Financial highlights
• Group GP up 9% year-on-year
• Contract GP up 18% year-on-year
• Strong seasonal recovery in contractor runners - up 16% year-on-year at the end of Q1 and 1% above 2013 year-end peak
• Permanent GP down 4% year-on-year
• Permanent deal pipeline volume up 7% year-on-year
• Group sales headcount up 6% vs the year-end position and up 18% year-on-year
• Strong performance in the Americas (up 49% year-on-year), now representing 13% of group GP
• Continued strong performance from newer sector disciplines – energy +54% year-on-year, life sciences +42% year-on-year
• 70% of group GP now generated in markets outside UK&I (2013: 68%)
Gary Elden, chief executive officer, says: "Against a backdrop of improving macroeconomic conditions in a number of our markets, we have made a satisfactory start to the year, in what is, for seasonal reasons, always our least significant quarter.
“Our contract division made further progress as it continued to benefit from a greater strategic focus and increasing exposure to new high growth markets, particularly energy and life sciences.
“Permanent, while still negative, saw some improving trends and the pre-deal pipeline is beginning to suggest a pick-up in activity. We are continuing to invest in the future growth of both businesses to ensure they are appropriately resourced for the market opportunity.
"While, as always, we remain cautious about extrapolating the trend for the year from the quieter first quarter, the strength of our contract book and improving outlook for permanent give us confidence for the year ahead."
UK and Ireland (UK&I) GP was 1% higher than in Q1 of 2013 at £14.2m, but this represents a 10% fall on Q4 of 2013.
It was a similar picture for permanent GP, where there was a 4% fall year-on-year for the group as a whole but UK&I declined 12%.
In contrast, the Rest of World grew by 15% driven by strong performances in the Americas and Asia.
Group sales headcount at 2 March 2014 was up 6% versus the year end and up 18% year-on-year. Year-on-year, UK&I sales headcount was up 15%.
Financial highlights
• Group GP up 9% year-on-year
• Contract GP up 18% year-on-year
• Strong seasonal recovery in contractor runners - up 16% year-on-year at the end of Q1 and 1% above 2013 year-end peak
• Permanent GP down 4% year-on-year
• Permanent deal pipeline volume up 7% year-on-year
• Group sales headcount up 6% vs the year-end position and up 18% year-on-year
• Strong performance in the Americas (up 49% year-on-year), now representing 13% of group GP
• Continued strong performance from newer sector disciplines – energy +54% year-on-year, life sciences +42% year-on-year
• 70% of group GP now generated in markets outside UK&I (2013: 68%)
Gary Elden, chief executive officer, says: "Against a backdrop of improving macroeconomic conditions in a number of our markets, we have made a satisfactory start to the year, in what is, for seasonal reasons, always our least significant quarter.
“Our contract division made further progress as it continued to benefit from a greater strategic focus and increasing exposure to new high growth markets, particularly energy and life sciences.
“Permanent, while still negative, saw some improving trends and the pre-deal pipeline is beginning to suggest a pick-up in activity. We are continuing to invest in the future growth of both businesses to ensure they are appropriately resourced for the market opportunity.
"While, as always, we remain cautious about extrapolating the trend for the year from the quieter first quarter, the strength of our contract book and improving outlook for permanent give us confidence for the year ahead."
