In its trading update for the half-year ended 31 May, there was a resilient performance with group net fees down 2% year-on-year on a constant currency basis, against the strong post-Covid comparative period (H1 FY22 YoY growth: 25%) and backdrop of global macro-economic conditions.

However, SThree reported a solid balance sheet, with £72m net cash as at 31 May 2023, with the previous year’s half-year trading update standing at £48m.

Timo Lehne, CEO of SThree, welcomed a “robust” net fee performance in the first half of the year, with the aforementioned fees down 2% YoY against the post-Covid period.

“On a reported basis net fees were up 3%, as we benefited from FX tailwinds. The macroeconomic environment has remained uncertain with varied effects across our markets impacting new placements,” he commented. 

“However, a continued healthy extensions performance has seen our contract business (now representing 81% of group net fees) grow 3% as our clients remain committed to retaining highly sought after skills.”

Lehne said that these results “demonstrates the strength of our well-established strategy”, which focuses on STEM and flexible talent. 

Permanent net fees were down 19% YoY, which reflected market conditions and unforgiving comparatives in the life sciences domain. 

In the company’s largest three markets, which represent 73% of net fees, the Netherlands grew 3%, while Germany was down 1% and the US was down 11%.

Technology was also up 1% and engineering up a sizeable 17%, while as previously mentioned, life sciences was down 21% driven by global sector trends.

SThree also reported that its Technology Improvement Programme is on track and on budget, with sequenced rollout across the group starting in late FY23 as previously announced.

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