International recruiter SThree has seen a fall in profits in its preliminary results for the year ended 29 November 2009.

The group recorded gross profit of £171.2m for the period, down from £218.9m, while profit before taxation fell from £56m to £18m, falling by 67.9% while operating profit fell by 68.3%. Earnings per share (EPS) also dropped from 29.9p to 9.5p.

SThree adds that operating profit, profit before taxation and EPS are shown before exceptional charges of £9.1m before tax, £6.5m after tax relating to a group restructuring (2008: £2m before tax, £1.4m after tax, in respect of the early close out of foreign exchange derivative transactions, which were entered into in 2007).

The group added new offices in Düsseldorf, Hamburg, Stuttgart, Marseille and Singapore and a second office was added in Frankfurt during 2009, while a second Australian office in Perth has opened and additional offices in Munich and Düsseldorf have been launched this month. Additional openings in San Francisco and Delhi are expected for later this year.

SThree’s permanent placements fell by 40.8% to 6,060 (2008:10,236), with average fees increasing 15.2% (+3.9% on a constant currency basis).

Total group headcount at year end was cut by 29.8% to 1,597 (2008: 2,274) but up 6% from end third quarter as stabilising market conditions resulted in selective hiring.

The group also recorded year end net cash and term investments of £48.5m (2008: £24.6m) which it attributes to continued strong cash generation with days sales outstanding at 37 days (2008: 43 days).

Russell Clements, chief executive, says: “The group now has a broader geographical base and addresses a more diverse range of sectors than ever before.

“Although by no means yet close to fully recovered, the market is showing some positive signs. As such we look forward to 2010 with a pragmatic but positive mindset.”