Despite “highly challenging markets”, international specialist recruiter SThree says it expects its full-year gross profits to be in line with expectations at around £168m, 23% down on the 2008 figure of £219m.

In a trading statement, the company says it made 6,060 permanent placements that started in the year, a decrease of 40.8% (2008: 10,236). But despite the volume decrease, average placement fees for the year overall have remained strong, with some sequential improvement Q4 versus Q3.

The company closed the year with 4,157 contract runners, down 27.7% year-on-year but broadly level with the end of Q3 position of 4,190 runners. Average contractor gross profit per day rates have been stable sequentially Q4 versus Q3. 

Among the other key points, the company reports:

• Greater geographical diversification, with non-UK share of gross profit now at 55% (2008: 45%)

• Year-end net cash of around £48m (2008: £24.6m)

• Days sales outstanding improved to 37 days (2008: 43 days)

• Most markets stable or modestly improving

• Total group headcount as at 29 November 2009 of 1,597 was down 29.8% vs last year (2008: 2,274), but up 6% vs the headcount at the end of Q3, as stabilising market conditions have supported selective rehiring.

Russell Clements, chief executive at SThree, says: “Without question, 2009 presented SThree with trading conditions as challenging as any we have faced in our 23-year history.

“I am pleased to say that despite this, the group performed highly credibly, demonstrating the robustness of our business model even in the most difficult of circumstances. We were able to act decisively where required to modify our cost base while at the same time we continued to prudently invest for the future.

“Although market sentiment has yet to undergo anything like a paradigm shift, we have nonetheless seen recent signs that indicate most markets have stabilised and some are showing improvement.

“We will continue to monitor these trends with a view to ensuring the group is well placed to take full advantage of a broader based recovery. With this in mind our seasoned management, excellent cash position and increasing international exposure positions us extremely well for 2010 and beyond.”