Technology recruiter SThree has seen its profits rise, according to an interim management statement for the period from 30 May 2011 to date. 

The group’s results reveal:

· Permanent gross profit up 23%* year-on-year

· Contract gross profit up 12%* year-on-year

· Group gross profit up 18%* year-on-year

· Improvement in both permanent and contract fees

· Sales headcount growth of 20% year-on-year and 11% vs half year 2011

· New offices opened in Zurich, Luxembourg and Mumbai

· Strong financial position with net cash of around £40m at period end

Group gross profit achieved in the period increased by 18%* year-on-year to £50.2m (2010: £43.0m) and sequentially by 4%* vs Q2 2011.

UK gross profit increased by 5% year-on-year and by 8% on Q2 2011. 

Non-UK gross profit increased by 26%* year-on-year and by 1%* on Q2 2011.

Non-UK now represents 64% of gross profit (2010: 60%), non-ICT represents 39% of gross profit (2010: 39%).

Chief executive Russell Clements says: “Seen in the context of strengthening comparatives and the fact that macroeconomic sentiment deteriorated over the quarter, the group delivered a positive performance.

“We feel that the group’s resources are appropriate, both in terms of scale and the markets in which they are deployed. Our current deal pipeline reflects a healthy level of demand in most of our markets but we remain mindful of the state of the broader economic backdrop as we enter our final and traditionally, most important quarter.”

* at constant currency

** excludes both the gross profit and placement volumes of retained business