FINANCIALS: SThree diversifies, Reed grows - but GP drops at both
8 March 2013
International specialist staffing firm SThree’s gross profit (GP) has fallen 3% year-on-year to £45.5m in the three months to 24 February, driven by challenging conditions in the permanent hire market, while Reed Specialist Recruitment has seen turnover rise slightly in the UK, but GP drop.
Fri, 8 Mar 2013International specialist staffing firm SThree’s gross profit (GP) has fallen 3% year-on-year to £45.5m in the three months to 24 February, driven by challenging conditions in the permanent hire market, while Reed Specialist Recruitment has seen turnover rise slightly in the UK, but GP drop.
Reed Specialist Recruitment
The firm’s turnover rose 3% to £785.4m for the year ended 30 June 2012 compared with the previous 12 months, but GP dropped by from £26.1m to £23.6m, according to results filed with Companies House.
All business was done within the UK, with the company’s ultimate parent Reed Global registered in Malta.
The recruitment group saw a loss after taxation of £2.9m, having been in profit to the tune of £114k last year.
Permanent GP dropped by 2% and temporary GP decline by 3%. The firm says it is “the nature of our business that visibility is short”.
SThree
In its Q1 interim management statement, available via the recruiter's website, chief executive officer Gary Elden puts the fall from £47.7m down to “client and candidate confidence [having] weakened from fourth quarter levels in a number of key markets”.
GP in the permanent hiring business fell 12% to £20.9m, offsetting the 6% growth in contract hiring to £24.5m.
Elden points out the group’s continued efforts to diversify from being purely an IT recruitment business into other areas, saying: “The success of the group's diversification in recent years was again illustrated by the performance of energy & engineering and pharmaceuticals & biotechnology, which continued to experience strong demand and now represent 36% of GP [compared to 33% in FY2012].”
International expansion has also been key, with 68% of gross profit now being generated outside of the UK & Ireland, increasing further from the 65% seen in the last full financial year.
Reed Specialist Recruitment
The firm’s turnover rose 3% to £785.4m for the year ended 30 June 2012 compared with the previous 12 months, but GP dropped by from £26.1m to £23.6m, according to results filed with Companies House.
All business was done within the UK, with the company’s ultimate parent Reed Global registered in Malta.
The recruitment group saw a loss after taxation of £2.9m, having been in profit to the tune of £114k last year.
Permanent GP dropped by 2% and temporary GP decline by 3%. The firm says it is “the nature of our business that visibility is short”.
SThree
In its Q1 interim management statement, available via the recruiter's website, chief executive officer Gary Elden puts the fall from £47.7m down to “client and candidate confidence [having] weakened from fourth quarter levels in a number of key markets”.
GP in the permanent hiring business fell 12% to £20.9m, offsetting the 6% growth in contract hiring to £24.5m.
Elden points out the group’s continued efforts to diversify from being purely an IT recruitment business into other areas, saying: “The success of the group's diversification in recent years was again illustrated by the performance of energy & engineering and pharmaceuticals & biotechnology, which continued to experience strong demand and now represent 36% of GP [compared to 33% in FY2012].”
International expansion has also been key, with 68% of gross profit now being generated outside of the UK & Ireland, increasing further from the 65% seen in the last full financial year.
- This is the first financial period for the business in the era following Russell Clements' departure as CEO. Clements retired on 1 January and is profiled in the upcoming edition of Recruiter magazine, out next week.
