FINANCIALS: SThree flags potential impact of coronavirus but delivers robust net fee performance

Against the backdrop of “increasing global macro-economic uncertainties and challenges”, the CEO of international STEM recruiters SThree has flagged up the threat of the coronavirus to the company’s business.

In a trading update for Q1 that ended 29 February and therefore does not cover the growing impact on the coronavirus on economic activity and markets around the world, CEO Mark Dorman said: “The uncertainties the market faces are, however, potentially very significant given the fast-developing situation with Covid-19, recent falls in oil prices and increasing concerns about global confidence and growth. Notwithstanding that demand for STEM skills remains robust.”

Speaking about the latest worldwide developments, he added: “The coronavirus outbreak continues to develop globally, and it is difficult to predict the potential impact it may have on our business. The group is continuing to monitor the situation closely and regional management teams are ready to react as developments unfold.” 

Despite the wider economic headwinds, Dorman said the company’s focus on contract and STEM, combined with the efforts of employees worldwide, “has enabled us to continue to deliver a robust level of net fees”.

Highlights for Q1 ending 29 February 2020

  • Group net fees flat 
  • Strong growth in Germany up 7%, Netherlands up 3%
  • Growth across Technology, Life Sciences and Engineering
  • Contract net fees up 2%
  • 87% of group net fees generated from international markets (2019:86%)
  • Group average headcount up 5% year-on-year
  • Net cash of £9m

• Comment below on this story. You can also tweet us to tell us your thoughts or share this story with a friend. Our editorial email is [email protected]

Entrepreneur Spencer-Percival moves into life sciences with new venture

Serial entrepreneur David Spencer-Percival (pictured) has launched a new venture, Life Science People, with an initial team of 20 and a personal investment of £2m.

New to Market 3 September 2020

ANALYSIS: Adaptability and relationship management key to sector recovery

The UK recruitment industry has been enjoying a period of growth since 2008’s financial crisis, growing at an average of around 6% per year.

11 August 2020

Pace Med Tech aims to support nGAGE growth strategy

Specialist recruiter nGAGE has unveiled the latest recruitment brand to join its portfolio, increasing its reach across the STEM spectrum.

5 June 2020

NEW TO THE MARKET: 24-28 MAY 2020

This week’s new launches include: Pace Med Tech, Podium, Redwigwam

New to Market 28 May 2020
Top