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(Sharecast News) - SThree backed its full-year guidance on Tuesday as the recruiter posted a drop in first-half group net fees but said the rate of decline had moderated during the period, supported by strong growth in the USA.
In the half year to the end of May, group net fees fell 7% on the same period a year earlier to 147.7m, with an 8% drop in the contract segment to 124.9m and a 5% fall in permanent to 22.8m.
In terms of regions, net fees in the USA and Middle East & Asia were a bright spot, up 12% to 41.8m and 16% to 8.9m, respectively.
In Japan, net fees rose 36% 6.7m. However, net fees in the UK fell 19% to 11.6m, while Germany, the Netherlands and Rest of World saw declines of 14%, 24% and 10% to 42.3m, 22.5m and 22.8m, respectively.
SThree said that among its three largest markets, which accounted for 72% of net fees, growth in the USA was driven by strong demand for Engineering and Technology skills. In Germany, performance was primarily attributable to soft demand for Technology roles, its largest skill vertical.
In the Netherlands, meanwhile, results were largely driven by a soft performance within its two largest skill verticals, Technology and Engineering, with the rate of decline moderating through the half primarily reflecting easing prior-year comparators.
SThree said it continues to expect FY26 pre-tax profit of around 10m.
Chief executive Timo Lehne said: "Trading momentum improved through the period despite the broader macroeconomic and geopolitical backdrop. In the half we delivered strong growth in the USA and Japan, and stable contract new business activity.
"We have achieved continuous productivity gains on a per head basis, which are underpinned by the successful delivery of our Technology Improvement Programme (TIP) last year. Tangible benefits are now increasingly evident across the group, and importantly, TIP enables continuous enhancement and AI innovation at scale and pace."
SThree announced late on Monday that it was extending chair James Bilefield's tenure for a seven-month period until April 2027 following consultation with shareholders. The extension will allow Bilefield time to conclude the search for a permanent chief financial officer, before the Nomination Committee turns its focus to chair succession.
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