SThree plc reported revenue rose 4% in constant currency in the first half of its fiscal year ended May 31. The UK-based staffing provider — which focuses on science, technology, engineering and math roles — reported strong revenue growth in its life sciences and technology segments. The company stated staffing has regained momentum after the impact of Covid-19 starting last year.
“Over the last six months, demand for our specialist STEM candidates has risen significantly, which is reflected in the increase in underlying placement activity,” CEO Mark Dorman said.
| (£ millions) | H1 2021 | H1 2020 | % change | % change constant currency | H1 2021 (US$ millions) |
| Revenue | £615.1 | £596.0 | 3% | 4% | $872.4 |
| Gross profit (net fees) | £164.3 | £149.9 | 10% | 10% | $233.0 |
| Gross margin | 26.7% | 25.2% | |||
| Profit after tax* | £19.1 | £8.1 | 136% | $27.1 | |
In the US, gross profit rose 24% in constant currency in the first half of the year. Contract gross profit was up 15% while permanent fee gross profit was up 57%.
SThree cited high demand in its key US sectors.
Gross profit in its largest sector in the US, life sciences, rose 30% in constant currency with robust demand in clinical operations, quality assurance and product development, according to SThree. Engineering gross profit rose 12% in constant currency while the company’s tech segment saw gross profit rise by 33% assisted by increased demand in mobile applications, Adobe, Salesforce and software development.
Revenue in the US was £116.5 million (US$165.3 million).
Outlook
The second half began strongly, as the sales activity momentum built across the first half continued into current trading, according to SThree. The company anticipates it will be ahead of current market consensus expectations for the full fiscal year.
Share price and market cap
Shares in SThree closed at £457.50 (US$629.53) today in London, down 4.59% from their 52-week high, according to FT.com. The company had a market cap of £627.2 million (US$863.1 million).
For more coverage of SThree’s financial results, please see our European edition of the Staffing Industry Daily News.
*Adjusted for exceptional items.