SThree profits jump as Europe and US drive growth

Recruitment specialist SThree booked rising sales and profits in 2018 following strong growth in Continental Europe and the US.

The group posted a 13% rise in revenue to £1.25 billion in the year to November 30, while pre-tax profits jumped 20% to £47 million.

Gross profit, SThree’s preferred measure, rose 12% to £321.1 million.

The performance was driven by Germany and the Netherlands, which together saw growth of 20%, whilst the US was up 8%.

However, in the UK and Ireland, where Brexit has taken its toll on the hiring market, gross profit fell 5% to £53.1 million.

As well as the impact on recruitment, SThree flagged “ongoing uncertainty” surrounding the potential outcomes of Brexit that could trigger an impairment risk in 2019 or future periods.

Outgoing chief executive Gary Elden said: “The group continued to make good progress throughout 2018. This resulted in a strong financial performance which, demonstrating our resilience, was delivered despite the ongoing macro-economic and political uncertainties.

“We are on track with the delivery of the five-year plan as set out at the November 2017 Capital Market Day.

“Looking forward to the year ahead, our post-year end trading is in line with expectations and we remain well positioned to benefit from the growth opportunities in our chosen STEM markets.”

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