Connecting to LinkedIn...


A very good performance given the highly challenging market

A very good performance given the highly challenging market conditions

SThree plc has announced its Preliminary results for the year ended 29 November 2009.

The companys revenues fell 17.8% to 519.4 million with Gross Profits down almost 22% to 171.2 million. Profit before taxation of 8.9 million was down from 54.1 million in 2008.

Current year operating profit, profit before taxation and EPS are shown before exceptional charges of 9.1m before tax, 6.5m after tax relating to a Group restructuring (2008: 2m before tax, 1.4m after tax, in respect of the early close out of foreign exchange derivative transactions, which were entered into in 2007).

Operational Highlights

A very good performance given the highly challenging market conditions

Non-UK share of gross profit increased significantly to 55% (2008: 45%), with trend expected to continue as the Group becomes ever more international

New offices opened in Dsseldorf, Hamburg, Stuttgart, Marseille and Singapore and a second office added in Frankfurt, during 2009. Second Australian office (Perth) and additional offices in Munich and Dsseldorf already opened in January 2010, with further openings in San Francisco and Delhi expected this year. Further international expansion in the pipeline

Permanent placements decreased by 40.8% to 6,060 (2008:10,236), with average fees increased by 15.2% (3.9% on a constant currency basis)

Number of active contractors at year end decreased by 27.6% to 4,157 (2008: 5,745), with average gross profit per day rates up by 8.1% (1.4% on a constant currency basis)

Contract versus Permanent mix of gross profit now 58:42 in favour of Contract, providing the Group with an excellent ''cash hedge'' in challenging market conditions

Continued sector diversification, with non-ICT disciplines (principally Banking, Engineering, Finance and Accountancy, Oil & Gas and Pharmaceuticals) now representing 28.4% of total gross profit (2008: 23.1%)

69.2% of gross profit now derived from outside of the UK ICT market (2008: 59.2%)

Total Group headcount at year end reduced by 29.8% to 1,597 (2008: 2,274) but up 6.0% from end third quarter as stabilising market conditions have supported selective hiring

Year end net cash and term investments of 48.5m (2008: 24.6m) reflecting continued strong cash generation with Days Sales Outstanding at 37 days (2008: 43 days)

Maintained total dividend for the year reflecting strong Group cash position and confidence in the strength of the SThree business model

Entered 2010 with most markets now stable or modestly improving.

Russell Clements, CEO, commented: "The Group now has a broader geographical base and addresses a more diverse range of sectors than ever before. Our seasoned management team has used the challenging circumstances to make positive changes in many areas of the business. Although by no means yet close to fully recovered, the market is showing some positive signs. As such we look forward to 2010 with a pragmatic but positive mindset."


Articles similar to

Articles similar to