Group net fees up 9% in H1 2019 for SThree
SThree plc has issued a trading update for the half year ended 31st May 2019.
Performance in the first half of the year was in line with management expectations
Group net fees were up 9% YoY to £163m, consistent across both Q1 and Q2. 86% of group net fees generated from markets outside the UK&I (2018: 82%) and there was double digit growth in net fees in all regions outside the UK&I.
In Continental Europe, net fees were up 13% at £93.9m. In the USA, net fees were £35.5m, up 13%. APAC and Middle East net fees were also up 13% at £9.8m. For the UK&I, net fees were down 9% to £23.8m.
There was strong net fee growth in contract, in line with strategic focus. Contract was up 12% YoY to £121.1m, with Q2 up 13%. Contract represented 74% of group net fees in H1 (H1 2018: 72%). Permanent was down 1% YoY to £41.9m, with Q2 down 2%.
Mark Dorman, chief executive, commented, "In what is my first trading update with the Group, I am pleased with the performance we are reporting today, delivered by a strong and talented team. The benefits of our model and the structural drivers in our markets are seen throughout our results with our key performance indicators demonstrating the continued success of our sector and regional strategic focus. We are particularly pleased to report double digit growth in net fees across three of our four regions and have plans in place to drive growth across them all.
"The scale of the STEM opportunity is both enormous and growing across our key regions and we are uniquely positioned to benefit from this. With this backdrop, the structural market drivers for STEM recruitment services remain very attractive and we continue to invest in high performing teams to drive growth, in line with our vision to be the number one STEM talent provider in the best STEM markets.
"Our deliberate focus on contract, a natural function of our STEM specialism, and the continued strength of our performance across key regions and sectors in our well diversified portfolio, provides resilience in today's more uncertain market conditions, whilst also delivering strong growth over the medium term. Following the encouraging start to the year, expectations for the full year remain unchanged."
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