Trading Statement

Dow Jones received a payment from EQS/DGAP to publish this press release.

SThree (STHR) 
Trading Statement 
 
09-Dec-2016 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
9 December 2016 
 
*FY16 Trading Update* 
 
SThree plc ('SThree' or the 'Group'), the international specialist staffing 
business, is today issuing a trading update for the financial year ended 30 
November 2016. 
 
*Highlights* 
 
- Profit before tax for the year expected to be slightly above the top end 
of the range of current market expectations1 
 
- Group gross profit ('GP') up 2%* YoY and ahead by 6%* excluding Energy 
 
- Robust growth across ICT (+12%* YoY) and Engineering (+9%* YoY) 
 
- Strong growth in Continental Europe (+13%* YoY), driven by DACH (+17%* 
YoY) 
 
- USA GP level* YoY (up 9%* excluding Energy), reflecting tough trading 
conditions in Energy and Banking & Finance 
 
- 75% of Group GP generated from markets outside the UK&I (2015: 70%). 
 
- UK market impacted by slowdown in Banking & Finance sector, Public Sector 
reforms and EU referendum result - GP down by 8%* YoY 
 
- Conditions in the Energy market remain challenging - GP down 30%* YoY 
 
- Contract GP up 8%* YoY and ahead by 11%* excluding Energy 
 
- Permanent GP down 8%* YoY, broadly in line with average sales headcount 
down 10%. Permanent GP excluding Energy down 1%* YoY 
 
- Group period-end sales headcount down 6% YoY, with Contract sales heads up 
1% offsetting Permanent sales heads down 17% 
 
- Period end net cash of circa GBP10m, after share buy backs of GBP7m (30 
November 2015: net cash of GBP6.2m) 
 
_1 The range of market expectations for adjusted pre-tax profit for the year 
is GBP37.3m to GBP39.0m, with a current consensus of GBP38.3m. Adjustments relate 
to restructuring items of circa GBP3.5m in certain sales businesses and 
central support functions. _ 
 
Gary Elden, Chief Executive, commented: 'We have delivered a solid overall 
performance for the year, in the face of mixed trading conditions. Our 
Contract business continued to perform well, with GP increasing by 8%* year 
on year and with contract runners reaching in excess of nine thousand, a 
milestone for the Group. Continental Europe once again grew strongly, 
underpinned by a very pleasing performance in DACH, where GP was ahead by 
17%* year on year. 
 
'Looking ahead to 2017, global political and macro-economic uncertainties 
have increased across a number of our key regions. We are managing the 
business prudently in the light of these market conditions, and continue to 
invest in our highest performing teams. The momentum of our Contract 
business, the strength of our performance in Continental Europe and the 
benefit of restructuring measures taken earlier in the year, leave us 
well-positioned for the future.' 
 
*Financial Highlights - Group Gross Profit* 
 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |*FY  | |*Q4  |*Q3  |*Q2  |*Q1   ||| 
|             |         |         |2016*| |2016*|2016*|2016*|2016* ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Gross       |*FY 2016*|*FY 2015*|*YoY | |*YoY |*YoY |*YoY |*YoY %||| 
|Profit*      |         |         |% *1 | |% *1 |% *1 |% *1 |*1    ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Contract     |GBP173.6m  |GBP150.9m  |+8%  | |+5%  |+6%  |+10% |+11%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Permanent    |GBP85.1m   |GBP84.7m   |-8%  | |-10% |-15% |-12% |+9%   ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Group*      |*GBP258.7m*|*GBP235.6m*|*+2%*| |*-*  |*-2%*|*+2%*|*+10%*||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|UK&I         |GBP64.0m   |GBP69.5m   |-8%  | |-12% |-9%  |-9%  |-     ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Continental  |GBP127.6m  |GBP103.3m  |+13% | |+8%  |+12% |+16% |+20%  ||| 
|Europe       |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|USA          |GBP50.7m   |GBP45.4m   |-    | |+1%  |-10% |-    |+14%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Asia Pac &   |GBP16.4m   |GBP17.4m   |-15% | |-4%  |-26% |-18% |-13%  ||| 
|Middle East  |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Group*      |*GBP258.7m*|*GBP235.6m*|*+2%*| |*-*  |*-2%*|*+2%*|*+10%*||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|ICT          |GBP115.8m  |GBP97.3m   |+12% | |+6%  |+8%  |+15% |+20%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Banking &    |GBP41.7m   |GBP42.6m   |-9%  | |-10% |-16% |-14% |+6%   ||| 
|Finance      |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Energy       |GBP19.6m   |GBP26.2m   |-30% | |-24% |-32% |-28% |-34%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Engineering  |GBP23.3m   |GBP20.0m   |+9%  | |+6%  |+9%  |+1%  |+21%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Life Sciences|GBP54.3m   |GBP45.2m   |+8%  | |+6%  |+4%  |+7%  |+19%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Other3       |GBP4.0m    |GBP4.3m    |+1%  | |-11% |-3%  |+11% |+15%  ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Group*      |*GBP258.7m*|*GBP235.6m*|*+2%*| |*-*  |*-2%*|*+2%*|*+10%*||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Contract /  |         |         |     | |     |     |     |      ||| 
|Perm Split*  |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Contract     |67%      |64%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Permanent    |33%      |36%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |*100%*   |*100%*   |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Geographical|         |         |     | |     |     |     |      ||| 
|Split*       |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|UK&I         |25%      |30%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Continental  |49%      |44%      |     | |     |     |     |      ||| 
|Europe       |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|USA          |20%      |19%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Asia Pac &   |6%       |7%       |     | |     |     |     |      ||| 
|Middle East  |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |*100%*   |*100%*   |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|*Sector      |         |         |     | |     |     |     |      ||| 
|Split*       |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|ICT          |45%      |41%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Banking &    |16%      |18%      |     | |     |     |     |      ||| 
|Finance      |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Energy       |8%       |11%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Engineering  |9%       |9%       |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Life Science |21%      |19%      |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|Other        |1%       |2%       |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |*100%*   |*100%*   |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |     | |     |     |     |      ||| 
+-------------+---------+---------+-----+-+-----+-----+-----+------+++ 
|             |         |         |*FY  | |*Q4  |*Q3  |*Q2  |*Q1   ||| 
|             |         |         |2016*| |2016*|2016*|2016*|2016* ||| 

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December 09, 2016 02:01 ET (07:01 GMT)