SThree sees FY25 in line with EUR 25M PBT guidance

SThree sees FY25 in line with EUR 25M PBT guidance

SThree plc (STEM: LSE) has reported a challenging year, with group net fees declining by 9% in constant currency year-over-year (YoY) in its full fiscal year ended 30 November 2024. The company's CEO, Timo Lehne, attributed the decline to ongoing challenging market conditions, which impacted new business activity. However, SThree expects its fiscal 2025 profit before tax to be around EUR 25 million, which includes up to EUR 7 million of one-off costs to deliver additional operational efficiencies.

Despite the decline in net fees, SThree's contract net fees fell by 7% in constant currency, representing 84% of net fees. The company's permanent net fees also declined by 18% in constant currency. The engineering net fees for the full year were down 1% in constant currency, while technology and life sciences performance declined by 10% and 17% respectively. The company expects robust contract extensions but anticipates that new business activity will remain weak throughout fiscal 2025 due to protracted challenging economic conditions.

SThree's net fees by geography show a decline in constant currency in most regions, with the exception of Middle East and Asia, where net fees increased by 4%. The company's share price has been affected by these developments, reaching a new 52-week low of £230.00 during Thursday's trading session.

SThree has announced a share buyback programme of up to £20 million to be completed over the next six months. Lehne stated that the company's cash generation and strong balance sheet make it prudent to launch the buyback in line with its stated capital allocation policy. The company remains confident in its strategy and expects to be well-placed when market conditions improve.

References:
[1] https://www.staffingindustry.com/news/global-daily-news/sthree-sees-declining-net-fees-issues-profit-warning-for-2025
[2] https://www.marketscreener.com/news/simpson-manufacturing-beats-q2-sales-estimates-reaffirms-fy25-guidance-ce7c5fd8d089f425
[3] https://www.business-standard.com/companies/quarterly-results/adani-green-q1-fy26-results-net-profit-revenue-dividend-shares-125072800694_1.html