INVESTOR RELATIONS CENTER

SThree

News Detail

DGAP-UK-Regulatory News vom 16.03.2018

SThree: Q1 Trading Update

SThree (STHR)

16-March-2018 / 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.


16 March 2018

 

 

Q1 Trading Update

 

SThree plc ("SThree" or the "Group"), the international STEM+ specialist staffing business, is today issuing a trading update covering the period from 1 December 2017 to date; financial information relates to the quarter ended 28 February 2018.

 

Highlights

 

  • Encouraging start to the new financial year
  • Group gross profit ("GP") up 8%* YoY
    • Strong growth in Continental Europe up 15%* (Q4 2017: +16%*), with standout performances from DACH++ up 15%* and the Netherlands up 20%*
    • USA GP up 1%* with Contract up 10%*
    • UK&I GP down 3%* YoY, a significant moderation over Q4 (Q4 2017: -13%*)
    • Strong growth in Life Sciences up 9%*, ICT up 5%*, Engineering up 14%* and Energy up 35%*
  • 82% of Group GP generated from markets outside the UK&I (2017: 80%)
  • Contract GP up 11%* (Q4 2017: +14%*) with strong growth across Continental Europe up 19%*, ICT up 6%* and Life Sciences up 10%*
  • Contract represented 72% of Group GP (Q1 2017: 70%)
  • Permanent GP up 2%*
  • Group period-end sales headcount up 12% YoY

 

+Science, Technology, Engineering & Mathematics

++ Germany, Austria and Switzerland

 

Gary Elden, Chief Executive, commented:

 

"While Q1 is our least significant quarter, we've made an encouraging start to the new financial year. 

 

"Our Contract business continues to go from strength to strength, with GP increased by 11%* in Q1, driven by continued strong growth in Continental Europe, especially key markets such as the Netherlands and Germany. Growth in Contract GP from our Life Sciences, ICT and Energy businesses has also been particularly pleasing.

 

"As anticipated, the growth rate in our US business reflected the tough prior year comparatives from Q1 2017. The market opportunity in the USA remains very strong and we expect to see an improving performance from this business.

 

 "Our Permanent GP increased by 2%*, driven by strong performances in Germany up 13%* and in Japan up 75%*.

 

"Looking ahead, we will continue to invest in our highest performing teams, consistent with our vision to be the number one STEM talent provider in the best STEM markets. Our focus on Contract and the continued strength of our performance in Continental Europe and across key sectors leave us confident that there are good growth opportunities available for us this year."

 

 

 

Financial Highlights -

 

 

 

 

 

 

 

   

Group Gross Profit

 

 

 

 

 

 

 

   

 

 

 

Q1 2018

 

Q4 2017

Q3 2017

Q2 2017

Q1 2017

   

Gross Profit

Q1 2018

Q1 2017

YoY % 1

 

YoY % 1

YoY % 1

YoY % 1

YoY % 1

   

 

 

 

 

 

 

 

 

 

   

Contract

£50.5m

£45.6m

+11%

 

+14%

+9%

+9%

+7%

   

Permanent

£19.8m

£19.5m

+2%

 

-5%

-6%

-6%

-14%

   

Group

£70.3m

£65.1m

+8%

 

+8%

+5%

+4%

-

   

 

 

 

 

 

 

 

 

 

   

UK&I

£12.7m

£13.0m

-3%

 

-13%

-10%

-14%

-19%

   

Continental Europe

£40.3m

£34.0m

+15%

 

+16%

+6%

+7%

+7%

   

USA

£13.1m

£14.2m

+1%

 

+17%

+20%

+20%

+12%

   

Asia Pac & Middle East

£4.2m

£3.9m

+15%

 

-7%

+1%

+5%

-14%

   

Group

£70.3m

£65.1m

+8%

 

+8%

+5%

+4%

-

   

 

 

 

 

 

 

 

 

 

   

 

ICT

 

£31.8m

 

£29.5m

 

+5%

 

 

+1%

 

+1%

 

+1%

 

+2%

   

Banking & Finance

£9.5m

£9.8m

-

 

-1%

+1%

-1%

-8%

   

Energy

£6.1m

£5.1m

+35%

 

+50%

+35%

+24%

-8%

   

Engineering

£6.7m

£5.6m

+14%

 

+11%

+5%

+3%

-1%

   

Life Sciences

£14.8m

£14.1m

+9%

 

+12%

+3%

+7%

+4%

   

Other3

£1.4m

£1.0m

+32%

 

+19%

+24%

+13%

+4%

   

Group

£70.3m

£65.1m

+8%

 

+8%

+5%

+4%

-

   

 

 

 

 

 

 

 

 

 

   

Contract / Perm Split

 

 

 

 

 

 

 

 

   

Contract

72%

70%

 

 

 

 

 

 

   

Permanent

28%

30%

 

 

 

 

 

 

   

 

100%

100%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

   

Geographical Split

 

 

 

 

 

 

 

 

   

UK&I

18%

20%

 

 

 

 

 

 

   

Continental Europe

57%

52%

 

 

 

 

 

 

   

USA

19%

22%

 

 

 

 

 

 

   

Asia Pac & Middle East

6%

6%

 

 

 

 

 

 

   

 

100%

100%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

   

Sector Split

 

 

 

 

 

 

 

 

   

ICT

45%

45%

 

 

 

 

 

 

   

Banking & Finance

14%

15%

 

 

 

 

 

 

   

Energy

9%

8%

 

 

 

 

 

 

   

Engineering

9%

9%

 

 

 

 

 

 

   

Life Science

21%

22%

 

 

 

 

 

 

   

Other

2%

1%

 

 

 

 

 

 

   

 

100%

100%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

   

 

 

 

Q1 2018

 

Q4 2017

Q3 2017

Q2 2017

Q1 2017

   

Operating Metrics

Q1 2018

Q1 2017

YoY %

 

YoY %

YoY %

YoY %

YoY %

   

 

 

 

 

 

 

 

 

 

   

Contract Runners2

 

 

 

 

 

 

 

 

   

UK&I

2,537

2,568

-1%

 

-2%

-7%

-6%

-8%

   

Continental Europe

5,408

4,390

+23%

 

+21%

+18%

+19%

+19%

   

USA

1,427

1,419

+1%

 

+14%

+24%

+23%

+14%

   

Asia Pac & Middle East

473

501

-6%

 

+3%

+19%

+25%

+19%

   

Group

9,845

8,878

+11%

 

+12%

+11%

+12%

+9%

   

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

   

1 *At constant currency

 

 

 

 

 

 

 

   

2 Period-end number of contractors onsite with clients

 

 

 

 

 

3 Other includes Procurement & Supply Chain and Sales & Marketing

 

 

 

 

                     

 

 

 

 

 

 

 

 

Q1 Group gross profit ("GP") was up 8%* YoY (Q4 2017: +8%*), driven, in particular, by strong growth in Continental Europe. 

 

Contract remains the driving force of this strong performance, with GP up 11%* YoY. This growth was driven by Continental Europe up 19%* and the USA up 10%*, which together represent 76% of Group Contract GP.

 

Permanent GP was up 2%* YoY (Q4 2017: -5%*), with Germany up 13%*, supported by growth in APAC & MENA up 44%*. The USA was down 18%*, reflecting the previously highlighted strong prior year comparatives (Q1 2017: +16%*).

 

Average Group sales headcount was up 12% YoY with Continental Europe up 20%, USA up 16% and UK&I down 2%. Average Permanent headcount was up 4% and average Contract headcount was up 17%. Contract headcount now represents 66% of Group sales headcount (Q1 2017: 63%).

 

The strategic restructuring and relocation of our London based support functions to Glasgow, as previously announced, is progressing well. We remain on track to deliver the expected benefits.

 

The Group opened two new offices in Eindhoven and Washington D.C. during the period to better service its clients. We now have a network of 43 offices in 16 countries, of which 35 are outside the UK. The Group generated 82% of GP for the period from markets outside the UK&I (2017: 80%).

SThree remains in a strong financial position. Net debt at 28 February 2018 was circa £2m (28 February 2017: £1m). The Group has a £50m revolving credit facility ("RCF") with HSBC and Citibank, which is committed to May 2019.

 

*at constant currency

 

SThree is hosting an analyst conference call today at 0830 GMT. The details are as follows:

 

Telephone number: +44 (0) 20 3003 2666

 

For access to the call please quote passcode SThree

 

A replay facility will be available for seven days on +44 (0) 208 196 1998 Passcode: 5497258#

              

The Group will issue its trading update for the six months ended 31 May 2018 on 15 June 2018.

 

- Ends -

 

 

Enquiries:

 

 SThree plc

020 7268 6000

 Gary Elden, Chief Executive Officer

 

 Alex Smith, Chief Financial Officer

 

 Sarah Anderson, Deputy Company Secretary/IR enquiries

 

 

 Citigate Dewe Rogerson

020 7638 9571

 Kevin Smith/Jos Bieneman

 

 

 

 

Notes to editors

 

SThree is a leading international specialist staffing business, providing permanent and contract specialist staff to a diverse client base of over 9,000 clients. From its well-established position as a major player in the information and communications technology ('ICT') sector the Group has broadened the base of its operations to include businesses serving the Banking & Finance, Energy, Engineering and Life Sciences sectors.

 

Since launching its original business, Computer Futures, in 1986, the Group has adopted a multi-brand strategy, establishing new operations to address growth opportunities. SThree brands include Computer Futures, Huxley Associates, Progressive and The Real Staffing Group. The Group has circa 2,800 employees in sixteen countries.

 

SThree plc is quoted on the Official List of the UK Listing Authority under the ticker symbol STHR and also has a US level one ADR facility, symbol SERTY.

 

 

Important notice

 

Certain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Certain data from the announcement is sourced from unaudited internal management information and is before any exceptional items. Accordingly, undue reliance should not be placed on forward looking statements. 

 




show this
Diese Inhalte werden Ihnen präsentiert von der .