(Alliance News) - SThree PLC on Tuesday said it started the new financial year as a stronger organisation, despite reporting a fall in annual profit and revenue and reducing its dividend.
The London-based recruiter focused on science, technology, engineering and mathematics said pretax profit fell 13% to GBP67.6 million in the financial year that ended November 30 from GBP77.9 million a year prior.
Revenue declined 10% to GBP1.49 billion from GBP1.66 billion.
SThree proposed a final dividend per share of 9.2 pence each, slashed by 21% from 11.6p. That brings the total payout to 14.3p for financial 2024, cut 14% from 16.6p a year ago.
Looking ahead SThree said it expects challenging economic conditions, which are weighing on new business activity, to persist throughout the new financial year.
SThree confirmed it expects pretax profit of around GBP25 million for financial 2025, down 63% from financial 2024. These include up to GBP7 million of one-off costs to deliver operational efficiencies.
"The board remains confident that the group's strategic focus on STEM and Contract, the completed rollout of the technology improvement programme, alongside the actions being taken, will position the group for sustained profitable growth when markets recover," the company said.
Chief Executive Officer Timo Lehne said: "Whilst we navigate this extended cycle, we continue to drive material operational enhancements through the group to position us in line with the structural opportunities arising as a result of clear trends, such as rapid technological change and new ways of working. We continue to believe this future world of work is based on hard-to-find STEM skills, with 63% of employers identifying skills gaps as the biggest barrier to business transformation over the coming years.
"Our deep experience of identifying niche global talent means we sit at the heart of these global trends, a position which is being further enhanced through the continued roll-out of our TIP programme. We start the new financial year as a stronger organisation, which, combined with a robust business model and energised team, leaves us well placed as we progress on our vision for future success."
SThree shares were down 3.9% to 274.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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