Shares in SThree Plc (LSE:STEM) fell more than 4% on Tuesday after the recruitment group reported lower first-quarter net fees and revealed that its chief financial officer will step down. Weak trading conditions across several European markets offset stronger growth in the United States and Japan.
The global STEM-focused recruitment specialist recorded group net fees of £71.7 million for the three months ending Feb. 28, compared with £78.4 million during the same period last year, representing an 8% year-on-year decline.
Regional performance varied significantly. Net fees in the Netherlands dropped 28% to £11 million, Germany fell 11% to £21.5 million, and the UK declined 17% to £5.8 million. By contrast, the United States posted an 8% increase to £19.5 million, while Japan delivered strong growth of 57%, reaching £3.3 million.
Contract placements, which account for 83% of the group’s net fees, decreased 10% to £59.8 million. Fees from permanent placements remained unchanged at £11.9 million. The company reported a contractor order book of £152 million, down 7% compared with a year earlier.
Looking at the business by sector, Technology generated 44% of total net fees, followed by Engineering at 30% and Life Sciences at 16%. Engineering fees declined 5% year-on-year, while Technology demand remained subdued, particularly in the Netherlands and Germany.
The company’s workforce at the end of the period was 4% lower than at the close of the previous financial year. SThree held net cash of £51 million as of Feb. 28. A share buyback programme worth up to £20 million, launched in February, had repurchased £8 million in shares by March 16.
SThree said it continues to expect fiscal 2026 results to align with the outlook issued on Sept. 16, 2025, with cost reductions anticipated to contribute from the second half of the year.
Chief executive Timo Lehne said the first quarter began in line with expectations despite “geopolitical uncertainty and rapid technological change.”
In a separate announcement, chief financial officer Andrew Beach confirmed he will step down from the board at the company’s annual general meeting on April 29 after nearly five years with the business. He will remain in his role until the release of the half-year results on July 21 to ensure a smooth transition.
Damian Fehrenberg, currently Senior Vice President Finance USA, will take over as interim CFO from April 30 while the company conducts a search for a permanent successor with the support of external advisers.
Beach said the completion of the firm’s Technology Improvement Programme made it “the right time” to consider his next career move.
The company added that the resolution to reappoint Beach, which had already been included in the AGM notice, has now been withdrawn, while all other resolutions remain unchanged.
Leave a Reply