SThree's UK business sees 4th straight quarter of decline

Uncertainty around Brexit and public sector cuts have taken their toll on specialist STEM recruiter SThree’s bottom line.

Gross profits for the three months to 28 February were little changed, the Financial Times reports, and profits for the UK and Ireland dropped 19% to £13million, steeper than the 12% drop in Q4, making it the fourth consecutive quarter of decline for the firm.

Year-on-year, UK profits decreased by 37%, with fewer permanent hires being made.

However, results were much more positive away from the British Isles.

Gary Elden, SThree’s CEO, said: “Our contract business continues to grow robustly. We were also pleased to see momentum re-established in the USA, where gross profit grew by 12% in Q1, a significant acceleration from H2 2016.

“Looking ahead, political and macro-economic uncertainty remains at heightened levels in a number of our key regions. Against this background, we are managing the business prudently and continue to invest in our highest performing teams. Our focus on contract, the continued strength of our performance in continental Europe, our greater momentum in the USA and firm control of our cost base leave us well positioned for the future.”

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