REG - SThree plc - FY25 Full Year Trading Update

SThreeAnnouncement

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RNS Number : 6612L  SThree plc  16 December 2025

16 December 2025

 

SThree plc

 

FY 2025 Trading Update

 

FY25 performance in line, TIP rollout complete

Encouraging new business activity

 

SThree plc ("SThree" or the "Group"), the global STEM workforce consultancy,
today issues a trading update for the financial year ended 30 November 2025.

 

Full Year Highlights

 

 ·             Performance for FY25 expected to be in line with previously announced £25
               million PBT guidance((1)).
 ·             Group net fees down 12% YoY((2)) reflecting a sequential quarter-on-quarter
               improvement in the rate of decline throughout the year, underpinned by the US
               returning to growth.
 ·             Contract (84% of net fees) down 12% YoY, whilst Permanent down 9% YoY.
 ·             Technology Improvement Programme (TIP) successfully delivered across all 11
               markets, on time and within budget, providing a single platform that drives
               efficiency and positions the business for scalable growth.
 ·             Contractor order book((3)) down 2% YoY to £157 million, continuing to
               represent sector-leading visibility with the equivalent of circa five months'
               net fees.
 ·             Strong balance sheet with net cash of £68 million at 30 November 2025 (30
               November 2024: £70 million) after taking account of the £20 million share
               buyback completed earlier in the year.
 ·             FY25 efficiencies programme delivered net savings in line with plan.
 ·             Improved final quarter of new placement activity underpins reiteration of FY26
               PBT guidance((4)).

 

Timo Lehne, Chief Executive, commented:

 

"We are pleased to report a positive close to FY25, which is expected to be in
line with guidance. As anticipated, we have not yet seen a widespread market
recovery, however we have exited the year with a period of improving new
placement activity, complemented by continued resilient extensions. Whilst
navigating a challenging macroeconomic backdrop, we have focused this year on
what is within our control: positioning the business to capture emerging
pockets of growth - achieving growth in two of our top five countries -
sharpening our proposition, and maintaining a disciplined focus on operational
efficiency.

A milestone this year was the successful completion of our TIP rollout,
delivered on time and within budget, and marking a seminal moment in the
Group's evolution. This journey has not been without challenges, it has been
bold and strategic. It is enabling our transformation into an agile,
digitally-enabled STEM workforce consultancy that is efficient, scalable and
ready to respond rapidly to new technologies. Whilst we look forward to
sharing the details of key deliverables enabled by the TIP at our full-year
results, we are pleased with the progress and initial impact it is delivering.
With early signs of momentum and encouraging productivity improvement, we
enter the new year in a stronger, more advanced position to drive long-term
growth."

 

Business performance highlights

 

Navigating a prolonged soft market environment, the Group's net fees declined
by 12% YoY. Contract net fees declined 12% YoY as softness in new placement
activity earlier in the year outweighed the benefit of the more recent
improvement and consistently resilient extensions. Contract performance in the
US was a notable highlight, returning to growth this year, and helping to
partially mitigate softer performances in both Germany and the Netherlands.
Our Permanent business declined 9% YoY, which was an improvement on the rate
of decline in the prior year, driven by growth in both the US and Japan.

 

Within our skill verticals, the Group's Engineering net fees were down 6%
YoY, with the performance supported by strong demand in the US. Both Life
Sciences and Technology saw declines of 13% and 18% YoY respectively, amid
continued market uncertainty.

 

Among the Group's three largest markets, accounting for 72% of net fees, the
USA returned to growth after two years of decline, underpinned by strong
demand for skills in Energy and Finance. In Germany, performance was largely
driven by demand for Technology skills. In the Netherlands, trading reflected
softer demand for Engineering and Technology skills compared with strong
prior-year comparators.

 

Group period-end headcount was down 18% from the end of the last financial
year attributable to the careful management of natural churn, whilst being
highly selective about where we choose to hire, and the realisation of further
operational efficiencies.

 

The Group delivered a strong final quarter of cash collection, leaving the
balance sheet in a robust position. An update on capital allocation, including
the Board's intention to initiate a further share buyback programme, will be
provided with the full-year results in January.

 

                                  FY        FY            FY 2025              Q4 2025           Q3 2025             Q2 2025           Q1 2025
 Net fees                         2025      2024          YoY ((2))            YoY ((2))         YoY ((2))           YoY ((2))         YoY ((2))
 Contract                         £270.7m   £310.6m       -12%                 -9%               -13%                -13%              -15%
 Permanent                        £52.0m    £58.5m        -9%                  -2%               -5%                 -13%              -13%
 GROUP                            £322.7m   £369.1m       -12%                 -8%               -12%                -13%              -15%

 Regions
 DACH ((5))                       £106.6m   £127.5m       -16%                 -14%              -21%                -16%              -14%
 Netherlands (incl. Spain) ((6))  £62.3m    £78.5m        -21%                 -12%              -31%                -24%              -16%
 Rest of Europe ((7))             £51.5m    £61.3m        -16%                 -15%              -16%                -17%              -18%
 USA                              £83.2m    £82.0m        4%                   8%                17%                 0%                -9%
 Middle East & Asia ((8))         £19.2m    £19.7m        2%                   7%                22%                 9%                -26%
 GROUP                            £322.7m   £369.1m       -12%                 -8%               -12%                -13%              -15%

 Top five countries
 Germany                          £94.1m    £111.8m       -16%                 -13%              -21%                -14%              -13%
 Netherlands                      £54.1m    £71.0m        -24%                 -17%              -35%                -26%              -18%
 UK                               £27.7m    £38.3m        -27%                 -26%              -27%                -27%              -30%
 USA                              £83.2m    £82.0m        4%                   8%                17%                 0%                -9%
 Japan                            £12.5m    £10.6m        20%                  33%               20%                 34%               -7%
 ROW ((9))                        £51.1m    £55.4m        -8%                  -7%               -1%                 -13%              -12%
 Group                            £322.7m   £369.1m       -12%                 -8%               -12%                -13%              -15%

 Service mix                      FY 2025   FY 2024
 Contract                         84%       84%
 Permanent                        16%       16%

 Skills mix                       FY 2025   FY 2024
 Technology                       45%       48%
 Life Sciences                    16%       17%
 Engineering                      30%       29%
 Other                            9%        7%

 

 

((1)) As guided on 12 December 2024, the Board expects FY25 profit before tax
to be c.£25 million.

((2)) All YoY growth rates expressed at constant currency.

((3)) The contractor order book represents value of net fees until contractual
end dates, assuming all contractual hours are worked.

((4)) As guided on 16 September 2025, the Board expects FY26 profit before tax
to be c.£10 million.

((5)) DACH - Germany, Austria and Switzerland.

((6)) Netherlands (incl. Spain) - Netherlands and Spain, which is managed from
the Netherlands.

((7)) Rest of Europe - UK, Belgium, France.

((8)) Middle East & Asia - Japan and UAE.

((9)) ROW - All other countries we operate in.

 

 

Analyst conference call

 

As announced in the FY25 Q1 Trading Update, SThree is now hosting analyst
conference calls only in conjunction with its Q1 and Q3 Trading Updates, and
Half Year and Full Year results.

 

 

Forward looking dates

 

The Group will present its results for the financial year ended 30 November
2025 on 27 January 2026.

 Enquiries:

 SThree plc
 Timo Lehne, CEO                                  via Alma

 Andrew Beach, CFO

 Keren Oser, Investor Relations Director

 Charlie Hildesley, Investor Relations Manager

 Alma Strategic Communications                   +44 20 3405 0205

 Rebecca Sanders-Hewett                          SThree@almastrategic.com

 Hilary Buchanan

 Sam Modlin

 Rose Docherty

 

 

 

Notes to editors

SThree plc brings skilled people together to build the future. We are the
global STEM workforce consultancy, placing highly skilled, STEM specialist
workers in the industries where they are needed most. We advise businesses,
build expert teams, and deliver project solutions for our clients. With more
than 38 years of experience in pure-play STEM and a global team with local
expertise across 11 countries, we cover high-demand skills across Engineering,
Life Sciences and Technology roles.

 

We provide permanent and flexible contract talent to a diverse base of around
6,000 clients. By combining advanced technology with expertise, we push beyond
traditional boundaries to deliver tailored solutions, leveraging data and
insight from our world-class operating platform.

 

Outpace tomorrow, together

 

 

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.

 

 

 

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