REG-SThree RE: UK Support Locations <Origin Href="QuoteRef">STHR.L</Origin>

SThreeAnnouncement

01/11/2017 11:00

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   SThree (STHR)
   RE: UK Support Locations

   01-Nov-2017 / 10:56 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.

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   1 November 2017
                   For immediate release
    

    

                                        

                                        

                                   SThree plc

                           ("SThree" or the "Group")

    

                  Proposed Relocation of UK Support Functions

    

   SThree, the  international  specialist STEM  staffing  business, announces
   that, following a review of its  UK-based global support structure, it  is
   commencing a consultation  with employees  on the  proposed relocation  of
   support functions  away from  its London  headquarters to  a new  facility
   located within another UK city.

   The initiative will develop a more sustainable support function that  will
   enable the Group  to deliver  higher growth, become  more competitive  and
   improve shareholder returns.

   An exceptional charge of circa £13m  will be booked in the financial  year
   ending 30 November  2017. The Group  estimates the cash  cost of the  move
   would be circa £12m  in the financial year  ending 30 November 2018,  with
   annualised cost  savings  of  circa £4-5m.  The  relocation  programme  is
   expected to complete during the fourth quarter of 2018, with cost  savings
   in FY2018 expected to  be circa £1m, with  the full benefit expected  from
   2019.

   Gary Elden, Chief Executive Officer,  said: "SThree has grown and  changed
   significantly over  the  last  decade,  with the  scope  of  our  business
   shifting from a primary focus on permanent candidates to managing  ongoing
   relationships with  close  to  10,000 contractors  globally.   Moving  our
   support functions to a new location within another UK city would enable us
   to provide the same  quality of support to  the business while  generating
   significant cost savings.   This more sustainable  cost structure will  be
   crucial if we are to continue to  grow for the benefit of our people,  our
   customers and our shareholders."

    

                                    - Ends -

                                        

   Enquiries:                                                         
   SThree plc                                            020 7268 6000
   Gary Elden, CEO
                                                          
   Alex Smith, CFO
   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
   7,000 clients. From its well-established position as a major player in the
   Information and  Communication 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 2,700 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. Accordingly, undue reliance should not be
   placed on forward looking statements.

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   ISIN:          GB00B0KM9T71
   Category Code: MSCL
   TIDM:          STHR
   LEI Code:      2138003NEBX5VRP3EX50
   Sequence No.:  4797


    
   End of Announcement EQS News Service

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   624123  01-Nov-2017 

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