UK's SThree FY25 revenue falls 12%, meets estimates

SThree

27/01/2026 07:11

Overview

Global STEM consultancy's FY25 revenue declined 12%, meeting analyst expectations

Operating profit for FY25 beat analyst estimates

Company announces new £20 mln share buyback program

Outlook

SThree expects FY26 profit before tax to be c.£10 mln

Company sees encouraging momentum in select markets like the USA

SThree progressing with cost optimization, savings expected from H2

Result Drivers

NET FEES DECLINE - Group net fees fell 12% YoY due to challenging macroeconomic conditions, with declines in Germany and the Netherlands, partially offset by growth in the USA

TECHNOLOGY PROGRAMME - Successful rollout of Technology Improvement Programme improved consultant productivity and operational efficiency

COST MANAGEMENT - Disciplined cost management and operational efficiencies helped offset impact of declining net fees

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Meet
GBP 1.30 bln
GBP 1.30 bln (3 Analysts)
FY Operating Profit
Beat
GBP 26.10 mln
GBP 25.24 mln (4 Analysts)
FY Pretax Profit
Beat
GBP 25.50 mln
GBP 25.001 mln (4 Analysts)
FY Dividend
GBP 0.09


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for SThree PLC is GBp270.00, about 46.7% above its January 26 closing price of GBp184.00

The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nRSa4450Qa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)