Profit rises at SThree

SThree (STHR), the specialist recruitment company, announced on Monday its final results for the year ending 27 November 2011, with pre-tax profit rising by 40%.

Shares, which have fallen by 35% over the past year, edged higher as investors gained some muted confidence from the news.

With most of the company's business coming from appointments in the IT sector, there have been attempts over the past 12 months to diversify further - in terms of both sectors and geography. Robust growth has been seen in engineering, biotechnology and financial services, bringing non-IT positions to now represent 40% of the company's revenues.

"Whatever 2012 has in store for us, we remain confident that we will make the best of it," said Russell Clements, chief executive officer of the group. "Our seasoned management team has seen all market scenarios and has become increasingly adept in recent years at driving the best available result in uncertain circumstances."

The group has opened nine new offices, several of which provide a foothold into emerging markets such as the new office openings in Mumbai, Sao Paulo and Moscow.

Despite Panmure Gordon having retained its 'sell' rating on the stock, Paul Jones, an analyst with the firm, described the business as being "well balanced, well placed and well financed," although with uncertain prospects for 2012 given the context of a possible return to recession in the global economy.

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