With the share price now 195p
Company expanding
�40m debt paid as of 30 Nov
Starting a share buy back

This was published: 24 July 2007 The Independent on Sunday
Edited by Andrew Dewson

SThree

Our view: Buy

Current price: 488.75p

Despite being perhaps the least well known name in recruitment among the mid caps, SThree has kept up the pace with higher profile rivals Robert Walters and Michael Page.

Its shares have risen by more than 125 per cent since listing in late 2005 and if yesterday's interim results are anything to go by there looks to be more upside left.

Although the company has invested heavily in the last 12 months on headcount, information technology systems and new offices, first half pre-tax profits still rose by an impressive 32 per cent to �19.2m, and would have been 54 per cent better had it not been for the investment programme.

SThree provides staff across a wide range of sectors, providing temporary and permanent placements in computing, engineering, telecoms, human resources and pharmaceuticals, even if 80 per cent of its business is still in IT.

It operates out of 48 offices in seven countries and there is scope for more expansion in emerging and developed economies. New offices were opened in Rotterdam and Brussels in the first half and Hong Kong and Dubai will open in the second half.

SThree has moved away from more cyclical temporary recruitment and now makes exactly 50 per cent of its profits from permanent placements. Trading on under 15 times forecast 2008 earnings, SThree is on a discount to its two main UK peers and the recruitment industry looks to be in excellent health. Yesterday's bout of profit taking represents a good buying opportunity.

(Image removed as it is no longer relevant)

Perhaps i should have added - bar three days!

and still going - up 18% in a month!

From the Inependent 5 Feb 2008:

http://www.independent.co.uk/news/business/sharewatch/the-investment-column-wolfson-powers-on-but-it-may-be-heavily-exposed-to-downturn-778093.html

SThree

Our view: Buy

Share price : 200.75p (+1.5p)

Shares in the recruitment firm SThree have fallen 60 per cent since July. The whole sector has been badly mugged. The worry was that recruitment work would dry up as employers stopped hiring because of the credit crunch.

The market got it wrong. SThree continued to prosper. It also sees no sign of a slowdown this year. Profits for 2007 rose by a quarter to 50m. Fee income grew to 522m, while the dividend payout was up 29 per cent not the action of a company in distress.

There was an easing of demand for jobs in the credit and risk market, which should come as no surprise, but this represented a small part of the total business.

The bulk of jobs are filled in the information and communications technology area, where pay is around 45,000-50,000. So SThree, which trades under 12 different brand names, such as Computer Futures and Huxley, is comfortably placed in the middle of the market.

The number of people placed in permanent jobs rose 30 per cent, with fees up nearly 10 per cent. Temporary work, which tends to be more resilient when the economy is sliding into recession and firms are reluctant to hire full-time employees, went up by 20 per cent, with a similar rise in commission.

Overseas work now accounts for a third of the total. Offices were opened in Amsterdam, Brussels and Rotterdam, and a toehold established in Hong Kong. There are now 52 branches in 10 countries.

The company has begun filling other jobs in accountancy, banking, engineering, and pharmaceuticals. All indications during the first two months of the current year such as the number of people attending interviews supports its view that this year will be strong.

The shares sell on just over six times forecast earnings for 2008. Buy.

Is it the time to buy?

Someone thinks so - SThree has bought back over 440,000 shares in the past three days! This is a continuing trend over the past couple of months.

They contiue to buck the trend
:


and today hit 228 before profit taking.

Sharecast gave them a mention last Friday

London close: Footsie ends week on a high
Date: Friday 12 Sep 2008

Market Movers
techMARK 1,412.47 +0.46%
FTSE 100 5,416.70 +1.85%
FTSE 250 8,976.70 +1.15%
LONDON (ShareCast) - Footsie finished the week on a high after a jittery days trading which nearly saw the index dip into the red after a poor start on Wall Street.

Bid talk in the supermarket sector helped fuel the late surge. Sainsburys jumped into the blue as traders raised the prospect of a 510p to 525p a share bid. The supermarket had spent much of the day toiling after Citigroup lowered its target price on peer Wm Morrison to 320p from 375p, despite the company reporting an 18.5% rise in first half underlying pre-tax profits. Wm Morrison and Tesco also recovered

snip snip

Recruitment group SThree's international business continues to offset tougher conditions in the UK and the business overall continues to meet its expectations.

STHR is clearly a SELL now as unemployment is gaining momentum especially in the City.

Sell down to 50p.

Not sure that SELL is the case.

They are buying back shares for cancellation and with businesses not wanting the overheads of employed staff the demand for temporary contract specialist will undoubtedly rise.

Today up 2.5% to 127

SThree warns volumes declining

Trading Update

SThree, the international specialist staffing business, is today issuing a trading update for the year ending 30 November 2008.

Another year of significant growth

Results in line with consensus market expectations

Year end net cash in excess of 24m (2007: 3.5m)

31.1m of shares bought back during the year (13.6% of issued share capital(1))
Greater geographical diversification, with Non UK share of gross profit ("GP") up to circa 45% (2007: 32%)
Improved debtor management - days sales outstanding reduced to 43 days (2007: 59 days)

The year to 30 November 2008 has been another year of significant growth. The Board anticipates gross profit for the Group being circa 220m for the year (2007: 182.7m), an annual increase of approximately 20%. This performance is expected to deliver a Profit Before Tax result in line with consensus market expectations.

During the year, SThree bought back 16.6m shares for 31.1m (average price of 187p per share), representing 13.6% of its issued share capital. This buyback was comfortably funded by operating cashflow, leaving year end cash balances in excess of 24m (2007: 3.5m). The Group also has a 20m committed debt facility through to 25th February 2010, and currently is not drawing down against this.

The Board is pleased to report continued improvement in debtor management in the year with a reduction in days sales outstanding to 43 days, compared to the closing position at 2 December 2007 (59 days), and a further improvement on the position at 1 June 2008 (51 days).

SThree made 10,236 permanent placements that started in the year, an increase of 7.0% (2007: 9,568). Average permanent placement fees for the year have also shown further increases to record levels.

SThree closed the year with 5,745 contractors, up 1.5% on last year (2007: 5,662) and broadly unchanged from the total at the end of the first half (1 June 2008: 5,743). As with permanent fees, average gross profit per day rates also showed further improvements to record levels.

The business of the Group has continued to become more diversified. For the full year, the Board estimates that non-UK GP now represents circa 45% of Group GP (2007: 32%).This compares to 41% at 1 June 2008, with an accelerating trend towards non-UK GP in the final quarter. The Board estimates that contract GP now represents circa 52% of Group GP (2007: 49%) and non ICT GP represents 23% of Group GP (2007: 18%). The Board believes that this mix in the Group's business positions it well for more challenging markets.

In line with the exceptional economic conditions seen during the final quarter of 2008, group trading was inevitably impacted, with a further year on year decline in UK volumes, and a modest slowing in the strong non-UK growth. UK volumes for permanent placements in the final quarter were down circa 25% year on year and UK contract runners were down circa 7% year on year. This was offset by non-UK volumes for permanent placements in the final quarter increasing by circa 29% year on year and non-UK contract runners ahead by circa 22% year on year. Fees have remained robust across permanent and contract in the final quarter, showing similar positive year on year growth in line with our third quarter performance.

SThree continues to demonstrate its flexible business model, adapting to the most challenging markets rapidly, with UK ICT permanent sales headcount down 19% year on year, ahead of the reduction in UK ICT permanent placements which fell 17% year on year. In more robust markets, the Group continued to grow sales headcount, resulting in overall sales headcount growth of 10% year on year.

Following an exceptional level of investment in 2007, capital expenditure in 2008 returned to more normalised levels of approximately 7m (2007: 14.1m). We estimate capital expenditure of circa 6m for 2009.

During 2008 SThree opened offices(2) in Sydney, Dubai, Paris and Amsterdam, bringing the total to 54 offices in 10 countries. At the start of 2009, we will open a new office in Singapore. During the forthcoming year, we anticipate further office openings in Europe (Germany and France), subject to market conditions.

Russell Clements, Chief Executive Officer, commented:

"It is pleasing to be able to report that, despite very difficult conditions in some of our markets, the group will once again demonstrate significant year on year growth. Our well established programme of rolling out into newer sectors and geographies sees the group more diversified and more international than at any other time in its history.

"We end 2008 with a very strong cash position, having funded a substantial share buyback and a growing contractor book during the year. Past experience shows that we remain highly cash generative throughout the economic cycle and this gives us confidence in our ability to continue to return a strong yield even in more difficult trading conditions.

"The forthcoming year is likely to be the toughest we have faced for some time. However, our twenty two year history of profitability, flexible business model, seasoned management team and robust balance sheet all position us well to meet the challenges that lie ahead."

SThree is hosting an analyst conference call today at 0830 GMT. The dial in number is + 44 (0)20 3003 2666 and the password is SThree.

SThree will be announcing its preliminary results for the year ended 30 November 2008 on Monday 2 February 2009.

(1) % of share capital as at 30 November 2008

(2) New offices: Progressive - Sydney, Pathway - Dubai, Huxley - Paris, Madison Black - Amsterdam



Looks quite positive to me!

Dated 5th December 2008


Trading Update

SThree, the international specialist staffing business, is today issuing a trading update for the year ending 30 November 2008.

Another year of significant growth

Results in line with consensus market expectations

Year end net cash in excess of 24m (2007: 3.5m)

31.1m of shares bought back during the year (13.6% of issued share capital(1))
Greater geographical diversification, with Non UK share of gross profit ("GP") up to circa 45% (2007: 32%)
Improved debtor management - days sales outstanding reduced to 43 days (2007: 59 days)

The year to 30 November 2008 has been another year of significant growth. The Board anticipates gross profit for the Group being circa 220m for the year (2007: 182.7m), an annual increase of approximately 20%. This performance is expected to deliver a Profit Before Tax result in line with consensus market expectations.

During the year, SThree bought back 16.6m shares for 31.1m (average price of 187p per share), representing 13.6% of its issued share capital. This buyback was comfortably funded by operating cashflow, leaving year end cash balances in excess of 24m (2007: 3.5m). The Group also has a 20m committed debt facility through to 25th February 2010, and currently is not drawing down against this.

The Board is pleased to report continued improvement in debtor management in the year with a reduction in days sales outstanding to 43 days, compared to the closing position at 2 December 2007 (59 days), and a further improvement on the position at 1 June 2008 (51 days).

SThree made 10,236 permanent placements that started in the year, an increase of 7.0% (2007: 9,568). Average permanent placement fees for the year have also shown further increases to record levels.

SThree closed the year with 5,745 contractors, up 1.5% on last year (2007: 5,662) and broadly unchanged from the total at the end of the first half (1 June 2008: 5,743). As with permanent fees, average gross profit per day rates also showed further improvements to record levels.

The business of the Group has continued to become more diversified. For the full year, the Board estimates that non-UK GP now represents circa 45% of Group GP (2007: 32%).This compares to 41% at 1 June 2008, with an accelerating trend towards non-UK GP in the final quarter. The Board estimates that contract GP now represents circa 52% of Group GP (2007: 49%) and non ICT GP represents 23% of Group GP (2007: 18%). The Board believes that this mix in the Group's business positions it well for more challenging markets.

In line with the exceptional economic conditions seen during the final quarter of 2008, group trading was inevitably impacted, with a further year on year decline in UK volumes, and a modest slowing in the strong non-UK growth. UK volumes for permanent placements in the final quarter were down circa 25% year on year and UK contract runners were down circa 7% year on year. This was offset by non-UK volumes for permanent placements in the final quarter increasing by circa 29% year on year and non-UK contract runners ahead by circa 22% year on year. Fees have remained robust across permanent and contract in the final quarter, showing similar positive year on year growth in line with our third quarter performance.

SThree continues to demonstrate its flexible business model, adapting to the most challenging markets rapidly, with UK ICT permanent sales headcount down 19% year on year, ahead of the reduction in UK ICT permanent placements which fell 17% year on year. In more robust markets, the Group continued to grow sales headcount, resulting in overall sales headcount growth of 10% year on year.

Following an exceptional level of investment in 2007, capital expenditure in 2008 returned to more normalised levels of approximately 7m (2007: 14.1m). We estimate capital expenditure of circa 6m for 2009.

During 2008 SThree opened offices(2) in Sydney, Dubai, Paris and Amsterdam, bringing the total to 54 offices in 10 countries. At the start of 2009, we will open a new office in Singapore. During the forthcoming year, we anticipate further office openings in Europe (Germany and France), subject to market conditions.

Russell Clements, Chief Executive Officer, commented:

"It is pleasing to be able to report that, despite very difficult conditions in some of our markets, the group will once again demonstrate significant year on year growth. Our well established programme of rolling out into newer sectors and geographies sees the group more diversified and more international than at any other time in its history.

"We end 2008 with a very strong cash position, having funded a substantial share buyback and a growing contractor book during the year. Past experience shows that we remain highly cash generative throughout the economic cycle and this gives us confidence in our ability to continue to return a strong yield even in more difficult trading conditions.

"The forthcoming year is likely to be the toughest we have faced for some time. However, our twenty two year history of profitability, flexible business model, seasoned management team and robust balance sheet all position us well to meet the challenges that lie ahead."

SThree is hosting an analyst conference call today at 0830 GMT. The dial in number is + 44 (0)20 3003 2666 and the password is SThree.

SThree will be announcing its preliminary results for the year ended 30 November 2008 on Monday 2 February 2009.

(1) % of share capital as at 30 November 2008

(2) New offices: Progressive - Sydney, Pathway - Dubai, Huxley - Paris, Madison Black - Amsterdam



Looks quite positive to me!

.

Worth looking at now?

Excellent results posted this week!

WELL DONE

Still swimming against the general flow today with a modest rise.

The diversification to other parts of the globe has certainly helped them to exceed expectations.

Whilst I doubt a quick recovery to the heady heights of 500+, I will stick my money where my mouth is and say they will continue to outperform the UKX by a considerable margin for the next 12 months.

SThree suffers decline in demand
Business Financial Newswire


Specialist staffing business SThree said as expected, it experienced an overall decline in demand for its services during the first-half, particularly for permanent placements, with contract hiring proving somewhat more resilient in all territories.

For the six month period ended 31st May 2009, group gross profit declined by around 9% year on year to 93m (2008: 102.5m). On a constant currency basis, gross profit declined by around 15% and non-UK gross profit grew about 4% year on year.

At 31st May 2009 SThree had 4,494 contract runners, a decrease of 21.8% on the year end number of 5,745 runners. Average contractor gross profit per day rates were up overall with continued strength in non-UK rates offset in part by a slight softening in rates in the UK ICT business. During the period, SThree made a total of 3,302 permanent placements, a reduction of 34.1% over the previous year (2008: 5,008). However, average permanent placement fees have continued to improve across all geographies versus last year.

At 31st May 2009 UK contract runners were down 28.2% versus the prior year. However the UK gross profit per day contract rate was down only slightly versus the previous year. During the period, UK permanent placements were down 54.2%, reflecting a 60.8% reduction in UK ICT placements and a 37.8% reduction in UK non-ICT placements. Average UK placement fees were up slightly versus last year.

The non-UK business slowed further in the period. Contract runners reduced versus last year by 7.4%, but this was offset by growth in gross profit per day rates. During the period, permanent placements declined by 7.5%, but again this was offset by strong growth in average fees.

The cash position improved further during the period with net cash of about 45m at 31st May 2009. The Group has no debt.

Total headcount over the period was reduced by circa 25%, with UK sales headcount being down by circa 33% and non UK sales headcount down by circa 17%. The group believes that headcount is now at an appropriate level in light of the current market conditions and opportunities.

This action resulted in exceptional costs of circa 8m, comprising staff restructuring costs and the costs of an office network rationalisation. We expect pay back on these measures within the current financial year ending 29th November 2009.

CEO, Russell Clements, commented: 'The first half of 2009 has seen exceptionally challenging market conditions. By contrast, during the same period in 2008, all of our markets were still growing, making the year on year comparatives particularly tough.

'In response to the difficult trading environment we took decisive and proactive action during the second quarter to realign our headcount with prevailing market conditions and ensure that the business stayed fit for purpose in the short term. However we are equally committed to ensuring that we do not compromise the Group's capacity for a strong bounce back as markets recover.

'In this respect our exceptionally strong cash position gives us the capacity to make prudent investments for the future, whilst at the same time continuing to support our dividend.'

SThree will be announcing its interim results for the six months ended 31st May 2009 on 20th July 2009.

No updates since July - but share price has recovered well - any followers?

Interim statement seems to have gone down well.

Trading Update


SThree plc ("SThree" or the "Group"), the international specialist staffing
business, is today issuing a trading update for the year ended 29 November 2009.


* A solid performance despite highly challenging market conditions
* Full year results expected to be in line with consensus market expectations
* Gross profit of circa GBP168m, down 23% year on year (2008: GBP218.9m)
* Greater geographical diversification, with non-UK share of gross profit now at
55% (2008: 45%)
* Year end net cash of circa GBP48m (2008: GBP24.6m)
* Days sales outstanding improved to 37 days (2008: 43 days)
* Most markets stable or modestly improving

Up 3% on a down day - I can't find anything obvious news wise, but hey ho!

Another 4% today!