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.

Trading Update.

Key highlights:

Group Gross Profit up 8%* Q2 2010 vs Q1 2010, consistent with markets showing continuing signs of improvement

Headcount growth of 7.9% year on year, driven by market opportunity

Fees remain robust

Roll out of four additional international offices

Non-UK now circa 60% of Group gross profit

Non-ICT now circa 34% of Group gross profit


Group gross profit achieved in the period declined by circa 19%* year on year to circa 74m (2009: 93.3m). UK gross profit declined by circa 29% and non-UK gross profit declined by circa 11%*. Non-UK now represents 60% of gross profit (2009: 54%), non-ICT represents 34% of gross profit (2009: 25%).

Unemployment is rising under Osborne budget, so STHR is a strong sell.

Interim Management Statement.

Highlights:



All markets now improving and in growth, with the exception of Benelux which is nonetheless on an improving trend

Permanent Gross Profit up 36%* year on year and up 18%* on Q2 2010

Contract Gross Profit up 1%* year on year and up 8%* on Q2 2010

Group Gross Profit up 15%* year on year and up 13%* on Q2 2010

Sales headcount growth of 25% year on year, driven by improving market

opportunity and additional international office openings

Permanent deal pipeline up circa 50% year on year

Cash position remains strong with circa 37m net cash at period end

Trading Statement.

Highlights:



All markets now improving and in growth

Full year results expected to be slightly ahead of market consensus

Group Gross Profit of circa 167m, down 2% year on year (2009: 171.1m)

Permanent Gross Profit up 15%* year on year for the full year and up 53%* year on year in Q4

Contract Gross Profit down 12%* year on year for the full year, but up 4%* year on year in Q4

Greater geographical diversification, with non-UK share of gross profit now at 60% (2009: 55%) and 6 new overseas offices opened during the year

Year end net cash of circa 53m (2009: 48.5m)

Interim Management Statement.

Highlights:

· Group gross profit up 15%* year on year (up 12%* in Q4 2011)
· Permanent gross profit up 16%* year on year (up 14%* in Q4 2011)
· Contract gross profit up 13%* year on year (up 9%* in Q4 2011)
· Permanent deal pipeline volume up 11% year on year (up 1% at year end 2011)
· Seasonal recovery in contract runners tracking broadly in line with 2011
· Strong financial position with net cash of circa £30m at period end after payment of interim and special dividend of c£20m in early December 2011

Statement going down well.

Interim Management Statement

Highlights:

· Group gross profit up 6%* year on year

· Contract gross profit up 10%* year on year

· Permanent gross profit up 2%* year on year

· Permanent deal pipeline volume level year on year

· Growth rate in contract runners ahead of same period in 2011

· Continued strong financial position with net cash of circa £17m at period end, after payment of the final dividend of 9.3p per share (circa £11m) on 6 June 2012

Trading Update

Highlights:

· Full year profit before tax expected to be £25m, in line with market consensus
· Group gross profit up 8%* year on year
· Contract gross profit up 11%* year on year
· Permanent gross profit up 6%* year on year
· Ongoing sector diversification driving growth - Energy & Engineering +48%* year on year, Pharmaceuticals & Biotechnology +39%* year on year
· Continued strong financial position; net cash of circa £27m at period end, after buying back circa £7m of shares for treasury
· Handover of CEO responsibilities running ahead of schedule - Gary Elden to succeed Russell Clements as CEO with effect from 1 January 2013

Final Results

Interim Management Statement

Highlights:

· Group gross profit down 3%* year on year
· Contract gross profit up 6%* year on year
· Strong seasonal recovery in contractor runners - up 13% year on year at the end of Q1 and only down 2% on 2012 year end peak
· Permanent gross profit down 12%* year on year with average permanent consultant headcount down 14% year on year
· Permanent deal pipeline volume down 13% year on year
· Good progress made against key strategic priorities - contract, international expansion and ongoing sector diversification
· Continued strong performance from newer sector disciplines - Energy & Engineering +16%* year on year, Pharmaceuticals & Biotechnology +21%* year on year
· 68% of Group gross profit now generated in markets outside UK&I (2012: 65%)
· Continued strong financial position with net cash of circa £20m

Half Year Trading Update

Highlights:

· Group gross profit down 6%* year on year
· Contract gross profit up 3%* year on year
· Strong seasonal recovery in contractor runners - up 9% year on year and up 1% on 2012 year end peak
· Permanent gross profit down 15%* year on year with average permanent consultant headcount down 16% year on year
· Permanent deal pipeline volume down 15% year on year
· Further progress made against key strategic priorities - contract, international expansion and ongoing sector diversification
· Resilient performance from newer sector disciplines
· The Board intends to declare a maintained interim dividend per share of 4.7p (H1 2012: 4.7p)
· Continued strong financial position with net cash of circa £16m

Interim Management Statement

Highlights:

· Group gross profit down 2%* year on year but up 5%* sequentially versus Q2
· Contract gross profit up 7%* year on year and up 6%* sequentially versus Q2
· Good growth in contractor runners - up 8% year on year and up 5% on 2012 year end peak
· Permanent gross profit down 11%* year on year, broadly in line with average permanent consultant headcount down 9% but up 3% sequentially versus Q2
· Permanent deal pipeline volume down 13% year on year
· Strong performance from newer sector disciplines - Energy up 20%* year on year, Pharma & Biotech up 19%* year on year
· Continued strong growth in the Americas (up 30% year on year and up 23% sequentially versus Q2), now represent circa 12% of Group gross profit

I haven't held these for sometime, but just had a dabble.

Recent Broker notes

Closed +15.

Final Results for the year ended 1 December 2013

Operational Highlights
· Group performance improved as the year progressed against a backdrop of weaker macroeconomic conditions;
· Further progress made against key strategic priorities - Contract, ongoing sector diversification and international expansion;
· Contract GP grew by 4%** year on year, with Contract now accounting for 56%** of Group GP (2012: 51%);
· Non-UK&I share of GP increased to 69% (2012: 67%) as the Group's business mix underwent a further shift in favour of our international operations;
· Continued sector diversification with non-ICT disciplines now representing 57% (2012: 54%)
· Strong performance from newer sectors. Energy (+9.3%**) and Life Sciences (+18.3%**) now representing 27% of GP (2012: 22%)
· New offices opened in Calgary, Tokyo and Berlin, bringing the Group total to 55 in 21 countries, of which 40 are outside the UK;
· Disposal of ITJB, a small non-core business, in July 2013 for an initial cash consideration of £9.2m, a further £0.5m receivable in 2014 and a further £2.5m contingent on the performance of ITJB in FY 2014;
· Restructuring of the Group's cost base brought savings of circa £3.2m in H2 2013 and reduces annualised costs by circa £8.5m pa;
· Group headcount at year end increased by 10% to 2,327 (2012: 2,116) although average headcount at 2,228 was flatyear on year (2012: 2,234);
· The Group retains a strong balance sheet position, with year end net cash of £8.7m (2012: £28.3m), after the dividend payment of £16.9m and capital expenditure of £5.6m.

Q1 Interim Management Statement

Highlights

· Group gross profit up 9%* year on year
· Contract gross profit up 18%* year on year
· Strong seasonal recovery in contractor runners - up 16% year on year at the end of Q1 and 1% above 2013 year end peak
· Permanent gross profit down 4%* year on year
· Permanent deal pipeline volume up 7% year on year
· Group sales headcount up 6% versus the year end position and up 18% year on year
· Strong performance in the Americas (up 49%* year on year), now representing 13% of Group gross profit
· Continued strong performance from newer sector disciplines - Energy +54%* year on year, Life Sciences +42%* year on year
· 70% of Group gross profit now generated in markets outside UK & Ireland (2013: 68%)

RBC Capital Markets Outperform 401.00 400.00 400.00 440.00 Reiterates

Trading update for the six months ended 1 June 2014 on 13 Jun 2014

Credit Suisse Outperform 390.25 396.75 - 450.00 Reiterates

Trending down by the chart so not interested.