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.

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.

Half Year Trading Update

Highlights

· Group gross profit up 13%* year on year
· Contract gross profit up 22%* year on year
· Strong seasonal recovery in contractor runners - up 26% year on year at the end of H1 and 12% above 2013 year end peak
· Permanent gross profit up 2%* year on year
· Permanent deal pipeline volume up 5% year on year
· Group sales headcount up 12% versus the year end position and up 20% year on year
· Excellent performance in the Americas (up 62%* year on year), which now represents 14% of Group gross profit
· Continued strong performance from newer global sectors - Energy up 52%* year on year, Life Sciences up 43%* year on year
· Encouraging performance from Banking & Finance up 20%* year on year
· 70% of Group gross profit now generated in markets outside UK & Ireland (2013: 69%)

2014 Capital Markets Day

2014 Capital Markets Day

SThree plc ("SThree" or the "Group"), the international specialist staffing business, is hosting a series of presentations for analysts and investors this afternoon in London.

The event will be hosted by Gary Elden, CEO and Alex Smith, CFO, together with other members of the senior management team. The presentations will focus on Group strategy and profile a number of its newer businesses including Oil & Gas, Life Sciences and its operations in the USA.

No material new information or update on trading will be provided.

The presentation materials will be available on the Group's website www.sthree.com later today.

- Ends -

Interim Results for the half year ended 1 June 2014

Operational Highlights

· Improved overall performance with Group gross profit ("GP") up 10% year on year ("YoY") or 13% on a constant currency basis;
· Operating profit up 24% to £8.4m (H1 2013: £6.8m) reflecting growth in GP and sales headcount;
· Contract GP up 22%* YoY, with Contract now accounting for 60% of Group GP (H1 2013: 55%);
· Strong seasonal recovery in contractor runners - up 26% YoY at the end of H1 and 12% above 2013 year end peak;
· Permanent GP up 2%* YoY and Permanent deal pipeline volume up 5% YoY;
· Period end Group sales headcount up 12% versus the year end position and up 20% YoY;
· 70% of Group GP now generated in markets outside the UK & Ireland (H1 2013: 69%);
· Excellent performance in the Americas (up 62%* YoY), which now represents 14%* of Group GP (H1 2013: 10%);
· Continued sector diversification with non-ICT disciplines now representing 60% (H1 2013: 55%);
· Encouraging performance from Banking & Finance up 20%* YoY
· Strong performances from our less mature global sectors - Energy up 52%* YoY, Life Sciences up 43%* YoY

* at constant currency

Trading update tomorrow.

Interim Management Statement

Highlights

· Group gross profit up 18%* year on year
· Contract gross profit up 28%* year on year
· Continued strong growth in contractor runners - up 29% year on year and 20% above 2013 year end peak
· Permanent gross profit up 6%* year on year
· Permanent deal pipeline volume up 15% year on year
· Group sales headcount up 9% versus the year end position and up 15% year on year
· Excellent performance in the Americas (up 75%* year on year), now representing 17% of Group gross profit
· Continued strong performance from newer sector disciplines - Energy up 43%* year on year, Life Sciences up 43%* year on year
· Review and rationalisation of a number of sub-scale operations, with resources redeployed and reprioritised to USA, where the Group is doubling its office space in New York, Boston, Houston and San Francisco. Exceptional charge of circa £3m to £4m to be taken in 2014

Liberum Capital Buy 343.63 340.00 475.00 475.00 Reiterates

Final Results

Operational Highlights
· Improved overall performance with Group gross profit ("GP") up 18%* year on year ("YoY") as greater strategic focus on Contract continues to produce results;
· Operating profit (before exceptional items) increased 42% to £29.8m (2013: £21.0m), despite FX headwinds of £1.8m;
· Group conversion ratio up 2.8 percentage points to 13.7% (2013: 10.9%)
· Significant progress made against our key strategic priorities - Contract, ongoing sector diversification and international growth;
· Contract GP grew by 27%* YoY, and now accounts for 61% of Group GP (2013: 56%);
· Strong growth in number of Contract runners, up 31% YoY at 7,573 at year end (2013: 5,791), establishing a strong platform for 2015;
· Permanent GP up 6%* YoY with growth accelerating to 16%* in Q4;
· Non-UK&I share of GP increased to 70% (2013: 69%);
· Continued sector diversification with non-ICT disciplines now representing 61% (2013: 57%) of GP;
· Strong performances from our newer sector disciplines with Energy up 51%* and Life Sciences up 42%* YoY; together now representing 32% of GP (2013: 27%);
· Excellent performance in the Americas (up 73%* YoY), now representing 15% of Group GP (2013: 11%), driven by the USA;
· Group total headcount at year end increased by 11% to 2,578 (2013: 2,327) and Group average headcount was up 12% YoY at 2,487 (2013: 2,228);
· Group year end sales headcount up 12% YoY at 2,081 (2013:1,862) and average sales headcount up 15% YoY at 2,002 (2013: 1,736);
· Review and rationalisation of a number of sub-scale operations, with resources redeployed and reprioritised to the USA, where the Group is doubling its office space in New York, Boston, Houston and San Francisco;
· Net debt of £9.9m at the year end.

Ex-dividend 30th April 9.3p.

SThree plc is featured in a new series of ‘Investment Insights’ from Graham Neary on Investor’s Champion.

Investor’s Champion supports companies and investors alike with objective, forthright commentaries on quoted companies.

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Q3 Trading Update

Highlights

· Group gross profit ("GP") up 13%* year on year ("YoY") and ahead by 20%* excluding Energy
‐ Continued strong growth across ICT (+21%* YoY) and Life Sciences (+21%* YoY)
‐ Energy remained weak in Q3 as expected (-25%* YoY), but grew sequentially in Q3 vs Q2
‐ Another strong performance in the Americas (+31%* YoY), which now represents 22% of Group GP (Q3 2014: 17%)
· Contract GP up 20%* YoY
‐ Continued strong growth in Contract runners - up 15% YoY and 6% above the 2014 year end peak
· Permanent GP up 1%* YoY; with Permanent GP excluding Energy up 12%* YoY
· Group sales headcount up 4% versus the year end position and up 7% YoY, driven by increased Contract and reduced Permanent heads
· Good progress on productivity per consultant, up 9%* YoY
· Results for the year ended 30 November 2015; including the impact of circa £3m of restructuring costs, expected to be ahead of the current market consensus1