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.

Sorry derwent, where do you get sp of 488.75p. My screen shows sp of 196p and this has been decreasing to this level for some time.

The article was published on the 24 July 2007 when the share price was 488.75p.
My point is that if it was recommended as a buy at 488.75 then at 196p it is great value for money.

Sorry, didn't read the header properly.

Been with them from the start and through the heady times of 500+.

Had hoped to have heard something last week but I have just bought more - up 7.2% today.

Showing as Strong buy (4x) and Buy (2x) in another forum.

Avsec

A Merry Christmas to all SThree investors and look forward to a prosperous 2008

www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/12/15/ccdiary115.xml

SThree finds two's company

Edited by Simon Goodley - Telegraph
Last Updated: 12:53am GMT 15/12/2007

A massive investigation is under way at listed recruitment group SThree after a shock discovery was made in their London offices on Thursday evening. "A member of staff from SThree was working late and heard something going on around the corner," an email from the building's manager begins. "After deciding to investigate, he discovered a couple having sex. To his astonishment they noticed that he had noticed, but decided to continue anyway. Once finished, the lady in high boots asked the member of staff if there was a toilet she could borrow. Classy!"

"Er, er, yes, er, it's, er, true," stutters an embarrassed spokesman. "It took place on the reception sofa. We are conducting an investigation. The people were independent of SThree and we don't know how they got into the building."

Well, it is Christmas.

I have noticed that Sthr have been buying back large numbers of shares over the last three days. These have been statutory declarations.

Does this indicate that the company is taking advantage of the low share price to recoup shares from the initial flotation? I'd be interested to get an informed view.

AvSec

Its been blue every day since the first of the month and even more company 'buy backs'

(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!

.