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SThree PLC on Tuesday said ‘early signs of improvement are continuing in selected areas’ in the new year, after a tricky 2025 which saw net fees and profit slump. The London-based science, technology, engineering and mathematics-focused staffing firm said net fees fell 13% to £322.7 million in the financial year to November from £369.1 million the year prior, or by 12% on like-for-like basis. Pretax profit tumbled 62% to £25.5 million from £67.6 million, with basic earnings per share down 63% to 13.7 pence from 37.4p. SThree said profit fell ‘in line with expectations, as the challenging economic conditions continue to impact net fees, partially offset by disciplined cost management.’ Revenue declined 13% to £1.30 billion from £1.49 billion, or by 12% LFL. SThree left the total dividend unchanged at 14.3p per share after a pegged final payout of 9.2p per share. SThree said the rate of decline in net fees improved sequentially each quarter, supported by the US returning to growth. Net fees grew 4% in the US, while Germany and the Netherlands declined by 16% and 21% respectively. The three countries make up 72% of total group net fees. Contract net fees, which represent 84% of the total, declined 12% year-on-year, while permanent net fees, 16% of total, declined 9% on-year. SThree reported net cash of £68.0 million at year end, down slightly from £69.7 million the year prior, after having returned £20.2 million to shareholders via a share buyback completed earlier in the year. SThree said it intends to launch a further buyback programme of up to £20 million, in line with its stated capital allocation policy. Looking ahead, SThree expects financial 2026 pretax profit of around £10 million. ‘Financial 2025 ended with encouraging new business activity, albeit at historically subdued levels, and good momentum in select markets, such as the US, underpinning our expectations for the year ahead,’ the firm said. Chief Executive Timo Lehne said: ‘We enter the new year with cautious optimism’, noting ‘early signs of improvement are continuing in selected areas.’ ‘Whilst new business remains challenging, and broader market recovery is yet to materialise, the investments made in recent years leave us well positioned to navigate the near-term environment and capitalise on new growth opportunities,’ Lehne added. Shares in SThree rose 6.5% to 195.90p each in London on Tuesday morning. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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