Broker snap: Cash position underpins SThree divi

5th Jun 2009 13:25

A weaker than expected set of interim results from specialist staffing business SThree has not changed KBC Peel Hunt's mind about the shares, which the broker believes are worth buying at the current price.KBC Peel Hunt said investors should not be surprised by the difficult trading conditions the company is experiencing, but having reduced headcount by a quarter the company is well placed to weather the downturn. Meanwhile, SThree has enough cash to support its dividend; the shares are currently yielding around 6%.'SThree has a very strong growth track record, and we believe it has reached a size that will enhance its growth characteristics for the next cycle. We are placing our forecasts under review ahead of the analysts' conference call, but we retain our positive stance on the shares,' said KBC analyst Henry Carver.