SThree maintains dividend as full-year profit slips

3rd Feb 2014 07:43

- Full-year profits slip- Weaker economic confidence- Maintains dividend paymentRecruitment specialist SThree said full-year profit slipped amid weaker economic confidence and as the group invests in new territories.The communications and technology hiring agency said group gross profit for the year to December 1st 2013 fell 3.4% to £192.8m. Profit before tax and before exceptional items dropped 17.8% to £20.8m, while revenue declined to £634.3m from £577.5m. SThree, which closed several offices in the UK and Europe in 2013 and reduced its support staff as part of a restructuring plan, reported restructuring costs of £10.8m for the year. New offices were opened in Calgary, Tokyo and Berlin."The reduction in profitability reflects weaker economic confidence for much of the year, a temporary decline in consultant productivity as the group invested in sales headcount and the cost of continued investment in new territories," the group explained. Basic earnings per share before exceptional items fell to 9.1p from 14.1p before. CEO Gary Elden commented: "While the group performance reflects the mixed market conditions which we encountered during the year, it was also a period of significant strategic progress during which we laid the foundations for our future growth."A total dividend of 14.0p has been offered, unchanged from the year before.CJ