Sthree net fees slip in Q1 as macro pressures weigh on client demand

17th Mar 2026 09:30

(Sharecast News) - Recruitment firm Sthree said on Tuesday that group net fees had fallen in the three months ended 28 February, as a "backdrop of ongoing macroeconomic volatility" continued to "influence business priorities and investment decisions".

Sthree said first-quarter group net fees were down 8% year-on-year at £71.7m, reflecting "continued stabilisation", supported by ongoing growth in the USA and Japan, as well as "a significant improvement" on the prior-year's rate of decline.

Contract fees, which made up 83% of net fees, declined 10% year-on-year to £59.8m, whilst permanent fees were broadly flat year-on-year at £11.9m. Sthree also said its contractor order book of £152m was down 7% year-on-year, but continued to represent "sector-leading visibility" with the equivalent of roughly five months' net fees.

Sthree also said it had a "robust balance sheet", with net cash of £51m on 28 February, up from £45m a year earlier.

Looking ahead, Sthree said its performance for FY26 was expected to be in line with previously announced guidance, with the firm anticipating a pre-tax profit performance of around £10m.

Chief executive Timo Lehne said: "Trading in the first quarter of FY26 has started in line with expectations, with continued stability across our business and encouraging momentum in select markets, notably the USA and Japan. New business activity was consistent with the prior year, which is particularly encouraging given a lower sales headcount, demonstrating improved productivity and operational efficiency.

"This performance was achieved against a backdrop of ongoing macroeconomic volatility, including geopolitical uncertainty and rapid technological change, which continues to influence business priorities and investment decisions."

As of 0930 GMT, Sthree shares had ticked up 0.24% to 167p.

Reporting by Iain Gilbert at Sharecast.com

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