SThree profit slides by one-third

11th Sep 2009 07:04

Recruitment firm Sthree is still finding the going tough and said it is too early to call a turning point in the market despite signs of stabilisation in the UK.Demand for permanent placements remains especially weak, but the contract hiring market is proving more resilient, the company said in a trading update covering the three months to the end of August.Gross profit in the group's third quarter was down by just over a third from the corresponding period of 2008 at £37.6m, or by 38% on a constant currency basis.Gross profit from the contracting staff business dipped by 28% while the permanent staff side saw a 49% fall, both comparisons being on a constant currency basis.The debt free company said its cash position remained strong with net cash of around £40m at the end of August.'There are some signs of stability in our UK business when we look at our more recent month on month performance rather than the more challenging year on year comparatives,' Russell Clements, the company's chief executive officer, said.