SThree profits sink, but signs of improvement

1st Feb 2010 07:31

SThree's profit plunged during 2009, but the recruitment firm said the trend of improvement in some markets and stability in others had continued into 2010.Profit before tax and exceptional items for the year ended 29 November slumped 68% to £18m and was down 83.5% after exceptional items. Revenue dropped almost 18% to £519.4m.Gross profit was 22% lower at £171.2m, slightly better than the £168m predicted in December's trading update. Profit for the contract business fell 13% to £98.8m on revenue down 15% to £447m.Permanent placements dropped by 41% to 6,060, with average fees up 15.2%, or 3.9% on a constant currency basis, while the number of active contractors at year end fell 27.6% to 4,157, with average gross profit per day rates up 8.1%, or 1.4% at constant currency.'Towards the end of the year there were signs that certain markets were improving and that others were at the least stable and, so far, this has continued into 2010,' said the group.The company called it 'a very good performance given the highly challenging market conditions'.'Although by no means yet close to fully recovered, the market is showing some positive signs. As such we look forward to 2010 with a pragmatic but positive mindset,' said chief executive Russell Clements.