SThree remains cautiously optimistic

19th Jul 2010 07:11

Recruiter SThree said half year pre-tax profit fell sharply but remains cautiously optimistic, in an improving but not yet fully recovered market.For the six months ended 30 May 2010 pre-tax profit before exceptional items fell to £7.3m from £11.2m the year before. Revenue declined 21% to £221.7m while gross profit was down 20.3% at £74.3m during the period.The results were largely in line with Panmure Gordon's predictions. Panmure analysts said, "Given the investment that has taken place to date, we expect profitability to be more second half weighted than last year, with our first half forecast 35% of the full-year (62% last year; 5-year average 43%)." SThree said compared to the extremely distressed market witnessed in the first half of 2009, the group operated in far more benign conditions during the same half this year. The recruiter added, "Currently, having a strong sense of where the market is heading remains difficult. On the basis of the available data and based on our most recent performance, assuming confidence remains positive, we remain cautiously optimistic."In June, chief executive Russell Clements suggested the group is experiencing improvements across most markets. The number of permanent deals agreed in the first five months of 2010, with candidates due to start in the second half, was up over 30% year on year. The interim dividend has been maintained at 4.0p.