SThree sees 'meaningful improvement'

8th Mar 2010 08:11

Recruiter SThree's first quarter gross profit declined by 27% year on year to about £36m, though the current deal pipeline indicates improvements across most markets. "The first quarter deal pipeline gross profit is up 12.6% year on year and within the quarter deal pipeline gross profit is on an improving year on year trend," SThree added.In the quarter, UK gross profit declined by 36% and non-UK gross profit declined by 19%. Non-UK now represents 60% of gross profit (2009: 55%). At the end of the first quarter, to end February, SThree had 3,906 active contractors, a decrease of 22.4% on the same quarter in the prior year (2009: 5,036) and a seasonal decline of 6% on the year end number (29 November 2009: 4,157).During the quarter, UK permanent placements were down 25.9% year on year, but were up 4.3% quarter on quarter. Non-UK permanent placements declined year on year by 15.8%, but were up 1% quarter on quarter. "Bearing in mind that year on year comparatives are distorted by big differences in headcount and quarter on quarter comparatives are complicated by seasonal factors, the overall picture is consistent with a market showing some meaningful signs of improvement in the first quarter. That said, trading conditions still have some way to go before they can be regarded as normal," chief executive Russell Clements said.