SThree sees some stability return

4th Dec 2009 07:45

Recruiter SThree confirmed profits will tumble this year, though it says conditions have started to stabilise. Full year gross profit will be about £168m, down 23% year on year (2008: £218.9m). Year end net cash will be about £48m (2008: £24.6m), while the days sales outstanding improved to 37 days (2008: 43 days).Most markets are stable or modestly improving, SThree added. It closed the year with 4,157 contract runners, down 27.7% year on year but broadly level with the 4,190 at the end of the third quarter. Average contractor gross profit per day rates were stable quarter on quarter.Permanent placements fell by 40% to 6,060 but it says average placement fees for the year overall have remained strong, with some sequential improvement in the final quarter.