Recruiter SThree PLC (LSE:STEM) warned conditions in the STEM contractor staffing sector remain challenging as group fees fell by 8% in the three months to end of August.
Its contractor orders book is also down, by 6% at £167 million, SThree said with new placements seeing the brunt of the downturn though existing contract revenue held up.
Technology, its largest market, was down 7% year-on-year (YOY), engineering by 7% while Life Sciences fell 4% YoY as global activity remains subdued.
The UK was its worst performer with a 17% drop in fees though the Netherlands and US also saw double-digit falls.
Net cash dropped YoY to £45 million from £83 million.
Broker Panmure Liberum said it was another tough quarter for SThree and it has trimmed forecasts for this year and next by 3% and 5% respectively with its price target now 525p (555p).
“As at peers, there are no green shoots yet, but our thesis remains intact in terms of the relative earnings resilience of the model.”
Shares fell 1.5% to 289.5p.