Shares in SThree PLC (LSE:STEM) rose 7% after the science, technology, engineering and maths recruitment firm reported signs of stabilisation in its US business and reaffirmed full-year profit guidance.
The stock rose 16.5p to 240p.
For the six months to 31 May, group net fees were down 14% year-on-year, though the rate of decline eased in the second quarter, helped by improved performance in the US market.
Contract placements, which make up 84% of net fees, fell 14%, while permanent hiring dropped 13%.
The group completed a £20 million share buyback in May and held £48 million in net cash at the period-end. Excluding the buyback, net cash increased by £15 million, reflecting stronger cash collection.
SThree’s order book stood at £164 million, equating to about five months of fee visibility.
The group said its performance remains on track to meet full-year profit expectations of £25 million, with ongoing tech investments progressing to plan.
Panmure Liberum provided a rather more sobering assessment of SThree's longer-term prospects. "The lag effect of the contractor model means that risks to [financial year] 2026 remain if an improvement does not come through soon," the broker said.