SThree PLC (LSE:STEM) shares rose 8% to 185.8p after the STEM recruiter said it expects profits to be in line with previous guidance.
Group net fees for the year ended 30 November 2025 declined 12% year-on-year but showed sequential improvement through the year, supported by the US market returning to growth.
Contract net fees, which made up 84% of the total, fell 12%, while permanent net fees declined 9%. Engineering fees were down 6%, while Life Sciences and Technology saw sharper drops of 13% and 18% respectively.
Profit before tax is expected to be in line with its guidance of £25 million
Chief executive Timo Lehne said: “We are pleased to report a positive close to FY25, which is expected to be in line with guidance... We enter the new year in a stronger, more advanced position to drive long-term growth.”
SThree completed the rollout of its Technology Improvement Programme (TIP) across all 11 markets, a strategic investment aimed at boosting efficiency and scalability.
Net cash at year-end stood at £68 million after a £20 million share buyback. The company said it will update investors on further capital allocation plans in January.
Shares in the company had fallen to a 16-year low of under 133p after a gloomy update in September.