SThree PLC (LSE:STEM) shares continued their recovery from recent 17-year lows, climbing 4.9% to 193p after celebrating a satisfactory finish to last year with a share buyback.
The STEM recruiter reported a 62% fall in pre-tax profit to £25.5 million for the year ended 30 November 2025, with in line with expectations and with momentum even improving into year-end.
Revenue declined 13% to £1.3 billion, while net fees fell 12%. The US returned to growth, joining Japan as two of the top five markets enjoying positive years, though Germany and the Netherlands posted double-digit declines.
Contract roles, which made up 84% of net fees, fell 12%.
SThree completed the rollout of its technology improvement programme across 11 countries, with early signs said to point to improved productivity and operational efficiency.
“We are now operating on integrated, scalable digital infrastructure that is enhancing productivity, strengthening execution discipline and positioning us well to capture opportunities as demand stabilises," said chief executive Timo Lehne.
The final dividend was held at 9.2p, bringing the full-year payout to 14.3p. Net cash stood at £68 million.
SThree said it would launch a new share buyback of up to £20 million, after returning £20 million to shareholders earlier in the year.
"We enter the new year with cautious optimism," said Lehne, pointing to "early signs of improvement" continuing in selected areas.
"Whilst new business remains challenging, and broader market recovery is yet to materialise, the investments made in recent years leave us well positioned to navigate the near-term environment and capitalise on new growth opportunities."