UK recruitment firm SThree PLC (LON:STHR) said it expects full year adjusted pre-tax profit to slightly exceed market forecasts following a strong performance in Continental Europe and in the US.
The consensus estimate for adjusted pre-tax profit is £43.8mln for the year ended 30 November, with a forecast range of £42mln to £45mln, the company said in a pre-close trading statement.
READ: SThree expects full year profits to beat market forecasts after strong third quarter
Gross profit, which represents total fees earned from all recruitment work, rose 4% at constant currency to £287.6mln.
The growth was driven by a 25% jump in gross profit in the US energy-market linked business and a 7% increase in life sciences.
Gross profit in contract job placements rose 10% to offset an 8% decline in permanent recruitment.
“As well as a solid performance from life sciences and engineering, the quarter saw an extremely strong contribution from the energy business,” Liberum analysts wrote in a note. The brokerage rates the stock a “buy”.
“The latter was supported by a recovery in oil & gas prices, which disproportionately helped the US business.”
The UK division, on the other hand, saw gross profit fall 14%, reflecting continued weakness in the public sector and concerns about Brexit uncertainty.
Shares rose 3% to 368p in morning trading.