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SThree to receive £50mln in government support

Published: 09:00 20 May 2020 BST

SThree PLC - SThree to receive £50mln in government support

SThree PLC (LON:STEM) announced it will receive £50mln as part of the Bank of England's Covid Corporate Financing Facility to navigate the crisis.

As of Monday, the recruiter had £24mln net cash, a £50mln revolving credit facility fully drawn down plus a £5mln overdraft. It also has a £20mln accordion facility.

READ: SThree pauses hiring, drops final dividend amid coronavirus pandemic

The firm, which focuses on candidates in science, technology, engineering, and mathematics (STEM), has seen a significant drop in demand as companies focus on their own issues during the pandemic.

However, the company expects STEM trends to accelerate as businesses may rethink their digital strategy, while governments could invest more in healthcare and infrastructure.

"SThree is using its data-led approach to focus in specific niches that are likely to be key in the future," analysts at Liberum pointed out.

"The company is investing in virtual interview and placement solutions and has created information resources on its digital platforms to help candidates navigate the jobs marketplace."

Shares rose 2% to 222p on Wednesday in early trades.

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