SThree PLC (LON:STEM) warned half-year profits will be lower than last year as it implements restructuring programmes alongside new investments to cope with the pandemic.
The recruiter, which focuses on candidates in science, technology, engineering, and mathematics (STEM), expects businesses to rethink their digital strategy or seek more flexible working.
READ: SThree to receive £50mln in government support
In the six months to May 31, net fees slipped 7% to £151mln, having dropped 12% in the second quarter and remained flat in the first.
At the period end, the firm had total accessible liquidity of £136mln, including £31mln of net cash.
Analysts at house broker Liberum said the results topped expectations since the estimated second-quarter fall was 29%, but the third quarter will be “tough” as the nature of contract work means the full impact of the pandemic could be slower to materialise.
The fourth quarter, which is usually the most important of the year, could see some recovery.
Shares dipped 3% 5o 262.2p on Monday at the opening bell.