SThree PLC (LON:STEM) profits fell 48% in the first half of the year as the recruiter’s fees were hit by the coronavirus pandemic and investment was made in technology and infrastructure.
Revenues of £602.6mln for the six months to May 31 were down 8%, with the second quarter down 12% at constant current rates.
Net fees of £151.2mln were down 7% for the half, with contract fees down 5% and permanent fees down 13%.
Profit before taxation near halved to £12.6mln and the dividend was withdrawn.
COVID-19 was the primary reason for the profit fall, the company said, alongside strategic investment for the future.
“Thoughtful management of headcount” enabled the group to gain market share in the Netherlands, Germany and USA, it said.
The balance sheet showed net cash of £31mln at the end of May, with immediately accessible liquidity of £136mln.
“As we continue to make targeted investments in the group, we are positioning ourselves to best capitalise on this growing opportunity in the future,” said chief executive Mark Dorman.