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Investing.com - Sthree Plc (LON:STEMS), the global STEM workforce consultancy,on Tuesday reported a 14% YoY decline in group net fees for the first half of fiscal year 2025, reflecting challenging market conditions but showing modest sequential improvement in the second quarter.
The company saw a 14% YoY decrease in Contract net fees, which represent 84% of total net fees, while Permanent net fees fell 13% YoY. SThree’s contractor order book stood at £164 million, down 8% YoY, providing visibility for approximately five months of net fees.
Despite the overall decline, SThree noted an improved performance in the US market, with Q2 recovering to prior year levels, supported by strong demand for Engineering roles.
The company’s Engineering segment showed resilience with a 9% YoY decline in net fees, while Life Sciences and Technology segments fell 15% and 18% YoY, respectively.
Timo Lehne, Chief Executive, commented: "Whilst market conditions remain challenging, the Group delivered a stable first half performance, with a modest sequential improvement quarter-on-quarter. Strong Contract extensions continue to underpin performance, providing sector-leading visibility and reflecting our customers’ priority to retain critical STEM skills."
SThree maintained a robust balance sheet with net cash of £48 million as of May 31, 2025, up from £45 million at the end of February 2025. The company successfully completed a £20 million share buyback program on May 15, 2025.
The company reaffirmed its full-year 2025 profit before tax guidance of £25 million, in line with previous announcements. SThree also reported progress on its Technology Improvement Programme, with 8 out of 11 markets now onboarded, representing over 80% of Group net fees.