SThree (LSE:STEM), the global STEM workforce consultancy, said in a half-year trading update for the six months to 31 May that performance for FY26 is expected to be in line with the previously announced c.£10 million PBT guidance despite a year-on-year decline in net fees.
Group net fees declined 7% year-on-year, with Contract (85% of net fees) down 8% and Permanent down 5%, although the rate of decline moderated through the half and contract new-business activity was stable year-on-year and improved quarter-on-quarter driven by strong growth in the USA and Japan.
"Tangible benefits are now increasingly evident across the Group, and importantly, TIP enables continuous enhancement and AI innovation at scale and pace," Timo Lehne, Chief Executive, said.
The contractor order book stood at £157 million, up 3% year-on-year and representing circa five months' net fees, which the group highlighted as sector-leading visibility.
Management said the FY26 cost optimisation programme is on track with savings weighted to H2 and period-end headcount was down 4% from the end of the last financial year, reflecting productivity gains from last year's Technology Improvement Programme.
SThree reported net cash of £43 million at 31 May (31 May 2025: £48 million).
The Group will issue its FY26 Half Year Results for the six months ended 31 May on 21 July.
