City recruiter SThree said full-year guidance would be in line with current forecasts despite flagging a “continuing backdrop of challenging market conditions.”
The London-listed firm, a specialist in finding roles for Science, Technology, Engineering and Mathematics (STEM) fields, reported a six per cent contraction in its quarterly order book for the quarter to 31 August. The company ended the period with an order book of £167m.
Group net fees, an indicator of earnings from permanent or temporary candidate placements, fell eight per cent year-on-year.
SThree said it remained “well placed” to respond when market conditions improve, with net cash at £45m as of 31 August.
“Despite the challenging conditions in the market, which have extended beyond our industry’s expectations, our strategic focus on Contract continues to underpin the Group’s competitive positioning,” Timo Lehne, chief executive, said.
“Supported by a robust financial position, we continue to invest for the future,” the boss of SThree added.
Recruiters are grappling with a hiring slowdown among UK employers and wider macroeconomic uncertainty.
Recent results from the likes of Hays and Page Group have been dismal, with the latter’s share price dropping over 15 per cent this year to date.
Nearly all of SThree’s core units, excluding Technology, reported a decline in performance. Regionally, there was strong growth in the Middle East and Asia.
But the results were weighed on by SThree’s US performance and lower demand in the Netherlands, the company said.
Shares are down 3.4 per cent this year to date.