SThree plc (LON: STEM) reported an annualised growth in its H1 pre-tax profit and revenue on Monday, as easing COVID-19 restrictions saw companies resuming hiring in recent months. The British firm also said that momentum has sustained so far in the third quarter and expressed confidence that its financial performance will be better than expected in fiscal 2021 as a whole.
SThree posted £27.7 million of pre-tax profit in the six months that concluded on 31st May. In the same period last year, its pre-tax profit was capped at a much lower £13.6 million. The recruitment company generated £615.1 million of revenue in the fiscal first half versus the year-ago figure of £596 million.
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At £164.3 million, net fees registered a 10% year over year growth in the six-month period on a constant currency basis. This was particularly impressive as it marked growth compared to levels seen in 2019.
The news comes almost a month after the global pure-play specialist staffing firm named Andrew Beach as its new finance chief. Beach took the helm on 5th July and was appointed to the board last week. He has previously worked with several notable companies like Hyve Group plc and Ebiquity plc in similar capacities.
On the back of hawkish H1 performance, the board proposed 3 pence per share of an interim dividend on Monday. This compares to 5 pence per share of a final dividend it announced for fiscal 2020 in January.
Commenting on the financial update on Wednesday, CEO Mark Dorman said:
“We will be increasing investment in our people and our go-to-market proposition in the coming months, which, although crucial in driving our long-term success, will impact on productivity in the short term.”
Despite upbeat financial results, shares of the company are more than 3% down on Monday morning.
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