Three stable gross profits in first quarter, but company cites improvement in activity

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March 15, 2021

SThree plc, a UK-based recruiting company focused on STEM skills, reported net contractual and ongoing costs, or gross profit, was stable year-over-year after adjusting for working days and the currency during its first fiscal quarter ended February 28. However, the company cited the improvement in the business environment.

“I am pleased to report that we have seen an improvement in the underlying business in every region of the group during the first quarter,” said Managing Director Mark Dorman. “This follows the significant sequential quarterly improvement from the previous semester.”

Gross profit

(millions of pounds sterling) Q1 2021 Q1 2020 % constant currency exchange Q1 2021 (millions of US dollars)
Contract £ 56.5 £ 56.2 -2% $ 78.6
Permanent £ 19.0 £ 18.5 $ 26.4
Total £ 75.5 £ 74.7 -1% $ 105.1

SThree noted growth in a number of regions, including the United States where gross margin increased 19%. US gross profit increased 25% in the life sciences sector alone, the largest segment of the company served in the United States.

Gross margin in the five largest countries served

(millions of pounds sterling) Q1 2021 Q1 2020 % constant currency exchange Q1 2021 (millions of US dollars)
Germany £ 25.0 £ 23.2 3% $ 34.8
Netherlands £ 11.9 £ 11.8 -4% $ 16.6
UK £ 8.1 £ 9.7 -17% $ 11.3
we £ 18.3 £ 16.0 19% $ 25.5
Japan £ 1.2 £ 1.5 -21% $ 1.7

SThree said the first quarter of 2021 has one business day less than the first quarter of 2020.

Share price and market capitalization

SThree shares hit a new 52 week high on today’s trading in London when they hit £ 364.00 (US $ 506.47); they closed up 3.45% at £ 360,000 (US $ 500.91), according to FT.com. The company had a market capitalization of 464.2 million pounds sterling (645.9 million US dollars).


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