Full Year 2024 SThree PLC Earnings Call Transcript
Key Points
- SThree PLC (STU:S8T) has a strong focus on STEM and contract business, which now represents 84% of group total, providing a more profitable and predictable revenue stream.
- The company has delivered its third highest net fee and operating profit performance on record, up 13% and 14% respectively on pre-COVID performance.
- SThree PLC's technology improvement program is on track, with 80% of the business now on the new platform, enhancing productivity and performance.
- The company has maintained a sector-leading operating profit conversion ratio of 17.9%, reflecting effective cost management.
- SThree PLC has a robust balance sheet and has launched a share buyback program of up to GBP20 million, demonstrating confidence in its financial position.
- The company has faced prolonged challenging market conditions, impacting new business activity and resulting in a 9% decline in net fees on a constant currency basis.
- SThree PLC expects FY25 profit before tax to be around GBP25 million, including up to GBP7 million of one-off costs for operational efficiencies.
- The contractor order book is down 10% year-on-year due to a slowdown in new placements amid prolonged market uncertainty.
- Permanent placements, a smaller part of the business, declined 18% due to tough market conditions across most regions.
- The company's net cash position decreased by 16% due to temporary increases in trade debtors and other working capital changes.
Good morning and welcome everyone. Thank you for joining us today for full year results briefing. I'm joined by Andy Beach, our CFO.
Morning, everyone.
Together we will be walking you through the full year numbers, our strategic progress and taking a little on outlook -- sorry, talking a little on outlook.
As a reminder of who we are. We are the only global STEM specialist talent partner, which is a unique offering in the market. We're purely focused on STEM talent. This means we place people with skills in science, technology, engineering or mathematics into roles across a diverse range of industries and geographies. We place people into STEM roads every day, including engineers to build wind turbines and data scientists to help businesses, harness new technologies.
As many of you know, the
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