13.12.2021 08:00:05
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SThree: FY21 Trading Update
SThree (STEM)
13 December 2021
SThree plc
FY 2021 Trading Update
A record net fee performance with strong growth across all major geographies
SThree plc ("SThree" or the "Group"), the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), today issues a trading update for the financial year ended 30 November 2021.
Highlights
As 2020 was impacted by Covid-19, the Group has also provided comparisons against 2019 below and in the table that follows. Highlights vs 2019 include:
Management Succession The Board also announces that Mark Dorman will be stepping down from the Board and as CEO of the Group on 31 December 2021. Timo Lehne, currently the Senior Managing Director of SThree's largest region, DACH (Germany, Austria and Switzerland), will be appointed Interim CEO and for that period will join the Board as Executive Director from 1 January 2022. Mr. Dorman will continue to assist the Group in facilitating a smooth handover and transition until 1 April 2022.
Mark Dorman, Chief Executive, commented: "SThree has continued to deliver strong results in our final quarter of the year, and delivered full year net fee growth of 19% year-on-year and 9% versus 2019. Our strategy, positioned at the centre of the secular trends of STEM and flexible working, has continued to drive this excellent performance.
The Group expects to deliver record profits for the full year, in line with consensus expectations(3), which were materially upgraded in September 2021. Our people have been incredibly resilient, productive and dedicated in delivering these results, and I thank them for all their efforts. I am proud that SThree delivers meaningful work opportunities to our candidates and brings skilled people together to build the future.
I have agreed with the Board that this is the right time for a change for both SThree and me, due to personal reasons. It has been a privilege to lead SThree through such extraordinary times, working with talented, dedicated and values-driven people for nearly three years. Our strategy has driven excellent financial performance and benefits to all our stakeholders. I wish the business well for the future whilst looking forward to a new personal challenge."
James Bilefield, Non-Executive Chair, stated: "The Board expresses its appreciation to Mark for his service to the Group over the past nearly three years. He has steered the Group through the complexities of the Covid-19 pandemic, developed a clear strategy and overseen the delivery of strong financial results. We wish him every success for the future.
We are very well positioned moving into 2022, underpinned by our contractor order book which is up 43% year-on-year and provides excellent visibility. In the year ahead, we will focus on investing in our infrastructure, talent acquisition and our global go-to-market propositions. We aim to maintain our profit margin at current levels, whilst investing in the business to drive long-term sustainable growth. Although the external environment remains uncertain, we have proven that we can grow through periods of volatility and remain committed to the delivery of our strategy for the benefit of all our stakeholders.
We now look forward to accelerating the execution of our strategy. We are fortunate in having Timo, our most experienced Managing Director from our largest region, ready and able to assume the role of Interim CEO whilst we conduct a thorough search for Mark's permanent successor."
Business Performance highlights
The Group delivered a strong performance for FY 2021 with net fees up 19% YoY with our Contract and Permanent businesses up 17% and 24% respectively.
Contract
Permanent
Headcount and Productivity:
Regional highlights:
DACH delivered a strong performance in the year with net fees up 24% YoY
EMEA ex DACH saw net fees grow 9% YoY, after a significant recovery in H2
USA, the world's largest STEM staffing market, delivered an excellent net fee performance in the year up 24% YoY
APAC net fees were up 34% YoY, with a 64% increase in Q4 YoY
Balance sheet SThree remains in a robust financial position, with net cash at 30 November 2021 of £58m (30 November 2020: net cash £50m). As at 30 November 2021 the Group has total accessible liquidity of £113m comprising £58m net cash, a £50m revolving credit facility ("RCF") and a £5m overdraft facility (RCF and overdraft fully undrawn). In addition, SThree has a £20m accordion facility as well as a substantial working capital position, reflecting net cash due to the Group for placements already undertaken.
Analyst conference call SThree will host a webinar for analysts and investors today at 8.30am to discuss the FY 2021 Trading Update. To register for the webinar please use this link: https://bit.ly/STEM_Q4_webinar
The Group will present its results for the financial year ended 30 November 2021 on 31 January 2022.
(1) All growth rates in this announcement are expressed at constant currency and exclude Australia, which we exited in Q4 2020 (2) The contractor order book represents value of net fees until contractual end dates, assuming all contractual hours are worked (3) Current consensus analyst PBT expectations are £59.3m. Source: SThree compiled consensus (3) DACH - Germany, Austria and Switzerland (4) EMEA ex DACH - UK, Ireland, Belgium, Netherlands, Luxembourg, France, Spain and Dubai (5) ROW - All other countries we operate in excluding Germany, Netherlands, UK, USA and Japan
The Company confirms that there is no further information about Timo Lehne requiring disclosure under paragraph 9.6.13 (2) to (6) of the Listing Rules of the UK Listing Authority
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (Regulation (EU) No.596/2014) as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
- Ends -
Notes to editors SThree plc brings skilled people together to build the future. We are the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), providing permanent and flexible contract talent to a diverse base of over 9,000 clients across 14 countries. Our Group's c.2,700 staff cover the Technology, Life Sciences, Engineering and Banking & Finance sectors. SThree is part of the Industrial Services sector. We are listed on the Premium Segment of the London Stock Exchange's Main Market, trading with ticker code STEM.
Important notice Certain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Certain data from the announcement is sourced from unaudited internal management information and is before any exceptional items. Accordingly, undue reliance should not be placed on forward looking statements. |
ISIN: | GB00B0KM9T71 |
Category Code: | TST |
TIDM: | STEM |
LEI Code: | 2138003NEBX5VRP3EX50 |
Sequence No.: | 129584 |
EQS News ID: | 1256817 |
End of Announcement | EQS News Service |
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