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Leading agency reports drop in contractor numbers, but sees market improvement in 2010
Posted Mar 8, 2010
Leading recruiter, SThree, has reported a 31% year on year drop in UK contractor numbers, but says that the market showing some meaningful signs of improvement over the past few months.
SThree issued an Interim Management Statement today, covering the quarter ending 28th February 2010. The company's gross profit for the first quarter declined by 27% year on year to £36m - with the UK operation suffering more than the non-UK side of the business.
UK contractor numbers down
At the end of the company's first quarter, UK contract runners were down 31.1% year on year, or 5.6% quarter on quarter, however UK gross profit per day rates remained robust.
During the quarter, UK permanent placements were down 25.9% year on year, but were up 4.3% quarter on quarter. Average UK permanent placement fees were down by 8.0% year on year.
At the end of the first quarter non-UK contractor numbers declined by 6.1% year on year and 6.6% quarter on quarter, with gross profit per day rates remaining strong and stable.
Encouraging signs for 2010
Encouragingly, SThree reports that their current deal pipeline indicates that there are improvements across most markets. First quarter deal pipeline gross profit is up 12.6% year on year and within the quarter deal pipeline gross profit is on an improving year on year trend.
Russell Clements, Chief Executive, said:
"Bearing in mind that year on year comparatives are distorted by big differences in headcount and quarter on quarter comparatives are complicated by seasonal factors, the overall picture is consistent with a market showing some meaningful signs of improvement in the first quarter. That said, trading conditions still have some way to go before they can be regarded as normal.
"Our most recent data is our current deal pipeline, which looks encouraging. This gives us the evidence to continue to selectively grow our sales teams to take advantage of improvements in market sentiment. At the same time the continued expansion of our international network reflects our commitment to building the longer term future of our business."
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