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SThree sees recruitment market conditions stablising

Posted Dec 7, 2009

One of Europe's largest recruitment agencies, SThree, has released a trading update which shows that the company has successfully weathered some severe trading conditions. The firm says that most job markets are now stable, or improving.

SThree closed its financial year with 4,157 contract runners, down 27.7% year on year but broadly level with the end of the third quarter position of 4,190 runners. Average contractor gross profit per day rates have been stable sequentially in Q4 versus Q3.

The company made 6,060 permanent placements that started during the financial year, a decrease of 40.8% (2008: 10,236). Despite the volume decrease, average placement fees for the year overall have remained strong, with some sequential improvement Q4 versus Q3.

Most challenging trading in 23 years

SThree's Chief Executive, Russell Clements, told the markets:

"Without question 2009 presented SThree with trading conditions as challenging as any we have faced in our 23 year history. I am pleased to say that despite this, the Group performed highly credibly, demonstrating the robustness of our business model even in the most difficult of circumstances. We were able to act decisively where required to modify our cost base while at the same time we continued to prudently invest for the future.

"Although market sentiment has yet to undergo anything like a paradigm shift, we have nonetheless seen recent signs that indicate most markets have stabilised and some are showing improvement. We will continue to monitor these trends with a view to ensuring the Group is well placed to take full advantage of a broader based recovery. With this in mind our seasoned management, excellent cash position and increasing international exposure positions us extremely well for 2010 and beyond."

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