**Summary of SThree plc FY25 Final Results**
**Financial Performance**
**Revenue and Net Fees** Reported revenue of £1,302.2 million and net fees of £322.7 million, down 13% and 12% YoY respectively, primarily due to challenging macroeconomic conditions. On a like-for-like basis (constant currency), revenue and net fees declined by 12%.
**Operating Profit** Operating profit fell to £26.1 million, a 61% decrease YoY, with an operating profit conversion ratio of 8.1%.
**Profit Before Tax (PBT)** PBT was £25.5 million, down 62% YoY, in line with expectations.
**Earnings Per Share (EPS)** Basic EPS decreased to 13.7 pence, a 63% drop YoY.
**Dividend** Proposed final dividend of 9.2 pence per share, maintaining the total dividend at 14.3 pence per share.
**Geographical and Segment Performance**
**Top Countries** USA grew by 4%, while Germany and the Netherlands declined by 16% and 21% respectively, accounting for 72% of Group net fees.
**Skills** Engineering net fees declined by 6%, Life Sciences by 13%, and Technology by 18% YoY.
**Contract vs Permanent** Contract net fees (84% of Group net fees) declined by 12%, while Permanent net fees (16%) declined by 9% YoY.
**Technology Improvement Programme (TIP)**
**Completion** TIP successfully rolled out across all 11 countries, on time and within budget.
**Benefits** Early evidence of structural benefits, including improved consultant productivity, pipeline quality, and operational velocity.
**Strategic Impact** Provides a scalable digital platform to enhance efficiency and support growth as market conditions improve.
**Capital Allocation**
**Share Buyback** Completed a £20.2 million share buyback earlier in the year and announced a further £20 million buyback programme.
**Balance Sheet** Strong balance sheet with net cash of £68.0 million, reflecting disciplined capital management.
**Outlook**
**FY26 Guidance** Expects PBT of circa £10 million, with cost optimisation and modest investment in AI continuing.
**Market Conditions** Ended FY25 with encouraging new business activity, particularly in the USA, but broader market recovery remains uncertain.
**Strategic Positioning** Well-positioned with a lean, scalable operational backbone to capitalise on improving market conditions.
**Management Commentary**
**CEO Timo Lehne** Highlighted resilience and operational enhancements, with TIP completion marking a pivotal moment. Cautious optimism for the future, with early signs of improvement in selected areas.
**Chairs Statement** Emphasized growth in USA and Japan, completion of TIP, and commitment to strong governance and sustainable practices.
**ESG and Sustainability**
**Net Zero Ambition** Scope 1 and 2 emissions down 54% YoY, with progress towards net zero targets.
**Diversity** Achieved 50% women on the Board and 37% in leadership roles, with ongoing efforts to improve ethnic diversity.
**Conclusion**
SThree plcs FY25 results reflect a challenging macroeconomic environment but demonstrate resilience and strategic progress. The completion of TIP positions the company for scalable growth and improved margins as market conditions stabilise. The company remains committed to returning capital to shareholders and advancing its ESG goals.
