Under the cloud of the ‘deteriorating macroeconomic situation’, Russell Clements, CEO of UK-based but now very international recruitment firm, SThree, described performance in H1 (to 27 May) as ‘satisfactory’ even as profit growth slowed. Nonetheless, group gross profit grew by 12% yoy (at constant currency), once again fuelled by SThree’s non-UK operations. Indeed, the UK now comprises just 35% of GP and ICT recruitment is down to 56%.
There’s little cheer to be had from Clements’ view on the recruitment market outlook which, with the exception of the Energy & Resources sector, he sees as becoming ‘more challenging’. But Clements only need worry about that till next April when he is due to retire (see Changing of the guard at SThree), the announcement of which saw SThree’s stock lose 14% of its value over the following week. He really needs to bring nominated successor, Gary Elden, to the forefront as quickly as possible so that he is seen to be driving the business well before Clements settles back in his comfy chair.