One of the notable observations from SThree’s interim statement for the three months to 28 August 2011 is that growth in international markets makes the duller state of the UK all the more obvious.
Gross profit for the international recruitment firm was up 18% (cc) year on year, to £50.2m. Outside the UK GP increased 26%, but within the UK it was up just 5%. However on a sequential basis the picture was a little better because UK GP grew 8% while outside the UK the sequential improvement was just 1% up. The international business is set for further growth however given the three new offices that opened during the quarter in Zurich and Luxemburg and Mumbai. Another three offices are expected to open – in Chicago, Boston and Moscow - in Q4 2011/early 2012.
As we noted in SThree sees lacklustre UK banking market, investment banking is still a weak sector for recruitment. At SThree it accounted for around 12% of group transactions during the quarter compared to 17% the same time last year, and also sequentially down on Q2 2011's level of 15%. Hays also reported tougher conditions in the banking sector when it released its year end results earlier this month (see Hays’ flat UK performance). However, public sector remained stable at 5% of group transactions for 3Three.
Another noteworthy snippet from SThree, who is rapidly increasing the amount of business conducted outside the UK (non-UK business is now 64% of GP), was that its UK headcount rose 10% year on year “in part reflecting the key role of the UK as a talent feeder for the non-UK business.” That’s clearly good for SThree, and hopefully the individuals concerned, but not such great news for the UK.