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US and Europe jobs growth gives SThree healthy boost

Published: 17:56 15 Jun 2018 AEST

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SThree is making big investment in STEM - science technology, engineering and maths

Good performances on the Continent and in the US meant a strong first half at Recruiter SThree PLC (LON:STHR) even though the UK was weak.

Gary Elden, chief executive, said the contract business in both territories had delivered double-digit growth in gross profit.

READ: Recruiter SThree delivers first-quarter gross profit growth despite weak UK jobs market

Group gross profit rose 11% to £148.4mln in the half-year to May with the improvement accelerating in the second quarter to 13% from 8% in the previous three months.

"Permanent achieved an improved performance during the first half, driven primarily by Continental Europe but also by our small and fast-growing business in Japan,” said Elden.

The group was increasing its staff numbers in science, technology, engineering and mathematics (STEM) to meet rising demand in these areas.

UK gross profit fell 2% to £26.5mln.

Broker Liberum said the numbers in the second quarter were much better than expected, especially Europe and the US.

"With the outlook for these businesses remaining strong and signs that the UK may have reached a point of inflection, we believe that the company is well positioned to deliver attractive growth in FY18."

Liberum has a price target of 425p and a 'buy' rating.

Shares rose 1.5% to 335p.

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