DJ SThree: Final Results
SThree (STEM) SThree: Final Results 31-Jan-2022 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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SThree plc
FINAL RESULTS FOR THE YEAR ENDED 30 NOvember 2021
RECORD profit PERFORMANCE up 111%,
FY22 upgrade TO double-digit growtH
SThree plc ("SThree" or the "Group"), the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), today announces its financial results for the year ended 30 November 2021. FINANCIAL HIGHLIGHTS
2021 2020 Variance
Constant
Reported Reported
Continuing operations (1) Adjusted (2) Adjusted (2) Movement (3) currency
movement (4)
Revenue (GBP million) 1,330.7 1,330.7 1,202.6 1,202.6 +11% +14%
Net fees (GBP million) 355.7 355.7 308.6 308.6 +15% +19%
Operating profit (GBP million) 60.8 61.0 31.3 31.8 +94% +106%
Operating profit conversion ratio % 17.1% 17.1% 10.1% 10.3% +7% pts +7% pts
Profit before tax (GBP million) 60.0 60.2 30.1 30.6 +99% +111%
Basic earnings per share (p) 31.8 31.9 13.9 14.2 +129% +143%
Proposed final dividend per share (p) 8.0 8.0 5.0 5.0 +60% +60%
Total dividend (interim and final) per share (p) 11.0 11.0 5.0 5.0 +120% +120%
Net cash (GBP million) (5) 57.5 57.5 49.9 49.9 +15% +15%
(1) Excluding discontinued operations in Australia. (2) Excluding the impact of GBP0.2 million in net exceptional income (2020: GBP0.5 million in net exceptional income).
(3) Variance compares adjusted 2021 against adjusted 2020 to provide a like-for-like view. (4) Variance compares adjusted 2021 against adjusted 2020 on a constant currency basis, whereby the prior year foreign exchange rates are applied to current and prior financial year results to remove the impact of exchange rate fluctuations.
(5) Net cash represents cash and cash equivalents less bank borrowings and bank overdrafts, excluding leases.
FULL YEAR HIGHLIGHTS
-- Record performance for the year, driven by focused execution of strategy and increased demand for STEMskills.
-- Net fees at an all-time high, up 19% (1) YoY: -- Strong growth achieved in Germany up 23%, USA up 24% and the Netherlands up 19%, which are theGroup's three largest countries and account for 74% of Group net fees.
-- Growth in Technology, Life Sciences and Engineering sectors across the Group.
-- Contract and Permanent net fees up 17% and 24% YoY, respectively.
-- Contract net fees represent 75% of Group net fees (2020: 76%), with the contractor order book (2) up 43%YoY.
-- Record adjusted profit before tax of GBP60 million for the Group, up 111% YoY.
-- Robust balance sheet, with GBP58 million net cash at year end (2020: GBP50 million net cash).
-- Final dividend proposed of 8.0 pence per share (2020: 5.0 pence per share), taking full year dividend to11.0 pence per share (2020: 5.0 pence per share). This is in line with the dividend cover target between 2.5x and3.0x previously communicated.
-- Strength of contractor order book and recent trading is tracking ahead of expectations; we now anticipatedouble-digit net fee and profit growth for 2022.
-- Sustainable business practice and ESG commitments demonstrated by: -- Over 33,000 lives positively impacted in 2021.
-- Company of the year at the European Diversity Awards.
-- Recognised as a climate leader by the Financial Times, placed 69th of the top 300 companies on itsEuropean Climate Leaders list.
-- SThree's renewables business (6% of net fees) up 22% versus 2020, ahead of target to double the shareof this business from 2019 to 2024.
As 2020 was significantly impacted by Covid-19, the Group has provided comparisons against 2019 for net fees and profit. Highlights include:
-- Full year net fees up 9%.
-- Our three largest markets, Germany, US and Netherlands all up strongly vs 2019.
-- Adjusted profit before tax up 7%.
(1) All growth rates are expressed in constant currency and exclude Australia, which the Group exited in Q4 2020.
(2) The contractor order book represents value of net fees until contractual end dates, assuming all contractual hours are worked.
Timo Lehne, Interim CEO, commented:
"Having been part of the Group for over 16 years and leading its most successful region, I am delighted to take on the role of Interim CEO and continue to help the Group deliver excellent results.
Our record-breaking full-year performance reported today demonstrates that we have a robust strategy focusing on STEM and flexible working, implemented by a talented management team, and the hard work of our people globally.
As the market rebounded in 2021 following the impact of Covid-19, we saw demand for STEM skills increase across all of our key markets. Whether it is engineers building green infrastructure, developers aiding digital transformation or the scientists helping to develop the next life-changing drug, we are proud to have placed more than 22,000 skilled people and, combined with our ESG efforts, we impacted over 33,000 lives this financial year.
Within our contractor markets, we see particular client demand for our employed contractor model, a market segment where we lead in many countries, and now accounts for 32% of Group net fees.
I am confident and excited about the future of SThree. Momentum is strong and demand for the talent we provide is expanding, driving anticipated double-digit growth in 2022. We are well positioned, we demonstrated our ability to navigate through unforeseen challenges, such as Covid-19, and we continue to evolve our delivery model. We will further invest in our infrastructure and our people in 2022, enhancing our Group-wide platform to drive accelerated margins in future years. We remain positive about our growth prospects as we continue to position ourselves as the leading STEM talent provider in the best global STEM markets."
Analyst conference call
SThree is hosting a webinar for analysts today at 09:30 GMT. If you would like to register for the webinar, please contact sthree@almapr.co.uk
SThree will issue its Q1 trading update on 21 March 2022.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (Regulation (EU) No.596/2014) as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
Enquiries:
SThree plc +44 7825122523
Rebecca Matts, Group Corporate Affairs Director r.matts@sthree.com
Alma PR +44 20 3405 0205
Susie Hudson Sthree@almapr.co.uk
Notes to editors
SThree plc brings skilled people together to build the future. We are the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), providing permanent and flexible contract talent to a diverse base of over 8,000 clients across 14 countries. Our Group's c.2,700 staff cover the Technology, Life Sciences, Engineering and Banking & Finance sectors. SThree is part of the Industrial Services sector. We are listed on the Premium Segment of the London Stock Exchange's Main Market, trading with ticker code STEM.
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ISIN: GB00B0KM9T71 Category Code: FR TIDM: STEM LEI Code: 2138003NEBX5VRP3EX50 OAM Categories: 1.1. Annual financial and audit reports Sequence No.: 139703 EQS News ID: 1274390 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
January 31, 2022 02:00 ET (07:00 GMT)
