SThree plc management proposed a final dividend of 11.6 pence per share, which taken together with the interim dividend of 5.0 pence per share, gives the total dividend for the year of 16.6 pence per share, an increase of 4% over the prior year. This is in line with the firm's policy to offer shareholders long-term ordinary dividend growth within a targeted cover range of 2.5x to 3.0x and forms part of their wider capital allocation policy.
Other financial highlights include:
- Profit before tax of £78 million (down 2% YoY on a like-for-like basis), ahead of market expectations largely due to timing of recognition of Technology Improvement Programme expenses, lower than expected final bonus and commission payments, and the release of some specific bad debt provisions following successful collections since the year-end.
- Strong balance sheet, with £83.2 million in net cash at year-end (FY22: £65.4 million).
- Group net fees down 4% YoY on a like-for-like basis, against a record prior year (FY22: YoY growth: 19%) and global macroeconomic backdrop.
- Net fees across their three largest countries, representing 73% of the firm: Netherlands up 3%, Germany and the USA down 4% and 14% respectively.
- Within skill verticals: Engineering was up 17%, whilst Technology was down 2% and Life Sciences was down 21%.
- Contract net fees, which now represent 82% of Group net fees (FY22: 78%), were up 1% driven by contract extensions.
- Permanent net fees, representing 18% of Group net fees, were down 22% reflecting both market conditions and firm's transition towards Contract in specific markets (average Permanent headcount down 17%).
