SThree’s full-year net fees slides 8% due to COVID-19 disruptions
- SThree’s full-year net fees slides 8% due to COVID-19 disruptions.
- The recruitment company froze all hiring activities in April.
- SThree says its fourth-quarter net fees jumped 11% in the U.S.
SThree plc (LON: STEM) reported a significant decline in its full-year net fees on Monday that it attributed primarily to the Coronavirus pandemic that weighed on global hiring activity in 2020. The COVID-19 crisis has so far infected more than 1.8 million people in the United Kingdom and caused over 64 thousand deaths.
SThree opened about 3.5% up on Monday. On a year-to-date basis, its shares are now a little under 20% down in the stock market despite a 50% recovery since mid-May, when the COVID-19 crisis weighed heavily on its business. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
SThree performed largely upbeat in the stock market last year with an annual gain of just under 40%. At the time of writing, it is valued at £400 million and has a price to earnings ratio of 12.21.
SThree says business recovered in October & early November
The ongoing pandemic dealt a massive blow to recruitment firms from across the globe this year. In an announcement in April, SThree revealed to have frozen all hiring activities due to the ongoing pandemic. It also resorted to cutting management salaries and slashed its dividend to shore up finances amidst the unprecedently challenging economic atmosphere.
According to the international specialist staffing organisation, business recovered slightly in recent months as the government eased COVID-19 restrictions. Following fresh curbs imposed in November, however, SThree now warns that performance in the upcoming months could take another hit.
SThree’s net fees stood at £310.9 million in the recent fiscal year
The London-based company said net fees jumped 2% in the United States in the financial year that concluded on 30th November. In the fourth quarter alone, its net fees was 11% up in the U.S. As per SThree, its headcount was 17% down at the end of the recent fiscal year. In the prior quarter (Q3), it had noted a 14% year over year decline in net fees, as per the report published in September.
Listed on the FTSE SmallCap Index, the company said that its overall net fees stood at £310.9 million that represents an 8% decline as compared to last year. In separate news from the United Kingdom, insurer Aviva said on Monday that it will sell its Vietnam unit to Manulife.