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SThree Profits Slump but Tech Upgrade and Cash Strength Support New Buyback

Story Highlights
  • SThree’s FY25 profit and net fees fell sharply amid tough markets, but trends improved late in the year and cash remained strong.
  • The group completed its technology overhaul, kept dividends flat, and launched a new £20m buyback to leverage its strengthened platform and balance sheet.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SThree Profits Slump but Tech Upgrade and Cash Strength Support New Buyback

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The latest update is out from SThree plc ( (GB:STEM) ).

SThree reported a sharp fall in profitability for the year to 30 November 2025 as challenging macroeconomic conditions drove a 12% like-for-like decline in net fees and a 62% drop in profit before tax to £25.5m, though trends improved sequentially and the US business returned to growth. Contract work, which makes up 84% of net fees, and permanent placements both declined, while Germany and the Netherlands weakened even as the US grew 4%, but the group maintained a robust contractor order book, preserved its total dividend at 14.3p per share, and ended the year with net cash of £68m after a £20.2m buyback. The company completed the rollout of its Technology Improvement Programme across all 11 markets on time and on budget, reporting early gains in consultant productivity and operational efficiency that it expects will support scalable growth and margin recovery as markets improve. Reflecting confidence in its balance sheet and cash generation, the board has proposed an unchanged final dividend and announced a further share buyback of up to £20m, while management signals cautious optimism for FY26, highlighting cost optimisation, selective growth in key markets such as the US, and a stronger operational backbone to capture opportunities when demand normalises.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Spark’s Take on GB:STEM Stock

According to Spark, TipRanks’ AI Analyst, GB:STEM is a Outperform.

SThree plc’s overall stock score is driven by strong valuation metrics and positive corporate events. The financial performance is stable but challenged by declining revenue and cash flow. Technical indicators show bullish momentum, supporting a positive outlook.

To see Spark’s full report on GB:STEM stock, click here.

More about SThree plc

SThree plc is a global STEM workforce consultancy that specialises in placing highly skilled professionals across engineering, life sciences and technology roles. With 40 years of experience and operations in 11 countries, the group provides both permanent and flexible contract talent and project solutions to around 6,000 clients, leveraging a unified digital platform and data-driven insight to meet demand for critical STEM skills worldwide.

Average Trading Volume: 234,939

Technical Sentiment Signal: Sell

Current Market Cap: £233.8M

For an in-depth examination of STEM stock, go to TipRanks’ Overview page.

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