UK Recruiter SThree Raises Annual Profit Forecast After Cost Cuts and U.S. Growth

UK-based recruitment company SThree has increased its forecast for full-year pretax profit, citing the impact of cost-reduction measures and continued growth in its U.S. market.

The recruiter now expects annual pretax profit to be around £12 million ($16.05 million), compared with its previous estimate of approximately £10 million.

SThree reported group net fees of £79.2 million for the three months ended August 31, representing a 2% decline from the same period a year earlier.

The recruitment market remains subdued as concerns about the potential impact of artificial intelligence on white-collar employment continue to affect both employers and job candidates. Higher costs and uncertainty linked to conflict in the Middle East have also weighed on recruitment activity.

Earlier in September, SThree turned down a takeover proposal from U.S.-based technology and workforce solutions company Circle8, stating that the offer substantially undervalued the business and its longer-term growth prospects.