SThree PLC on Tuesday said net fees fell in the first half of the financial year, reflecting challenging market conditions and tough comparatives.

In a trading update for the half year ended May 31, the London-based recruitment company said group net fees were down 7% from a year prior, reflecting the ‘ongoing challenging backdrop’.

Contract fees, which now make up 84% of the total, fell 4%.

SThree said the contractor order book was down only 2% to £182 million from a year prior, which it called ‘sector-leading visibility,’ the equivalent of around four months of net fees.

SThree highlighted an uptick in net cash to £90 million at May 31 from £72 million a year before.

The recruiter said performance for the financial year is currently expected to be in line with market expectations.

Chief Executive Timo Lehne commented: ‘Against the challenges experienced by the sector, we are pleased with our trading performance over the past six months, with strong contract extensions partially offsetting continued soft new business activity.’

‘We are well placed to take full advantage when the market returns,’ he added.

Shares in SThree fell 0.7% to 419.00 pence in London on Tuesday morning.

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