SThree PLC on Tuesday reported another decline in net fees as it grapples with ‘ongoing challenging market conditions’.

The London-based recruiter focused on science, technology, engineering and mathematics said net fees in the first quarter ended February 28 fell 15% on-year to £78.4 million, consistent with its fourth quarter outturn.

The steepest drop in net fees was in the UK, where they dived 30% on-year in the first quarter to £6.9 million from £10.0 million.

SThree said in its two largest markets, Germany and the US, net fees declined at a slower pace in the first-quarter than they did in the fourth.

It expects a full-year performance in line with previously announced £25 million pretax profit guidance.

The firm said its contractor order book was down 7% to £168 million, a reduced rate of decline compared to the end of the 2024 financial year.

‘The group has delivered a stable Q1 performance consistent with Q4 FY24 despite the anticipated challenging market conditions driven by the ongoing global political and economic conditions. New business continues to be soft, however extensions remain robust across our core STEM Contract service offering, providing sector-leading visibility,’ CEO Timo Lehne said.

‘As we look ahead, business leaders are continuing to navigate an evolving macro-economic backdrop which is weighing on investment decisions. Despite this, we are highly confident, supported by independent industry analysis, that the future economy is based on hard-to-find STEM skills, and we are ensuring SThree is in the best place to deliver on this demand.’

SThree shares were up 1.9% to 266.50 pence in London on Tuesday morning.

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