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Interim Results Presentation 2011Interim Results for the six months ended 29 May 2011
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Interim Results for the six months ended 29 May 2011
SThree Profiles
Russell Clements — Chief Executive OfficerRussell has served as SThree’s Chief Executive Officer since 2004 having previously held the position of Deputy Chief Executive Officer since 2001. He joined Computer Futures in 1986 shortly after its inception, recruited by the co-founders as their second employee. He subsequently served as Director and as Managing Director of Computer Futures and was involved in the creation of a number of the SThree brands.
Alex Smith — Chief Financial Officer
Alex joined SThree in May 2008. Prior to joining SThree, Alex held the position of Integration Finance Director at TUI Travel plc, the company formed through the merger of First Choice Holidays plc and the tourism businesses of TUI AG. Prior to this he was Finance Director of First Choice's Mainstream Sector. His earlier experience included three years with W.H.Smith including a period as Managing Director of its Travel Retail business. He has also held financial roles at Travelodge and Forte. He is a Chartered Accountant trained by Price Waterhouse, London.
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Interim Results for the six months ended 29 May 2011
Key Facts
• Founded in 1986, floated in 2005
• 100% organic growth through multi brand model
• Pure play specialist staffing – average perm salary £47k, contract pro rata £89k
• 55 offices, 33 non UK, 63% of GP international
• A balanced contract and permanent business
• Niche specialisations in ICT, Engineering, Energy & Resources, Banking and Pharmaceuticals
• ICT* represents 60% of GP
• Entrepreneurial culture, significant management equity
• Agile business model, seasoned home-grown management
• Cash rich, no debt, robust attitude towards dividend
Note: * Defined by candidate skill set NOT end client sector.
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Interim Results for the six months ended 29 May 2011
Half Year 2011 Financial Highlights
H1 2011 H1 2010Actual
GrowthLFL
Growth
Revenue £254.9m £221.7m +15% +17%Gross Profit (fee income) £90.0m £74.3m +21% +23%Operating Profit £11.0m £7.1m +54% +56%Conversion Ratio* 12.2% 9.6%Profit before tax £11.2m £7.3m +52% +55%Basic earnings per share 6.2p 4.0p +55%Interim Dividend 4.7p 4.0p +18%Special Dividend 11.0p -Net Cash** £48.3m £31.6m
Note: *Conversion Ratio = Operating Profit as % of Gross Profit**Net cash includes assets held to maturityLFL Growth is at Constant Currency
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Interim Results for the six months ended 29 May 2011
• All regions continuing to show improving performance, with accelerating year on year growth in the period
• Permanent gross profit up 34%* year on year
• Contract gross profit up 15%* year on year
• Group gross profit up 23%* year on year
• Improvement in both permanent and contract fees
• Sales headcount growth of 14% year on year
• New offices opened in Sao Paulo, Doha and Antwerp
• Strong financial position with net cash of £48m at period end
• Interim dividend up 18% at 4.7p per share
• Special dividend of 11.0p per share (c £13.5m). Both interim and special dividends payable 2 December
2011 H1 Trading Update
Note:* At constant currency
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Interim Results for the six months ended 29 May 2011
22 UK Offices
• BirminghamComputer FuturesProgressiveHuxleyReal Staffing Group
• LeedsReal Staffing Group
• ManchesterComputer FuturesHuxley / Progressive
• EdinburghComputer Futures
• GlasgowProgressive
• AberdeenProgressive / Huxley
LondonSThree HQSThree Group TrainingSThree Group FinanceSThree Group ISComputer FuturesReal Staffing GroupIT Job Board
London (City)Real Staffing GroupHuxleyProgressive / Orgtel
Thames ValleyHuxley / Progressive
BristolComputer Futures
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Interim Results for the six months ended 29 May 2011
33 Non-UK Offices
FrankfurtComputer Futures (1999)Huxley (2006) / SThree L& D (2009) Real Staffing Group (2009) / ITJB (2010) / Orgtel (2010)
MunichProgressive (2004) / Computer Futures (2006)
DusseldorfProgressive (2009)
DublinComputer Futures (1999)
ParisComputer Futures (2003)Progressive (2006) / Real Staffing Group (2009) / SThree L&D (2010)Huxley (2008)
AmsterdamComputer Futures (2000)Progressive (2002) / Orgtel (2007)Huxley (2002) / Real Staffing Group (2007) / ITJB (2007)SThree L&D (2007)
RotterdamComputer Futures (2007)
BrusselsComputer Futures (1998) / Progressive (2009)Huxley (2007)
HamburgComputer Futures (2009)
MarseilleComputer Futures (2009)
StuttgartComputer Futures (2009)
Existing office locations:New Offices opened in 2010/2011:
New YorkHuxley (2006) / Real Staffing Group (2009)
DubaiPathway (2008)
Hong KongHuxley (2007)
SydneyProgressive (2008) / Orgtel (2008)
SingaporeProgressive / Orgtel (2009)
PerthProgressive (2010)
DusseldorfHuxley / Computer Futures (2010)
MunichComputer Futures (2010)
DelhiHuxley (2010)
San FranciscoReal Staffing Group (2010)
HoustonProgressive (2010)
Sao PauloHuxley (2011)
AntwerpComputer Futures (2011)
DohaHuxley/Progressive (2011)
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Interim Results for the six months ended 29 May 2011
9,116
10,091
11,838
12,672 12,851
11,861
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
£14,000
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
4,580
5,008
3,3023,450
2,842
0
1,000
2,000
3,000
4,000
5,000
6,000
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011
Key Performance Indicators: Permanent
Growth in Permanent Average Fee
Notes:Candidates the Group has placed with clients on a permanent basis and for whom it has sent the client an invoice during the relevant periodThe average permanent placement fee is calculated using the total placement fees for the relevant period, including the ITJobBoard advertising income, divided by the number of placements for the period. This analysis excludes retained business
Source: SThree Accounts
Growth in Permanent Placement Volume
Strong volume and fee growth
+21.4%
+8.3%
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Interim Results for the six months ended 29 May 2011
£73.14
£79.11
£87.67 £86.40 £88.10
£83.24
£0.00
£10.00
£20.00
£30.00
£40.00
£50.00
£60.00
£70.00
£80.00
£90.00
£100.00
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
4,974
5,745
4,494 4,381
3,952
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011
Key Performance Indicators: Contract
Growth in Gross Profit Per Day Rate
Notes:Contractors of the Group that are on placement with one of the Group’s clients at the end of the relevant periodThe average gross profit per day per contractor is calculated by taking gross profit from contract staffing for the period and dividing by the average number of active contractors and the number of working days in the period
Source: SThree Accounts
Growth in Contract Runners
Contract runners up 10.9%, GP per day rate up 5.8% on a constant currency basisSource: SThree Accounts
+5.8%
+10.9%
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Interim Results for the six months ended 29 May 2011
34.3% 34.7%33.3%
35.3% 35.3%
33.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
Gross Profit & Gross Margin
Gross Margin %
Gross margin percentage up 1.8% pts on a constant currency basisSource: SThree Accounts
Gross Profit (£m)
+1.8% pts
82.5
102.5
93.390.0 91.6
74.3
£0
£20
£40
£60
£80
£100
£120
H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
+23.3%
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Interim Results for the six months ended 29 May 2011
Conversion ratio improving with increasing Gross Profit
Historical Operating Profit & Conversion Ratio
Conversion Ratio(Operating Profit as a % of Gross Profit)
Operating Profit (£m)
Source: SThree AccountsNotes:2000 – 2005 UK GAAP2006 – 2011 IFRS
10.5
15.1
19.6
11.0
7.1
11.0 11.1
24.4
£0.0
£5.0
£10.0
£15.0
£20.0
£25.0
£30.0
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
22.9%
25.6%
23.8%
11.8%
9.6%
12.2% 12.1%
23.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 CC H1 2011
+56.3%
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Interim Results for the six months ended 29 May 2011
40%
23%
7%
19%
11%
UK
Benelux
France
Germany
ROW
37%
21%
7%
22%
13%
UK
Benelux
France
Germany
ROW
Geographic Analysis By Location of Client
Gross Profit
Source: SThree Accounts* Constant Currency
H1 2010£90.0m
Growth by Region*
H1 2011
£74.3m
H1 2011 H1 2010Asia Pacific 51% 48%Middle East 13% 17%Americas 36% 35%
Rest of World consists of Asia Pacific, Middle East and Americas
9%
-29%
43%
130%
32%
-20%-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
UK Europe ROW
H1 2011 H1 2010
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Interim Results for the six months ended 29 May 2011
46%
54%
Perm
Contract
Permanent/Contract Analysis
Gross Profit Growth In Permanent/Contract GP*
50%50%
Perm
Contract
H1 2011
H1 2010
£74.3m
£90.0m
Source: SThree Accounts* Constant Currency
34%
-11%
15%
-25%-30%
-20%
-10%
0%
10%
20%
30%
40%
Perm Contract
Gross Margin H1 2011 H1 2010Group (Blended) 35.3% 33.5%Contract 21.4% 21.4%
H1 2011 H1 2010
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Interim Results for the six months ended 29 May 2011
60%
15%
8%
5%
8%4%
66%
10%
5%
5% 3%
11%
Sector Analysis By Candidate Skillset
Gross Profit Growth In ICT / Non ICT GP*
Non ICT at 40% of GP (2010: 34%)
Source: SThree Accounts* Constant Currency
H1 2011
H1 2010
£90.0m
£74.3m
13%
-29%
42%
9%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
ICT Non-ICT
ICT
Banking & FinanceAccountancy
Other
Engineering & Energy
Pharma
ICT
Banking & FinanceAccountancy
Other
Engineering & Energy
Pharma
H1 2011 H1 2010
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Interim Results for the six months ended 29 May 2011
ICT19%
Manufacturing13%
Professional & Support Services
11%
Pharmaceuticals & Biotech
9%
Commodities9%
Others7%
Public Sector5%
Leisure4%
Retail & Consumer Goods
4%
Financial Services5%
Investment Banking14%
Source: Internal MIS analysis based on number of transactions per sector
Business Breakdown By Client Industry Sector
Half year 2011
ICT19%
Manufacturing12%
Pharmaceuticals & Biotech
7%
Commodities8%
Others6%
Retail & Consumer Goods
4%Media,
Entertainment & Leisure
4%Public Sector
6%
FinancialServices
6%
InvestmentBanking
16%
Professional &SupportServices
12%
Full year 2010Despite ICT representing 60% of candidates places, only 19% of transactions are in the ICT sector
InvestmentBanking
14%
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Interim Results for the six months ended 29 May 2011
970
561 473 498 508 515 530
714
645614 650 700 764 778
568
892
Nov 08 May 09 Aug 09 Nov 09 Feb 10 May 10 Nov 10 May 11
UK Int'l
Headcount
Note: *Sales headcount includes consultants and sales management
Total heads up 8% v Nov 2010; sales heads up 14% YoY61% of sales heads in International
Total -28%UK -42%Int’l -10%
Total -10%UK -16%Int’l -5%
Total +6%UK +5%Int’l +6%
Total +11%UK +3%Int’l +18%
Vs. year end 2009
Total +17%UK +10%Int’l +25%
Vs. year end 2009
Total +8%UK +3%Int’l +15%
Vs. year end 2010
1,684* 1,206* 1,087* 1,148* 1,208* 1,279* 1,308* 1,460*
1,6471,506 1,597 1,675
1,777 1,863
2,274
2,019
Vs. year end 2008 Vs. year end 2008 Vs. year end 2008TOTAL HEADS
SALES HEADS*
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Interim Results for the six months ended 29 May 2011
Financial Results
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Interim Results for the six months ended 29 May 2011
Income Statement
Source: SThree Accounts
H1 2011 H1 2010 Actual LFL£m £m Growth Growth
Revenue 254.9 221.7 +15.0% +16.8%
Gross profit 90.0 74.3 +21.1% +23.1%
Operating profit 11.0 7.1 +54.3% +56.3%
Net finance income 0.2 0.2 - -
Profit before tax 11.2 7.3 +52.0% +54.5%
Taxation (3.8) (2.5)
Profit after tax 7.4 4.8 +53.2% +54.3%
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Interim Results for the six months ended 29 May 2011
Balance Sheet
Source: SThree Accounts
£20m invoice discounting facility with RBS until April 2012• £20m committed• Base rate +175 bp• Not drawn in period
Strong cash position
Focus on working capital• Debtor days stable at 37• Debtors ageing improved
Balance Sheet 29 May 30 May£'m 2011 2010
Goodwill & intangibles 10.1 10.0Property, plant & equipment 5.1 5.5Deferred tax 8.9 8.9Net working capital 11.4 21.8Tax liability (1.7) (1.2)Provisions (5.6) (4.2)
28.1 40.9Net Cash* 48.3 31.6Net Assets 76.4 72.5
*Includes assets held to maturity
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Interim Results for the six months ended 29 May 2011
Cash Flow
Source: SThree Accounts
Cash Flow 2011 2010£'m £'m
Operating Profit 11.0 7.1
Depreciation and amortisation 3.2 3.0
Share awards charge, asset write offs, other non cash items 1.2 0.9
(Increase) / decrease in receivables (5.1) 6.7
(Decrease) / increase in payables & provisions (4.2) (13.4)
Net cash inflow from operating activities 6.1 4.3
Taxation paid (4.6) (1.4)
Capital expenditure (2.7) (2.2)
Net finance income 0.2 0.2
Held to maturity investment 3.5 -
Dividends paid, repurchase of minority stakes & purchase of own shares (5.6) (15.1)
Cashflow (3.1) (14.2)
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Interim Results for the six months ended 29 May 2011
Earnings Per Share
Source: SThree Accounts
2011 2010 Change %
Profit After Tax £7.4m £4.9m +53%
Minority Interest - -£0.1m -
Profit attributable to equity holders of the company £7.4m £4.8m +55%
Weighted average number of shares for basic EPS 120.5m 119.8m +1%
for fully diluted EPS 124.1m 122.5m +1%
EPS Basic 6.2p 4.0p +55%
Diluted 6.0p 3.9p +54%
DPS Interim 4.7p 4.0p +18%
Special* 11.0p - -
*The special dividend will be paid along with the interim dividend on 2 December 2011
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Interim Results for the six months ended 29 May 2011
Minority Interest Scheme
Background
• c100 participants, across newer geographies and sectors, relating to 2006–2010 schemes
• An opportunity to buy into a new business at an early stage, to become a part owner
• A key retention & attraction tool, a point of difference, given low barriers to entry
• During 2010, as a result of a corporate restructuring and simplification programme, entity based MIs were replaced by tracker scheme arrangements1
• Accounting governed by IFRS 2 “Share Based Payment”, with no net accounting charge as the payment made by the participant = the fair value of the award at that time
Features
• A senior individual may be invited to invest in the scheme
• After a set number of years (typically 5 years), the individual can offer that stake for sale to SThree
• The sale price is set with reference to a formula – typically 2/3 x tracked business PAT x SThree plc historic published PER (28 day average)
• SThree is not obliged to purchase a minority stake offered. All stakes offered back will be considered by the Investment Committee, comprising the CEO and CFO
• Costs £5m - £15m pa for period 2012 - 2016, in cash or shares, with marginal dilution if new issue shares
• Costs in any year dependent upon whether or not a stake is offered up for sale, the PAT of the tracked businesses, the Group PER and the Board’s desire to buy out the shares offered
1Excludes ITJB
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Interim Results for the six months ended 29 May 2011
Dividend Policy
• A cash generative business throughout the economic cycle
• A progressive ordinary dividend policy, targeting a medium term cover of 2.0 – 2.5x
• Periodic review of the capital structure with the potential for future special dividends
A robust and progressive dividend policy, whilst continuing to invest for long term growth
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Interim Results for the six months ended 29 May 2011
Summary & 2011 Outlook
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Interim Results for the six months ended 29 May 2011
Contract Runners – H1 5 year comparison
Indexed Contract Runners - H1 5 Year Analysis(Annual Trend based on P12 Nov Year End Runners)
102%
40%
50%
60%
70%
80%
90%
100%
110%
120%
November December January February March April May June
2007 2008 2009 2010 2011
109%
104%
77%
97%
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Interim Results for the six months ended 29 May 2011
22%
78%
25%
75%
32%
68%
Business Mix – A Transformation
Continued geographical & sector diversification derisks our business, longer established sectors/geographies still capable of strong growth
Other sectors and geographies UK, ICT Gross Profit
H1 2011 H1 2009H1 2010
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Interim Results for the six months ended 29 May 2011
Summary & 2011 Outlook
• A pleasing performance in H1, with the Group benefiting from improving conditions in most markets
• Global Banking is less robust than 2010 and some softening in UKdemand evident in recent weeks
• Strong finances and a well established recovery across the majority of our markets gives us confidence to announce a progressive interim dividend of 4.7p and a special dividend of 11.0p per share (c £13.5m)
• The Group is well positioned for the remainder of the year with, as usual, H2 and Q4 expected to be particularly significant contributors to our full year profits
• Full year expectations unchanged
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Interim Results for the six months ended 29 May 2011
Growth Prospects
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Interim Results for the six months ended 29 May 2011
23%
23%
27%
27%
SThree: Evolving The Multi Brand Model
Source: Internal MIS analysis
SThree has grown 100% organically through niche brands
Brand % of 2010 Group GP
Niche Specialisations
ICT
Banking
Engineering & Energy
Accountancy & Finance
Pharma / Healthcare
Sales & Marketing
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Interim Results for the six months ended 29 May 2011
Local
Two Types Of Specialist Staffing Market –Defined By Candidate Mobility
GlobalGlobal candidates provide an ability to take larger geographical steps
Approximately 30% of consultants are working on global candidate markets
Accountancy
I.C.T.
Pharmaceuticals
H.R.Oil & GasBanking
Pharmaceuticals
Oil & Gas
Banking
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Interim Results for the six months ended 29 May 2011
Profile Of International Growth
The Group’s expansion has four major dimensions:
The majority of planned growth comes from additional heads in existing locations, in both existing and new sectors
Increase headcount in an existing office into a newer sector e.g. Sydney Banking
Increase office footprint in existing geography e.g. Perth
Open entirely new regions e.g. Sao Paulo
Increase headcount in an existing office in an
established sector e.g. Munich ICT
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Interim Results for the six months ended 29 May 2011
Actual, Planned & Potential Office Openings2011/12
Opportunity to leverage existing office/locations initiallyAverage investment circa £300k - £400k per office, payback 6-24 months
Doha
Antwerp
Sao Paulo
Zurich
Mumbai
Luxembourg
Chicago
Rio de Janeiro
Melbourne
Moscow
Boston
Shanghai
Toronto
Oslo/Stavanger
Pending approvalSubject to business case
Opened/due to open
Opened during H1 2011
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Interim Results for the six months ended 29 May 2011
Geographical Mix 2009
Indicative Future Mix(c. 5 years)
Business Mix
23%
47%
30%
Source: SThree Internal Analysis
45%
49%
6%
UK Europe ROW
2011 H1 ROW represents 13% of Group mix
40%
49%
11%
Geographical Mix 2010
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Interim Results for the six months ended 29 May 2011
Indicative Future Footprint
New YorkSan FranciscoWashingtonHoustonDallasChicagoLos AngelesBostonAtlanta
CalgaryToronto
VancouverRio de Janeiro
Sao PauloBuenos Aires
Mexico City
LondonManchesterBirminghamLeedsReadingBristolEdinburghGlasgowAberdeenDublin
DüsseldorfHamburgFrankfurtMunichCologneStuttgartBerlinAmsterdamRotterdamEindhovenBrusselsAntwerpLuxembourg
ParisMarseille
LyonRomeMilan
Oslo/StavangerViennaZurich
GenevaMoscowPrague
Warsaw
DubaiAbu DhabiDohaSaudi ArabiaCape Town
Hong KongSingaporeKuala LumpurSeoulSydneyPerthMelbourneBrisbane
ShanghaiBeijingTokyoOsaka
DelhiMumbai
Bangalore
Americas UK & Ireland Europe Middle East & Africa AsiaPac
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Interim Results for the six months ended 29 May 2011
QuestionsInte
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Thank you for listening, please feel free to ask any questions
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Interim Results for the six months ended 29 May 2011In
terim
Res
ults
201
1
Regional Trading Metrics
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Interim Results for the six months ended 29 May 2011
£9,839£11,148
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
UKH1 2010 H1 2011
2,227 2,340
0
500
1,000
1,500
2,000
2,500
UKH1 2010 H1 2011
£71.49 £73.20
£0.00£10.00£20.00£30.00£40.00£50.00£60.00£70.00£80.00
UKH1 2010 H1 2011
1,063 1,131
0
200
400
600
800
1,000
1,200
UKH1 2010 H1 2011
UK Trading Metrics
Runners at Period End
+5.1%
GPDR - Constant Currency
+2.4%
Perm Placement Fee - Constant
+13.3%
IT - Non IT Split 2011
Perm Placements
+6.4%
Perm - Cont Split 2011
Consultant Headcount (Period End)
+14.4%
IT 61%
Non ICT39%
Cont61%
Perm39%
457 523
0200400600
UKH1 2010 H1 2011
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Interim Results for the six months ended 29 May 2011
536
677
0100200300400500600700800
BeneluxH1 2010 H1 2011
242 268
0100200300
BeneluxH1 2010 H1 2011
£98.52 £102.77
£0.00
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
BeneluxH1 2010 H1 2011
Benelux Trading Metrics
Runners at Period End
+0.5%
GPDR - Constant Currency
+4.3%
Perm Placement Fee - Constant -0.9%
IT - Non IT Split 2011
Perm Placements
+26.3%
Perm - Cont Split 2011
Consultant Headcount (Period End)
+10.7%
852 856
0100200300400500600700800900
BeneluxH1 2010 H1 2011
£12,212 £12,105
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
£14,000
BeneluxH1 2010 H1 2011
IT 61%
Non ICT39%
Cont57%
Perm43%
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Interim Results for the six months ended 29 May 2011
233 235
0100200300
Germ anyH1 2010 H1 2011
568
703
0100200300400500600700800
Germ anyH1 2010 H1 2011
£13,960£16,221
£0£2,000£4,000£6,000£8,000
£10,000£12,000£14,000£16,000£18,000
Germ anyH1 2010 H1 2011
Germany Trading Metrics
Runners at Period End
+36.1%
GPDR - Constant Currency
+6.5%
Perm Placement Fee - Constant
+16.2%
IT - Non IT Split 2011
Perm Placements
+23.8%
Perm - Cont Split 2011
Consultant Headcount (Period End)
+0.9%
462
629
0
100
200
300
400
500
600
700
Germ anyH1 2010 H1 2011
£109.45 £116.51
£0.00
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
£140.00
Germ anyH1 2010 H1 2011
Non ICT46%
IT 54%
Cont42%
Perm58%
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Interim Results for the six months ended 29 May 2011
292330
0
50
100
150
200
250
300
350
FranceH1 2010 H1 2011
£82.48£96.11
£0.00
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
FranceH1 2010 H1 2011
216254
0
50
100
150
200
250
300
FranceH1 2010 H1 2011
£9,705£11,002
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
FranceH1 2010 H1 2011
France Trading Metrics
Runners at Period End
+13.0%
GPDR - Constant Currency
+16.5%
Perm Placement Fee - Constant
IT - Non IT Split 2011
+13.4%
Perm Placements
+17.6%
Perm - Cont Split 2011
Consultant Headcount (Period End)
+35.8%
Cont56%
Perm44%
81110
050
100150
FranceH1 2010 H1 2011
IT 85%
Non ICT15%
Non ICT
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Interim Results for the six months ended 29 May 2011
119
226
0
50
100
150
200
250
ROWH1 2010 H1 2011
£90.71 £96.51
£0.00
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
ROWH1 2010 H1 2011
457
685
0100200300400500600700800
ROWH1 2010 H1 2011
£14,644£13,625
£0£2,000£4,000£6,000£8,000
£10,000£12,000£14,000£16,000
ROWH1 2010 H1 2011
ROW Trading Metrics
Runners at Period End
+89.9%
GPDR - Constant Currency
+6.4%
Perm Placement Fee - Constant
-7.0%
IT - Non IT Split 2011
Perm Placements
+49.9%
Perm - Cont Split 2011
Consultant Headcount (Period End)
+53.7%
IT 52%
Non ICT48%
Cont19%
Perm81%
121186
0
100
200
ROWH1 2010 H1 2011
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Interim Results for the six months ended 29 May 2011In
terim
Res
ults
201
1
SupplementaryMaterial
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Interim Results for the six months ended 29 May 2011
PBT Growth Post Dot Com Crash 2003 – 2008
Total PBT increase of 818% on 2003
56% CAGR 2003 to 2008
6.1
17.3
29.5
40.3
50.3
56.0
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008
Year
PBT
(£m
) 34% CAGR 2004 to 2008
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Interim Results for the six months ended 29 May 2011
34.0%
31.0% 30.8% 31.3%33.2%
34.5% 34.9% 34.7%33.0%
35.1%
10%
15%
20%
25%
30%
35%
40%
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Historical Gross Profit & Gross Margin
Notes:2000-2005 UK GAAP2006-2010 IFRS
Gross Profit (£’m) Gross Margin (%)
50% 58% 60% 56% 54% 51% 49% 52% 58% 51%
Contract2001 2002 2003 2004 2005 2006 2006 2008
Margin 20.6% 20.6% 21.0% 20.5% 21.1% 21.3% 20.8% 21.5%200922.1%
201021.6%
123.0
70.358.7
75.9
104.5
135.5
182.7
218.9
171.2 166.4
0.0
50.0
100.0
150.0
200.0
250.0
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
60%42% 44% 46% 49% 51% 48% 42% 49%50% 40%
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Interim Results for the six months ended 29 May 2011
33%
57%
Candidate Salary Positioning
Source: Internal MIS analysis, SThree Accounts
Permanent salary analysis
Current average permanent salary is £47k*(2010: £47k) Current contract pro rata salary is circa £93k**(2010: £90k)
Note: * Salary on new deals per MIS* *Based on a 46 week year, GP per day rate of £86.40 grossed up at the contract margin of 21.4%
H1 2011 FY 2010
£47k £47k
0k - 30k14%
30k - 40k27%
50k - 70k23%
70k - 100k9%
100k +3%
40k - 50k24%
0k - 30k15%
30k - 40k29%
50k - 70k23%
70k - 100k8%
100k +2%
40k - 50k23%
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Interim Results for the six months ended 29 May 2011
SCOTLAND
IT
Based Glasgow
PHASE IEstablished IT
franchise looks to diversify
2005/6
The Glasgow/Singapore Example
SCOTLAND
Oil & Gas
Based Glasgow
SE ASIA
Oil & Gas
Virtual OfficeBased Glasgow
SE ASIA
Oil & Gas
Based Singapore
SINGAPORE
Accountancy
SINGAPORE
Middle Office Banking
PHASE IINorth sea oil and
gas market a logical next step
2006
PHASE IIIOpportunities to
extend oil and gas market to SE Asia
remotely2008
SINGAPORE
IT
PHASE IVPhysical relocation
to Singapore initially to focus on oil and gas market
2009
PHASE VDue to physical
proximity a number of new markets
become accessible2009
Sector Diversification Leads To Global Opportunities
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Interim Results for the six months ended 29 May 2011
Performance Management Systems
Actual screenshot Permanent Consultant
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Interim Results for the six months ended 29 May 2011
“Churn” – A Key Multiplier Of Demand
New Job
Vacancy filled
Donor Business 1has vacancy
Donor Business 3has vacancy
Donor Business 2has vacancy
Vacancy filled
Vacancy filled
Vacancy filled
1
2
3
Even when markets are mature, churn drives growth