Recruiter SThree says net fees dip, but permanent hiring picking up

(Reuters) - British recruiter SThree's net fees fell 15% year-on-year in the first quarter as economic uncertainty slowed hiring, it said on Tuesday.

However the group, which focuses on roles in science, technology, engineering and mathematics, said permanent hiring had improved slightly from the quarter before, particularly in the U.S., one of its top two markets.

Shares of the London-listed company were up 1.1% at 264.5 pence by 0815 GMT, having initially fallen as much as 4.6%.

Political shifts in major global economies, which have included a change of government in Germany, and mounting economic uncertainties arising from sweeping U.S. tariffs have prompted many companies to scale back recruitment.

However, some hiring firms have seen a gradual recovery in the U.S. as employers gauge the impact of the flood of policies introduced by President Donald Trump, despite some fears over a possible recession.

While net fees fell overall, SThree's two biggest markets, Germany and the U.S., saw a lower rate of decline compared to the fourth quarter of 2024, it said.

Investec analysts said in a note that the group is well-placed to grow as and when the wider economy improves, "especially given its positioning in secular growth markets and STEM – areas where skills shortages are acute".

The recruiter reiterated expectations for 2025 pretax profit of about 25 million pounds ($32.45 million), compared with analysts' consensus of 26.2 million pounds.

SThree reported group net fees of 78.4 million pounds for the three months ended February 28, compared with 93.7 million pounds a year ago.

($1 = 0.7704 pounds)

(Reporting by Raechel Thankam Job and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Jan Harvey)