SThree’s (STEM) net fees remained flat at constant currencies in the first quarter of 2020 at £75.3m. The science, technology, engineering and mathematics (Stem) recruiter saw 7 per cent net fee growth in its largest market, Germany, in the three months to 29 February, but net fees from the Asia Pacific region dropped 15 per cent to £2.6m on the back of bushfires in Australia and the coronavirus outbreak.
The UK remains challenging and, although postponed as a result of Covid-19, upcoming reforms to off-payroll tax rules for private sector freelancers are causing further disruption.
The group says it’s “difficult to predict” the impact of coronavirus, although broker Liberum expects a significant impact. It forecasts a 6 per cent drop in net fees for the full year to £322m, translating to a 31 per cent reduction in operating profit to £41m.
