SThree PLC: Gradual progress

Research evidence excerpt

SThree PLC: Gradual progress

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy SThree PLC 16 June 2026

Europe Reuters Bloomberg Rating Buy

United Kingdom STEMS.L STEM LN Price target (GBX) 260.0 Price at 15 Jun 26 166.8

52-week range 253.0 – 137.4

Business Services

Staffing Valuation & Risks

Gradual progress

Steve Woolf

A small improvement Research Analyst

+44-20-754-54604 Group net fees declined by 6% YoY on a like-for-like basis. This compares to an

8% reduction in both Q1 and Q4. Temp/Contract fees, which represent c.85% of David Brockton

Group fees, declined by 6% YoY while perm fees declined by 10%. Research Analyst

+44-20-754-11721

Geographical trends

The improvement was driven by improvements in the US which increased net James Beard

fees by 16% YoY compared to 8% in Q1, led by a return to growth in Life Sciences Research Analyst

+44-20-754-56765 and improved demand of engineering recruitment associated with infrastructure

projects such as power generation. Bharat Rajesh, CFA

Research Associate

In the Netherlands the rate of net fee decline reduced to 15% from 23% with no

clear end-market trends. Management noted the performance was also

negatively impacted by a brand restructuring and a new Dutch collective labour

agreement introduced earlier in the year with an anticipation that greater

compliance requirements would assist the larger, more established operators.

Elsewhere, trends were similar to Q1 with Europe remaining under pressure with

weakness in Germany (-17% from -11%) due to IT contractor reductions at SMEs.

UK fees declined by 21% from 17% in Q1, a function of weak IT demand, but was

broadly stable QoQ.

FY outlook in line

Management indicated the performance leaves FY in line with expectations of