European Business Services: The Signal Service

Research evidence excerpt

European Business Services: The Signal Service

Global Research

16 June 2026ab

European Business Services Equities

Europe including UKThe Signal Service

Industrial Services

Rory McKenzie

Staffing: SThree reports LFL net fees -6% y/y in Q2, a slight easing rate of Analyst

decline on Q1 trends rory.mckenzie@ubs.com

Professional staffer SThree (not covered) saw LFL net fees -6% y/y in Q2'26 (Mar-May), +44-20-7568 1977

an easing rate of decline after -8% in Q1 and -8% in Q4. Net fee trends improved Nicole Manion

sequentially in Contract (85% of group; -6% in Q2, after -10% in Q1) but deteriorated Analyst

significantly in Permanent (15% of group; -10% in Q2, after in 0% in Q1), with nicole.manion@ubs.com

management noting 'strong' growth in the USA and Japan, and 'stable' Contract new +44-20-7568 2094

business activity. Consultant headcount was -4% y/y and management reiterated FY'26 Abi Bell

guidance for c£10m PBT (-60.8% y/y; conversion margin c3.4% vs. high of 18.2% in Analyst

FY'23). Our view: While data continues to indicate a stabilising rate of decline for abi.bell@ubs.com

Staffing & Recruitment companies, the latest datapoints continue to show month-to- +44-20-7568 1594

month volatility in trends and so no clear picture of an 'improving recovery'. Within this Abdihakem Ahmed

aggregate picture however, labour markets are showing signs of extreme churn/ Associate Analyst

dispersion: some verticals/roles seeing strong growth e.g. Construction & Property, abdihakem.ahmed@ubs.com

whilst others are in the 4th year of double-digit declines e.g. Technology. Large +44-20-7567 1050

Enterprise client hiring is generally outperforming SME hiring, Northern Europe remains

the weakest region, and there are increasing 'pockets' of growth in the US and Asia.