(Reuters) - British recruiting firm SThree Plc (L:STEMS) reported a 21% jump in annual pretax profit on Monday, as higher fees earned in its international markets helped counter weakness at home ahead of Brexit.
Strong growth in SThree's two biggest markets, continental Europe and the United States, has helped the company offset the impact of a slowdown in hiring in Britain, where Brexit casts a shadow over decision-making by companies and workers.
The company, which hires employees for finance, energy, banking, pharmaceutical, engineering and tech sectors, said its reported pretax profit for the year ended Nov. 30 rose to 56.8 million pounds ($74.66 million) from 47 million pounds a year earlier.
But Chief Executive Officer Mark Dorman said the trading environment was unlikely to improve in the current period from the fourth quarter as "broader macro-economic and political uncertainties may well persist."
The company's peers PageGroup Plc (L:PAGE), Robert Walters (L:RWA) and Hays (L:HAYS) struggled in the quarter ended December in the face of weaker hiring in markets such as China, UK and France.
"UK & Ireland business was challenging in 2019 as the uncertainty surrounding Brexit and wider political environment continues to impact the region," the company said.
SThree posted a 9% drop in net fees earned in the region.
The company's adjusted operating profit grew by 9% to 60 million pounds.