SThree plc 28 March 2008 SThree plc Interim Management Statement SThree plc ("SThree" or the "Group"), the international specialist staffing business, is today issuing an Interim Management Statement covering the period from 3 December 2007 to 27 March 2008. The financial and operational data relates to the three-month period ended 3 March 2008, being the first quarter of the financial year ended 30 November 2008. The Group has continued to record encouraging placement levels during the period with the contract and permanent sides of the business both posting strong growth on the equivalent period in 2007. The Board is pleased with the Group's overall performance which is in line with its expectations and internal key performance indicators (KPIs)*. At the end of the first quarter SThree had 5,581 active contractors, an increase of 21.6% on the prior year (2007: 4,589). Average contractor gross profit per day rates also remained strong in the first quarter of the year. During the first quarter SThree made a total of 2,289 permanent placements, an increase of 21.6 % over the prior year (2007: 1,881). Average placement fees have continued to improve. Both UK and non-UK geographies performed as expected as did the ICT and non-ICT sectors. The performance achieved in the first quarter positions the Group well to deliver a strong result for the year. As in previous years the Group performance will be weighted significantly towards the second half. This normal level of seasonality may be somewhat more pronounced in the current year reflecting the phasing of planned headcount growth, with the majority of targeted staff recruitment expected to take place in the first half. In addition, as announced in the preliminary results, the Group will recognise a £1.9m loss resulting from the closure of derivatives related foreign exchange contracts in the first half results. Russell Clements, Chief Executive, commented: "Recent trading conditions remain unchanged from the beginning of the financial year and overall demand for our services remains robust. Candidates continue to have the confidence to move jobs, creating further vacancies as employers look to replace them on a like-for-like basis. This factor, coupled with the structural growth characteristic of our international markets, creates a strong platform for the Group to continue to post significant growth for the rest of the year. "In the light of recent events, demand in the investment banking market remains subdued. However, these markets are not of sufficient significance to the Group to have a major negative impact on the overall performance of the Group. We remain aware of concerns that negative sentiment could spread beyond the financial arena, but have yet to see any evidence of this actually happening. That said, the Group's seasoned management team is closely focused on ensuring that our strategy remains consistent with the prevailing market conditions." All Data sourced from SThree MIS. * KPIs include Drop out Rates, Time to Hire and Interview to Placement ratios SThree is hosting an analyst conference call today at 0830 GMT. The dial in number is + 44 20 3003 2666 and the password is SThree. - Ends - Enquiries: SThree plc 020 7292 3838 Russell Clements, Chief Executive Officer David Tilston, Interim Chief Financial Officer Citigate Dewe Rogerson 020 7638 9571 Kevin Smith / Nicola Smith Notes to editors SThree, founded in 1986, is an international specialist staffing business, providing both permanent and contract staff to a diverse, client base of well over 6,000 clients. From its well-established position as a major player in the information and communications technology ("ICT") sector the Group has broadened the base of its operations by building fast-growing businesses serving the banking and finance, accountancy, human resources, engineering, energy and pharmaceuticals sectors. Following the establishment of its first business, Computer Futures, in 1986, the Group adopted a multi-brand strategy. SThree currently operates 12 separately managed brands, the four largest being Computer Futures, Huxley Associates, Progressive and Pathway, and has 33 offices in the UK and 19 overseas offices, 15 elsewhere in Europe, the Netherlands, Belgium, France, Germany and Ireland. In 2006, the Group opened its first North American office, in New York, and recently opened offices in Australia, Hong Kong and Dubai. SThree has a selective approach to clients and focuses on high margin opportunities, predominantly within the small to medium-sized enterprises ("SMEs ") market and, from its inception, the Group has avoided the high volume, low margin business model in favour of a focus on high quality business. This information is provided by RNS The company news service from the London Stock Exchange