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SThree shares drop despite slight profit and revenue rise

Shares in global staffing company SThree (LSE: STEM) fell in early trade on Tuesday after the firm reported a minor 1.2% increase in both its full-year profit and revenue for the 12 months to November …

Shares in global staffing company SThree (LSE: STEM) fell in early trade on Tuesday after the firm reported a minor 1.2% increase in both its full-year profit and revenue for the 12 months to November 30th.

The FTSE 250 company posted pretax profit of £77.9 million, up slightly from £77.0 million last year. Revenue also edged up 1.2% to £1.66 billion from £1.64 billion the previous year.

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Despite the uncertain economic environment, SThree proposed lifting its total dividend 3.8% to 16.6p per share. This includes a proposed final dividend of 11.6p per share, up 5.5% from 11p a year ago.

SThree Chief Executive Timo Lehne said the company has been “consciously investing in and positioning the business for future growth” during the year. He remains “confident that our investments and innovations put the group in a position of strength to capture market share as and when the market returns to growth,” even though macro conditions remain “challenging”.

However, the slight growth in full-year profit and revenue failed to excite investors, with SThree shares dropping 3% in early trade on Tuesday. The stock is now down 8.4% over the past 12 months.

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