SThree : Annual Report & Accounts 2022

Annual Report and Accounts 2022

Uniquely positioned to serve a changing world

SThree is the global talent partner that connects sought-after specialists in STEM (Sciences, Technology, Engineering and Mathematics)

with dynamic organisations across the world.

Founded in the United Kingdom in 1986 and headquartered in London, over the years SThree has expanded into a house of STEM brands, becoming the number one destination for talent in the best STEM markets.

Specialist expertise

Our global house of brands provides a unique combination of specialist recruitment knowledge and worldwide reach. We had 2,277 recruitment consultants at the year end, operating from 46 offices in 14 countries, who place STEM professionals with the businesses who need them across many sectors - for both contract and permanent work.

Igniting progress

There is growing demand for STEM as it is needed to help solve the toughest challenges of our time: digital transformation, research-led healthcare, decarbonisation, demographic shifts and new ways of working*. Whilst supporting our clients in finding this STEM talent, we are also helping our candidates achieve their career goals. We play an important role in society throughout the world. That is why we define our purpose as: Bringing skilled people together to build the future.

*For more details on megatrends see Market overview on pages 12 to 17.

Annual Report and Accounts 2022

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Overview

SThree at a glance

4

Strategic Report

Market overview	12
Our investor proposition	18
Chair's statement	20
Chief Executive Officer's statement	22
Our business model	26
Our business model in action	30
Strategic overview	34
Strategic progress	36
Responsible business	52
Key performance indicators	80
Chief Financial Officer's statement	84
Business review	90
Stakeholder engagement
(including section 172 statement)	98
Risks	106
Compliance information	114

Governance Report

Chair's governance statement	120
Board of Directors	122
Board at a glance	124
Board roles and responsibilities	126
Our Board	127
Employee engagement	131
Nomination Committee	136
Audit & Risk Committee	140
Directors' remuneration report	148
Directors' report	174
Statement of Directors' responsibilities	178

Financial Statements

Independent auditors' report	182
Consolidated Income Statement	192
Consolidated Statement
of Comprehensive Income	193
Statements of Financial Position	194
Consolidated Statement of Changes in Equity	195
Company Statement of Changes in Equity	196
Statements of Cash Flows	197
Notes to the financial statements	198
Five-year financial summary	248

Other information

Results announcement timetable	249
Shareholder information	250
Company information and corporate advisers	251

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		Chief Executive
		Officer's
Board at a glance		statement
124		22

	Scope
	SThree's Annual Report and Accounts 2022 is
SThree at a glance	our primary report to shareholders. It provides an
year ended 30 November 2022, disclosures relating
4	overview of the performance of the Group for the
to our financial, operational, environmental and
	social performance, and detail on our strategy.
	Supplementary information and disclosures are
	provided in the following documents and referenced
	in this report.
	See our full reporting network suite, including our
	ESG Impact Report and summary of notices and
	policies, at sthree.com.

	Responsible business
Strategic	52
overview
34

Key performance			Business		Group
indicators			model		performance
80	sthree.com		26		84	Annual Report and Accounts 2022 P-03

Overview

SThree at a glance

Providing STEM talent wherever and whenever it's needed

Every sector in every region faces the similar challenges of climate change, decarbonisation, digitalisation and increased demand for health and pharmaceutical innovation. They find solutions through STEM-skilled expertise.

2022 performance highlights1

Our consistent strategic focus on STEM skills and flexible talent delivered record results against an uncertain economic backdrop. In 2022, sales remained strong, with good new placement activity. Our lead indicators, including a strong contractor order book, give us confidence in the resilience and ability of our business to continue to deliver profitable growth in the future.

Net fees					Operating profit
£431m	£78m
2022		£431m			2022		£78m
2021	£356m				2021	£61m
			2020	£32m
2020	£309m

We aim to:

Basic earnings per share

41.0p

2022	41.0p

202131.9p

2020 14.2p

eNPS

51

Net cash

£65m

2022£65m

2021	£58m

2020£50m

NPS

52

Empower our people

Our Group employs over 3,000 people worldwide. We build an open and inclusive culture and offer a flexible working

Be the leading provider of STEM talent

STEM skills underpin the increasingly technical, interconnected and fast-paced

Create long-term sustainable value

We continue to invest in our business and grow our talent with environmental, social and

2022	51
2021	43
2020	5

2022	52
2021	50
2020	52

environment. Our business is full of proactive, forward-looking people who bring energy and fun to the workplace. They care about each other - collaboration is key to everything we do.

way of life we are living. The talented people we place are solving some of the most complex challenges the world faces today.

governance (ESG) considerations embedded in our strategy.

Within our markets we contribute to economic progress through delivering employment opportunities and empowering business growth. Ultimately, we work towards a sustainable future that works for everyone.

Lives positively impacted2

32,970

202232,970

202133,150

202022,621

Employees

3,119

2022	3,119
2021	2,735
2020	2,608

  See Strategic progress - Our People on page 42

  See Market overview on page 12

  See Responsible business on page 52

1. The Group also uses alternative performance measures (APMs) to help explain its business performance. Further information on APMs, including a reconciliation to the financial statements (where appropriate), can be found on pages 244 to 247.
2. Through delivering recruitment solutions and community programmes in 2022 alone.

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Annual Report and Accounts 2022

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Overview

SThree at a glance continued

Our international presence

Our businesses serve clients and candidates in the most important STEM markets, throughout the USA, across Europe, the Middle East and Japan. We have chosen these regions to operate in because they offer the best possible opportunity for SThree to grow while meeting evolving client needs.

Net fees mix (2022)	Recruitment consultants distribution per segment
(as a proportion of 2022 total Group net fees)	(based on 2022 average)

EMEA excluding DACH	36%		EMEA excluding DACH	38%
DACH	35%		DACH	36%
USA	26%		USA	20%
APAC	3%		APAC	6%

EMEA excluding DACH

Belgium, Dubai, France, Ireland,

Luxembourg, the Netherlands,

Spain and the United Kingdom

(focus on Technology and Engineering)

Recruitment consultants (2022 average)

808

DACH

Germany, Austria and Switzerland

(focus on Technology and Life Sciences)

Recruitment consultants (2022 average)

750

USA

United States

(focus on Life Sciences and Engineering)

Recruitment consultants (2022 average)

422

APAC

Japan and Singapore

(focus on Technology and Life Sciences)

Recruitment consultants (2022 average)

134

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Annual Report and Accounts 2022

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