Chair’s statement

Strategic Report
Governance
Financial Statements

Unlocking our unique potential bydelivering inline with ourstrategy

2023 has been another challenging year for
many people around the globe. Heightenedlevels of geopolitical and macro-economic
instability have impacted individuals,
businesses, and governments creating
an increasingly complex commercialenvironment. Meanwhile, issues that wereprevalent last year, including high inflationand interest rates, the rising cost of living
and a global energy crisis have continued
to have an impact on our lives.
Our teams, customers and key markets of operation have all
been impacted differently by these issues, yet I am proud that
SThree has still delivered a resilient performance this year,
thanks to our strategic focus on sourcing and placing the best
STEM talent. Our robust performance in Contract, supported
by our unique Employed Contractor Model (ECM), underpins
our confidence in the megatrend that is the demand for flexible
workers in STEM. In the year we placed 15,292 skilled people
and maintained a strong order book throughout. I would like tothank our clients and candidates for the trust they have placed in
the Group this year. I would also like to thank every member of
the SThree team for their efforts to support our customers. It is
thanks to their skill and dedication that SThree finds itself in thisposition of strength today, with many exciting opportunities tobe pursued in the near future.
Since Timo’s appointment as Chief Executive Officer in April
2022 his energy and vision has spread across the business, withthe whole team coming together to execute an exciting growthstrategy. Our Technology Improvement Programme underpinsa large part of this strategy and I am delighted to report thatit continues to roll out at pace, providing a market-leading
platform for future growth and productivity that has been
designed to provide us with the best opportunity to continue
to seize market share in our target markets.

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SThree plc

Following the resilient trading performance in the year, coupledwith a healthy balance sheet position, the Board is proposing
a final dividend at 11.6 pence per share, which taken together
with the interim dividend of 5.0 pence per share, gives the totaldividend for the year of 16.6 pence per share, an increase of
4% over the prior year. This is in line with the Board’s policy tooffer shareholders long-term ordinary dividend growth within atargeted cover range of 2.5x to 3.0x and forms part of our wider
capital allocation policy.
Maximising shareholder value through a disciplined approach
to investment to deliver growth in net fees and margin, whilst
maintaining a strong balance sheet and sustainable throughthe-cycle dividend, remains a priority for the Board. Following
a periodic review, the Group’s capital allocation policy has
been refreshed to reflect investments in business improvement
alongside organic and inorganic growth as a key aspect ofour strategy.
Across the Group, we are clear on our ambitions and delivering
our strategy. With the addition of Margot van Soest (ManagingDirector, Netherlands & Spain), Sarah Mason (Chief PeopleOfficer) and Matt McManus (Managing Director, US) to the
Executive Committee, coupled with the appointment of Imogen
Joss as Non-Executive Director early in the financial year, wehave an enhanced, experienced executive leadership teamand Board in place to drive the Group forward. I would like tothank both the executive team and Board for all their hard work
this year, alongside those inside and working together with ourbusiness who have helped us achieve a resilient set of results.
I am especially proud of our promotion to the FTSE 250, after
too many years of absence. This is a clear reflection of theprogress we have made, and is another key milestone in
SThree’s ongoing journey.
We remain committed to reducing our impact on the planet,providing great opportunities for our people and ensuring wehave the governance processes in place to protect each andevery SThree stakeholder. We are proud to support the transition
to a green economy by connecting engineering talent to thegreen energy projects where they are most needed, and weare dedicated to making SThree an employer of choice forstaff. I am delighted that, for the first time, through targetedownership opportunities, over 50% of our employees arenow shareholders in the business, something we see as
the ultimate vote of confidence in our direction of travel,
providing strong alignment with our wider shareholder base.
Looking ahead, while we remain conscious of the wider
economic environment, I am confident that the Group willcontinue to deliver against our strategy. We have continued
to invest across the business, enhancing and innovating how
we operate so that as customer confidence strengthens andthe market returns to growth, we are in the best position
possible to seize the opportunity. With a market-leading
technology suite underpinning our future operations and atalented and experienced team in place, we are confident in
the Group’s long-term prospect.
James Bilefield
Chair

29 January 2024

SThree finds itself in the positionof strength today, with many
exciting opportunities to be
pursued in the near future.”James Bilefield
Chair

Annual Report and Accounts 2023

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