SThree: Access to CCFF granted and further COVID-19 Update (1051267)

 
 SThree (STEM) 
SThree: Access to CCFF granted and further COVID-19 Update 
 
20-May-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
20 May 2020 
 
         SThree plc 
 
         Access to CCFF granted and further COVID-19 Update 
 
          SThree plc ("SThree" or the "Group"), the leading global pure-play 
       specialist staffing business focused on roles in Science, Technology, 
         Engineering and Mathematics ('STEM'), today issues an update on its 
                   financial position and operations. 
 
              Strong financial position with access to significant liquidity 
 
    The Group is pleased to announce it has received confirmation that it is 
eligible to access up to GBP300 million of funding under the Bank of England's 
         Covid Corporate Financing Facility (CCFF) to further strengthen its 
 financial position. Of this, the Board has agreed, in consultation with its 
 existing RCF lenders, that the CCFF facility will be capped at GBP50 million. 
 
 This facility is designed to support liquidity among larger firms that make 
  a material contribution to the UK economy and can demonstrate they were in 
         sound financial health prior to the economic impact of the COVID-19 
                   pandemic. 
 
         As detailed in our business and trading update of 6th April, SThree 
continues to benefit from a strong financial position. As at 18 May 2020 the 
  Group has total accessible liquidity of GBP129.4 million. This is made up of 
    GBP24.4 million net cash, a GBP50 million revolving credit facility ("RCF"), 
       which has now been fully drawn down, a GBP5.0 million overdraft and GBP50 
  million from the CCFF (both not yet drawn down). In addition, SThree has a 
     GBP20 million accordion facility as well as a substantial working capital 
           position reflecting net cash due to SThree for placements already 
                   undertaken. 
 
                   Operating environment 
 
    Demand in the short term, impacted by global government responses to the 
                   pandemic 
 
    We are in the midst of a health crisis and whilst governments across the 
  world are taking their next steps in response to the pandemic, uncertainty 
      persists. The resultant economic environment has meant the majority of 
        companies have been focused on their own immediate challenges. Those 
  challenges are often specific to their sector, many even within particular 
   niches, and sometimes distinct to each company. This has led to aggregate 
    demand for staffing being significantly less than what would normally be 
      expected, with notable spikes and troughs across different markets and 
                   industries in the short term. 
 
                   Acceleration of long term secular trends 
 
  The secular trends on which our business is focussed, flexible working and 
        STEM, are becoming more evident and we believe these will accelerate 
  significantly over the period ahead as noted by several global CEOs in the 
                   field. 
 
   The enforced implementation of flexible working that we are now seeing is 
likely to cause a seismic shift in working practices and cultures, with many 
businesses adopting new ways of operating for the long term. Alongside this, 
    in a recent SThree study1, employers have cited that remote working will 
   help to widen their talent pools where there are significant talent gaps. 
 
       We believe a crisis of this nature will ultimately also drive further 
acceleration of many key STEM trends over the long term. For example, whilst 
 many non-essential health procedures have been paused in the short term, in 
      the future we see greater investment in health care resulting from the 
   crisis, particularly digital and data-led health safeguarding, which will 
  require key skills in Life Sciences. In Engineering, there is likely to be 
    an increased focus on the resilience of infrastructure and protection of 
   supply chains. The adoption of Technology, AI and data science to problem 
     solve will become ever more pervasive in business as those that did not 
 previously prioritise the "digital revolution" rethink its potential impact 
                   on their businesses. 
 
Our continued response 
 
      There has been no time more relevant for our purpose: to bring skilled 
    people together to build the future. Our scale and deep understanding of 
     STEM niches allows us to continue to effectively service our clients in 
     complex and fast moving environments. We remain focused on ensuring our 
     business is well placed to benefit from the acceleration of the secular 
                   trends. 
 
                   Investing in the right markets in the right geographies 
 
      At our Capital Markets Day in November 2019, we talked about the right 
markets in the right geographies and this is key to our ability to drive the 
        business forward in the period ahead. We began the period focused on 
 continuing to selectively invest in our business, reflecting our commitment 
   to building the future, and we continue to believe that this is the right 
                   strategy for the future of our Group. 
 
    As such, we are using our data led approach to invest in specific niches 
within sectors and markets that are likely to be key in the future and where 
          we have an opportunity to gain valuable market share, creating new 
   relationships as well as enhancing our existing ones. In those industries 
     that are pulling back, we are supporting our clients effectively whilst 
                   rightsizing as appropriate. 
 
                   Using our scale and agility to deliver what clients need 
 
As the world adapts to the changes created by COVID-19, we will be operating 
  in an environment that is very different to what we have known previously. 
      As such, at SThree, we are focused on learning and evolving to operate 
 better in this environment, utilising our agility and expertise to navigate 
           a successful path and grow our market position for the long term. 
 
 We have the ability to adapt and flex our workforces to continue to provide 
what our clients need and help them to navigate this complex environment. We 
      are investing in virtual interview and placement solutions and sharing 
  knowledge of best practice across our global teams. As well as reinforcing 
   our relationships with our clients, this will bolster our market position 
                   now and into the future. 
 
                   Supporting our teams and candidates 
 
Our first priority has been to ensure the safety and wellbeing of our teams. 
   We are also working hard to make sure colleagues, contractors, candidates 
     and clients are supported effectively in this time, and that takes many 
  different guises. Our teams have adapted well to home working and continue 
   to service clients effectively. We would like to take this opportunity to 
                   thank them for their hard work and contribution. 
 
  For our colleagues we have created an internal 'Coronavirus Knowledge hub' 
with a dedicated space and materials for learning and development, including 
    guidance on managing remote teams and guidance on remote working for our 
   consultants. Alongside this we have accelerated investment in our digital 
                   learning platform to provide learning on demand for all. 
 
 For candidates we have created dedicated resources on our digital platforms 
to ensure that they are supported, with information, articles and guidelines 
     on remote working, how to contact us and other tips for getting through 
    COVID-19. Illustrating the success of these programmes, our Net Promoter 
Score (NPS) from our candidates improved by seven points and is now tracking 
 at its highest level over the last 12 months and the results from candidate 
                   interviews were up 13 points. 
 
                   Notice of trading update 
 
     In our H1 trading update and interim results announcement we will share 
        further detail on current trading and how adaptations are being made 
                   throughout the business in this current environment. 
 
1. SThree's customer insights research, May 2020 
 
         - Ends - 
 
                           Enquiries: 
 
                           SThree plc 020 7268 6000 
Mark Dorman, Chief Executive Officer 
Alex Smith, Chief Financial Officer 
Steve Hornbuckle, Company Secretary 
 
                              Alma PR 020 3405 0205 
 
Rebecca Sanders-Hewett                SThree@almapr.co.uk 
 
Susie Hudson 
 
                   Notes to editors 
 
     SThree is the leading global pure-play STEM staffing business providing 
    permanent and contract specialist staff to a diverse client base of over 
                   9,000 clients. 
 
 The Group's operations cover the Technology, Banking & Finance, Engineering 
           and Life Sciences sectors. With a multi-brand strategy, the Group 
   establishes new operations to address growth opportunities. SThree brands 
       include Computer Futures, Huxley Associates, Progressive and The Real 
   Staffing Group. The Group has a network of 47 offices in 16 countries, of 
   which 41 are in our international(2) markets, with circa 3,100 employees. 
 
SThree plc is quoted on the Official List of the Financial Conduct Authority 
      under the ticker symbol STEM and also has a US level one ADR facility, 
                   symbol SERTY. 
 
                   Important notice 
 
  Certain statements in this announcement are forward looking statements. By 
         their nature, forward looking statements involve a number of risks, 
   uncertainties or assumptions that could cause actual results or events to 
      differ materially from those expressed or implied by those statements. 
Forward looking statements regarding past trends or activities should not be

 taken as representation that such trends or activities will continue in the 
        future. Certain data from the announcement is sourced from unaudited 
        internal management information and is before any exceptional items. 
         Accordingly, undue reliance should not be placed on forward looking 
                   statements. 
 
ISIN:          GB00B0KM9T71 
Category Code: MSCH 
TIDM:          STEM 
LEI Code:      2138003NEBX5VRP3EX50 
Sequence No.:  64799 
EQS News ID:   1051267 
 
End of Announcement EQS News Service

(END) Dow Jones Newswires

May 20, 2020 02:00 ET (06:00 GMT)

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