SThree : Q3 Trading Update

15 September 2017

Q3 Trading Update

SThree plc ('SThree' or the 'Group'), the international specialist STEM staffing business, is today issuing a trading update covering the period from 1 June 2017to date; financial information relates to the quarter ended 31 August 2017.

Highlights

• Group gross profit ('GP') up 5%* YoY in Q3, with sustained momentum from Q2 when Group GP grew by 4%*
  • Solidgrowth across Engineeringup 5%* YoY, Life Sciences up 3%* and Global Energy up 35%*
  • Stronggrowthin USA up 20%*YoY
  • Robustperformance in Continental Europe up 6% YoY
  • UK&I remains challenging down 10%* YoY, in line with management expectations
• Contract GP up 9%* YoY, with strong growth across Engineering up 10%*, Life Sciences up 13%* and Energy up 37%*
• Permanent GP down 6%* YoY, broadly in line with average sales headcount down 7%
• 80% of Group GP generated outside the UK&I (2016: 76%)
• Group period-end sales headcountup 3% on the 2016 year-end position, and up 4% YoY
• Full year 2017 adjusted profit before taxexpected to be ahead of current consensus+

+Consensus for the year ended 30 November 2017 is £42.4m, with a range of £39.3m to £45.6m

Gary Elden, Chief Executive, commented: 'We are pleased with our sustainedmomentumin the period, with gross profit showing a sequential increase overQ2. A robust performance in Continental Europe and furtherstrong growth in the USA were particular highlightsand our Contract business is continuing to drive growth across the Group.

'We are well-positioned for the final quarterand now expect to deliver a full year result ahead of current consensus.'

Group gross profit ('GP') was up 5%* YoY and up 5%*sequentiallyvs Q2, with Q2 having been up 4%*YoYafter a flat performance in Q1. USA GP was ahead by 20%* YoY in the quarter, another strong performance after being up 20%*in Q2. Continental Europe posted a robust performance in the quarter up6%* YoY. Sales headcount for the Group was up 4% YoY and 3% ahead of the 2016 year end position.

Contract continues to perform strongly, up 9%* YoY with a large proportion of the growth in the quarter from Continental Europe up 12%* and USA up 24%*, offset by a decline in the UK&I, down 10%*. On a sector basis, the Group maintained strong growth in Engineering up 10%* YoY and Life Sciences up 13%*.We continued to prioritise growth inContract sales headcount, with an average increase in the quarter of 8%YoY.

Permanent GP was down 6%* YoY, broadly in line with average sales headcount down 7% YoY. In the quarter, Permanent GP in UK&I declined by 12%* YoY, Continental Europe declined by 9%*, offset by a strongperformance in USA, up 12%*.

Average Group sales heads were up 2% YoY.UK&I sales headcount was down 9%YoY, Continental Europe was up 13%, USA was down 3% and Asia Pacific & Middle East was down 15%. Contract sales headcount represented 65% of total salesheadcountat the end of the quarter(2016: 62%).

The Group has a network of 39offices in 16 countries, of which 32are outside the UK. The Group generated 80% of Gross Profit for the period from markets outsidethe UK&I (2016: 76%).

SThree remains in a strong financial position. Net debt at 31 August 2017was circa £8m(31 August 2016: £14m). The Group has a £50m revolving credit facility ('RCF') with Citibankand HSBC, which is committed to 2019.

* at constant currency

SThree is hosting an analyst conference call today at 0830 BST. The details are as follows:

Telephone number: +44 (0) 20 3003 2666

For access to the call please quote passcode SThree

A replay facility will be available for seven days on +44 (0) 20 8196 1998 followed by 1582104#

The Group will be hosting aCapital Markets Dayin London on the afternoon of 15 November 2017.

TheGroup will issue a trading update for the year ended 30 November 2017 on 15 December2017.

- Ends -

Notes to editors

SThreeis a leading international specialist staffing business, providing permanent and contract specialist staff to a diverse client base of over 7,000 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 to include businesses serving the Banking & Finance, Energy, Engineering and Life Sciences sectors.

Since launching its original business, Computer Futures, in 1986, the Group has adopted a multi-brand strategy, establishing new operations to address growth opportunities. SThreebrands include Computer Futures, Huxley Associates, Progressive and The Real Staffing Group. The Group has circa 2,700 employees in sixteencountries.

SThreeplc is quoted on the Official List of the UK Listing Authority under the ticker symbol STHR 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.