SThree plc reported earnings results for 2012. Revenue up GBP 577 million was up 6.5% on a reported basis or on a constant currency basis up 9.4%. Gross profit GBP 205.3 million was up 5% reported or represent on a constant currency basis. Gross profits growing slightly slower than revenue, as a result of the remix of the business toward contracts. As Gary mentioned, contract now accounts for 50% of its GP in 2012, up from 48% in 2011. Operating profit, GBP 25.1 million, down 16.3% reported or 14.7% on a constant currency basis. The reduction in operating profit really down to 3 main drivers. The decline in the consultant productivity, as the business experienced deteriorating macroeconomic conditions during 2012. Net finance income broadly level year-on-year. So profit before tax of GBP 24.3 million down 16.6% reported or down 15% on a constant currency basis. CapEx, GBP 10.5 million cash CapEx, so up nearly GBP 5 million. Profit after tax of GBP 16.8 million. Dividing by the way to that average number of shares basic 119.5 million, fully diluted, 133.8 million, giving a basic earnings per share of 14.1 pence, down 16.1% year-on-year and diluted earnings per share of 12.6 pence, a reduction of 18.7% year-on-year.

As previously indicated the company expects this level of CapEx to continue for 2013 and 2014 before reducing to become more in line with the depreciation and amortization charge.