STHREE plc (STEM.L) reported a 12% year-on-year decline in group net fees for the third quarter, though a modest sequential improvement was seen quarter-on-quarter, supported by a return to growth in the US during the period.
Performance for fiscal year 2025 is expected to align with the previously announced 25 million pounds profit before tax guidance. While the Group has experienced encouraging momentum across select markets and verticals, prolonged macroeconomic uncertainty has continued to weigh on new business activity. In light of these conditions, the Board has adopted a prudent outlook, anticipating that this subdued environment will likely extend into fiscal year 2026.
The Board has decided to further invest in next generation AI to capitalize on the new opportunities emerging in its industry.
Persistent softness in new business activity is expected to reduce fiscal year 2026 profit before tax consensus by approximately 20 million pounds, reflecting the Group's operational gearing. In parallel, the Group's investment initiatives—fully funded through disciplined cost management in fiscal year 2025—are anticipated to contribute to a projected fiscal year 2026 profit before tax of around 10 million pounds.
The Board intends to initiate an additional share buyback program in fiscal year 2026.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.