UK's SThree raises annual pretax profit forecast after cost cuts, strength in U.S. market

Sept 22 (Reuters) - Recruiting firm SThree raised its full-year pretax profit forecast on Tuesday, helped by cost cuts and continued growth in the US market. 

SThree now expects pretax profit of around £12 million ($16.05 million), up from an earlier forecast of around £10 million.

Earlier this month, SThree rejected a takeover approach from US-based technology and workforce solutions firm Circle8, saying the proposal significantly undervalued the recruiter and its long-term growth prospects.

The London-listed STEM recruiter reported group net fees of £79.2 million for the three months through August 31, down 2% from a year earlier.

Mounting concerns over AI-driven disruption to white-collar jobs have kept clients and candidates wary in an already subdued hiring market, while higher costs and uncertainty stemming from war in the Middle East have further weighed on recruitment activity.

($1 = £0.7474)

(Reporting by Neeshita Beura in Bengaluru; Editing by Ronojoy Mazumdar)