TIDMRWA
RNS Number : 4790P
Robert Walters PLC
10 October 2023
ROBERT WALTERS PLC
(LSE: RWA)
(the 'Company' or the 'Group')
Trading update for the third quarter ended 30 September 2023
RESILIENT PERFORMANCE
Financial and operational highlights
Gross profit (Net fee Q3 2023 Q3 2022 % change % change
income) (constant
currency
(*) )
Group GBP93.4m GBP112.0m (17%) (13%)
---------- ----------- --------- -----------
Asia Pacific GBP40.9m GBP53.6m (24%) (16%)
---------- ----------- --------- -----------
Europe GBP29.3m GBP30.1m (3%) (3%)
---------- ----------- --------- -----------
UK GBP15.4m GBP17.6m (13%) (13%)
---------- ----------- --------- -----------
Other International GBP7.8m GBP10.7m (27%) (22%)
---------- ----------- --------- -----------
* Constant currency is calculated by applying prior period
average exchange rates to local currency results for the current
and prior years.
Group highlights
-- Group net fee income for the quarter down 13%* (down 17%
actual) against a record prior year comparative.
-- Global macro-economic conditions remained uncertain, with
client and candidate confidence levels unchanged from the second
quarter.
-- Contract and interim recruitment continued to outperform
permanent and now represent 33% of the Group's net fee income
(2022: 30%).
-- 84% (2022: 84%) of the Group's net fee income generated by
our international businesses.
-- Headcount down 2% quarter-on-quarter to 4,200 (30 June 2023:
4,280) as the Group continued to closely manage its cost base in
line with market conditions.
-- Strong balance sheet with net cash of GBP65.0m as at 30
September 2023 (30 June 2023: GBP69.9m).
-- During the quarter, the Group purchased and cancelled a
further 1.7m shares at an average price of GBP3.87 for GBP6.5m. The
programme is now complete, and the total capital returned to
shareholders was GBP10m for the year.
Regional highlights
-- Asia Pacific net fee income down 16%* (down 24% actual) to
GBP40.9m (2022: GBP53.6m).
o Resilient performance in Japan, the Group's largest and most
profitable business with net fee income down 8%* year-on-year.
o Net fee income across Australia and New Zealand, and Mainland
China was down 23%* and 16%* year-on-year respectively, reflecting
the ongoing challenging market conditions.
o The strongest rates of net fee income growth across the region
were delivered by Thailand (up 14%*) and South Korea (up 4%*), both
rapidly developing recruitment markets with strong long-term growth
potential.
o Our new CRM was successfully rolled out across all markets in
the South-East Asia region, reflecting our long-term investment in
Group infrastructure.
-- Europe net fee income down 3%* (down 3% actual) to GBP29.3m
(2022: GBP30.1m).
o Good net fee income growth in Belgium (up 22%*) and Germany
(up 4%*). Our newest business in Italy continues to perform well,
with net fee income up 56%* year-on-year albeit from a low
base.
o Net fee income in the region's largest businesses, France, the
Netherlands, and Spain, declined by 10%*, 6%* and 5%*
respectively.
-- UK net fee income down 13% to GBP15.4m (2022: GBP17.6m).
o High inflation and interest rates affected confidence in the
technology and financial services sectors. Legal recruitment
remained relatively resilient.
o Activity levels were strongest across the UK regions.
-- Other International (the Americas, South Africa, and the
Middle East) net fee income down 22%* (down 27% actual) to GBP7.8m
(2022: GBP10.7m).
o Challenges remain in the US recruitment market, especially
across technology and financial services. Our new US office,
Austin, performed well in finance and accounting, and sales and
marketing.
o Good growth across Latin America with Mexico and Brazil
increasing net fee income by 78%* and 14%* respectively
year-on-year.
o The Middle East and South Africa grew net fee income by 3%*
and 74%*.
Toby Fowlston, Chief Executive, commented:
"Our third quarter performance was resilient despite the ongoing
global macro-economic uncertainties. Hiring activity levels
remained largely stable quarter-on-quarter with contract and
interim recruitment outperforming permanent recruitment as
organisations focused on shorter-term solutions to meet their
hiring needs.
"The Group's strategic core remains strong, and we are focused
on consultant productivity, cost discipline and long-term
investments in our people and global infrastructure. The Group is
well positioned to swiftly capture opportunities when there is an
upturn in market confidence and our expectations for the full year
remain unchanged."
The Group will publish a trading update for the fourth quarter
ending 31 December 2023 on 11 January 2024.
- Ends -
Further information
Robert Walters plc
Toby Fowlston, Chief Executive
Officer
David Bower, Chief Financial
Officer +44 20 7379 3333
Williams Nicolson
Steffan Williams +44 7767 345 563
About Robert Walters Group
The Robert Walters Group is a market-leading international
specialist professional recruitment group. With 4,200 staff
spanning 31 countries, we deliver specialist recruitment
consultancy, staffing, recruitment process outsourcing and managed
services across the globe. We match highly skilled professionals to
permanent, contract and interim roles across the disciplines of
accountancy & finance, banking, engineering, HR, healthcare,
technology, legal, sales, marketing, secretarial & support, and
supply chain, logistics & procurement. Our client base ranges
from the world's leading blue-chip corporates and financial
services organisations through to
SMEs and start-ups. www.robertwaltersgroup.com
Forward looking statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results, and business of
Robert Walters plc. These statements are made by the directors in
good faith based on the information available to them at the time
of their approval of this announcement and such statements should
be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any
such forward-looking information. Robert Walters' actual future
results may therefore differ materially from the results expressed
or implied in these forward-looking statements. Nothing in this
announcement should be construed as a profit forecast.
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END
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