TIDMRWA
RNS Number : 1056F
Robert Walters PLC
06 July 2023
6 July 2023
ROBERT WALTERS PLC
(LSE: RWA)
(the 'Company' or the 'Group')
Trading update for the second quarter ended 30 June 2023
CANDIDATE AND CLIENT CONFIDENCE YET TO SHOW SUSTAINED
IMPROVEMENT
Financial and operational highlights
Gross profit (Net fee Q2 2023 Q2 2022 % change % change
income) (constant
currency(*)
)
Group GBP99.9m GBP112.0m (11%) (10%)
---------- ----------- --------- -------------
Asia Pacific GBP43.8m GBP49.7m (12%) (8%)
---------- ----------- --------- -------------
Europe GBP32.3m GBP31.5m 3% 0%
---------- ----------- --------- -------------
UK GBP16.0m GBP20.4m (21%) (21%)
---------- ----------- --------- -------------
Other International GBP7.8m GBP10.4m (25%) (26%)
---------- ----------- --------- -------------
* 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 10%* (down 11%
actual) year-on-year with global market uncertainty continuing to
impact both candidate and client confidence.
-- Tough comparatives against a record second quarter in
2022.
-- 84% (2022: 82%) of the Group's net fee income is now
generated by our international businesses.
-- Group net fee income for the half-year down 5%* (down 4%
actual) year-on-year to GBP202.3m (2022: GBP210.5m).
-- Headcount down 3% quarter-on-quarter to 4,280 (31 March 2023:
4,403).
-- Strong balance sheet with net cash of GBP69.9m as at 30 June
2023 (31 March 2023: GBP70.5m).
-- During the quarter, the Group purchased and cancelled 818,000
shares at an average price of GBP4.15 for GBP3.4m.
Regional highlights
-- Asia Pacific net fee income down 8%* (down 12% actual) to
GBP43.8m (2022: GBP49.7m).
o Net fee income in Mainland China down 37%* year-on-year. The
anticipated economic bounceback from Covid-related disruption
earlier this year is yet to materialise.
o The strongest rates of net fee income growth were delivered by
Indonesia (up 20%*), Malaysia (up 11%*) and New Zealand (up
8%*).
o Net fee income in Japan and Australia, the region's largest
businesses declined by 1%* and 17%* respectively.
-- Europe net fee income was flat* (up 3% actual) at GBP32.3m
(2022: GBP31.5m).
o A more resilient performance across Europe with record net fee
income in Belgium (up 18%*) and Switzerland (up 13%*). Our newest
business in Italy is performing well.
o Solid performance across the region's three largest businesses
in France (flat*), Netherlands (down 3%*) and Spain (down 4%*)
against record prior year comparatives.
-- UK net fee income down 21% to GBP16.0m (2022: GBP20.4m).
o Recruitment confidence levels in the UK continued to be
impacted by the knock-on macro-economic effects of a high inflation
and high interest rate environment.
o Activity levels impacted by lay-offs across the technology
sector and financial services volatility. Legal recruitment
remained relatively robust.
-- Other International (the Americas, South Africa and the
Middle East) net fee income down 26%* (down 25% actual) to GBP7.8m
(2022: GBP10.4m).
o Trading conditions in the US remained challenging with net fee
income down 47%* year-on-year as a result of significant disruption
to hiring across both technology and financial services.
o South Africa and Mexico performed well, increasing net fee
income by 23%* and 93%* respectively year-on-year.
Toby Fowlston, Chief Executive, commented:
"As reported in our June trading update, candidate confidence
and time to hire are not yet showing the anticipated signs of
sustained improvement. Structural recruitment market fundamentals
including job vacancy levels, salary inflation and candidate
shortages are still holding strong which continues to suggest that
when market confidence recovers there will likely be an increase in
demand and candidate movement across all areas of recruitment.
"The Group has a strong and experienced senior management team
with a successful track record of navigating challenging
macro-economic conditions and balancing short-term pressures with
longer term growth. We have invested significantly in Group
headcount and global infrastructure over the past two years and
while we are taking a sensible approach to cost reduction, we
intend to protect our strategic core to ensure we can move quickly
to take advantage of opportunities when market confidence
returns."
The Group will publish its half-year financial results for the
period ended 30 June 2023 on 1 August 2023.
- Ends -
Further information
Robert Walters plc
Toby Fowlston, Chief Executive
Officer
Alan Bannatyne, 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 over 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.
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.
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END
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July 06, 2023 02:00 ET (06:00 GMT)
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