REG - Robert Walters PLC - 2024 full-year results
06/03/2025 07:15
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RNS Number : 5557Z Robert Walters PLC 06 March 2025
6 March 2025
Results for the year ended 31 December 2024
Executing strategic plan against tough market backdrop
Group financial summary 2024 2023 Change CC change*
Year ended 31 December
Revenue £892.1m £1,064.1m (16%) (14%)
Gross profit (net fee income) £321.4m £386.8m (17%) (14%)
Operating profit £5.2m £26.3m (80%) (77%)
Conversion rate %** 1.6% 6.8% (5.2) pp
Profit before taxation £0.5m £20.8m (98%)
Basic (loss)/earnings per share (9.1)p 20.1p nm
Ordinary dividend per share 23.5p 23.5p -
Net cash*** £52.5m £79.9m nm
* Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years and denoted by '*'
throughout this announcement
**Conversion rate is calculated by expressing operating profit as a proportion
of net fee income.
***Net cash is cash and cash equivalents net of bank overdrafts and
borrowings.
'nm' denotes where change is 'not measured'
Group strategic and operational summary
§ Group net fee income down 14%* to £321.4m, driven by the extended period
of tough market conditions. Client and candidate confidence levels were
subdued throughout the year, impacting both specialist recruitment and volume
hiring.
§ Specialist professional recruitment net fee income down 13%*, with
permanent (65% of fees) down 14%* and temporary (34% of fees, being contract
and interim) down 10%*. In perm, fee reduction driven by lower volumes
year-on-year, whilst average fees were slightly up.
§ Recruitment outsourcing net fee income down 18%*.
§ Good operational momentum in talent advisory, the newest of the Group's
three service lines, with the number of clients served almost doubling versus
the prior year.
§ Operating profit of £5.2m (2023: £26.3m) impacted by the trading
performance, however two-thirds of the year-on-year fee income decline was
mitigated through cost actions. Fixed staff costs and variable compensation
were c.£38m lower than the prior year, whilst non-staff operating costs fell
by c.£6m.
§ Year-end headcount down 17% to 3,294 (31 December 2023: 3,980). Fee earner
closing headcount of 1,964 was down 17% year-on-year as the Group remained
highly selective on replacing natural attrition. Non-fee earner closing
headcount of 1,330 was down 18% year-on-year.
§ Significant strategic milestone achieved in Group brand unification, with
all services now delivered solely under the 'Robert Walters' brand.
§ Early progress on the five building blocks of medium-term margin
improvement. £1m structural saving delivered from optimised ways of working
in the front office, on track for £1.5m saving in 2025 from HR function
optimisation, and £1.4m annualised saving delivered from co-ordinated
procurement. Decision made to further consolidate office network in the UK,
France and New Zealand.
§ Balance sheet remains strong, with year-end net cash of £52.5m (31
December 2023: £79.9m).
§ In view of balance sheet strength, proposed final dividend of 17.0p per
share, meaning a total dividend for the year of 23.5p per share - in-line with
the prior year.
Toby Fowlston, Chief Executive, commented:
"2024 was another challenging year for global hiring markets. Several factors
acted to dampen client and candidate confidence levels, therefore slowing the
pace of job moves and impacting our financial performance. Notwithstanding
this, the business made good early progress against our refreshed strategic
plan of disciplined entrepreneurialism.
We increased focus on fee earner productivity and continued to develop the
technology to enhance it. We are more consistent in our front-office ways of
working, and are realising benefits from optimising our support functions.
Meanwhile, we took the decision to further consolidate our office network and
drove meaningful cost savings from co-ordinated procurement. Looking further
ahead, we continue to be excited by the opportunity to support clients and
candidates in the rapidly changing world of work, and this grounds our
confidence in our service line diversification focus areas of interim
management, workforce consultancy and talent advisory.
Though it remains uncertain as to when a sustained improvement in hiring
markets will commence, we have high conviction in the value we add to clients
and candidates as a talent solutions provider. The early progress in executing
our strategic plan gives us confidence as we drive further momentum in 2025."
Group trading summary
Net fee income 2024 2023 Change(1) Constant currency change(1)
Year ended 31 December
£m unless stated otherwise
Specialist professional recruitment* 267.3 319.7 (16%) (13%)
Of which permanent 173.8 212.9 (18%) (14%)
Of which temporary 90.9 105.0 (13%) (10%)
Perm % mix 65% 67% (2) pp n/a
Temp % mix 34% 33% 1 pp n/a
Recruitment outsourcing 54.1 67.1 (19%) (18%)
Group 321.4 386.8 (17%) (14%)
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
*c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp net fee income and % mix does not sum to the total of specialist
professional recruitment.
§ Asia-Pacific (43% of Group net fee income): net fee income down 12%*, with
specialist professional recruitment down 11%* and recruitment outsourcing down
24%*. Performance in Japan (flat*) was noteworthy and underpinned a resilient
performance in North-East Asia (-2%*). Fee income was down 11%* in both
Greater China and South-East Asia. Challenging conditions in ANZ (-21%*)
continued principally due to public sector temp hiring.
§ Europe (33% of Group net fee income): net fee income down 14%*, almost
wholly reflecting specialist professional recruitment (-14%*). Challenging
conditions persisted in France (-17%*), whilst Germany (-13%*) saw a slower
end to the year. New leadership is now in place in Spain (-24%*) to improve
execution. A more resilient performance was seen in the Netherlands (-9%*) and
Belgium (-10%*).
§ UK (16% of Group net fee income): net fee income down 17%, with specialist
professional recruitment down 21% and recruitment outsourcing down 14%. Higher
exposure in London (-13%) to more resilient disciplines saw it outperform the
regions (-31%). Employer caution remains high ahead of forthcoming national
insurance contributions increase.
§ Rest of World (8% of Group net fee income): net fee income down 13%*, with
specialist professional recruitment down 9%* and recruitment outsourcing down
18%*. A good performance seen in the Middle East (+1%*), whilst the USA
(-18%*) was weaker.
2025 outlook
Trading over the first few weeks of the new financial year has continued to be
muted, within the seasonally quieter first quarter for the Group. The Board's
planning assumption remains that, at the earliest, an improvement in end
markets is unlikely to be seen before the latter part of 2025, and as such the
business will continue to ensure its cost base is appropriate for the current
conditions. Looking further ahead, the early progress against the refreshed
strategy, and the Group's ability to support clients and candidates in the
changing world of work, gives confidence on driving higher rates of
profitability over the medium-term.
Results presentation
Toby Fowlston, Chief Executive Officer, and David Bower, Chief Financial
Officer, will host a results presentation webcast at 10:30am today, accessible
live via the following link:
https://brrmedia.news/RWA_FY_24 (https://brrmedia.news/RWA_FY_24)
A recording of the presentation and subsequent conference call will be
available on the Company's website shortly after the event.
Next news flow
The Company will publish a trading update for the first quarter ending 31
March 2025 on Tuesday 15 April 2025.
- Ends -
Enquiries
Robert Walters plc
Dami Tanimowo - Head of Investor Relations
+44 (0) 7340 660 425
dami.tanimowo@robertwalters.com (mailto:dami.tanimowo@robertwalters.com)
Williams Nicolson (Media enquiries)
Steffan Williams +44 (0) 7767 345 563
William Barker +44 (0) 7534 068 657
rw@williamsnicolson.com (mailto:rw@williamsnicolson.com)
About Robert Walters
Established in 1985, Robert Walters is a global talent solutions business
operating in 31 countries across the globe. We support organisations to build
high-performing teams, and help professionals to grow meaningful careers. Our
client base ranges from the world's leading blue-chip corporates through to
SMEs and start-ups.
We deliver three core services:
· Specialist professional recruitment - encompassing permanent and
temporary recruitment, interim management and executive search.
· Recruitment outsourcing - enabling organisations to transfer all,
or part of, their recruitment needs to us either through recruitment process
outsourcing (RPO) or contingent workforce solutions (CWS).
· Talent advisory - supporting the growth of organisations through
market intelligence, talent development, and future of work consultancy.
Our approximately 3,300 employees are passionate about powering people and
organisations to fulfil their unique potential. We take the time to listen to,
and fully connect with, the people and organisations we partner with. Our
ability to truly understand them and create and share their compelling stories
is what sets us apart.
www.robertwalters.com (http://www.robertwalters.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.
Robert Walters plc
Results for the year ended 31 December 2024
CHIEF EXECUTIVE'S STATEMENT
The challenging conditions seen in global hiring markets following the
post-pandemic jobs surge stretched into a second year in 2024. Client and
candidate confidence, already fragile from the preceding year, remained muted.
This was against a backdrop of interest rates which fell less quickly than
anticipated, as well as macroeconomic and political uncertainty in several
major hiring markets. These factors provide the context for our financial
performance in 2024, with Group net fee income down 14%* and a broadly
breakeven position at the profit before tax level.
Notwithstanding these challenges, 2024 was not a lost year for our business.
As the year commenced, we started to implement 'disciplined
entrepreneurialism' - our new strategy - which we then set out in detail at a
Capital Markets Event in September. We are focused on unlocking even more of
the Group's potential, so that the business operates with greater efficiency
and, ultimately, at higher rates of profitability. Specifically, our
medium-term target is to achieve a conversion rate in the range of 16-19%.
Geographic penetration
Disciplined entrepreneurialism has focused our approach regarding the markets
in which we compete. We have shifted away from pursuing geographic expansion
as an imperative, to now prioritise geographic penetration - which means
growing our share in our existing markets. Each of our specialist professional
recruitment markets are segmented into a matrix of four boxes, determined by
two criteria - the supportiveness of the structural market drivers, and the
quality of our execution. With a clear set of actions on how we grow in each
market derived from this four-box model, we have managed our portfolio in
accordance with our framework over the last year.
In markets where both the underlying structural drivers are favourable and our
internal controllables are being maximised - those on the top-right of our
four-box matrix - we have replaced fee earner natural attrition at a greater
rate than elsewhere in our portfolio. Average fee earner headcount fell by 11%
in aggregate in these markets, against an 18% drop in the top-left of our
four-box matrix - where structural drivers are favourable but our internal
controllables require improvement. Actively managing our portfolio to
re-balance fee earner capacity in this way means we are well-placed to benefit
from growth in the most attractive markets as conditions improve.
Service line diversification
Disciplined entrepreneurialism has also focused our approach to investment in
the service lines we see as offering the most compelling long-term growth
opportunities. We have identified these as interim management within our
specialist professional recruitment service line, workforce consultancy within
our recruitment outsourcing service line and our newest service line offering
of talent advisory. We have delivered good operational progress in all three
areas.
In interim management, which we currently operate in four European markets,
fee income was down 2%* on the prior year on broadly stable volumes - a good
performance in the context of the pressures on temp volumes in continental
European markets more widely. Workforce consultancy delivered 24% growth in
fee income against the prior year. The clear benefits this solution offers in
terms of cost savings, and easing the burden of compliance, means it continues
to resonate well with prospective clients. Meanwhile, in talent advisory, we
have driven client awareness of our offering by leveraging our two more
established service lines - with the volume of referrals from specialist
professional recruitment and recruitment outsourcing more than doubling in the
second half compared to the first.
This momentum in cross-service line referrals bears out our conviction that
hiring organisations desire talent partners that can support them with the
full range of their talent challenges across agency recruitment, volume
hiring, and advisory. This also informed our decision to unify the three
brands we have historically traded through, and go to market as 'one Robert
Walters' - a major strategic milestone for our business during the year. This
shift has made it easier for our clients to see the full range of capabilities
we have to serve them, and in so doing it launches us on the journey towards
our vision to be the most trusted talent solutions business.
Productivity and efficiency
Across our business we are focused on operating with greater efficiency to
drive higher rates of profitability over the medium term than seen in the
pre-pandemic period. There are five core elements of this programme - fee
earner productivity, back-office optimisation, front office optimisation,
office network improvements and procurement.
With respect to fee earner productivity, we have increased focus around the
business on perm placements per perm fee earner per month. Given the
materiality of our specialist professional recruitment business and the
greater share of fees derived in that service line from permanent placements,
this metric is a core driver of our overall financial performance. During the
year we began to embed more robust behaviours on managing the sales funnel
into our specialist professional recruitment business. This will ensure we are
maximising the new job flow at the top of the funnel, and more actively
influencing each key stage of the process such that we improve conversion into
placements. The 5% decline in this volume productivity measure year-on-year
reflected our decision not to let fee earner headcount fall further. Overall
productivity, as measured by net fee income per fee earner, was up 1%* -
underpinned by continued stable fee rates and benefits from wage inflation.
As and when end markets recover, our Zenith CRM system and deployment of AI
further underpin our efforts to drive higher fee earner productivity. Towards
the end of the year Zenith was deployed into our North-East Asia region,
meaning two-thirds of our specialist professional recruitment markets are now
live on the system. With core recruitment activities quicker to complete in
Zenith than the legacy system, we are confident the whole of our business will
realise efficiency benefits from Zenith as the rollout completes later in
2025. Our application of AI also continues to free up time for our consultants
- which they are then able to re-invest in building client and candidate
relationships. The Group's AI job advert writer, which went live at the
beginning of 2024, was utilised to write over 21,000 job adverts, saving
10,000 hours in the process. Our view remains that the best application of AI
in our business is that which supports human connections - grounded in our
conviction that relationships are the currency of the future.
Back-office optimisation is about standardising processes in our business
partner functions of marketing, HR, technology, legal and finance, and then,
where appropriate, consolidating these activities into global business
services hubs. This removes the need for duplication in our local markets.
During the year the HR function delivered its optimisation programme, with
savings of around £1.5m anticipated for 2025 as a result.
We have also realised benefits from optimising ways of working in the front
office, and in particular our fee earner support staff levels. As we exited
2024, the mix of fee earner support staff as a proportion of front office
headcount (which combines fee earners and fee earner support staff) was 14%,
compared to 21% as at March 2023. There is now greater consistency across our
markets in how we use fee earner support staff, and a more disciplined
approach in the level of headcount required. Our actions here drove a £1m
structural saving in 2024.
The fourth element of our programme relates to our office network - which we
are appraising more rigorously. We are particularly focused on locations where
we have not been consistently profitable, and do not see a pathway to adequate
returns. During the year we made the decision to reduce our footprint in the
UK, France and New Zealand by four offices in total, consolidating our
presence in locations within those markets where we can be most competitive.
On procurement, we are implementing a co-ordinated approach across our
supplier base - engaging more frequently and investing time in proactive
contract negotiations with strategic suppliers, whilst seeking greater
consolidation and more efficient processes with our transactional suppliers.
This drove annualised savings of £1.4m during the year.
People
It cannot be over-emphasised that the most valuable resource in our business
is our people. As the first year of execution against our plan has progressed,
it has been great to see the next generation of leaders in our business step
forward to accelerate our drive for disciplined entrepreneurialism in some of
our regional segments. During the year we saw leadership transitions in
Northern Europe, Southern Europe and Australia, which has brought a fresh
perspective.
Towards the end of the year, we conducted our annual employee engagement
survey, which yielded an overall employee engagement index score of 75%. This
was two percentage points lower than the 2023 score, a robust result given the
challenging trading environment during the year. We continue to focus on
improving communication flow throughout the business to drive engagement.
Conclusion
I want to conclude by thanking all our people for their hard work and
dedication as we navigated the challenging conditions of the past year. Though
it remains uncertain as to when a sustained improvement in hiring markets will
commence, I firmly believe the value we can add to clients and candidates as a
talent solutions provider is greater than ever. Thanks to our people, we took
important steps in 2024 to better capture the long-term opportunities ahead of
us. We will continue to do so in the year ahead on behalf of all our
stakeholders.
Toby Fowlston
Chief Executive Officer
6 March 2025
OPERATING REVIEW
Asia- Pacific (43% of Group net fee income)
The Group's Asia-Pacific business comprises the specialist professional
recruitment offering in North-East Asia (Japan and South Korea), Australia
& New Zealand ("ANZ"), South-East Asia (Indonesia, Malaysia, Singapore,
Thailand and Vietnam) and Greater China (Mainland China, Hong Kong and
Taiwan), as well as the region-wide recruitment outsourcing offering.
Recruitment outsourcing accounted for 10% of Asia-Pacific net fee income in
2024.
Year ended 31 December 2024 2023 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 138.8 167.9 (17%) (12%)
Specialist professional recruitment 125.0 149.1 (16%) (11%)
Recruitment outsourcing 13.8 18.8 (27%) (24%)
Spec. professional recruitment Perm % mix 72% 72% -
Spec. professional recruitment Temp % mix 27% 27% -
Operating costs (132.8) (148.6) (11%) (5%)
Operating profit 6.0 19.3 (69%) (66%)
Conversion rate 4.3% 11.5% (7.2) pp n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
Net fee income was down 11%*, with both perm and temp fees declining by this
proportion. The reduction in perm fee income was driven by lower placements,
whilst the average perm fee was stable.
The reduction in temp fee income was driven by lower temp volumes -
particularly in the public sector in the ANZ region. In the case of New
Zealand, the government reduced the use of temp labour following the late 2023
national elections, with temp volumes re-basing at a lower level in the
current year as a result.
Across the markets, North-East Asia delivered a resilient performance with
fees down 2%*. This was underpinned by a strong performance in Japan, where
fee income was flat* year-on-year and temp volumes grew on the prior year. The
challenging backdrop for public sector hiring drove a 21%* reduction in fee
income in the ANZ region, however performance in Australia did stabilise
somewhat in the second half with H2 fee income down 8%* (Australia H1 fee
income: -19%* year-on-year).
In Greater China, fee income was down 11%* on the prior year with growth in
Mainland China (+7%*) more than offset by softer conditions in Hong Kong
(-25%*) where hiring in the financial services sector remained weak. Fee
income was down 11%* in South-East Asia, with growth in Malaysia (+4%*) and
relative resilience in Indonesia (-3%*) more than offset by declines across
the other markets where lengthened client decision-making was indicative of
muted confidence.
Recruitment outsourcing
Net fee income was down 24%* year-on-year. Though confidence amongst financial
services clients remained muted, fee income was sequentially stable
half-on-half.
Operating costs
Operating costs were down 5%*, principally driven by a reduction in headcount,
with the average figure falling by 17% year-on-year. Fee earner average
headcount fell by 14% and non-fee earners by 22%.
Europe (33% of Group net fee income)
The Group's Europe business predominantly comprises the specialist
professional recruitment offering in Northern Europe (Belgium, France,
Germany, Ireland, the Netherlands and Switzerland) and Southern Europe (Italy,
Portugal and Spain). Recruitment outsourcing accounted for 1% of Europe net
fee income in 2024.
Year ended 31 December 2024 2023 Change(1) % Chg(1) CCY
£m unless otherwise stated
Net fee income 105.7 126.3 (16%) (14%)
Specialist professional recruitment 104.9 124.9 (16%) (14%)
Recruitment outsourcing 0.8 1.4 (44%) (44%)
Spec. professional recruitment Perm % mix 51% 54% (3) pp
Spec. professional recruitment Temp % mix 49% 46% 3 pp
Operating costs (100.2) (114.9) (13%) (10%)
Operating profit 5.5 11.4 (52%) (50%)
Conversion rate 5.2% 9.0% (3.8) pp n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
Net fee income was down 14%*, with perm down 19%* and temp more resilient with
fees down 9%*. The lower perm fee income was driven by a reduction in
placement volumes, as political and macroeconomic uncertainty increased as the
year progressed - thereby increasing hesitancy within organisations to commit
to permanent hiring. Average perm fees did however remain stable, with some
markets such as Belgium seeing good growth on the prior year.
The reduction in temp fees was driven by lower temp volumes - particularly in
the larger markets of France and the Netherlands. Volumes in the interim
management offering were, however, broadly flat, with good growth seen in
Belgium and Germany offsetting a decline in France. Interim management net fee
income was most resilient in the mix, down 2%*.
Across the markets, conditions remained challenging in France with fees down
17%*. The Olympic Games pulled forward the start of the typical summer hiring
lull, with political uncertainty impacting client and candidate confidence
through the second half. The Netherlands (-9%*) and Belgium (-10%*) were more
resilient, and in the case of the latter the 2023 comparative was a record.
Spain (-24%*) had a challenging year, with the hiring market remaining tough
despite improved macroeconomic conditions. New leadership was appointed in
Spain in the latter part of the year in what remains a market with favourable
structural drivers. In Germany (-13%*), tougher conditions in perm were
partially offset by modest growth in temp volumes year-on-year - benefiting
from the exposure to the technology and accounting disciplines.
Operating costs
Operating costs were down 10%*, principally driven by a reduction in
headcount, with the average figure falling by 21% year-on-year. Fee earner
average headcount fell by 17% and non-fee earners by 27%.
UK (16% of Group net fee income)
The Group's UK business comprises the specialist professional recruitment
offering in London and the regions, as well as recruitment outsourcing and
talent advisory services. Recruitment outsourcing is the most material in the
UK of any of the Group's reportable segments, accounting for 59% of net fee
income in 2024. As well as Robert Walters co-locating its people on client
sites to perform volume hiring (in common with the other reportable segments),
UK recruitment outsourcing also includes the provision of contingent workforce
solutions such as the high growth workforce consultancy offering.
Year ended 31 December 2024 2023 % Change(1)
£m unless otherwise stated
Net fee income 50.4 60.9 (17%)
Specialist professional recruitment 20.9 26.6 (21%)
Recruitment outsourcing 29.5 34.3 (14%)
Spec. professional recruitment Perm % mix 72% 73% (1) pp
Spec. professional recruitment Temp % mix 28% 27% 1 pp
Operating costs (51.8) (61.3) (16%)
Operating loss (1.4) (0.4) nm
Conversion rate nm nm n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
'nm' denotes where metric is not measured
Specialist professional recruitment
Net fee income was down 21%, with perm down 24% and temp down 18%. The
reduction in perm fee income was driven by lower placement volumes, whilst
there was modest growth in the average perm fee.
Lower temp fee income was driven by a reduction in temp volumes, with the
regions most impacted year-on-year.
London (-13%) outperformed the regions (-31%), with the legal and accounting
disciplines in London showing the greatest resilience. Conditions in the
regions toughened in the latter part of the year. Levels of employer caution
on hiring remain high, partly in anticipation of forthcoming higher national
insurance contributions.
Recruitment outsourcing
Net fee income was down 14%. This primarily reflected lower levels of perm
volume hiring from financial services clients, however fees were sequentially
stable half-on-half.
The workforce consultancy offering delivered 24% growth in net fee income
year-on-year, driven by a higher average number of consultants deployed with
clients. With the clear benefits to clients in lowering cost and compliance,
awareness of the solution is growing in potential client pools beyond the
managed service provider segment in which the business launched in 2022.
Operating costs
Operating costs were down 16%, driven by a reduction in headcount, with the
average figure falling by 16% year-on-year. Fee earner average headcount fell
by 12% and non-fee earners by 25%.
Rest of World (8% of Group net fee income)
The Group's Rest of World business comprises the specialist professional
recruitment offering in North America (Canada and USA), South America (Brazil,
Chile and Mexico), the Middle East and South Africa, as well as the
region-wide recruitment outsourcing and talent advisory offering. Recruitment
outsourcing accounted for 38% of Rest of World net fee income in 2024.
Year ended 31 December 2024 2023 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 26.5 31.7 (16%) (13%)
Specialist professional recruitment 16.5 19.1 (14%) (9%)
Recruitment outsourcing 10.0 12.6 (21%) (18%)
Spec. professional recruitment Perm % mix 98% 100% (2) pp
Spec. professional recruitment Temp % mix 1% 0% 1 pp
Operating costs (31.4) (35.7) (12%) (8%)
Operating loss (4.9) (4.0) nm nm
Conversion rate nm nm n/a n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
'nm' denotes where metric is not measured
Specialist professional recruitment
Net fee income was down 9%*, driven by the reduction in perm fee income which
accounts for the vast majority of the mix in the region. The reduction in perm
fee income was driven by lower placement volumes, with modest growth in the
average perm fee.
Across the markets, there was a resilient performance in the Middle East,
where fee income was up 1%* year-on-year and a good performance in South
Africa (+3%*) driven by higher placement volumes. Meanwhile the USA (-18%*)
saw more challenging conditions, whilst Canada (-2%*) was more resilient.
Whilst the structural market drivers in the USA remain favourable, work is
ongoing to fix the internal controllables there in accordance with the
four-box framework. In South America, fee income was down 18%*, with Brazil
notably soft.
Recruitment outsourcing
Net fee income was down 18%*, largely driven by lower levels of perm volume
hiring among financial services clients.
Operating costs
Operating costs were down 8%*, as average headcount reduced by 22%. There was
a 17% fall in average fee earner headcount and a 34% fall in average non-fee
earner headcount.
FINANCIAL REVIEW
These financial results have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the United Kingdom.
Group statutory results
The headline statutory financial results for the Group are presented below.
£m 2024 2023
Revenue 892.1 1,064.1
Cost of sales (570.7) (677.3)
Gross profit (net fee income) 321.4 386.8
Administrative expenses (316.2) (360.5)
Operating profit 5.2 26.3
Net finance costs (3.9) (4.2)
Loss on foreign exchange (0.8) (1.3)
Profit before taxation 0.5 20.8
Taxation (6.5) (7.4)
(Loss)/profit for the period (6.0) 13.4
Attributable to:
Equity holders of the Company (6.0) 13.4
Revenue
Revenue for the Group is the total income from the placement of permanent and
temporary (comprising contract and interim) staff, and therefore includes the
remuneration costs of temporary candidates and the total cost of advertising
recharged to clients. It also includes outsourcing fees, consultancy fees and
the margin derived from payrolling contracts charged by Robert Walters to its
clients. Revenue for the year decreased by 16% to £892.1m (2023: £1,064.1m).
Gross profit (net fee income)
Net fee income is the total placement fees of permanent candidates, the margin
earned on the placement of temporary candidates and the margin from
advertising. It also includes the outsourcing, consultancy and payrolling
margin earned by the Group. Net fee income is the primary financial top-line
metric used to evaluate business performance.
Net fee income for the year decreased by 17% to £321.4m (2023: £386.8m),
principally driven by the lower volume of permanent placements and on-payroll
temporary workers in specialist professional recruitment, and the lower level
of volume hiring in recruitment outsourcing.
Operating profit
Operating profit in the period decreased to £5.2m (2023: £26.3m), reflecting
the underlying trading performance.
The majority of the Group's operating costs (c.75%) relate to staff, being
front office fee earners (recruitment consultants) and non-fee earners (front
office support staff as well as back-office support staff across various
corporate functions such as finance, HR, IT, legal and marketing).
Two-thirds of the year-on-year fee income impact was mitigated through cost
actions. Average Group headcount fell by 15% year-on-year, which drove a
c.£27m reduction in fixed staff costs. Variable compensation, predominantly
comprising fee earner bonuses, fell by c.£11m as a result of the reduced
trading result. Tight management of non-staff costs, including a co-ordinated
procurement approach, drove a c.£6m reduction against the prior year.
Included in operating costs is £2.8m of redundancy costs incurred during the
year.
Interest and financing costs
The Group incurred a net interest charge for the period of £3.9m (2023:
£4.2m).
The Group has a £60.0m financing facility, currently due to expire in March
2027. At the year-end date, £15.6m (31 December 2023: £15.8m) was drawn down
under this facility.
A foreign exchange loss of £0.8m (2023: £1.3m) arose during the period on
translation of the Group's intercompany balances and external borrowings.
Taxation
The tax charge in the period was £6.5m (2023: £7.4m), with the Group subject
to UK corporation tax at a rate of 25% (2023: 23.5%). The effective tax rate
of the Group is higher than the standard UK rate of 25% primarily due to the
mix of losses and profits during the year (with profits made in countries with
higher tax rates such as in Japan), and the impact of adjustments to
accounting profits in the tax calculation including movement in deferred tax
asset (mainly unrecognised current year losses), for which no deferred tax
asset has been recognised.
Earnings per share
The Group generated a basic loss per share for the year of 9.1p (2023: 20.1p
basic earnings per share), reflecting the underlying trading performance, and
the resulting broadly breakeven position at the profit before taxation level
and post-taxation loss. The weighted average number of shares was 65.8m (2023:
66.8m).
Cash flow and financing
£m 2024 2023
Operating profit 5.2 26.3
Depreciation and amortisation charges 23.0 24.0
Other non-cash items (2.2) (2.3)
Decrease in working capital 0.2 6.5
Cash generated by operations 26.2 54.5
Net interest and associated borrowing costs (0.5) (0.8)
Repayment of lease principal (17.2) (15.9)
Taxation (6.4) (9.0)
Capital expenditure - Intangibles (8.0) (7.6)
Net capital expenditure - property, plant & equipment (2.1) (7.2)
Free cash flow (8.0) 14.0
Share buyback - (10.0)
Equity dividends paid (15.5) (15.8)
Other 0.2 1.2
Net movement in cash (exc. financing facility) (23.3) (10.6)
Impact of foreign exchange (4.1) (6.6)
Opening net cash 79.9 97.1
Closing net cash 52.5 79.9
Cash generated from operations during the year was £26.2m (2023: £54.5m),
with negative free cash flow of £8.0m (2023: positive free cash flow of
£14.0m) after interest and borrowing costs, repayment of lease liabilities,
taxation and capital expenditure. Closing net cash was £52.5m (2023:
£79.9m).
Working capital
The working capital net inflow of £0.2m (2023: net inflow of £6.5m),
reflects the unwind of trade receivables given the lower net fee income,
broadly offset by a decrease in trade payables.
Capital expenditure
Intangibles capital expenditure of £8.0m (2023: £7.6m) principally comprises
investment to further develop Zenith, the Group's custom built CRM system.
There was slightly higher spend than the prior year as deployments were
completed into the UK, Ireland, South Africa and North-East Asia.
Property, plant & equipment net capital expenditure of £2.1m (2023:
£7.2m) principally relates to the Group's office estate. There was a lower
spend than the prior year, with a number of office refurbishment projects
having been completed in 2023.
Dividend
Given the Group's continued balance sheet strength, the Board is proposing a
final dividend of 17.0p per share which will be paid on 27 May 2025 to
shareholders on the register on 25 April 2025. Together with the interim
dividend of 6.5p per share paid in September 2024, this takes the total
dividend for the year to 23.5p per share, in line with that of the prior year.
Capital allocation
The Group's capital allocation policy remains unchanged. The Board continues
to recognise the value of a strong balance sheet, and therefore targets
year-end net cash of at least £50m. Thereafter, the first allocation of
capital continues to be on investment in those opportunities that enhance the
Group's growth drivers and provide sufficient headroom above the Group's cost
of capital. During the year investment continued into Zenith, the custom-built
CRM system, as deployments were completed into the UK, Ireland, South Africa
and North-East Asia.
Secondly, the Group's policy is to maintain a dividend cover ratio of
1.75-2.25x through the cycle. The Group also has the latitude to allow cover
to fall outside this range at points in the cycle - as has been the case over
the last two years - whilst seeking a clear route to return to the range.
Looking ahead, the Board continues to be mindful of this aspect of the policy,
particularly given the extended period of challenging market conditions
whereby dividend cover has been outside the range.
Finally, should the Group hold cash in excess of the target, and should the
Board expect this position to continue for the medium term, then consideration
will be given to returning the excess capital to shareholders through either a
share buyback programme, special dividends, or a combination of the two.
Foreign exchange impact
The Group's primary overseas functional currencies are the Japanese Yen, the
Euro and the Australian Dollar.
The impact of foreign exchange movements between 2024 and 2023 resulted in a
£12.6m decrease in reported net fee income and a £0.8m decrease in operating
profit for the Group.
Consolidated Income Statement
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
Note £m £m
Continuing operations
Revenue 1 892.1 1,064.1
Cost of sales (570.7) (677.3)
Gross profit (net fee income) 321.4 386.8
Administrative expenses (316.2) (360.5)
Operating profit 5.2 26.3
Finance income 0.7 0.6
Finance costs 2 (4.6) (4.8)
Loss on foreign exchange (0.8) (1.3)
Profit before taxation 0.5 20.8
Taxation 3 (6.5) (7.4)
(Loss) profit for the year (6.0) 13.4
Attributable to:
Owners of the Company (6.0) 13.4
(Loss) earnings per share (pence): 5
Basic (9.1) 20.1
Diluted (9.1) 19.0
The amounts above relate to continuing operations.
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£m £m
(Loss) profit for the year (6.0) 13.4
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations (6.7) (8.6)
Total comprehensive income and expense for the year (12.7) 4.8
Attributable to:
Owners of the Company (12.7) 4.8
Consolidated Balance Sheet
AS AT 31 DECEMBER 2024
2024 2023
Note £m £m
Non-current assets
Intangible assets 6 38.2 33.8
Property, plant and equipment 7 11.5 15.3
Right-of-use assets 8 61.0 67.5
Lease receivables 3.7 4.0
Deferred tax assets 11.1 11.8
125.5 132.4
Current assets
Trade and other receivables 9 157.5 182.5
Lease receivables 0.9 0.8
Corporation tax receivables 3.5 4.3
Cash and cash equivalents 68.1 95.7
230.0 283.3
Total assets 355.5 415.7
Current liabilities
Trade and other payables 10 (121.5) (148.0)
Corporation tax liabilities (3.6) (4.8)
Bank overdrafts and borrowings 11 (15.6) (15.8)
Lease liabilities (18.2) (18.0)
Provisions (1.6) (0.7)
(160.5) (187.3)
Net current assets 69.5 96.0
Non-current liabilities
Deferred tax liabilities (0.3) (0.2)
Lease liabilities (54.2) (61.2)
Provisions (2.0) (2.1)
(56.5) (63.5)
Total liabilities (217.0) (250.8)
Net assets 138.5 164.9
Equity
Share capital 15.3 15.3
Share premium 22.6 22.6
Other reserves (70.9) (70.9)
Own shares held (37.4) (37.8)
Treasury shares held (9.1) (9.1)
Foreign exchange reserves (4.2) 2.5
Retained earnings 222.2 242.3
Equity attributable to owners of the Company 138.5 164.9
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
Note £m £m
Operating profit 5.2 26.3
Adjustments for:
Depreciation and amortisation charges 23.0 24.0
Impairment of right-of-use assets - 0.2
Profit on disposal of property, plant and equipment and computer software - (0.2)
Charge in respect of share-based payment transactions 1.7 0.7
Unrealised foreign exchange gain (3.9) (3.0)
Operating cash flows before movements in working capital 26.0 48.0
Decrease in receivables 19.3 32.2
Decrease in payables (19.1) (25.7)
Cash generated from operating activities 26.2 54.5
Income taxes paid (6.4) (9.0)
Net cash generated from operating activities 19.8 45.5
Investing activities
Interest received 0.7 0.6
Investment in intangible assets (8.0) (7.6)
Purchases of property, plant and equipment (2.1) (8.3)
Sale of property, plant and equipment - 1.1
Net cash used in investing activities (9.4) (14.2)
Financing activities
Equity dividends paid 4 (15.5) (15.8)
Interest paid (1.2) (1.4)
Principal paid on lease liabilities (17.2) (15.9)
Proceeds from financing facility 23.4 10.4
Repayment of financing facility (23.6) (20.7)
Share buy-back for cancellation - (10.0)
Proceeds from exercise of share options 0.2 1.2
Net cash used in financing activities (33.9) (52.2)
Net decrease in cash and cash equivalents (23.5) (20.9)
Cash and cash equivalents at beginning of year 95.7 123.2
Effect of foreign exchange rate changes (4.1) (6.6)
Cash and cash equivalents at end of year 68.1 95.7
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital Share premium Other reserves Own shares held Treasury shares held Foreign exchange reserves Retained earnings Total equity
Group £m £m £m £m £m £m £m £m
Balance at 1 January 2023 15.8 22.6 (71.4) (40.5) (9.1) 11.1 255.4 183.9
Profit for the year - - - - - - 13.4 13.4
Foreign currency translation differences - - - - - (8.6) - (8.6)
Total comprehensive income and expense for the year - - - - - (8.6) 13.4 4.8
Dividends paid - - - - - - (15.8) (15.8)
Credit to equity for equity-settled share-based payments - - - - - - 0.7 0.7
Tax on share-based payment transactions - - - - - - 0.1 0.1
Transfer to own shares held on exercise of equity incentives - - - 1.5 - - (1.5) -
Shares repurchased for cancellation (0.5) - 0.5 - - - (10.0) (10.0)
New shares issued and own shares purchased - - - 1.2 - - - 1.2
Balance at 31 December 2023 15.3 22.6 (70.9) (37.8) (9.1) 2.5 242.3 164.9
Loss for the year - - - - - - (6.0) (6.0)
Foreign currency translation differences - - - - - (6.7) - (6.7)
Total comprehensive income and expense for the year - - - - - (6.7) (6.0) (12.7)
Dividends paid - - - - - - (15.5) (15.5)
Credit to equity for equity-settled share-based payments - - - - - - 1.7 1.7
Tax on share-based payment transactions - - - - - - (0.1) (0.1)
Transfer to own shares held on exercise of equity incentives - - - 0.2 - - (0.2) -
Shares repurchased for cancellation - - - - - - - -
New shares issued and own shares purchased - - - 0.2 - - - 0.2
Balance at 31 December 2024 15.3 22.6 (70.9) (37.4) (9.1) (4.2) 222.2 138.5
Notes to the Consolidated set of financial statement
FOR THE YEAR ENDED 31 DECEMBER 2024
Accounting policies
Basis of preparation
Robert Walters plc is a public company limited by shares, incorporated and
domiciled in the United Kingdom under the Companies Act. The financial report
for the year ended 31 December 2024 has been prepared in accordance with the
historical cost convention and with international accounting standards in
conformity with the requirements of the Companies Act 2006 and with UK adopted
International Financial Reporting Standards (IFRSs).
The Group has a strong balance sheet with net cash as at 31 December 2024 of
£52.5m, a £60.0m four-year committed financing facility until March 2027 (of
which £15.6m was drawn down as at 31 December 2024), a blend of revenue
streams covering permanent, contract, interim, outsourcing and advisory
services and a diverse range of clients and suppliers across 31 countries. As
a consequence, the Directors believe that the Group is well placed to manage
its business risks successfully. After making enquiries, the Directors have
formed a judgement, at the time of approving the financial statements, that
there is a reasonable expectation that the Group has adequate resources to
continue in operational existence and meet its liabilities as they fall due
over the three-year assessment period. The Directors have not identified any
material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the entity's ability to continue
as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue. For this reason, the Directors
continue to adopt the going concern basis in preparing the accounts.
The financial information for the year ended 31 December 2024 does not
constitute statutory accounts as defined in sections 435 (1) and (2) of the
Companies Act 2006. The auditor has reported on these accounts; their report
was unqualified, did not include a reference to any matters to which the
auditor drew attention by way of emphasis of matter and did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006. Statutory
accounts for the year ended 31 December 2023 have been delivered to the
Registrar of Companies and those for 2024 will be delivered following the
Company's 2024 Annual General Meeting.
The Annual General Meeting of Robert Walters plc will be held on 29 April 2025
at 11 Slingsby Place, St Martin's Courtyard, London WC2E 9AB.
1. Segmental information
Revenue Gross profit (NFI) Operating profit
i) Segment analysis by geography £m £m £m
2024:
Asia Pacific 396.5 138.8 6.0
UK 211.3 50.4 (1.4)
Europe 248.5 105.7 5.5
Rest of World 35.8 26.5 (4.9)
892.1 321.4 5.2
2023:
Asia Pacific 484.9 167.9 19.3
UK 254.9 60.9 (0.4)
Europe 281.9 126.3 11.4
Rest of World 42.4 31.7 (4.0)
1,064.1 386.8 26.3
Property, plant & equipment Intangibles Right-of-use Non- current assets Lease liabilities
£m £m £m £m £m
2024:
Asia Pacific 4.0 8.2 18.4 36.5 (20.8)
UK 2.5 30.0 12.4 51.8 (17.1)
Europe 4.4 - 28.2 33.9 (31.8)
Rest of World 0.6 - 2.0 3.3 (2.7)
11.5 38.2 61.0 125.5 (72.4)
2023:
Asia Pacific 5.8 8.2 19.7 40.7 (21.8)
UK 3.6 25.6 14.7 49.9 (20.1)
Europe 5.1 - 30.4 36.3 (33.5)
Rest of World 0.8 - 2.7 5.5 (3.8)
15.3 33.8 67.5 132.4 (79.2)
The analysis of revenue by destination is not materially different to the
analysis by origin. The Group is divided into geographical areas for
management purposes, and it is on this basis that the segmental information
has been prepared.
2024 2023
Segment analysis by service line £m £m
ii) Revenue:
Specialist Professional Recruitment 705.4 836.0
Recruitment Outsourcing 186.7 228.1
892.1 1,064.1
Segment analysis by revenue type:
iii) Revenue:
Permanent 197.0 242.7
Temporary 521.9 628.9
Interim 128.5 128.7
Other 44.7 63.8
892.1 1,064.1
2. Finance costs
2024 2023
£m £m
Interest on financing facilities 1.2 1.4
Lease interest (net) 3.4 3.4
Total borrowing 4.6 4.8
3. Taxation
2024 2023
£m £m
Current tax charge
Corporation tax - UK - -
Corporation tax - Overseas 7.3 9.3
Adjustments in respect of prior years
Corporation tax - UK - (0.2)
Corporation tax - Overseas (1.0) 0.2
6.3 9.3
Deferred tax
Deferred tax - UK (1.5) 0.1
Deferred tax - Overseas (0.1) (2.6)
Adjustments in respect of prior years
Deferred tax - UK 0.3 (0.6)
Deferred tax - Overseas 1.5 1.2
0.2 (1.9)
Total tax charge for year 6.5 7.4
Profit before taxation 0.5 20.8
Tax at standard UK corporation tax rate (25%) (2023: 23.5%) 0.1 4.9
Effects of:
Unrelieved losses 3.9 1.6
Tax exempt income and other expenses not deductible 0.1 (0.4)
Other timing differences 1.0 (0.1)
Overseas earnings taxed at different rates 0.5 0.8
Adjustments to tax charges in previous years 0.8 0.6
Impact of tax rate change 0.1 -
Total tax charge for year 6.5 7.4
Tax recognised directly in equity
Tax on share-based payment transactions 0.1 (0.1)
For the year ended 31 December 2024, the Group was subject to UK corporation
tax at a rate of 25% (2023: 23.5%). The effective tax rate of the Group is
higher than the standard UK rate of 25% primarily due to the mix of losses and
profits during the year, with profits made in countries with higher tax rates
such as in Japan and the impact of adjustments to accounting profits in the
tax calculation including movement in deferred tax asset, mainly unrecognised
current year losses, for which no deferred tax asset has been recognised. No
deferred tax asset is recognised on the unremitted earnings of overseas
subsidiaries when no distribution of the earnings have been committed.
Income tax expense comprises current tax and deferred tax. It is recognised in
profit or loss in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes except to the extent that it relates to
items recognised directly in equity.
The Global Anti-Base Erosion rules, namely the Pillar Two model rules, which
implement the global minimum effective tax regime is effective for the Group's
financial year beginning 1 January 2024. As the Group is in scope of the
legislation, it has assessed its potential exposure to Pillar Two income taxes
by performing a review based on recent Group Consolidated financial statements
and Country by Country Reporting, covering periods ending 31 December 2023 and
on draft numbers for the year ending 31 December 2024. Based on the
preliminary assessment, the Pillar Two effective tax rates in most
jurisdictions in which the Group operates are above 15% or the transitional
safe harbour relief is expected to apply. As a result, no corporation tax
liability has been recognised under the Pillar Two model rules in 2024.
4. Dividends
2024 2023
£m £m
Amounts recognised as distributions to equity holders in the year:
Interim dividend paid of 6.5p per share (2023: 6.5p) 4.3 4.3
Final dividend for 2023 of 17.0p per share (2022: 17.0p) 11.2 11.5
15.5 15.8
Proposed final dividend for 2024 of 17.0p per share (2023: 17.0p) 11.2 11.2
The proposed final dividend of £11.2m is subject to approval by shareholders
at the Annual General Meeting and has not been included as a liability in
these financial statements.
The final dividend, if approved, will be paid on 27 May 2025 to those
shareholders on the register at 25 April 2025.
5. Earnings per share
The calculation of earnings per share is based on the profit for the year
attributable to equity holders of the parent and the weighted average number
of shares of the Company.
2024 2023
No. of shares No. of
shares
Weighted average number of shares:
Shares in issue throughout the year 76,429,714 78,928,095
Shares issued in the year 1,512 631
Shares cancelled during the year - (1,121,137)
Treasury and own shares held (10,677,080) (11,022,701)
For basic earnings per share 65,754,146 66,784,888
Dilutive impact of outstanding share options - 3,700,484
For diluted earnings per share 65,754,146 70,485,372
2024 2023
£m £m
(Loss) profit for the year attributable to equity holders of the parent (6.0) 13.4
6. Intangible assets
Goodwill Computer software Total
£m £m £m
Cost:
At 1 January 2023 8.1 28.7 36.8
Additions - 7.9 7.9
Disposals - (0.9) (0.9)
Foreign currency translation differences (0.1) (0.1) (0.2)
At 31 December 2023 8.0 35.6 43.6
Additions - 8.3 8.3
Disposals - (0.8) (0.8)
Foreign currency translation differences - (0.1) (0.1)
At 31 December 2024 8.0 43.0 51.0
Accumulated amortisation:
At 1 January 2023 - 7.5 7.5
Charge for the year - 3.3 3.3
Disposals - (0.9) (0.9)
Foreign currency translation differences - (0.1) (0.1)
At 31 December 2023 - 9.8 9.8
Charge for the year - 3.9 3.9
Disposals - (0.8) (0.8)
Foreign currency translation differences - (0.1) (0.1)
At 31 December 2024 - 12.8 12.8
Carrying value:
At 1 January 2023 8.1 21.2 29.3
At 31 December 2023 8.0 25.8 33.8
At 31 December 2024 8.0 30.2 38.2
7. Property, plant and equipment
Fixtures, fittings and office equipment Computer equipment Total
£m £m £m
Leasehold improvements
£m
Cost:
At 1 January 2023 10.3 19.8 13.8 43.9
Additions 0.5 6.2 1.4 8.1
Transfers (1.1) 1.1 - -
Disposals (2.5) (2.7) (2.5) (7.7)
Foreign currency translation differences (0.5) (0.7) (0.5) (1.7)
At 31 December 2023 6.7 23.7 12.2 42.6
Additions 0.3 0.7 0.6 1.6
Transfers - - - -
Disposals (0.8) (1.7) (1.4) (3.9)
Foreign currency translation differences (0.3) (1.1) (0.4) (1.8)
At 31 December 2024 5.9 21.6 11.0 38.5
Accumulated depreciation and impairment:
At 1 January 2023 7.3 11.4 10.9 29.6
Charge for the year 0.7 3.1 1.8 5.6
Disposals (2.5) (1.7) (2.5) (6.7)
Foreign currency translation differences (0.4) (0.4) (0.4) (1.2)
At 31 December 2023 5.1 12.4 9.8 27.3
Charge for the year 0.6 2.3 1.8 4.7
Disposals (0.8) (1.7) (1.4) (3.9)
Foreign currency translation differences (0.2) (0.6) (0.3) (1.1)
At 31 December 2024 4.7 12.4 9.9 27.0
Carrying value:
At 1 January 2023 3.0 8.4 2.9 14.3
At 31 December 2023 1.6 11.3 2.4 15.3
At 31 December 2024 1.2 9.2 1.1 11.5
Leases
8.
Right-of-use assets Vehicles Total
Buildings £m £m
£m
At 1 January 2023 68.9 2.7 71.6
Additions 11.9 2.8 14.7
Lease modifications 3.9 - 3.9
Depreciation charge for the year (13.4) (1.7) (15.1)
Impairment (0.2) - (0.2)
Disposal (4.9) - (4.9)
Foreign currency translation differences (2.4) (0.1) (2.5)
At 31 December 2023 63.8 3.7 67.5
Additions 3.0 1.8 4.8
Lease modifications 5.5 - 5.5
Depreciation charge for the year (12.5) (1.9) (14.4)
Impairment - - -
Disposal - - -
Foreign currency translation differences (2.3) (0.1) (2.4)
At 31 December 2024 57.5 3.5 61.0
9. Trade and other receivables
2024 2023
£m £m
Receivables due within one year:
Trade receivables 95.7 116.5
Other receivables 9.8 7.8
Prepayments 6.4 7.8
Accrued income 45.6 50.4
157.5 182.5
Included within accrued income is a provision against the cancellation of
placements where a candidate may reverse their acceptance prior to the start
date.
The value of this provision as of 31 December 2024 is £1.3m (31 December
2023: £1.5m). The movement in the provision during the year is a credit to
the income statement of £0.2m (2023: credit of £0.4m). Accrued income,
representing contract assets, are expected to convert into contract
receivables within four months of recognition.
10 . Trade and other payables: amounts falling due within one year
2024 2023
£m £m
Trade payables 8.3 7.8
Other taxation and social security 28.8 30.4
Other payables 22.1 27.3
Accruals and deferred income 62.3 82.5
121.5 148.0
1 Other payables includes amounts owing to employees, contractor and benefit
providers.
There were no contract liabilities in the year (2023: nil). There is no
material difference between the fair value and the carrying value of the
Group's trade and other payables.
11. Bank overdrafts and borrowings
2024 2023
£m £m
Bank overdrafts and borrowings: current 15.6 15.8
15.6 15.8
The borrowings are repayable as follows:
Within one year 15.6 15.8
15.6 15.8
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