REG - Robert Walters PLC - 2025 Full-Year Results
Today 07:00
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RNS Number : 1497W Robert Walters PLC 11 March 2026
11 March 2026
Results for the year ended 31 December 2025
Overall market backdrop remains cautious, but encouraging momentum in select
markets in the second half
Operationally stronger business - good progress across our total talent
solutions offering
Increasing target for annualised structural cost savings to at least £12m in
2027
Group financial summary 2025 2024 Change CC change*
Year ended 31 December
Gross profit (net fee income) £274.2m £321.4m (15%) (14%)
Operating (loss)/profit £(14.9)m £5.2m
Conversion rate %** (5.4%) 1.6%
(Loss)/Profit before taxation £(19.6)m £0.5m
Basic loss per share (40.7)p (9.1)p
Ordinary dividend per share - 23.5p
Net cash*** £26.2m £52.5m
* 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 (loss)/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'
Toby Fowlston, Chief Executive, commented:
"2025 was a third challenging year for global hiring markets, with client and
candidate sentiment still cautious given the considerable macro and
geopolitical volatility of the first half of the 2020s. The resultant decline
in Group net fees, over half of which was offset through cost actions,
resulted in a loss for the year. The financial result, which includes
restructuring costs, is unsatisfactory to everyone at Robert Walters - but
2025 was not defined by it. In the face of the challenging conditions, we
continued to implement self-help measures, focused on ensuring a robust
balance sheet and moved to further position the business to address the
significant long-term market opportunity.
It is clear, particularly from our second half performance, that different
parts of the Group's geographic portfolio are moving at different speeds. We
have stronger conviction that recovery is increasingly well-entrenched in
places like the UK, Spain and New Zealand. However, conditions in northern
Europe remain comparatively more muted.
In the early months of 2026 we have further increased the pace of execution to
position the business as strongly as possible. 2026 will see further
meaningful reduction in the cost base, continued portfolio management actions
in specialist recruitment, and a step up in our capability and delivery of the
cross-sell opportunity we have as a total talent solutions business. Our
clients' talent challenges continue to be shaped by long-term structural
drivers, and we have a full suite of solutions to help them. We therefore look
out over the rest of the year with confidence in our ability to deliver for
them and each other."
Group highlights
· Group net fee income (also "NFI" or "net fees") down 14%*,
against a backdrop of still cautious client and candidate sentiment.
o Specialist recruitment (83% of group net fees) down 13%*. UK (+6%)
returned to growth and Asia Pacific saw a lower rate of decline than the prior
year (2025: -8%*, 2024: -11%*). However, conditions were more challenging in
Europe (-23%* year-on-year, also "YoY") - particularly so in northern Europe.
o Recruitment outsourcing (17% of group net fees) down 14%*. Headline
performance driven by annualising client contracts which did not renew,
however net fees with retained clients (-5% YoY) were more resilient. As
previously announced, expanded perm volume hiring partnership with a
significant client launched in Q4 2025.
· Operating loss of £14.9m includes £4.4m of redundancy costs,
reflecting management actions to further position the business to execute to a
higher level.
· The Group's underlying monthly cost run rate closed the year
below £24m (2024 exit: monthly cost run rate £25.5m), with over half of the
year-on-year fee income impact mitigated through cost actions. Furthermore,
reflecting continued good momentum in the Group's programme to rationalise
certain business partner functions into global business services ("GBS") hubs,
the level of targeted annualised structural cost savings has been raised to at
least £12m (previously £10m) to benefit the income statement fully in 2027.
· Encouraging signs of the positive impact of the key organic
growth levers of geographic penetration and service line diversification, as
well as good progress against initiatives to operationally strengthen the
business:
o Geographic penetration - Most pertinent to the specialist recruitment
business, with initiatives gaining traction. Stronger focus on the recruitment
sales funnel is being embedded in the business. Market share gains in the UK,
with marked sequential improvement in net fee performance (UK recruitment, H1:
-5% YoY, H2: +20% YoY).
o Service line diversification - Good growth in consultancy net fees (+20%
YoY), with talent advisory net fees almost doubling versus the prior year.
Management sees a future addressable market opportunity across these two
businesses of at least £10bn in net fee income terms.
o Operational strengthening - Perm fee earner volume productivity in
specialist recruitment returned to growth in the second half (-7% YoY in H1,
+5% YoY in H2). Group net fee income per fee earner grew 5%* year-on-year.
· Year-end net cash of £26.2m (2024: £52.5m). On the basis of the
current 2026 outlook, the Board envisages net cash at the end of 2026 will be
broadly stable versus the 2025 closing position, subject to typical
seasonality through the year.
· Mindful of the importance of a strong balance sheet position to
enable execution of the Group's strategic and operational priorities in the
near term, as well as the overall still volatile macro backdrop, the Board is
not proposing a final dividend.
2026 outlook
Trading over the first two months of 2026 has been in line with the Board's
expectations, albeit in a seasonally lighter part of the year.
As noted in the Q4 trading update issued on 15 January 2026, the second half
of 2025 was marked by increasing divergence in some of the Group's key
specialist recruitment markets. Conviction remains strong that recovery is
increasingly well-entrenched in the UK, Spain and New Zealand. However,
conditions in northern Europe remain comparatively more muted. Whilst the
second half of 2025 saw a fifth of the net fee base in growth territory -
thereby representing a broader span of growth compared to the first half (H1
2025: 9% of specialist recruitment markets in growth), the overall backdrop
for hiring markets globally remains volatile. As such, the cautious client and
candidate sentiment observed in 2025 is expected to remain a factor in 2026.
The Board's planning assumption therefore remains for 2026 Group net fees to
be slightly below 2025 - as reflected in current market expectations(1).
Good progress is being made against the key initiatives to strengthen the
business, and focus remains on key controllable levers across the Group,
including: the cost base, which is expected to improve further in 2026;
specialist recruitment portfolio management actions, at both a country and
individual team level; and ensuring the full range of solutions offered by the
Group is showcased to clients to further drive the cross sell opportunity we
have as a total talent solutions business.
(1)As at 9 March 2026, company-compiled consensus (being the mean estimates of
three analyst estimates) is for 2026 group net fees of £265.4m.
Group trading summary
Net fee income 2025 2024 Change(2) Constant currency change(2)
Year ended 31 December
£m unless stated otherwise
Specialist recruitment(3) 228.1 267.3 (15%) (13%)
Of which permanent 148.8 173.8 (14%) (13%)
Of which temporary 75.8 90.9 (17%) (16%)
Perm % mix 65% 65% - n/a
Temp % mix 33% 34% (1) pp n/a
Recruitment outsourcing 46.1 54.1 (15%) (14%)
Group 274.2 321.4 (15%) (14%)
(2)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
(3)c.1% of specialist 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 recruitment.
Segmental trading summary
Net fee income 2025 2024 Change(2) Constant currency change(2)
Year ended 31 December
£m unless stated otherwise
Specialist recruitment (83% of Group NFI) 267.3 (15%) (13%)
Asia Pacific 125.0 (11%) (8%)
Europe 228.1 104.9 (22%) (23%)
UK 111.8 20.9 6% n/a
Rest of World 81.5 16.5 (23%) (20%)
22.1
Recruitment outsourcing (17% of Group NFI) 12.7 54.1 (15%) (14%)
Asia Pacific 13.8 (32%) (30%)
Europe 46.1 0.8 (44%) (45%)
UK 9.4 29.5 (14%) n/a
Rest of World 0.4 10.0 10% 13%
25.3
11.0
(2)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
Results presentation
Toby Fowlston, Chief Executive Officer, and David Bower, Chief Financial
Officer, will host a results presentation webcast at 8:30am today, accessible
live via the following link:
https://brrmedia.news/RWA_FY25 (https://brrmedia.news/RWA_FY25)
Simultaneously, investors and analysts will also be able to join a conference
call (with Q&A facility immediately following the presentation) using the
below dial-in details:
Dial in: +44 (0) 33 0551 0200
Password: Robert Walters - FY Results
A recording of the presentation and subsequent conference call will be
available on the Company's website shortly after the event.
Financial calendar
The Company currently envisages the following scheduled news flow:
Q1 2026 trading update Wednesday 15 April 2026
Q2 2026 trading update Tuesday 14 July 2026
2026 half-year results Thursday 30
July 2026
- Ends -
Enquiries
Robert Walters plc
Dami Tanimowo - Head of Investor Relations & Group Strategic Analysis +44 (0) 7340 660 425
dami.tanimowo@robertwalters.com (mailto:dami.tanimowo@robertwalters.com)
Data Counsel (Media enquiries)
Steffan Williams +44 (0) 7767 345 563
William Barker +44 (0) 7534 068 657
rw@datacounsel.uk (mailto:rw@datacounsel.uk)
About Robert Walters
Established in 1985, Robert Walters is a global talent solutions business
operating in 29 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 four core services:
· Specialist 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).
· Consultancy - helping organisations access skilled talent on a
flexible basis, support for critical projects and more value from service
providers.
· Talent advisory - supporting the growth of organisations through
market intelligence, talent development, and future of work consultancy.
Our approximately 2,900 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 2025
CHIEF EXECUTIVE'S STATEMENT
Much like the two years that preceded it, 2025 was a challenging year which
saw increased turbulence for the terms of global trade, higher geopolitical
tensions and monetary policy that was loosened at a slower rate than markets
previously expected. Together, these factors meant continued cautious client
and candidate sentiment with regard to hiring and, ultimately, were the
backdrop for a 14%* decline in Group net fee income and a loss before tax.
However, challenge also brings with it the necessity to be focused in
strategy, crystal clear in priorities and, ultimately, do things better than
before - and 2025 has been a year of real progress here. Notwithstanding the
challenging backdrop, I look out on a business whose capacity to execute our
plans to the levels required is better than it was a year ago. I therefore
have even more confidence in our positioning to address the significant
long-term market opportunity.
A significant market opportunity remains
My increased confidence in the role Robert Walters plays for our clients and
candidates is, in large part, underpinned by the fact we continue to serve a
large, attractive market with long-term structural growth drivers. In net fee
income terms, we estimate that our addressable market is worth over £60bn.
Within this, the single largest market opportunity remains that of permanent
placements in specialist recruitment and, looking at this portion, Asia
Pacific remains the largest regional segment of the global perm recruitment
market - with this split largely mirrored in our own business mix.
The landscape for the perm placements market remains highly fragmented - with
the top 10 global players, of which Robert Walters is a constituent,
accounting for only a 7% share of the total. This insight helps explain our
conviction that the optimal organic growth lever for our specialist
recruitment business is driving market share gains - largely within our
existing geographic markets and verticals.
As we look out over the long term, we see well-entrenched structural drivers
for the markets each of our four businesses serve, and these drivers will be
with us for some time. Two stand out for us. Firstly, talent shortages -
driven by demographic change, with surveys highlighting that three in four
organisations continue to struggle to find the skilled talent they need.
Secondly, the fast-changing world of work - whereby professionals entering the
workforce today are expected to hold double the number of roles over the
course of their careers than those who entered as recently as 2010.
In short, though our expectation is that the market segments in which our
consultancy and talent advisory businesses compete will grow at a faster pace
over the medium term, specialist recruitment, and particularly perm
placements, remains a vast opportunity for our business.
Early signs of cyclical recovery
Notwithstanding the significant, structurally underpinned market opportunity
our business has, much of that market is of course cyclical - with 2025
bringing a third consecutive year of volume decline across global hiring
markets, and thus confirming this downturn as perhaps the longest duration
that industry participants have seen. Whilst clients and candidates continue
to be cautious in their approach to hiring, our view remains that the downturn
is, above all else, a cyclically-driven one. During the second half of 2025 we
feel we saw good evidence for that view, as a select number of major hiring
markets demonstrated that recovery was increasingly well-entrenched.
Looking at our core external lead indicator of hiring markets - namely job
vacancies - the UK has been broadly stable sequentially since the second
quarter of 2025, whilst Spain inflected back into positive year-on-year growth
territory at a similar point. Meanwhile, on the other side of the world in New
Zealand, our own temp volumes seemed to inflect decisively at the beginning of
2025 - with momentum building across the year. We therefore take encouragement
from the momentum in our specialist recruitment net fees performance in those
markets: with the UK -5% YoY in H1, moving to +20% YoY in H2; Spain -25%* YoY
in H1, moving to +5%* YoY in H2 and New Zealand -32%* YoY in H1, moving to
-4%* YoY in H2. More widely, whilst only 9% of our specialist recruitment
business (by net fees country contribution) was in growth during H1, this
broadened to 20% in H2.
Elsewhere however, we of course remain cognisant of regions where macro,
political and regulatory considerations mean trading remains muted - with
northern Europe perhaps foremost in this regard. In aggregate therefore, our
planning retains the same near-term outlook as we have had for some time now -
with a gradual, market-by-market recovery a much more likely path from here
than a global snap back, in our view. Importantly however, our focus remains
on continuing to strengthen our client-centric, trusted advisor model such
that we take share from other players - enabling us to outgrow our markets.
An operationally strengthened business
In the context of still challenging overall market conditions, the importance
of being focused in strategy, crystal clear in our priorities and doing things
better than we did before is critical - and 2025 brought meaningful progress
for us here.
We are a global talent solutions business, going to market with the full range
of services needed by our clients. Those services are now easier for our
clients to access, with us having consolidated them under the single 'Robert
Walters' brand in 2024. Beyond specialist recruitment, our three other service
lines of recruitment outsourcing, consultancy and talent advisory are enabling
us to be ever more relevant as a solution to the talent challenges our clients
face.
In recruitment outsourcing, though the headline year-on-year net fee income
performance (-14%*) was driven by annualising client contracts which, as
expected, did not renew in 2025, the portfolio of continuing clients was much
more resilient - and was down by just 5% year-on-year. Furthermore, the fourth
quarter of 2025 saw us launch a significantly expanded perm volume hiring
partnership - which is now making a contribution to net fees - and validates
our strategy to simplify our operations in order to more successfully target
our chosen client segments.
In our consultancy business, where we meet the flexible hiring needs of our
clients, often in technology, by deploying our own permanently employed
skilled talent into their organisations, we saw a further year of double-digit
growth in net fees (+20% YoY). We have validated the client need for this type
of solution beyond our recruitment outsourcing client base - to which we
cross-sold the consultancy solution to first launch the business. This has
given us the confidence to resource this business as a distinct service line -
such that we can accelerate our efforts to capture the market opportunity we
know exists.
In talent advisory, the relevance of the offer to hiring organisations is
clear - with net fees almost doubling in 2025 compared to the prior year. 2025
also saw us further refine our commercial and operating model. Whilst we
continue to test and learn here, we know that doing so will enable us to scale
that business as efficiently as possible.
Our initiatives to build an operationally stronger business of course also
encompass specialist recruitment. Here, we are embedding significantly
stronger focus on the recruitment sales funnel and have rationalised the
number of loss-making teams and low-billing senior managers. These actions
helped to drive momentum in our key volume productivity metric of perm
placements per perm fee earner, from a 7% year-on-year decline in H1, to
year-on-year growth of +5% in H2. Furthermore, our four-box model has enabled
us to act with greater strategic clarity on our specialist recruitment
geographic portfolio - as can be seen in our decisions to close our operations
in Brazil and Canada, and consolidate our footprint in the USA. This scrutiny
of our portfolio will continue.
Many of our people have acted like owners in treating each pound of potential
spend as if their own, and I want to record my thanks to them for continuing
to take often tough decisions to drive a more efficient business. Our
medium-term margin improvement building block focused on optimising our
business partner functions was also accelerated during 2025 - with activity
focused on our finance function. We have real momentum here across the wider
programme - demonstrated by us raising our targeted annualised savings for
this programme, from the previous £10m to our current target of at least
£12m to benefit the income statement fully in 2027.
Overall, whilst we are not yet the finished article of what we need to be for
our clients, we made significant progress in 2025 and I believe we can now go
faster in 2026.
Changing world of work
Whilst we think there is good evidence for our view that the downturn of the
last few years remains largely cyclical in nature, we are of course not
complacent about the structural change that is all around us. Indeed, I've
been in the talent solutions industry for over 25 years, and structural change
has been a constant throughout that time. Though the advent and adoption of
artificial intelligence ("AI") brings the prospect of further accelerating the
speed of change in how work is done, and in how hiring is done, we continue to
believe this will present opportunities for our business - not least with the
World Economic Forum forecasting net job creation of 78m roles by 2030 due to
AI.
Recognising that societies and economies globally are still in the relatively
early stages of understanding precisely how the AI revolution plays out, we
are acting thoughtfully and using the same approach that governs our
implementation of technology more generally. Namely, we are applying the
technology in a way that the core value we deliver to our clients - that of a
data-rich organisation trusted to help forge the human relationships that
still drive professional work - can be delivered more effectively. We are
doing so through partnerships with some of the largest and most globally
recognised vendors - helping us act with confidence and stay secure.
Like many other businesses are doing regarding AI, we are learning
continuously, and it was fantastic to welcome a new addition to the Board a
few months ago - Andrew Rashbass - who brings deep expertise in this field as
we further challenge our own thinking as to what further potential structural
change lies ahead for professional labour markets. We do this though with a
belief, founded on our 40 years of powering people and organisations to fulfil
their unique potential, that there will be new opportunities for our
relationship-based, technology-enabled business model.
Conclusion
In conclusion, much like the two years that preceded it, 2025 was another year
of challenge. But it was a year in which we enacted self-help measures,
focused our strategy and moved to execute with greater consistency than seen a
year ago. We also further developed what we feel could be material future
growth engines for our business. Though characterised by cyclicality, the
market opportunity that remains ahead of us is vast and fragmented, with our
total talent solutions offering placing us strongly to convert this
opportunity. Whilst we continue to anticipate near-term caution in our
markets, the long-term outlook remains highly attractive. I want to thank all
our people for their continued efforts to operate with disciplined
entrepreneurialism.
Toby Fowlston
Chief Executive Officer
11 March 2026
OPERATING REVIEW
Asia-Pacific (44% of Group net fee income)
The Group's Asia-Pacific reporting segment comprises the specialist
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 and talent
advisory offerings. Recruitment outsourcing accounted for 8% of Asia-Pacific
net fee income in 2025 (2024: 10%).
Year ended 31 December 2025 2024 Change(1) CC Chg.(1,2)
£m unless otherwise stated
Net fee income 121.2 138.8 (13%) (10%)
Specialist recruitment 111.8 125.0 (11%) (8%)
Recruitment outsourcing 9.4 13.8 (32%) (30%)
Specialist recruitment Perm % mix 71% 72% (1) pp
Specialist recruitment Temp % mix 29% 27% 2 pp
Operating costs (120.4) (132.8) (9%) (7%)
Operating profit 0.8 6.0 (86%) (82%)
Conversion rate 0.7% 4.3% (3.6) pp n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
(2)Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
NB c.1% of specialist 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 recruitment
Net fee income was down 8%*, with perm NFI down 10%* and temp NFI more
resilient - declining 3%*.
The decline in perm NFI was driven by a lower volume of perm placements, with
this partially offset by high single digit growth in the average perm fee. The
volume decline was driven by the still fragile sentiment amongst clients and
candidates, with the average fee earner headcount rationalised accordingly
against the prior year - with perm volume productivity (expressed as perm
placements per perm fee earner) largely stable. Value growth was driven by
mix, as well as the enduring value proposition to clients - which saw modest
fee rate expansion in some larger markets.
The slightly lower temp NFI was driven by marginal declines in both temp
volumes and temp margins. However temp volumes started to build sequential
momentum through the year - and indeed exited the year with volumes at the
highest since Q2 2024.
Across the markets, fees were down 4%* in North-East Asia - with a 5%* decline
in Japan, driven by a softer perm performance, slightly offset by growth in
South Korea, which was driven by growth in a developing temp book. In
Australia and New Zealand, fees declined by 11%* and 19%* respectively, with a
broadly stable sequential performance in Australia, whilst New Zealand saw a
marked sequential improvement - with a 32%* decline in fees in H1 moderating
markedly to a 4%* decline in fees in H2. In both markets, where the temp mix
is significantly higher than the 29% regional average for the year, there was
positive momentum in temp volumes, with both markets back in growth territory
year-on-year by the end of 2025.
In South-East Asia (-10%*), there was modest sequential improvement in the
year-on-year fee performance (H1: -12%*, H2: -8%*), with Indonesia in growth
for the year. In Greater China (-4%*), mainland China and Taiwan grew
modestly, offset by a weaker performance in Hong Kong.
Recruitment outsourcing
Net fee income declined 30%*, with a contract with a financial services client
not renewing and therefore seeing lower hiring volumes year-on-year.
Operating costs
Operating costs were reduced by 7%*, with average fee earner headcount down by
12% and average total headcount also reduced by 12%.
Europe (30% of Group net fee income)
The Group's Europe reporting segment predominantly comprises the specialist
recruitment offering in northern Europe (Belgium, France, Germany, Ireland,
the Netherlands and Switzerland) and southern Europe (Italy, Portugal and
Spain), as well as talent advisory services. Recruitment outsourcing accounted
for less than 1% of Europe net fee income in 2025 (2024: <1%).
Year ended 31 December 2025 2024 Change(1) CC Chg.(1,2)
£m unless otherwise stated
Net fee income 81.9 105.7 (22%) (23%)
Specialist recruitment 81.5 104.9 (22%) (23%)
Recruitment outsourcing 0.4 0.8 (44%) (45%)
Specialist recruitment Perm % mix 52% 51% 1 pp
Specialist recruitment Temp % mix 47% 49% (2) pp
Operating costs (84.9) (100.2) (15%) (16%)
Operating (loss)/profit (3.0) 5.5 nm nm
Conversion rate (3.7%) 5.2% n/a n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
(2)Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
NB c.1% of specialist 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 change is 'not measured'.
Specialist recruitment
Net fee income was down 23%*, with perm NFI down 22%* and temp NFI down 25%*.
The decline in perm NFI was driven by a lower volume of perm placements, with
this marginally offset by low single digit growth in the average perm fee. The
volume decline, the most pronounced of the four reporting segments, was driven
by the very uncertain backdrop for hiring conditions seen through the year -
particularly in northern Europe. Value growth largely reflected prevailing
average wage inflation.
The decline in temp NFI was wholly driven by lower average temp volumes
year-on-year. In the three most material temp markets (measured by temp net
fees) of France, the Netherlands and Belgium, political uncertainty (France),
regulatory change (the Netherlands) and broader macro softness (Belgium) saw
year-on-year temp volume declines persist through the year at the aggregate
market level - from which Robert Walters' businesses were not immune. It was,
however, encouraging that average volumes for interim management talent - a
focus area of the Group's service line diversification organic growth lever -
were more resilient than fixed term contract volumes.
Across the Group's key specialist recruitment markets in Europe, conditions
were generally tough - with the exception of Spain, where hiring markets
became more supportive as the year progressed. Net fee declines for the year
were seen in France (-21%*), the Netherlands (-30%*), Belgium (-24%*) and
Germany (-28%*). The Netherlands performance was sequentially stable (H1:
-30%*, H2: -30%*) - consistent with the short-term rebasing of market demand
from new legislative enforcement powers regarding self-employment, which were
effective at the beginning of the year. Meanwhile, France and Belgium saw
sequential worsening in performance - with uncertainty impacting hiring
sentiment to a greater extent as the year progressed.
In Spain, where economy-wide job vacancies returned to year-on-year growth
territory in the second half of the year for the first time since Q3 2023, it
was pleasing to see further evidence of the stronger performance as a result
of the disciplined entrepreneurialism programme being applied by the
management team. This was well illustrated by the marked sequential
improvement in Spain, with net fees declining 25%* year-on-year in H1, but
growing 5%* in H2.
Operating costs
Operating costs were reduced by 16%*, with average fee earner headcount down
by 18% and average total headcount also down by 18%.
UK (17% of Group net fee income)
The Group's UK reporting segment comprises the specialist 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 reporting segments, accounting for 53% of total UK net fee
income in 2025 (2024: 59%). Robert Walters' consultancy offering, which
provides flexible talent solutions to help clients overcome their challenges,
is most advanced in the UK - with it launching in 2022 as an offering to the
UK recruitment outsourcing client base.
Year ended 31 December 2025 2024 Change(1)
£m unless otherwise stated
Net fee income 47.4 50.4 (6%)
Specialist recruitment 22.1 20.9 6%
Recruitment outsourcing 25.3 29.5 (14%)
Specialist recruitment Perm % mix 74% 72% 2 pp
Specialist recruitment Temp % mix 25% 28% (3) pp
Operating costs (54.9) (51.8) 6%
Operating loss (7.5) (1.4) nm
Conversion rate (15.8%) (2.8%) 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 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 change is 'not measured'.
Specialist recruitment
Net fee income grew 6%, with perm NFI up 8% and temp NFI down 9%.
Perm NFI growth was driven by high single digit growth in the average perm
fee, marginally offset by a modest decline in perm placement volumes. The
value growth was driven by mix shift, with fees in London, which typically
sees placements at a higher average salary point, accounting for a higher
proportion of the mix than seen in the prior year (2025: London 59% of net
fees, 2024: London 55% of net fees). The modest volume decline represented a
resilient performance, underpinned by the higher focus on the sales funnel
and, therefore, good progression in fee earner productivity. Specifically,
volume productivity in the UK advanced by 11% year-on-year.
Across the markets, it was pleasing to see both London (+15%) and same office
fees (i.e. excluding the impact of closed offices) in the regions (+3%) in
growth for the year. Across the UK as a whole, performance momentum built as
the year progressed, with a 5% YoY decline in net fees in H1 followed by 20%
growth in net fees in H2. Robert Walters market positioning as a mid to senior
level specialist recruiter was underscored in an average perm placement salary
for UK specialist recruitment slightly in excess of £71,000, rising to
slightly above £85,000 specifically in London.
Recruitment outsourcing
Net fee income declined 14%, however this was mostly driven by non-renewing
clients - where net fees fell by more than half year-on-year. The performance
with retained clients was much more resilient - with a low single digit
percentage decline in net fees year-on-year.
Consultancy, which meets the flexible hiring needs of clients by deploying
Robert Walters' own permanently employed skilled consultants into their
organisations, saw a further year of trading and operational momentum. Net fee
income (which continues to roll up into recruitment outsourcing - reflective
of the genesis of the consultancy offering) grew 20% on the prior year, driven
by a 25% rise in the average number of consultants. Consultant down time
between project deployments (known as "bench cost") was reduced versus the
prior year - falling by more than half, and indicative of the close matching
of client's talent needs to consultants' skills. Consultancy grew its share of
UK recruitment outsourcing net fees to more than a fifth (2024: c.15%).
Operating costs
Reflecting many of the Group's central functions being UK-based, UK operating
costs also include central costs, as well as the majority of the £4.4m
redundancy costs for the year. Average fee earner headcount fell by 25% and
average total headcount fell by 23%.
Rest of World (9% of Group net fee income)
The Group's Rest of World reporting segment comprises the specialist
recruitment offering in the USA, Chile, Mexico, the Middle East and South
Africa, as well as the region-wide recruitment outsourcing and talent advisory
offering. Recruitment outsourcing accounted for 46% of Rest of World net fee
income in 2025 (2024: 38%).
Year ended 31 December 2025 2024 Change(1) CC Chg.(1,2)
£m unless otherwise stated
Net fee income 23.7 26.5 (10%) (7%)
Specialist recruitment 12.7 16.5 (23%) (20%)
Recruitment outsourcing 11.0 10.0 10% 13%
Specialist recruitment Perm % mix 96% 98% (2) pp
Specialist recruitment Temp % mix 1% 1% -
Operating costs (28.9) (31.4) (8%) (6%)
Operating loss (5.2) (4.9) nm nm
Conversion rate (21.9%) (18.5%) n/a n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
(2)Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
NB c.3% 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 change is 'not measured'.
Specialist recruitment
Net fee income was down 20%*. Perm NFI, which accounted for 96% of the mix in
2025, declined 22%*.
The decline in perm NFI was predominantly driven by a lower volume of perm
placements, with the average perm fee also lower than the prior year.
Robert Walters uses a four-box model as a management tool for its specialist
recruitment businesses. Focused portfolio actions were taken in 2025,
underpinned by this framework. The USA footprint was rationalised at the end
of the first quarter, with operations there now concentrated around two hubs -
one on the east coast, and the other in Texas. Additionally, further to
investigating whether a viable path to a more competitive position existed,
management concluded that this was not the case with respect to operations in
Brazil and Canada - and operations there were closed accordingly in Q2 and Q4
respectively.
Across the markets, the strongest YoY net fees performance was seen in South
Africa (+3%*), with performance in the largest Rest of World market of the
Middle East (-7%*) comparatively softer.
Recruitment outsourcing
Net fee income grew 13%*, benefiting from an expanded perm volume hiring
contract which took effect in Q4.
Operating costs
Operating costs were reduced by 6%*, with average fee earner headcount down by
32% and average total headcount down by 25%.
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 2025 2024
Revenue 781.1 892.1
Cost of sales (506.9) (570.7)
Gross profit (net fee income) 274.2 321.4
Administrative expenses (289.1) (316.2)
Operating (loss)/profit (14.9) 5.2
Net finance costs (4.6) (3.9)
Loss on foreign exchange (0.1) (0.8)
(Loss)/profit before taxation (19.6) 0.5
Taxation (7.2) (6.5)
Loss for the period (26.8) (6.0)
Attributable to:
Equity holders of the Company (26.8) (6.0)
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 12% to £781.1m (2024: £892.1m).
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 15% to £274.2m (2024: £321.4m),
principally driven by the lower volume of permanent placements and on-payroll
temporary workers in specialist recruitment, and the lower level of volume
hiring in recruitment outsourcing.
Operating profit
An operating loss of £14.9m was seen in the period (2024: £5.2m operating
profit). This was reflective of the underlying trading performance - with many
of the Group's markets remaining challenging, particularly during the first
half. Also included in operating costs are £4.4m of redundancy costs.
The majority of the Group's operating costs (75%) relate to staff, being front
office fee earners (recruitment consultants) and non-fee earners (front office
support staff as well as business partner support staff across various central
functions such as finance, HR, IT, legal and marketing).
Over half 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.£21m reduction in fixed staff costs. Variable compensation, predominantly
comprising fee earner bonuses, fell by c.£2m as a result of the reduced
trading result. Tight management of non-staff costs, including a co-ordinated
procurement approach, drove a c.£4m reduction against the prior year.
Interest and financing costs
The Group incurred a net interest charge for the period of £4.6m (2024:
£3.9m).
A foreign exchange loss of £0.1m (2024: £0.8m) arose during the period on
translation of the Group's intercompany balances.
Taxation
The tax charge in the period was £7.2m (2024: £6.5m), with the Group subject
to UK corporation tax at a rate of 25% (2024: 25%). 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), the impact of adjustments to accounting
profits in the tax calculation, and 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.
Earnings per share
The Group generated a basic loss per share for the year of 40.7p (2024: 9.1p
basic loss per share), reflecting the challenging trading conditions seen
during the year.
Cash flow and financing
£m 2025 2024
Operating (loss)/profit (14.9) 5.2
Depreciation and amortisation charges 22.5 23.0
Other non-cash items 2.5 (2.2)
Decrease in working capital 4.3 0.2
Cash generated by operations 14.4 26.2
Net interest and associated borrowing costs (1.4) (0.5)
Repayment of lease principal (17.6) (17.2)
Taxation (4.1) (6.4)
Capital expenditure - Intangibles (4.5) (8.0)
Net capital expenditure - property, plant & equipment (1.4) (2.1)
Free cash flow (14.6) (8.0)
Equity dividends paid (11.2) (15.5)
Other - 0.2
Net movement in cash (exc. financing facility) (25.8) (23.3)
Impact of foreign exchange (0.5) (4.1)
Opening net cash 52.5 79.9
Closing net cash 26.2 52.5
Cash generated from operations during the year was £14.4m (2024: £26.2m),
with negative free cash flow of £14.6m (2024: negative free cash flow of
£8.0m) after interest and borrowing costs, repayment of lease liabilities,
taxation and capital expenditure. Closing net cash (defined as cash and cash
equivalents net of bank overdrafts and borrowings) was £26.2m (2024:
£52.5m). The £26.3m reduction in net cash over the year includes the £11.2m
payment of the 2024 final dividend - made in May 2025.
Working capital
The working capital net inflow of £4.3m (2024: net inflow of £0.2m), was
principally driven by the unwind of trade receivables given the lower revenue
year-on-year.
Capital expenditure
Intangibles capital expenditure of £4.5m (2024: £8.0m) principally comprises
the costs of development of Zenith, the Group's custom built CRM system. The
lower spend year-on-year reflects the conclusion of the global rollout of the
system.
Property, plant & equipment net capital expenditure of £1.4m (2024:
£2.1m) principally relates to the Group's office estate, with a lower spend
year-on-year.
Financing
During the year the Group had a £60.0m invoice discount facility in the UK,
which enabled the UK business to discount a proportion of the amounts due from
its clients. At the year-end date, £11.7m (31 December 2024: £15.6m) was
drawn down under this facility, being the maximum amount possible at that
time. Subsequent to the year end, the Group extended the facility to March
2029 and reduced it to £35.0m, with all other operational terms broadly
unchanged. The extended facility contains a tangible net worth covenant, which
will be tested quarterly, and applies to the UK entities party to the facility
(excluding Robert Walters plc). The expected compliance with this covenant
has been reviewed as part of the going concern assessment, and no potential
breaches have been identified.
The Group arranged a £20.0m overdraft in the UK during the year, which was
subsequently extended to 31 July 2026. The overdraft tapers from £20m to
£10m by 31 March 2026, before expiring on 31 July 2026. The Group does not
currently envisage a requirement to seek renewal. At 31 December 2025, £11.2m
(2024: nil) was drawn down under this facility.
The Group continues to manage its liquidity requirements in the UK via the
above facilities, together with the transfer of cash from overseas businesses
principally via management recharges, dividends and inter-company loans.
The Group has not entered into any reverse factoring arrangements during the
year ended 31 December 2025 (2024: none).
Dividend
Being mindful of the importance of a strong balance sheet position to enable
execution of the Group's strategic and operational priorities in the near
term, as well as the overall still volatile macro backdrop, the Board is not
proposing a final dividend (2024: 17p per share final dividend), and similarly
did not pay an interim dividend (2024: 6.5p interim dividend).
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 2025 and 2024 resulted in a
£3.7m decrease in reported net fee income for the Group.
Consolidated Income Statement
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
Note £m £m
Continuing operations
Revenue 1 781.1 892.1
Cost of sales (506.9) (570.7)
Gross profit (net fee income) 274.2 321.4
Administrative expenses (289.1) (316.2)
Operating (loss) profit (14.9) 5.2
Finance income 0.5 0.7
Finance costs 2 (5.1) (4.6)
Loss on foreign exchange (0.1) (0.8)
(Loss) profit before taxation (19.6) 0.5
Taxation 3 (7.2) (6.5)
Loss for the year (26.8) (6.0)
Attributable to:
Owners of the Company (26.8) (6.0)
Loss per share (pence): 5
Basic (40.7) (9.1)
Diluted (40.7) (9.1)
The amounts above relate to continuing operations.
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
£m £m
Loss for the year (26.8) (6.0)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations (1.0) (6.7)
Total comprehensive expense for the year (27.8) (12.7)
Attributable to:
Owners of the Company (27.8) (12.7)
Consolidated Balance Sheet
AS AT 31 DECEMBER 2025
2025 2024
Note £m £m
Non-current assets
Intangible assets 6 38.3 38.2
Property, plant and equipment 7 9.3 11.5
Right-of-use assets 8 57.6 61.0
Lease receivables 3.2 3.7
Deferred tax assets 7.0 11.1
115.4 125.5
Current assets
Trade and other receivables 9 126.4 157.5
Lease receivables 0.7 0.9
Corporation tax receivables 2.9 3.5
Cash and cash equivalents 49.1 68.1
179.1 230.0
Total assets 294.5 355.5
Current liabilities
Trade and other payables 10 (95.0) (121.5)
Corporation tax liabilities (2.5) (3.6)
Bank overdrafts and borrowings 11 (22.9) (15.6)
Lease liabilities (17.2) (18.2)
Provisions (2.8) (1.6)
(140.4) (160.5)
Net current assets 38.7 69.5
Non-current liabilities
Deferred tax liabilities (0.1) (0.3)
Lease liabilities (50.8) (54.2)
Provisions (2.0) (2.0)
(52.9) (56.5)
Total liabilities (193.3) (217.0)
Net assets 101.2 138.5
Equity
Share capital 15.3 15.3
Share premium 22.6 22.6
Other reserves (70.9) (70.9)
Own shares held (37.4) (37.4)
Treasury shares held (9.1) (9.1)
Foreign exchange reserves (5.2) (4.2)
Retained earnings 185.9 222.2
Equity attributable to owners of the Company 101.2 138.5
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
Note £m £m
Operating (loss) profit (14.9) 5.2
Adjustments for:
Depreciation and amortisation charges 22.5 23.0
Loss on disposal of right of use assets, property, plant and equipment and - -
computer software
Charge in respect of share-based payment transactions 2.2 1.7
Unrealised foreign exchange gain (loss) 0.3 (3.9)
Operating cash flows before movements in working capital 10.1 26.0
Decrease in receivables 30.7 19.3
Decrease in payables (26.4) (19.1)
Cash generated from operating activities 14.4 26.2
Income taxes paid (4.1) (6.4)
Net cash from operating activities 10.3 19.8
Investing activities
Interest received 0.5 0.7
Investment in intangible assets (4.5) (8.0)
Purchases of property, plant and equipment (1.4) (2.1)
Net cash used in investing activities (5.4) (9.4)
Financing activities
Equity dividends paid 4 (11.2) (15.5)
Interest paid (1.9) (1.2)
Principal paid and received on lease liabilities (17.6) (17.2)
Proceeds from financing facility 31.2 23.4
Repayment of financing facility (23.9) (23.6)
Proceeds from exercise of share options - 0.2
Net cash used in financing activities (23.4) (33.9)
Net decrease in cash and cash equivalents (18.5) (23.5)
Cash and cash equivalents at beginning of year 68.1 95.7
Effect of foreign exchange rate changes (0.5) (4.1)
Cash and cash equivalents at end of year 49.1 68.1
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2025
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 2024 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 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) -
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
Loss for the year - - - - - - (26.8) (26.8)
Foreign currency translation differences - - - - - (1.0) - (1.0)
Total comprehensive expense for the year - - - - - (1.0) (26.8) (27.8)
Dividends paid - - - - - - (11.2) (11.2)
Credit to equity for equity-settled share-based payments - - - - - - 2.2 2.2
Tax on share-based payment transactions - - - - - - (0.5) (0.5)
Transfer to own shares held on exercise of equity incentives - - - - - - - -
New shares issued and own shares purchased - - - - - - - -
Balance at 31 December 2025 15.3 22.6 (70.9) (37.4) (9.1) (5.2) 185.9 101.2
Notes to the Consolidated set of financial statement
FOR THE YEAR ENDED 31 DECEMBER 2025
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 2025 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 2025 of
£26.2m (2024: £52.5m). Throughout the year, the Group had access to a
£60.0m four-year committed UK Invoice Discounting facility, which was due to
expire in March 2027 (of which £15.6m was drawn down as at 31 December
2024). Subsequent to the year end, this UK Invoice Discounting facility was
successfully extended to March 2029, in the sum of £35.0m, an amount which
better reflects the expected utilisation levels over the term of the facility,
with all other terms broadly unchanged. In addition, the Group has a blend
of revenue streams covering permanent, contract, interim, outsourcing and
advisory services and a diverse range of clients and suppliers across 29
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 2025 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 2024 have been delivered to the
Registrar of Companies and those for 2025 will be delivered following the
Company's 2025 Annual General Meeting.
The Annual General Meeting of Robert Walters plc will be held on 30 April 2026
at 11 Slingsby Place, St Martin's Courtyard, London WC2E 9AB.
1. Segmental information
Gross profit (NFI) Operating profit (loss)
Revenue
i) Segment analysis by geography £m £m £m
2025:
Asia Pacific 375.0 121.2 0.8
UK 180.6 47.4 (7.5)
Europe 194.5 81.9 (3.0)
Rest of World 31.0 23.7 (5.2)
781.1 274.2 (14.9)
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
Property, plant & equipment Intangibles Right-of-use Non- current assets
Lease liabilities
£m £m £m £m £m
2025:
Asia Pacific 3.2 8.1 19.1 37.0 (21.3)
UK 1.9 30.2 10.4 45.2 (14.5)
Europe 3.8 - 27.2 31.4 (31.0)
Rest of World 0.4 - 0.9 1.8 (1.2)
9.3 38.3 57.6 115.4 (68.0)
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)
The analysis of revenue by destination is not materially different to the
analysis by origin and the analysis of finance income and costs are not
significant.
The Group is divided into geographical areas for management purposes, and it
is on this basis that the segmental information has been prepared.
2025 2024
Segment analysis by service line £m £m
ii) Revenue:
Specialist Professional Recruitment 609.8 705.4
Recruitment Outsourcing 171.3 186.7
781.1 892.1
Segment analysis by revenue type:
iii) Revenue:
Permanent 169.8 197.0
Temporary 465.6 521.9
Interim 104.3 128.5
Other 41.4 44.7
781.1 892.1
2. Finance costs
2025 2024
£m £m
Interest on financing facilities 1.9 1.2
Lease interest (net) 3.2 3.4
Total borrowing costs 5.1 4.6
3. Taxation
2025 2024
£m £m
Current tax charge
Corporation tax - UK - -
Corporation tax - Overseas 4.0 7.3
Adjustments in respect of prior years
Corporation tax - UK - -
Corporation tax - Overseas (0.1) (1.0)
3.9 6.3
Deferred tax
Deferred tax - UK 0.3 (1.5)
Deferred tax - Overseas 2.2 (0.1)
Adjustments in respect of prior years
Deferred tax - UK 0.6 0.3
Deferred tax - Overseas 0.2 1.5
3.3 0.2
Total tax charge for year 7.2 6.5
(Loss) profit before taxation (19.6) 0.5
Tax at standard UK corporation tax rate of 25.0% (2024: 25.0%) (4.9) 0.1
Effects of:
Unrelieved losses 11.1 3.9
Tax exempt income and other expenses not deductible 0.4 0.1
Other timing differences (1.3) 1.0
Overseas earnings taxed at different rates 1.2 0.5
Adjustments to tax charges in previous years 0.6 0.8
Impact of tax rate change 0.1 0.1
Total tax charge for year 7.2 6.5
Tax recognised directly in equity
Tax on share-based payment transactions 0.5 0.1
For the year ended 31 December 2025, the Group was subject to UK corporation
tax at a rate of 25% (2024: 25%). 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), the impact of adjustments to accounting profits in the tax
calculation, and 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
2024 and on draft numbers for the year ending 31 December 2025. Based on the
preliminary assessment, the Pillar
Two effective tax rates in most jurisdictions in which the Group operates are
above 16% (2024: 15%) or the transitional safe harbour relief is expected to
apply. As a result, no deferred tax has been recognised under the Pillar Two
model rules in 2025 (2024: nil).
4. Dividends
2025 2024
£m £m
Amounts recognised as distributions to equity holders in the year:
Interim dividend paid of nil p per share (2024: 6.5p) - 4.3
Final dividend for 2024 of 17.0p per share (2023: 17.0p) 11.2 11.2
11.2 15.5
Proposed final dividend for 2025 of nil p per share (2024: 17.0p) - 11.2
5. Loss per share
The calculation of loss per share is based on the loss for the year
attributable to equity holders of the Parent and the weighted average number
of shares of the Company.
2025 2024
No. of shares No. of
shares
Weighted average number of shares:
Shares in issue throughout the year 76,431,699 76,429,714
Shares issued in the year - 1,512
Treasury and own shares held (10,652,721) (10,677,080)
For basic earnings per share 65,778,978 65,754,146
Dilutive impact of outstanding share options - -
For diluted earnings per share 65,778,978 65,754,146
2025 2024
£m £m
Loss for the year attributable to equity holders of the parent (26.8) (6.0)
Loss per share
Basic (40.7) (9.1)
Diluted (40.7) (9.1)
6. Intangible assets
Goodwill Computer software Total
£m £m £m
Cost:
At 1 January 2024 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
Additions - 4.5 4.5
Disposals - (2.4) (2.4)
Foreign currency translation differences - (0.1) (0.1)
At 31 December 2025 8.0 45.0 53.0
Accumulated amortisation:
At 1 January 2024 - 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
Charge for the year - 4.4 4.4
Disposals - (2.4) (2.4)
Foreign currency translation differences - (0.1) (0.1)
At 31 December 2025 - 14.7 14.7
Carrying value:
At 1 January 2024 8.0 25.8 33.8
At 31 December 2024 8.0 30.2 38.2
At 31 December 2025 8.0 30.3 38.3
The intangible assets consist of goodwill and computer software, of which
£8.0m relates to goodwill as at 31 December 2025 (31 December 2024: £8.0m).
The carrying value of goodwill primarily relates to the acquisitions of the
Dunhill Group in Australia in 2001 (£6,848,000) and Talent Spotter in China
in 2008 (£1,119,000).
Goodwill is tested annually for impairment, or more frequently if there are
indications that goodwill might be impaired. The recoverable amount of
goodwill is based on value-in-use in perpetuity, the cash generating units
(CGUs) to which goodwill is assigned being Australia and China.
The key assumptions in the value-in-use (VIU) models are those regarding
expected changes to cash flow during the period, growth rates, discount rates
and the impact of uncertainty in the macro-economic environment.
At the end of the year, the Directors have undertaken an impairment
assessment, reflecting the recent decline in trading in the two CGUs, and
market conditions more widely across the industry.
As referenced in the Operational Review, in light of the recent decline in
trading, the Directors have taken decisive action to reduce the cost base,
through reduction in headcount and cutting discretionary spending.
In undertaking the assessment, the Directors have utilised estimated cash flow
forecasts within the VIU models, which are derived from the Group's most
recent financial budget for the current year, together with estimates for
future net fee income and cost growth rates. Consequently, the forecast for
revenue and costs approved by the Board for the purposes of undertaking the
impairment assessment, reflect the full year results in 2025, the impact of
uncertainty in the macroeconomic environment, and expectations based on past
experience of fluctuations in the level of activity in hiring markets.
The base case forecast for the five-year period was reviewed in detail as part
of the budget process to reflect the level of activity expected in 2026, with
costs increasing year on year starting in 2027 by 2% for both Australia and
China. In the base case scenario, no impairment was noted in both CGUs. The
value of the cash flows from these forecasts is then discounted at a post-tax
rate of 11.4% (pre-tax rate of 16.3%) for Australia (31 December 2024: post
tax rate 11.8%, pre tax rate; 16.9%) and 11.6% (pre-tax rate of 15.5%) for
China (31 December 2024: post tax rate 12.1%, pre tax rate; 16.1%), based on
the Group's estimated weighted average cost of capital, risk adjusted
dependent on the location of goodwill.
In both the Australia and China CGUs, the Directors have undertaken a
sensitivity analysis, taking into consideration the impact of potential
variations in key assumptions. This included:
• Scenario 1; delaying the market recovery to after 2030, which means no
growth on the 2025 results for the next
five years; and,
• Scenario 2; reducing the NFI by a further 10% in 2026, with NFI then
forecast to remain at this reduced level in
financial years 2027 to 2030.
Note that with the scenarios above, no additional cost savings have been
included in the model, however the Directors are satisfied that additional
cost savings are available, and consider further action is possible despite
action taken during 2025.
In both scenarios above, although the headroom has reduced from the base case
for both CGUs, there is still sufficient headroom to support the carrying
value of the goodwill in both Australia and China.
In addition, the Directors' have considered the level of performance at which
the goodwill is impaired for each of Australia and China - a reverse stress
test - and concluded that the 2026 cash flow for Australia would need to
reduce by 15.4%, and for China it would need to reduce by 19.8%, with no
growth assumed in 2027 or beyond. For the purposes of this reverse stress
test, no further action was assumed with regards to reducing the cost base in
response to the lower level of activity. As evidenced in both 2024 and 2025,
operating costs would be reduced in response to reduced activity, indicating
an even greater reduction in activity would need to be experienced to result
in the goodwill being impaired.
The Group is starting to see some preliminary signs of recovery in these
jurisdictions, and the Directors are continually and actively monitoring
results and the impact of cost measures already implemented; and will continue
to do so for the foreseeable future.
7. Property, plant and equipment
Fixtures, fittings and office equipment Computer equipment Total
£m £m £m
Leasehold improvements
£m
Cost:
At 1 January 2024 6.7 23.7 12.2 42.6
Additions 0.3 0.7 0.6 1.6
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
Additions 0.4 0.6 0.4 1.4
Disposals (0.3) (0.4) (1.2) (1.9)
Foreign currency translation differences (0.2) 0.1 (0.1) (0.2)
At 31 December 2025 5.8 21.9 10.1 37.8
Accumulated depreciation and impairment:
At 1 January 2024 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
Charge for the year 0.6 2.1 1.1 3.8
Disposals (0.3) (0.3) (1.2) (1.8)
Foreign currency translation differences (0.3) - (0.2) (0.5)
At 31 December 2025 4.7 14.2 9.6 28.5
Carrying value:
At 1 January 2024 1.6 11.3 2.4 15.3
At 31 December 2024 1.2 9.2 1.1 11.5
At 31 December 2025 1.1 7.7 0.5 9.3
Leases
8.
Right-of-use assets Buildings Vehicles Total
£m £m £m
At 1 January 2024 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)
Disposal - - -
Foreign currency translation differences (2.3) (0.1) (2.4)
At 31 December 2024 57.5 3.5 61.0
Additions 3.2 1.2 4.4
Lease modifications 5.9 - 5.9
Depreciation charge for the year (12.4) (1.9) (14.3)
Disposal (0.1) - (0.1)
Foreign currency translation differences 0.6 0.1 0.7
At 31 December 2025 54.7 2.9 57.6
9. Trade and other receivables
2025 2024
£m £m
Receivables due within one year:
Trade receivables 71.5 95.7
Other receivables 8.3 9.8
Prepayments 7.3 6.4
Accrued income 39.3 45.6
126.4 157.5
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 2025 is £1.2m (31 December
2024: £1.3m). The movement in the provision during the year is a credit to
the income statement of £100,000 (2024: credit of £130,000). Accrued income,
representing contract assets and earned but not invoiced revenue, are expected
to convert into contract receivables within four months of recognition.
10 . Trade and other payables: amounts falling due within one year
2025 2024
£m £m
Trade payables 6.3 8.3
Other taxation and social security 20.8 28.8
Other payables(1) 19.6 22.1
Accruals(2) 48.3 62.3
95.0 121.5
1 Other payables includes amounts owing to employees, contractor and benefit
providers.
2Accruals includes bonus accruals, holiday pay and temporary contractor costs
that will be paid out in the following year
There were no contract liabilities in the year (2024: 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
2025 2024
£m £m
Bank overdrafts and borrowings: current 22.9 15.6
22.9 15.6
The borrowings are repayable as follows:
Within one year 22.9 15.6
22.9 15.6
During the year the Group had a £60.0m invoice discount facility in the UK,
which enabled the UK business to discount a proportion of the amounts due from
its clients. As at 31 December 2025, £11.7m (31 December 2024: £15.6m) was
drawn down under this facility, being the maximum amount possible at that
time. Subsequent to the year end, the Group extended the facility to March
2029 and reduced it to £35.0m, with all other operational terms broadly
unchanged. The extended facility contains a tangible net worth covenant, which
will be tested quarterly, and applies to the UK entities party to the facility
(excluding Robert Walters PLC). The expected compliance with this covenant
has been reviewed as part of the going concern assessment, and no potential
breaches have been identified.
The Group arranged a £20.0m overdraft in the UK during the year, which was
subsequently extended to 31 July 2026. The overdraft tapers from £20m to
£10m by 31 March 2026, before expiring on 31 July 2026. The Group does not
currently envisage a requirement to seek renewal. At 31 December 2025,
£11.2m (2024: nil) was drawn down under this facility.
The Group continues to manage its liquidity requirements in the UK via the
above facilities, together with the transfer of cash from overseas businesses
principally via management recharges, dividends and inter-company loans.
The Group has not entered into any reverse factoring arrangements during the
year ended 31 December 2025 (2024: none).
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