REG - Robert Walters PLC - 2025 Half-Year Results
Thu 07:01
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RNS Number : 2873T Robert Walters PLC 31 July 2025
31 July 2025
Interim results for the six months ended 30 June 2025
Strategic action to drive efficiency, improve performance and underpin
long-term growth
Group financial summary 2025 2024 Change CC change*
Six months ended 30 June
Revenue £402.8m £459.3m (12%) (10%)
Gross profit (net fee income) £140.0m £166.1m (16%) (14%)
Operating (loss)/profit £(7.8)m £0.2m nm nm
Conversion rate %** nm 0.1% n/a
Loss before taxation £(10.2)m £(2.3)m nm
Loss per share (17.0)p (3.7)p nm
Interim dividend per share - 6.5p nm
Net cash*** £30.1m £48.8m 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'
Toby Fowlston, Chief Executive, commented:
"Against a backdrop of market conditions that remained challenging during the
first half, we focused on actions to operate more efficiently, improve
performance and further position the business for long-term growth. Whilst our
financial results were impacted by the external environment, we have more
conviction than ever of the necessity for the strategic change we are making.
We are strengthening our specialist recruitment geographic portfolio and
seeing benefits from our margin improvement programme - a key underpin of our
medium-term ambitions. In response to changing client needs we are developing
a full suite of talent solutions which will be future growth engines for our
business. We remain excited by the opportunity ahead to drive further
strategic progress as markets improve."
Group strategic and operational summary
§ H1 Group net fee income down 14%* to £140.0m. Macroeconomic uncertainty
was more pronounced as the period progressed, however year-on-year fee income
performance improved sequentially in Q2 (-13%*) v. Q1 (-16%*).
§ Operating loss of £7.8m (H1 2024: £0.2m operating profit) driven by
reduced fee income, albeit c.70% of the fee income impact year-on-year was
offset through lower costs. H1 operating costs include £1.6m of redundancy
costs.
§ Continued progress in reducing the cost base. Monthly operating costs of
£24.5m at the end of the half, down from c.£25m at the end of 2024.
§ Good progress against disciplined entrepreneurialism strategy:
§ Margin improvement - focus on fee earner productivity strengthened across
the business, with H1 Group net fee income per fee earner up 3%* year-on-year.
Global deployment of Zenith CRM successfully completed. On track for £1.5m
saving from HR function optimisation, and further savings realised from office
network rationalisation.
§ Geographic penetration - resource allocated to front office areas with most
compelling returns, and operations closed in Brazil consistent with four-box
model.
§ Service-line diversification - further development of the opportunity in
workforce consultancy (+51% H1 net fee income growth) and good operational
momentum in talent advisory. Interim management offering continued to be
resilient. In recruitment outsourcing, a significant contract was expanded
with an existing client after the period end.
§ Period end headcount down 14% year-on-year to 3,125 (30 June 2024: 3,625),
comprising 1,815 fee earners (30 June 2024: 2,176) and 1,310 non-fee earners
(30 June 2024: 1,449).
§ Period end net cash of £30.1m (30 June 2024: £48.8m).
Outlook & interim dividend
As highlighted in the second quarter trading update on 15 July 2025, the
Board's planning assumption remains that there will be no material improvement
in hiring markets in the near term. However, the Group continues to progress
execution of its disciplined entrepreneurialism strategy to position it
strongly as markets improve. Continued focus remains on all elements of the
cost base, and average monthly operating costs are anticipated to reduce
further from the £24.5m level (excluding redundancy costs) as at the end of
the first half.
The Group incurred £1.6m of cash redundancy costs during the first half and
anticipates further restructuring activities in H2 as it continues to position
the business for a return to profitable growth. As a result, year-end net cash
is expected to be below the 30 June 2025 level of £30.1m. The Board continues
to view a strong balance sheet as the foundation of its capital allocation
policy, as well as enabling the execution of the Group's strategic and
operational priorities in the near term. Therefore, in light of the current
outlook and expected year-end net cash position, no interim dividend has been
declared in respect of the first half. The Board recognises the importance of
dividends to shareholders and, consistent with its capital allocation policy,
will again review the potential to reinstate the dividend (or consider other
capital return mechanisms) at the time of its 2025 full year results
announcement in March 2026.
Group trading summary
Net fee income 2025 2024 Change(1) Constant currency change(1)
Six months ended 30 June
£m unless stated otherwise
Specialist professional recruitment 116.7 139.6 (16%) (15%)
Of which permanent 75.5 91.8 (18%) (17%)
Of which temporary 39.1 46.8 (15%) (13%)
Perm % mix 65% 66% (1) pp n/a
Temp % mix 34% 33% 1 pp n/a
Recruitment outsourcing 23.3 26.5 (12%) (11%)
Group 140.0 166.1 (16%) (14%)
( )
Segmental trading summary
Net fee income 2025 2024 Change(1) Constant currency change(1)
Six months ended 30 June
£m unless stated otherwise
Asia-Pacific (43% of Group NFI) 60.4 70.0 (14%) (12%)
Specialist professional recruitment 56.1 63.3 (11%) (9%)
Recruitment outsourcing 4.3 6.7 (36%) (34%)
Europe (31% of Group NFI) 43.4 56.5 (23%) (22%)
Specialist professional recruitment 43.0 56.0 (23%) (22%)
Recruitment outsourcing 0.4 0.5 (23%) (23%)
UK (18% of Group NFI) 24.7 26.3 (6%) n/a
Specialist professional recruitment 10.9 11.4 (5%) n/a
Recruitment outsourcing 13.8 14.9 (7%) n/a
Rest of World (8% of Group NFI) 11.5 13.3 (13%) (10%)
Specialist professional recruitment 6.7 8.9 (24%) (20%)
Recruitment outsourcing 4.8 4.4 8% 11%
(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%.
Results presentation
The Company will host a results presentation webcast at 8:30am today,
accessible live via the following link:
https://brrmedia.news/RWA_HY_2025 (https://brrmedia.news/RWA_HY_2025)
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 third quarter ending 30
September 2025 on Tuesday 14 October 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)
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 30 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 3,100 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
Interim results for the six months ended 30 June 2025
CHIEF EXECUTIVE'S REVIEW
Clients continued to face macroeconomic uncertainty in the first half of 2025,
causing delays in hiring activity and decision-making as a result. This drove
a further period of volume decline, particularly for permanent placements in
our specialist professional recruitment service line and, consequently, lower
net fee income. We offset around 70% of the fee income decline through
lowering our costs, however the tough trading environment resulted in a first
half loss.
Notwithstanding the market backdrop of our first half financial performance,
we remain resolute in driving those factors within our control such that our
business is the first choice for clients and candidates. In that sense the
last six months has only served to further increase our conviction in the
necessity of the disciplined entrepreneurialism strategy we set out last year.
We took further action to drive greater efficiency - with our monthly cost
base run rate reducing to £24.5m as the period ended.
We have a significant opportunity ahead of us to convert. This is structurally
underpinned by the fact that organisations continue to face skills shortages
and increasingly complex talent challenges. Our vision is to be the most
trusted talent solutions partner, and our strategic objective is a Robert
Walters that operates at higher rates of profitability than previously seen.
This continued to guide our actions across the business during the first half.
Growth actions
Our strategy has two key organic growth drivers - geographic penetration and
service-line diversification. Geographic penetration is primarily focused on
our specialist professional recruitment service line, where we are operating
our country businesses against a structured framework (our four-box model) in
order to return the portfolio as a whole to profitable growth. Service-line
diversification is focused on investing in and scaling service offerings with
the highest potential for material top-line growth at above group-average
margins.
Geographic penetration
We have well-scaled specialist recruitment businesses in some of the largest
global hiring markets. However, we also have businesses in mid-sized markets
where Robert Walters is not yet a top three competitor. Our geographic
penetration initiatives are about evolving our portfolio, guided by our
four-box model. The end state that we envisage is a footprint in our
specialist recruitment offering with, at its core, the eight countries that
drove c.60% of H1 Group net fee income, alongside positions in other hiring
markets with favourable structural drivers and where we can win.
Where recruitment markets in our portfolio have comparatively unfavourable
underlying structural drivers and we are not maximising our internal
controllables, we challenge ourselves as to whether a path to a more
competitive position exists. During the first half, this drove actions to
optimise our portfolio. We took the decision to close our recruitment
operations in Brazil, whilst also removing management layers in Europe and the
Americas to accelerate towards the level of return we require. Our four-box
model is also guiding our decisions on allocating resource in the front office
- again with a focus on doing so to those areas with the most compelling
returns. As a result, we closed, merged or right-sized over forty loss-making
teams during the half. Meanwhile, there were early encouraging signs of our
four-box model actions gaining traction in Singapore, Taiwan and Spain.
Whilst market conditions remain challenging overall, there were signs of the
strength of our core portfolio evident in first half trading. Japan, our
largest specialist professional recruitment market, continued to perform
resiliently, with fees down 5%*. Whilst in ANZ, temp volumes stabilised and
returned to growth over the first half. Elsewhere, we saw year-on-year fee
growth in five of our specialist professional recruitment markets. We will
continue to re-shape our portfolio to drive scale in our most attractive
recruitment markets, positioning us well for strong organic growth and
operating leverage as end markets recover.
Service-line diversification
The volatile post-pandemic macroeconomic environment has further grown
clients' needs for a wider suite of talent solutions beyond permanent and
traditional contract recruitment, with flexibility of particular importance.
Our service-line diversification investments are positioning us as a strong
partner. We are focused on the growth opportunities in interim management,
workforce consultancy and talent advisory. Each is either currently delivering
or has clear future potential for margins above the 16-19% medium-term
conversion rate target range for the Group. Meanwhile, we are taking actions
to enhance the return from our recruitment outsourcing service line.
In interim management, whilst there was, as expected, near-term turbulence in
the Netherlands from legislative enforcement on self-employment, average
interim volumes in our three other markets of France, Germany and Belgium were
more resilient - down just 4%. We continue to have high conviction in the
value clients and candidates derive from this offering, demonstrated in the
strong conversion rate which remains amongst the highest in the business.
Our workforce consultancy offering exemplifies the flexible talent solution
that clients increasingly desire, enabling them to utilise highly skilled
consultants on their technology projects on a non-permanent basis, with the
consultants remaining permanent employees of Robert Walters. H1 net fee income
grew 51% year-on-year, driven by a higher average number of consultants
deployed as well as growth in average net fee income per deployed consultant.
Having already achieved good traction deploying consultants into the
non-permanent volume hiring programmes of our recruitment outsourcing client
base, we see further opportunities to apply the solution into the Statement of
Work market - and launched a new proposition during the first half.
In talent advisory there was further operational momentum during the half,
particularly in generating cross-sell opportunities through internal referrals
from our existing specialist recruitment and recruitment outsourcing clients.
During H1 we saw a four times uplift in referrals versus the second half of
2024 and converted more than 40% of proposals into billable work - well above
the industry average. Additionally, we also started to develop
direct-to-market distribution capability for talent advisory, led by regional
engagement leads. This will be a key fee-generating channel for the service
line as we further scale the opportunity.
In recruitment outsourcing, we have simplified our product line-up and are
serving this to a core base of engaged clients. The narrower client base has
enabled us to reduce costs and make targeted investment to drive long-term
growth. We have seen an uplift in the value of our deal pipeline as a result,
and after the period end we agreed the expansion of a significant contract
with an existing client.
Margin improvement programme
Our margin improvement programme comprises five-building blocks which will
help deliver a conversion rate sustainably in excess of our previous peak over
the medium term. We made good progress on our initiatives during the first
half, with a particular focus on fee earner productivity - which remains the
building block with the scope to drive the greatest uplift in our conversion
rate. Reflecting the materiality of the specialist recruitment service line,
and the perm weighting within it, we remain highly focused on perm placements
per fee earner per month - our volume productivity metric. Country businesses
are working towards clear targets at each stage of the sales funnel, with
monthly visibility that is enabling them to exert far greater impact on volume
productivity. Volume productivity was down 7% year-on-year in H1, reflecting
our decision to maintain strong fee earner average tenure and therefore not
let fee earner headcount fall wholly proportionally with volumes. However
overall productivity in the first half, being group net fee income per fee
earner, grew by 3%* year-on-year.
As end markets improve, fee earner productivity will also be augmented by our
technology. As the first half closed, we completed the global deployment of
Zenith, our custom-built CRM, into the final region of Australia & New
Zealand. This represents a significant milestone for the business with all
consultants globally now operating on a single customised platform, and
further system enhancements during the first half. Furthermore, our
application of AI continues to help our fee earners to be quicker to market,
as well as freeing up their time to invest in building relationships with
clients and candidates.
We continue to manage our office network more proactively, with consolidations
during the first half delivering further annualised savings. Whilst modest,
these savings demonstrate the disciplined culture being embedded in our
business. This continual focus will enable us to maximise the drop through of
fee income to operating profit as our top line returns to growth.
Meanwhile, our initiatives to optimise our back office functions are beginning
to deliver the targeted savings - and we are on track to capture a £1.5m
saving in the current year from our HR function optimisation.
Conclusion
We remain motivated by our vision to be the most trusted talent solutions
partner - offering the full suite of services required by clients in today's
complex hiring markets. Our disciplined entrepreneurialism strategy means we
are evolving our specialist recruitment portfolio to the most compelling
geographic markets, whilst undertaking focused investment into service-line
diversification opportunities with a significant growth runway. Meanwhile, our
margin improvement programme will ensure we maximise the operational gearing
impact as end markets recover.
I want to thank all of our people for their continued dedication to serving
clients and candidates over the first half of the year.
Toby Fowlston
Chief Executive Officer
30 July 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 and
talent advisory. Recruitment outsourcing accounted for 7% of Asia-Pacific net
fee income in the first half.
Six months ended 30 June 2025 2024 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 60.4 70.0 (14%) (12%)
Specialist professional recruitment 56.1 63.3 (11%) (9%)
Recruitment outsourcing 4.3 6.7 (36%) (34%)
Spec. professional recruitment Perm % mix 70% 72% (2) pp
Spec. professional recruitment Temp % mix 27% 27% -
Operating costs (60.0) (66.9) (10%) (8%)
Operating profit 0.4 3.1 (87%) (92%)
Conversion rate 0.7% 4.4% (3.7) 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 9%*, with perm fees down 12%* and temp down 6%*. The
reduction in perm fees was driven by a lower volume of placements, partially
offset by a higher average fee. Temp volumes were lower year-on-year, with
this impact partially offset by a slightly higher temp margin.
Japan, the Group's largest specialist recruitment market, delivered a
resilient performance with fees down 5%*. Whilst there was a lengthened
time-to-hire in perm due to more client caution, temp performed well with 7%
growth in average volumes year-on-year. In Australia (-10%*), temp
outperformed perm with temp volumes showing signs of stabilisation through the
second quarter. Meanwhile, in New Zealand (-32%*), whilst temp volumes were
below prior year levels, there was consistent month-on-month growth through
the first half of the year. In Greater China (-5%*), whilst Taiwan and
mainland China delivered growth, this was more than offset by continued
challenging conditions in Hong Kong. South-East Asia (-12%*) saw an improved
performance in the second quarter, led by growth in Singapore and Indonesia.
Recruitment outsourcing
Net fee income was down 34%*, driven by the non-renewal of a client account.
Operating costs
Operating costs were down 8%*. Average total headcount reduced by 14%
year-on-year, with fee earners down by 13% and non-fee earners by 15%.
Geographically, the largest relative reduction was in ANZ, which helped drive
a notable improvement in perm volume productivity - up 16% year-on-year.
Europe (31% 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). Within specialist professional recruitment, the interim
management offering contributed c.33% of Europe net fee income. Recruitment
outsourcing accounted for c.1% of Europe net fee income in the first half.
Six months ended 30 June 2025 2024 Change(1) % Chg(1) CCY
£m unless otherwise stated
Net fee income 43.4 56.5 (23%) (22%)
Specialist professional recruitment 43.0 56.0 (23%) (22%)
Recruitment outsourcing 0.4 0.5 (23%) (23%)
Spec. professional recruitment Perm % mix 50% 53% (3) pp
Spec. professional recruitment Temp % mix 49% 47% 2 pp
Operating costs (46.6) (54.1) (14%) (13%)
Operating (loss)/profit (3.2) 2.4 nm nm
Conversion rate nm 4.2% 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%.
Specialist professional recruitment
Net fee income was down 22%*, with perm down 26%* and temp down 18%*. There
was a lower volume of perm placements, with this impact partially offset by a
slightly higher average perm fee. The decline in temp fee income was driven by
lower average temp volumes, albeit volumes in the interim offering excluding
the Netherlands were most resilient - down 4% year-on-year.
In France, the Group's second-largest specialist recruitment market, fees were
down 16%* - with the year-on-year performance sequentially stable on 2024
levels. The interim offering performed resiliently in France, with fees down
6%*. In the Netherlands (-30%*), near-term conditions were tougher than those
seen in 2024 driven by legislative enforcement powers on self-employment -
with client caution causing them to reduce contract and interim volumes.
Conditions were also tougher in Belgium (-19%*) than seen in the prior year,
however the interim offering again outperformed in relative terms, with fees
down 8%*. In Spain (-25%*), there were early signs of improved operational
performance following a leadership change in late 2024, with fees growing
quarter-on-quarter in Q2 for the first time since Q4 2023. The trading
performance in Germany (-27%*) was predominantly driven by continued client
caution in perm. Temp was more resilient, within which interim again stood out
(-1%*).
Operating costs
Operating costs reduced by 13%*. Average total headcount reduced by 20%
year-on-year, with fee earners down by 18% and non-fee earners by 22%.
Consistent with the margin improvement building block to optimise front office
ways of working, the proportion of support staff in the front office at the
period end stood at 19% (H1 2024: 25%).
UK (18% 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. Recruitment outsourcing is the most material in the UK of any
of the Group's reportable segments, accounting for 56% of net fee income in
the first half. 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.
Six months ended 30 June 2025 2024 % Change(1)
£m unless otherwise stated
Net fee income 24.7 26.3 (6%)
Specialist professional recruitment 10.9 11.4 (5%)
Recruitment outsourcing 13.8 14.9 (7%)
Spec. professional recruitment Perm % mix 75% 74% 1 pp
Spec. professional recruitment Temp % mix 25% 26% (1) pp
Operating costs (26.0) (28.6) (9%)
Operating loss (1.3) (2.3) 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 5%*, with perm and temp both down year-on-year. The
reduction in perm was driven by a lower volume of placements, partially offset
by a higher average perm fee. The lower temp fee income was driven by lower
temp volumes in the regions, with temp volumes in London growing slightly
year-on-year.
The performance trends seen in the prior year continued into the first half,
with London (+9%) outperforming the regions (-25%, -11% excluding closed
offices). There was particularly strong growth in contract fee income in
London led by the financial services vertical.
Recruitment outsourcing
Net fee income was down 7%, a sequential improvement on pacing across 2024.
The client base for perm (RPO) and non-perm (MSP) volume hiring has been
stabilised, albeit client caution still drove a lower volume of hires
year-on-year. The workforce consultancy offering performed strongly, with fee
income up 51% and its proportion of UK recruitment outsourcing fee income now
more than a fifth. The solution continued to resonate well with the existing
outsourcing customer base, with a higher average number of consultants
deployed with clients.
Operating costs
Operating costs were down 9%. Average total headcount reduced by 14%, with fee
earners down by 23% and non-fee earners (which includes corporate functions in
the Group's head office) down by 8%.
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 (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 42% of Rest of World net fee income in the first half.
Six months ended 30 June 2025 2024 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 11.5 13.3 (13%) (10%)
Specialist professional recruitment 6.7 8.9 (24%) (20%)
Recruitment outsourcing 4.8 4.4 8% 11%
Spec. professional recruitment Perm % mix 97% 98% (1) pp
Spec. professional recruitment Temp % mix 1% 1% -
Operating costs (15.2) (16.3) (7%) (4%)
Operating loss (3.7) (3.0) 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 20%*, predominantly driven by the performance in perm
(-21%*) which accounts for the vast majority of the mix. The lower perm fee
income was driven by a lower number of placements.
There was a resilient performance in the largest Rest of World market of the
Middle East (-6%*), which grew in the second quarter, whilst a strong
performance was also seen in South Africa (+23%*). The USA (-39%*, -6%*
excluding closed offices) delivered sequential improvement in Q2. In South
America, conditions remained challenging in the Group's continuing operations
in Chile and Mexico with fees down 32%*. Consistent with the four-box model,
the Group closed its operations in Brazil during the half.
Recruitment outsourcing
Net fee income was up 11%*, largely driven by higher levels of perm volume
hiring.
Operating costs
Operating costs were down 4%*. Average total headcount reduced by 17%, with
fee earners down by 22% and non-fee earners flat - with a number of roles
moved out of local markets and into global business services hubs.
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 Six months ended 30 June 2025 Six months ended 30 June 2024
Revenue 402.8 459.3
Cost of sales (262.8) (293.2)
Gross profit (net fee income) 140.0 166.1
Administrative expenses (147.8) (165.9)
Operating (loss)/profit (7.8) 0.2
Net finance costs (2.0) (2.0)
Loss on foreign exchange (0.4) (0.5)
Loss before tax (10.2) (2.3)
Taxation (1.0) (0.1)
Loss for the period (11.2) (2.4)
Attributable to:
Equity holders of the Company (11.2) (2.4)
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 in the period decreased by 12% to £402.8m.
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 in the period decreased by 16% to £140.0m, 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
Whilst almost 70% of the impact of lower net fee income year-on-year was
offset through a reduction in the cost base, there was a £7.8m operating loss
for the period (H1 2024: £0.2m operating profit).
The majority of the Group's operating costs (c.76%) 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).
Average total headcount fell by 15%, which drove a c.£13m reduction in fixed
staff costs. Variable compensation, predominantly comprising fee earner
bonuses, fell by c.£2m - consistent with the reduced top-line trading.
Non-staff costs continued to be managed tightly and fell by c.£3m versus the
prior year period.
Interest and financing costs
The Group incurred a net interest charge for the period of £2.0m (H1 2024:
£2.0m).
A foreign exchange loss of £0.4m (H1 2024: £0.5m loss) arose during the
period on translation of the Group's intercompany balances and external
borrowings.
Taxation
The tax charge in the period was £1.0m (H1 2024: £0.1m). Whilst tax losses
were recognised in the prior year period, thereby lowering the prior year
charge, no tax losses were recognised in the current year period.
Cash flow and financing
Cash generated from operations in the period was £4.5m (H1 2024: £0.4m).
£m Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
Operating (loss)/ profit (7.8) 0.2 5.2
Depreciation and amortisation charges 11.5 11.4 23.0
Other non-cash items 0.6 (2.2) (2.2)
Decrease/(increase) in working capital 0.2 (9.0) 0.2
Cash generated from operations 4.5 0.4 26.2
Net interest and associated borrowing costs (0.4) (0.1) (0.5)
Repayment of lease principal (9.0) (8.9) (17.2)
Taxation (1.8) (3.5) (6.4)
Capital expenditure - Intangibles (3.0) (3.4) (8.0)
Capital expenditure - property, plant & equipment (0.8) (1.4) (2.1)
Free cash flow (10.5) (16.9) (8.0)
Equity dividends paid (11.2) (11.2) (15.5)
Other - 0.2 0.2
Net movement in cash (exc. financing facility) (21.7) (27.9) (23.3)
Impact of foreign exchange (0.7) (3.2) (4.1)
Opening net cash 52.5 79.9 79.9
Closing net cash 30.1 48.8 52.5
During the period, net cash decreased by £22.4m to £30.1m (31 December 2024
net cash: £52.5m).
There was a working capital net inflow during the period of £0.2m (H1 2024:
£9.0m outflow), with the seasonal reduction in receivables slightly larger
than the reduction in payables.
The Group was free cash flow negative in the period in the sum of £10.5m (H1
2024: £16.9m negative). Repayment of lease liabilities of £9.0m (H1 2024:
£8.9m) relates to the Group's office estate. Intangibles capital expenditure
of £3.0m (H1 2024: £3.4m) principally comprises spend on the Group's
in-house CRM system, with the global deployment having concluded during the
period. Property, plant and equipment capital expenditure of £0.8m (H1 2024:
£1.4m) principally relates to the Group's office estate.
As at the end of the period, £25.0m was drawn on the Group's financing
facilities (30 June 2024: £14.6m), with the increase reflecting the internal
management of cash balances across the Group as well as an additional
short-term overdraft facility which the Group arranged towards the end of the
period and plans to renew in November 2025.
Dividend
The Board continues to view a strong balance sheet as the foundation of its
capital allocation policy, as well as enabling the execution of the Group's
strategic and operational priorities in the near term. Therefore, in light of
the current outlook and expected year-end net cash position, no interim
dividend has been declared in respect of the first half.
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 H1 2025 and H1 2024 resulted
in a £2.4m decrease in reported net fee income and a £0.2m decrease in the
operating loss for the Group.
Principal risks and uncertainties
The Group's principal risks and uncertainties, together with mitigating
actions, are detailed on pages 58-66 of the Company's Annual Report &
Accounts 2024. Since the publication of the Annual Report & Accounts, the
Board has assessed the Group's risk profile and does not believe the principal
risks and uncertainties are different in nature overall to those detailed.
ROBERT WALTERS PLC
Half-yearly Financial Results 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
Note £m £m £m
Continuing operations
Revenue 3 402.8 459.3 892.1
Cost of sales (262.8) (293.2) (570.7)
Gross profit (net fee income) 3 140.0 166.1 321.4
Administrative expenses (147.8) (165.9) (316.2)
Operating (loss) profit 3 (7.8) 0.2 5.2
Finance income 0.1 0.4 0.7
Finance costs (2.1) (2.4) (4.6)
Loss on foreign exchange (0.4) (0.5) (0.8)
(Loss) profit before taxation 3 (10.2) (2.3) 0.5
Taxation 4 (1.0) (0.1) (6.5)
Loss for the period (11.2) (2.4) (6.0)
Loss per share (pence): 6
Basic (17.0) (3.7) (9.1)
Diluted (17.0) (3.7) (9.1)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE
2025 2024 2024
6 mths to 6 mths to 12 mths to 31 Dec
30 June 30 June Audited
Unaudited Unaudited
£m £m £m
Loss for the period (11.2) (2.4) (6.0)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations (1.5) (5.1) (6.7)
Total comprehensive expense for the period (12.7) (7.5) (12.7)
ROBERT WALTERS PLC
Half-yearly Financial Results 2025
CONDENSED CONSOLIDATED BALANCE SHEET
2025 2024 2024
30 June 30 June 31 December
Unaudited Unaudited Audited
Note £m £m £m
Non-current assets
Intangible assets 7 39.4 36.1 38.2
Property, plant and equipment 10.3 13.5 11.5
Right-of-use assets 57.5 68.9 61.0
Lease receivables 3.1 3.8 3.7
Deferred tax assets 10.1 14.3 11.1
120.4 136.6 125.5
Current assets
Trade and other receivables 149.0 168.5 157.5
Lease receivables 1.1 1.0 0.9
Corporation tax receivables 4.0 4.1 3.5
Cash and cash equivalents 55.1 63.4 68.1
209.2 237.0 230.0
Total assets 329.6 373.6 355.5
Current liabilities
Trade and other payables (114.0) (123.7) (121.5)
Corporation tax liabilities (2.5) (3.5) (3.6)
Bank overdrafts and borrowings 8 (25.0) (14.6) (15.6)
Lease liabilities (17.7) (18.3) (18.2)
Provisions (1.4) (1.5) (1.6)
(160.6) (161.6) (160.5)
Net current assets 48.6 75.4 69.5
Non-current liabilities
Deferred tax liabilities (0.2) (0.1) (0.3)
Lease liabilities (50.7) (62.1) (54.2)
Provisions (2.0) (2.0) (2.0)
(52.9) (64.2) (56.5)
Total liabilities (213.5) (225.8) (217.0)
Net assets 116.1 147.8 138.5
Equity
Share capital 15.3 15.3 15.3
Share premium 22.6 22.6 22.6
Other reserves (70.9) (70.9) (70.9)
Own shares held (37.4) (37.4) (37.4)
Treasury shares held (9.1) (9.1) (9.1)
Foreign exchange reserves (5.7) (2.6) (4.2)
Retained earnings 201.3 229.9 222.2
Equity attributable to owners of the Company 116.1 147.8 138.5
ROBERT WALTERS PLC
Half-yearly Financial Results 2025
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Operating (loss) profit for the period (7.8) 0.2 5.2
Adjustments for:
Depreciation and amortisation charges 11.5 11.4 23.0
Charge in respect of share-based payment transactions 1.3 0.8 1.7
Unrealised foreign exchange gain (0.7) (3.0) (3.9)
Operating cash flows before movements in working capital 4.3 9.4 26.0
Decrease in receivables 7.0 9.5 19.3
Decrease in payables (6.8) (18.5) (19.1)
Cash generated from operating activities 4.5 0.4 26.2
Income taxes paid (1.8) (3.5) (6.4)
Net cash (used in) generated from operating activities 2.7 (3.1) 19.8
Investing activities
Interest received 0.1 0.4 0.7
Investment in intangible assets (3.0) (3.4) (8.0)
Purchases of property, plant and equipment (0.8) (1.4) (2.1)
Net cash used in investing activities (3.7) (4.4) (9.4)
Financing activities
Equity dividends paid (11.2) (11.2) (15.5)
Interest paid (0.5) (0.5) (1.2)
Principal paid on lease liabilities (9.0) (8.9) (17.2)
Proceeds from financing facility 20.9 16.4 23.4
Repayment of financing facility (11.5) (17.6) (23.6)
Proceeds from issue of equity - 0.2 -
Proceeds from exercise of share options - - 0.2
Net cash used in financing activities (11.3) (21.6) (33.9)
Net decrease in cash and cash equivalents (12.3) (29.1) (23.5)
Cash and cash equivalents at beginning of the period 68.1 95.7 95.7
Effect of foreign exchange rate changes (0.7) (3.2) (4.1)
Cash and cash equivalents at end of the period 55.1 63.4 68.1
ROBERT WALTERS PLC
Half-yearly Financial Results 2025
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Other reserves Own shares held Treasury shares held Foreign exchange reserves Retained earnings
Total equity
£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 period - - - - - - (2.4) (2.4)
Foreign currency translation differences - - - - - (5.1) - (5.1)
Total comprehensive income and expense for the period - - - - - (5.1) (2.4) (7.5)
Dividends paid - - - - - - (11.2) (11.2)
Credit to equity for equity-settled share-based payments - - - - - - 0.8 0.8
Tax on share-based payment transactions - - - - - - 0.6 0.6
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
Unaudited balance at 30 June 2024 15.3 22.6 (70.9) (37.4) (9.1) (2.6) 229.9 147.8
Loss for the period - - - - - - (3.6) (3.6)
Foreign currency translation differences - - - - - (1.6) - (1.6)
Total comprehensive income and expense for the period - - - - - (1.6) (3.6) (5.2)
Dividends paid - - - - - - (4.3) (4.3)
Credit to equity for equity-settled share-based payments - - - - - - 0.9 0.9
Tax on share-based payment transactions - - - - - - (0.7) (0.7)
Transfer to own shares held on exercise of equity incentives - - - - - - -
-
New shares issued and own shares purchased - - - - - - - -
Balance at 31 December 2024 15.3 22.6 (70.9) (37.4) (9.1) (4.2) 222.2 138.5
Loss for the period - - - - - - (11.2) (11.2)
Foreign currency translation differences - - - - - (1.5) - (1.5)
Total comprehensive income and expense for the period - - - - - (1.5) (11.2) (12.7)
Dividends paid - - - - - - (11.2) (11.2)
- - - - - - 1.3 1.3
Credit to equity for equity-settled share-based payments
- - - - - - 0.2 0.2
Tax on share-based payment transactions
Transfer to own shares held on exercise of equity incentives - - - - - - - -
New shares issued and own shares purchased - - - - - - - -
Unaudited balance at 30 June 2025 15.3 22.6 (70.9) (37.4) (9.1) (5.7) 201.3 116.1
ROBERT WALTERS PLC
Half-yearly Financial Results 2025
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
1. Statement of accounting policies
Basis of preparation
These condensed set of interim financial statements for the six months to 30
June 2025 have been prepared in accordance with IAS 34 'Interim Financial
Reporting' and in compliance with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.
They do not include all of the information required for full annual financial
statements and should be read in conjunction with the 2024 Annual Report and
Accounts, which were prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006 and in
accordance with UK-adopted International Financial Reporting Standards
(IFRSs).
The accounting policies applied by the Group are as set out in detail in the
Annual Report and Accounts for the year ended 31 December 2024. The Group has
applied the same accounting policies and methods of computation in its interim
consolidated financial statements as in its 2024 annual financial statements,
accounting which is consistent with the Group's current accounting policies
except for amendments which applied for the first time in 2025, none of which
are expected to impact the Group as they are either not relevant to the
Group's activities or require accounting which is consistent with the Group's
current accounting policies.
There are a number of standards and interpretations which have been issued by
the International Accounting Standards Board that are effective for periods
beginning after 31 December 2025 that the Group has not adopted early and
which the Group does not believe will have a material impact on the financial
statements when adopted.
The financial information on pages 15 to 26 was formally approved by the Board
of Directors on 30 July 2025. The financial information set out in this
document does not constitute statutory accounts within the meaning of section
434 of the Companies Act 2006.
The consolidated financial statements of Robert Walters Plc, for the year
ended 31 December 2024, have been prepared in accordance with international
accounting standards in conformity with the Companies Act 2006 and with UK
adopted International Financial Reporting Standards (IFRSs). They have been
delivered to the Registrar of Companies. The auditor's report on these
accounts was not qualified, did not draw attention to any matters by way of
emphasis and did not contain statements under section 498(2) or (3) of the
Companies Act 2006.
The financial information in respect of the period ended 30 June 2025 is
unaudited but has been reviewed by the Company's auditor. Their report is
included on page 28 and 29. The financial information in respect of the period
ended 30 June 2024 is also unaudited.
Going concern
Net fee income for the first half of 2025 continued to reflect the rebasing in
market conditions relative to the post-pandemic peak. This period of market
adjustment continues to be longer in duration than anything previously
experienced by the Group, with macroeconomic turbulence and political
uncertainty continuing to restrain client and candidate confidence in certain
geographies. However, the Group has a clear strategy with regards to managing
the business through these market conditions, a diverse range of clients and
suppliers across different geographic locations and sectors in a number of
diverse hiring markets, and significant financial resources, including £30.1m
of net cash at 30 June 2025. As a consequence, the Directors believe the Group
is well placed to manage its business risks successfully.
The Directors have assessed the prospects of the Company and the Group based
upon business plans, cash flow projections for the period to 31 December 2026,
and consideration of the uncertainties arising in the current economic
environment. This period has been chosen as it reflects an appropriate
timeframe over which a reasonable view can be formed, given the nature of the
market in which the Group operates. Furthermore, the nature of recruitment
activity is highly reactive to market sentiment and the forward visibility of
permanent recruitment, which represents 65% of the Group's net fee income, is
often measured in weeks, whilst temporary recruitment and recruitment process
outsourcing may be less affected.
The forecasts and cash flow projections being used to assess going concern
have been comprehensively stress-tested by using simulation techniques
involving sensitivity analysis applying, in particular, projections of reduced
net fee income of up to 16% relative to prior periods. The Group also
considered mitigating actions that could be undertaken in the event of one or
more of the scenarios occurring, which included but was not limited to,
further reductions in capital expenditure, further reductions in non-business
critical expenditure as well as the potential for headcount reductions. The
scenarios were designed to be impactful but at the same time realistic and the
Group remained viable throughout.
Historically, the Group has successfully managed its cost base during previous
economic downturns. The Directors remain confident of the Group's long-term
growth prospects, with structural recruitment market fundamentals including
job vacancy levels, salary inflation and candidate shortages still holding
strong which continues to suggest that when market confidence recovers there
will likely be an increase in demand and candidate movement across all areas
of recruitment.
As a consequence, the Directors have formed a judgement, at the time of
approving the condensed set of 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
assessment period. For this reason, the Directors continue to adopt the going
concern basis in preparing the condensed set of financial statements.
Cash management
At 30 June 2025, the Group has £30.1m of net cash, compared to £48.8m at 30
June 2024. The Group has a committed financing facility of £60.0m, which
expires in March 2027 and at 30 June 2025, £14.0m (30 June 2024: £14.6m) was
drawn down under this facility.
The Group also has signed up to an overdraft facility of £20.0m with HSBC in
May 2025 at a rate of 3% above the bank of England base rate. The facility is
due to expire in November 2025. The Group envisages that this facility would
be renewed in the ordinary course of business. As at 30 June 2025, £11.0m (30
June 2024: £nil) was drawn down under this
facility.
Principal risks and uncertainties
The Board recognises the importance of identifying and actively monitoring the
full range of financial and non-financial risks facing the business, at both a
local and Group level. Since the year-end, the Board has assessed the
Company's risk profile and the likely consequences of any decision on the
long-term success of the Company, and inherently do not believe the principal
risks for the business are different in nature overall as those detailed
within the Principal Risks and Uncertainties section of the Annual Report and
Accounts for the year ended 31 December 2024. The Group continues to navigate
challenging macro-economic conditions and has implemented appropriate risk
mitigation strategies to address those risks. The Board continues to monitor
the ongoing impact on the business, with a robust Group-wide assessment of the
Company's risk profile currently in progress, incorporating both top-down and
bottom-up perspectives, including the identification and consideration of
emerging risks such as climate-related and cyber-related risk.
Significant accounting judgements and estimates
Judgement and estimates are continually evaluated and are based on historical
experience and other factors, including expectation of future events that are
believed to be reasonable under the circumstances. Due to inherent uncertainty
involved in making estimates and assumptions, actual outcomes could differ
from those assumptions and estimates.
Given the impact on the economy from the ongoing conflicts, political changes
and the current economic uncertainties, further review of the judgements and
estimates have been performed when preparing the half-yearly financial
results. Further reviews have been completed on the goodwill impairment
assumptions, including various sensitivities surrounding downside scenarios.
There was still no impairment required under these scenarios, however, the
assumptions surrounding the growth rates to calculate the value in use and
perpetuity value, includes significant judgements. If the outcomes were
different to those included in the forecast, there is a risk that an
impairment would be required in the future. Following the review, in relation
to other judgement areas it was concluded that the significant accounting
judgements and estimates made by the Directors were the same as those that
applied in the Group's Annual Report and Accounts for the year ended 31
December 2024.
2. Currency conversion
The presentational currency of the Group is Pounds Sterling and the condensed
set of financial statements have been prepared on this basis.
The Condensed Consolidated Income Statement for the period ended 30 June 2025
has been prepared using, among other currencies, the average exchange rate
of €1.1870 to the Pound (period ended 30 June 2024: €1.1700 ; year ended
31 December 2024: €1.1811); ¥192.4082 to the Pound (30 June 2024:
¥192.4762; 31 December 2024: ¥193.4722) and AU$2.0450 to the Pound (30 June
2024: AU$1.9210; 31 December 2024: AU$1.9368).
The Condensed Consolidated Balance Sheet as at 30 June 2025 has been prepared
using the exchange rates on that day of €1.1677 to the Pound (30 June 2024:
€1.1798; 31 December 2024: €1.2067); ¥197.6980 to the Pound (30 June
2024: ¥203.3960; 31 December 2024: ¥196.5360) and AU$2.0929 to the Pound (30
June 2024: AU$1.8953; 31 December 2024: AU$2.0201).
3. Segmental information
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
i) Revenue:
Asia Pacific 179.8 202.7 396.5
UK 104.0 108.2 211.3
Europe 104.1 130.3 248.5
Rest of World 14.9 18.1 35.8
402.8 459.3 892.1
ii) Gross profit (net fee income):
Asia Pacific 60.4 70.0 138.8
UK 24.7 26.3 50.4
Europe 43.4 56.5 105.7
Rest of World 11.5 13.3 26.5
140.0 166.1 321.4
iii) Operating profit and (loss) profit before taxation:
Asia Pacific 0.4 3.1 6.0
UK (1.3) (2.3) (1.4)
Europe (3.2) 2.4 5.5
Rest of World (3.7) (3.0) (4.9)
Operating profit (7.8) 0.2 5.2
Net finance costs (2.4) (2.5) (4.7)
(Loss) profit before taxation (10.2) (2.3) 0.5
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.
iv) Revenue by service line:
Specialist Professional Recruitment 315.2 360.2 705.4
Recruitment Outsourcing 87.6 99.1 186.7
402.8 459.3 892.1
v) Revenue by service type:
Permanent 84.9 102.2 197.0
Temporary 238.9 269.4 521.9
Interim 57.8 64.6 128.5
Other 21.2 23.1 44.7
402.8 459.3 892.1
4. Taxation
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Current tax 0.2 2.7 6.3
Deferred tax 0.8 (2.6) 0.2
Total tax charge for the period 1.0 0.1 6.5
The interim tax charge for the period is calculated, on a country-by-country
basis, by assessing the expected full year effective tax rate for each country
and then applying that rate to the interim result for each country. Due to the
mix of loss and profit during the year, the tax charge for the interim period
was £1.0m, resulting in an effective tax rate of -10.1% (30 June 2024:
- 2.4%).
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 the period 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 and in the half year results for 2025.
5. Dividends
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Amounts recognised as distributions to equity holders in the period:
Final dividend for 2024 of 17.0p per share (2023: 17.0p) 11.2 11.2 11.2
Interim dividend for 2024 of 6.5p (2023: 6.5p) - - 4.3
11.2 11.2 15.5
Proposed interim dividend for 2025 of nil p (2024: 6.5p) - 4.3 n/a
No interim dividend has been declared, as approved by the Board on 30 July
2025, as such no liability exists at 30 June 2025.
6. Earnings per share
The calculation of earnings per ordinary share is based on the (loss) profit
for the period attributable to equity holders of the Parent and the weighted
average number of shares of the Company.
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
Number of shares Number of shares Number of shares
Weighted average number of shares:
Shares in issue throughout the period 76,431,699 76,429,714 76,429,714
Shares issued in the period - 1,031 1,512
Shares cancelled in the period - - -
Treasury and own shares held (10,652,885) (10,697,728) (10,677,080)
For basic earnings per share 65,778,814 65,733,017 65,754,146
Outstanding share options - - -
For diluted earnings per share 65,778,814 65,733,017 65,754,146
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Loss for the period attributable to equity holders of the Parent (11.2) (2.4) (6.0)
2025 2024 2024
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
Loss per share (pence):
Basic (17.0) (3.7) (9.1)
Diluted (17.0) (3.7) (9.1)
7. Intangible assets and goodwill
The intangible assets consist of goodwill and computer software, of which
£8.0m relates to goodwill as at 30 June 2025 (30 June 2024: £8.0m, 31
December 2024: £8.0m).
The carrying value of goodwill primarily relates to the acquisitions of the
Dunhill Group in Australia in 2001 (£6,847,000) and Talent Spotter in China
in 2008 (£1,202,000).
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 interim period, the Directors have undertaken an impairment assessment,
reflecting the continued decline in trading in the two CGUs, and market
conditions more widely across the industry. As referenced in the Operational
Summary, in light of the continued 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 forecast 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 latest first half results in 2025, the impact of
uncertainty in the macro-economic 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 revised to assume that the
level of activity in 2026 will remain consistent with 2025, with recovery
starting only in 2027, reflecting 4% to 5% for Australia and 5% for China from
2027 onwards. 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 15.9% (pre-tax rate of 18.1%) for Australia (31st December
2024: post tax rate 11.8%, pre tax rate; 16.9%) and 12.3% (pre-tax rate of
17.1%) for China (31st 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. The Directors have updated the
discount rates in the six months ended 30 June 2025, to a higher discount
rate, driving a more conservative cashflow forecast. If the discount rates
remained at the 31 December 2024 levels, the headroom would increase in each
scenario.
In both the Australian 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 forecast for the next five years. The Directors
have identified further cost savings which can be enacted, with minimal impact
on achieving this level of NFI over and above cost savings enacted through the
first half of 2025; and,
- Scenario 2; reducing the NFI by a further 16% in 2026, in line
with Group trading for the first half of 2025, with NFI then forecast to
remain at this reduced level in financial years 2027 to 2030. The Directors
have identified further action with regards to variable costs in response to
the lower net fee income environment, should that arise, such as targeted
reductions to headcount, to limit any impact on forecasted NFI.
Note that with both scenarios above, the Directors are satisfied that
additional cost savings are available, and consider further action is possible
despite action taken through the first half of 2025, where operating costs
have been reduced by £0.4m in China and £2.4m in Australia against the
budget for the first six months of the year in response to the continued
suppressed market activity.
With scenario 1 above, the headroom on the base case is reduced in both CGUs.
Within scenario 2, in the Australian CGU, the carrying amount of assets are
equivalent to the recoverable amounts. Headroom remains in the China CGU.
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.
8. Bank overdrafts and
borrowings
The Group has a committed financing facility of £60.0m, which expires in
March 2027. At 30 June 2025, £14.0m (30 June 2024: £14.6m) was drawn down
under this facility.
The Group also has signed up to an overdraft facility of £20.0m with HSBC in
May 2025 at a rate of 3% above the bank of England base rate. The facility is
due to expire in November 2025. The Group envisages that this facility would
be renewed in the ordinary course of business. At 30 June 2025, £11.0m (30
June 2024: £nil) was drawn down under this facility.
9. Related party transactions
There were no related party transactions in the period to 30 June 2025 (30
June 2024: none), other than employment and share-based remuneration payments
to key management personnel and receipt of dividends for key management
shareholders. There were no outstanding balances as at 30 June 2025 (30 June
2024: none).
10. Registered office
The Company's registered office is located at 11 Slingsby Place, St Martin's
Courtyard, London, WC2E 9AB.
Responsibility Statement
We confirm to the best of our knowledge:
a) the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting';
b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of the important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the year); and
c) the interim management report and note 9 includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board,
David Bower
Chief Financial Officer
30 July 2025
INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises of the Condensed Consolidated Income Statement, the
Condensed Statement of Comprehensive Income and Expense, the Condensed
Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement,
the Condensed Consolidated Statement of Changes in Equity, and related notes 1
to 10.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the Directors have
inappropriately adopted the going concern basis of accounting or that the
Directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK)2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of Directors
The Directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the Directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
30 July 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
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