REG - Robert Walters PLC - Half-year Report <Origin Href="QuoteRef">RWA.L</Origin>

Robert WaltersAnnouncement

26/07/2017 07:06

RNS Number : 0769M
Robert Walters PLC
26 July 2017
26 July 2017
ROBERT WALTERS PLC
(the "Company", or the "Group")
Half-yearly financial results for the six months ended 30 June 2017
RECORD PROFITS
Robert Walters plc (LSE: RWA), the leading international recruitment group, today announces its half-yearly financial results for the six months ended 30 June 2017.
Financial and Operational Highlights

H1 2017
H1 2016
% change
% change (constant currency*) 
Revenue
562.7m
451.4m
25%
17%
Gross profit (net fee income)
164.5m
128.1m
28%
18%
Operating profit
16.2m
10.1m
62%
44%
Profit before taxation
15.6m
11.2m
39%
46%
Basic earnings per share
16.3p
10.6p
54%
n/a
* Constant currency is calculated by applying prior period exchange rates to local currency results for the current and prior periods.
 Record first half performance with operating profit increasing by 62% (44%*) to 16.2m (2016: 10.1m) and profit before tax increasing by 39% (46%*) to 15.6m (2016: 11.2m). 
 71% of the Group's net fee income derived from our international businesses. 
 All regions delivered increases in both net fee income and operating profit. 
 Asia Pacific net fee income up 25% (10%*) to 67.4m (59.3m*) (2016: 54.0m) and operating profit up 22% (3%*) to 7.7m (6.5m*) (2016: 6.4m).
 Strong performance in Asia across both established and emerging markets with Japan, Korea, Hong Kong, Indonesia, Thailand and Vietnam all delivering record performances.
 Good first half in Australia with growth strongest in Queensland and South Australia. Recent sponsorship of the British & Irish Lions further cemented our market-leading position in New Zealand. 
 Resource Solutions won a number of new client deals across the region; requiring significant investment in upfront implementation costs.
 UK net fee income up 20% to 48.3m (2016: 40.2m) producing a substantial uplift in operating profit to 4.0m (2016: 1.8m).
 Activity levels strongest in London in financial services, commerce finance and technology.
 Broad-based growth across the UK regions with Manchester, Milton Keynes and St. Albans the standout performers.
 Resource Solutions performed strongly winning several new client deals and continued to benefit from the investment made in 2016.
 Europe net fee income up 34% (22%*) to 38.0m (34.4m*) (2016: 28.2m) and operating profit more than doubled to 4.4m (3.7m*) (2016: 2.1m).
 Strong growth across permanent, contract and interim recruitment.
 France, Belgium, the Netherlands and Spain all delivered record performances with the latter increasing net fee income in excess of 70%.
 Other International (North America, Brazil, the Middle East and South Africa) net fee income up 93% (67%*) to 10.9m (9.4m*) (2016: 5.6m) producing an operating profit of 0.1m (0.3m*) (2016: operating loss of 0.2m).
 Group headcount increased by 20% to 3,495 (30 June 2016: 2,902).
 Interim dividend increased by 20% to 2.75p per share (30 June 2016: 2.30p).
 2.1m shares have been purchased and cancelled at an average price of 3.79 for 8.0m. A further 0.4m shares were purchased at an average price of 4.03 for 1.7m through the Group's Employee Benefit Trust.
 Strong balance sheet with net cash of 18.4m as at 30 June 2017 (30 June 2016: 10.2m).


Robert Walters, Chief Executive, said: 
"The Group delivered a record performance in the first half increasing profit before tax by 39% (46%*) year-on-year. We continue to benefit from both our international footprint which now spans 28 countries, including many of the world's fastest growing and emerging recruitment markets, and the breadth of recruitment solutions we provide to our clients. 
"We enter the second half of the year with confidence that the Group's platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise."
The Company will be holding a presentation for analysts at 10.30am today at Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London EC2V 5DE. 
The Company will publish an interim management statement for the third quarter ending 30 September 2017 on 10 October 2017.
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial Officer
+44 (0) 20 7379 3333
Newgate Communications
Steffan Williams
Charlotte Coulson
+44 (0) 20 7680 6550
About Robert Walters
Robert Walters is a market-leading international specialist professional recruitment group with over 3,400 staff spanning 28 countries. We specialise in the placement of the highest calibre professionals across the disciplines of accountancy and finance, banking, engineering, HR, IT, legal, sales, marketing, secretarial and support and supply chain and procurement. Our client base ranges from the world's leading blue-chip corporates and financial services organisations through to SMEs and start-ups. The Group's outsourcing division, Resource Solutions is a market leader in recruitment process outsourcing and managed services.
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
Half-yearly financial results for the six months ended 30 June 2017
Interim Management Report
The Group delivered a record performance in the first half benefiting from both our international footprint which now spans 28 countries, including many of the world's fastest growing and emerging recruitment markets, and the breadth of recruitment solutions we provide to our clients. 
Revenue was up 25% (17%*) to 562.7m (529.4m*) (2016: 451.4m) and gross profit (net fee income) increased by 28% (18%*) to 164.5m (151.4m*) (2016: 128.1m). Operating profit increased 62% (44%*) to 16.2m (14.5m*) (2016: 10.1m) and profit before taxation increased by 39% (46%*) to 15.6m (13.9m*) (2016: 11.2m). The Group has maintained a strong balance sheet with net cash of 18.4m as at 30 June 2017 (31 December 2016: 22.5m).
Permanent recruitment currently represents 69% (2016: 69%) of the Group's recruitment net fee income. Group headcount now stands at 3,495 (30 June 2016: 2,902).
Asia Pacific (41% of net fee income)
Revenue was 185.3m (2016: 154.9m) and net fee income increased by 25% (10%*) to 67.4m (59.3m*) (2016: 54.0m) delivering a 22% (3%*) increase in operating profit to 7.7m (6.5m*) (2016: 6.4m). 
In Asia, performance was strong across both our established and emerging markets. Japan, the region's largest market had a record first half as did our business in Hong Kong whilst Malaysia also delivered an excellent performance across both Kuala Lumpur and our newer office in Penang. Our emerging market footprint in Asia covering Indonesia, Korea, Taiwan, Thailand, Vietnam and most recently, the Philippines, is unrivalled and it is very pleasing to report that all markets continued to deliver year-on-year operating profit growth thus providing the Group with a strong platform for the future. Elsewhere in the region, Singapore and Mainland China delivered robust performances against a backdrop of more challenging market conditions.
Australia had a good first half with growth strongest in Queensland and South Australia whilst New Zealand delivered strong double-digit growth in both net fee income and operating profit. The Group's recent sponsorship of the British & Irish Lions tour of New Zealand has further enabled us to cement our leadership position in this market. 
Resource Solutions continued to grow its client portfolio across the region during the period. Significant upfront investment has been required to implement these new wins. 
United Kingdom (29% of net fee income)
Revenue in the UK was 278.1m (2016: 220.6m) and net fee income increased by 20% to 48.3m (2016: 40.2m) delivering a more than doubling of operating profit to 4.0m (2016: 1.8m).
Whilst the UK has had a mixed and volatile economic backdrop for the first six months of the year, we were still able to deliver good growth across several recruitment disciplines and locations. In London, we saw strong growth in the financial services space, whilst both our commerce finance and technology teams also performed well. Regional growth was broad-based with Manchester, St. Albans and Milton Keynes the standout performers. 
Resource Solutions continued to perform strongly, winning a number of new client deals and successfully expanding its service range within existing clients. 
Europe (23% of net fee income)
Revenue was 88.4m (2016: 69.3m) and net fee income increased by 34% (22%*) to 38.0m (34.4m*) (2016: 28.2m) delivering a substantial increase in operating profit to 4.4m (3.7m*) (2016: 2.1m).
Europe delivered an excellent first half performance and, very encouragingly, activity was strong across permanent, contract and interim recruitment. 
France, the region's largest business, the Netherlands, Belgium and Spain all delivered record performances with the latter increasing net fee income by more than 70% year-on-year. Germany was also a strong performer, increasing net fee income in excess of 30%, whilst Ireland delivered double-digit growth. 


Other International (7% of net fee income)
Other International comprises North America, Brazil, the Middle East and South Africa. Revenue was 11.0m (2016: 6.7m), net fee income was up 93% (67%*) to 10.9m (9.4m*) (2016: 5.6m) producing an operating profit of 0.1m (0.3m*) (2016: operating loss of 0.2m).
Market conditions across this diverse set of territories was mixed. In Brazil and South Africa where macro-economic conditions are arguably most challenging, we bucked the market trend delivering net fee income increases of 59% and 16% respectively. Across North America, activity levels in New York were impacted by the tightening of the financial services market, in San Francisco demand in the digital and technology space remained strong whilst our new office in Toronto has shown promising early signs.
Cash flow
The Group maintained a strong net cash position of 18.4m as at 30 June 2017 (31 December 2016: 22.5m). Working capital in the period has increased by 3.7m resulting in 17.5m cash generated from operating activities. Notable cash outflows included a dividend of 4.2m, 3.4m of tax payments and capital expenditure of 4.0m. During the period, 2.1m shares have been purchased and cancelled at an average price of 3.79 for 8.0m. A further 0.4m shares were purchased at an average price of 4.03 for 1.7m through the Group's Employee Benefit Trust.
Dividend
The interim dividend will be increased by 20% to 2.75p per share (2016: 2.30p) and will be paid on 13 October 2017 to those shareholders on the Company's register as at 1 September 2017.
Treasury management, currency risk and other principal risks and uncertainties affecting the business
The Group does not have material transactional exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations. Overseas currency balances that are surplus to local working capital requirements are converted on a regular basis to Pounds Sterling. The main functional currencies of the Group's operating divisions are Pounds Sterling, the Euro, the Australian Dollar and the Japanese Yen.
The other principal risks and uncertainties affecting the Group's business activities remain those detailed within the Principal Risks and Uncertainties section of the Annual Report and Accounts for the year ended 31 December 2016, namely the economic environment, business model, people management, brand and reputation, laws and regulation and technology. The Board does not foresee a material change in respect of these factors for the remainder of the year.
Outlook 
With full-year profit forecasts having been upgraded only a few weeks ago in response to our second quarter trading update, current trading is in line with current market expectations. 
We enter the second half of the year with confidence that the Group's platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise. 
Leslie Van de Walle
Chairman
25 July 2017
Robert Walters 
Chief Executive


ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED INCOME STATEMENT


2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited

Notes
'000

'000

'000
Continuing operations






Revenue 
4
562,704

451,420

998,535
Cost of sales 

(398,175)

(323,323)

 (720,205)
Gross profit 
4
164,529

128,097

278,330
Administrative expenses

(148,283)

(118,039)

 (252,088)
Operating profit 
4
16,246

10,058

26,242
Finance income

163

81

460
Finance costs

(395)

(316)

 (895)
(Loss) gain on foreign exchange

 (446)

1,368

2,334
Profit before taxation
4
15,568

11,191

28,141
Taxation
5
(4,437)

(3,412)

 (8,244)
Profit for the period

11,131

7,779

19,897







Earnings per share (pence):
7





Basic

16.3

10.6

27.7
Diluted

14.7

9.7

25.4
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE


2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000
Profit for the period

11,131

7,779

19,897
Items that may be reclassified subsequently to profit or loss:






Exchange differences on translation of overseas operations

20

10,810

12,953
Total comprehensive income for the period

11,151

18,589

32,850























ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED BALANCE SHEET


2017

2016

2016


30 June

30 June

31 December


Unaudited

Unaudited

Audited

Note
'000

'000

'000
Non-current assets






Intangible assets

11,809

11,508

11,402
Property, plant and equipment

9,356

8,055

8,183
Deferred tax assets

9,127

9,443

8,253


30,292

29,006

27,838







Current assets






Trade and other receivables

251,589

226,265

236,507
Corporation tax receivables

836

561

1,531
Cash and cash equivalents

49,281

37,154

62,601


301,706

263,980

300,639
Total assets

331,998

292,986

328,477







Current liabilities






Trade and other payables

(189,379)

(163,612)

 (178,008)
Corporation tax liabilities

(5,139)

(4,708)

 (5,069)
Loans
9
(30,923)

(26,947)

 (40,070)
Provisions

(641)

(587)

 (1,244)


(226,082)

(195,854)

 (224,391)
Net current assets

75,624

68,126

76,248







Non-current liabilities






Deferred tax liabilities

 -

(33)

 -
Provisions

(2,692)

(1,940)

 (2,143)


(2,692)

(1,973)

 (2,143)
Total liabilities

(228,774)

(197,827)

 (226,534)
Net assets

103,224

95,159

101,943







Equity






Share capital

15,711

17,268

16,101
Share premium

21,935

21,848

21,854
Other reserves

(71,818)

(73,410)

 (72,241)
Own shares held

(18,384)

(16,684)

 (19,906)
Treasury shares held

(9,095)

(19,860)

 (9,095)
Foreign exchange reserves

14,058

11,895

14,038
Retained earnings

150,817

154,102

151,192
Total equity

103,224

95,159

101,943


ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED CASH FLOW STATEMENT


2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited

Note
'000

'000

'000
Cash generated from operating activities
8
17,468

9,041

37,178
Income taxes paid 

(3,418)
(2,012)

(7,693)
Net cash generated from operating activities

14,050

7,029

29,485







Investing activities






Interest received

163

81

460
Purchases of computer software

(1,069)

(1,232)

(2,172)
Purchases of property, plant and equipment

(2,968)

(1,214)

(2,841)
Net cash used in investing activities

(3,874)

(2,365)

(4,553)







Financing activities






Equity dividends paid

(4,195)

(3,966)

(5,410)
Proceeds from issue of equity

114

31

39
Interest paid

(395)

(316)

(895)

Proceeds from bank loans

-

1,276

14,350
Repayment of bank loans

(9,114)

-

-
Share buy-back and cancellation

(8,033)

-

(3,446)
Purchase of own shares

(1,746)

(13,510)

(19,168)
Proceeds from exercise of share options

670

4

26
Net cash used in financing activities

(22,699)

(16,481)

(14,504)
Net (decrease) increase in cash and cash equivalents

(12,523)
(11,817)

10,428








Cash and cash equivalents at beginning of the period

62,601

43,378

43,378
Effect of foreign exchange rate changes

 (797)

5,593

8,795
Cash and cash equivalents at end of the period

49,281
37,154

62,601

ROBERT WALTERS PLC
Half-yearly Financial Results 2017
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

'000
'000
'000
'000
'000
'000
'000
'000
Balance at 1 January 2016
17,249
21,836
(73,410)
(7,136)
(19,860)
1,085
151,893
91,657
Profit for the period
-
-
-
-
-
-
7,779
7,779
Foreign currency translation differences
-
-
-
-
-
10,810
-
10,810
Total comprehensive income and expense for the period
-
-
-
-
-
10,810
7,779
18,589
Dividends paid
-
-
-
-
-
-
(3,966)
(3,966)
Credit to equity for equity-settled share-based payments
-
-
-
-
-
-
2,354
2,354
Deferred tax on share-based payment transactions 
-
-
-
-
-
-
-
-
Transfer to own shares held on exercise of equity incentives
-
-
-
3,958
-
-
(3,958)
-
New shares issued and own shares purchased
19
12
-
(13,506)
-
-
-
(13,475)
Unaudited balance at 30 June 2016
17,268
21,848
(73,410)
(16,684)
(19,860)
11,895
154,102
95,159
Profit for the period
-
-
-
-
-
-
12,118
12,118
Adjustment
-
-
-
-
-
-
1,254
1,254
Foreign currency translation differences
-
-
-
-
-
2,143
-
2,143
Total comprehensive income and expense for the period
-
-
-
-
-
2,143
13,372
15,515
Dividends paid
-
-
-
-
-
-
(1,444)
(1,444)
Shares repurchased for cancellation
(1,169)
-
1,169
-
10,765
-
(14,211)
(3,446)
Credit to equity for equity-settled share-based payments 
-
-
-
-
-
-
2,236
2,236
Deferred tax on share-based payment transactions
-
-
-
-
-
-
(449)
(449)
Transfer to own shares held on exercise of equity incentives
-
-
-
2,414
-
-
(2,414)
-
New shares issued and own shares purchased
2
6
-
(5,636)
-
-
-
(5,628)
Balance at 31 December 2016
16,101
21,854
(72,241)
(19,906)
(9,095)
14,038
151,192
101,943
Profit for the period
-
-
-
-
-
-
11,131
11,131
Foreign currency translation differences
-
-
-
-
-
20
-
20
Total comprehensive income and expense for the period
-
-
-
-
-
20
11,131
11,151
Dividends paid
-
-
-
-
-
-
(4,195)
(4,195)
Shares repurchased for cancellation
(423)
-
423
-
-
-
(8,033)
(8,033)
Credit to equity for equity-settled share-based payments 
-
-
-
-
-
-
2,607
2,607
Deferred tax on share-based payment transactions
-
-
-
-
-
-
713
713
Transfer of own shares held on exercise of equity incentives
-
-
-
2,598
-
-
(2,598)
-
New shares issued and own shares purchased
33
81
-
(1,076)
-
-
-
(962)
Unaudited balance at 30 June 2017
15,711
21,935
(71,818)
(18,384)
(9,095)
14,058
150,817
103,224
An immaterial adjustment of 1.25 million has been made to increase brought forward retained earnings. 0.195 million of this adjustment is related to the income statement for the 2015 financial year. The adjustment was made in order to recognise two changes in the current year in the application of the revenue recognition policy in part of the business (the impact on the equivalent balance sheet and income statement captions is similarly immaterial).
The first change relates to permanent placements. These were previously recognised by this part of the business when a candidate started a position. However, given the maturity of the market for this part of the business, the Group considers that it is more appropriate to recognise this revenue when the candidate accepts a position and the start date is determined, in line with the rest of the Group, as this reflects the underlying agreements. Provision is made for candidates who fail to start employment after accepting the offer and is based on the historic rate of "back-outs". The adjustment has not been treated as a change in accounting policy, under IAS 8, as it is not material.
The second change relates to temporary placements. The adjustment made is to recognise the impact of timesheets received after the year end date, where work was completed during the 2016 financial year. The adjustment has also not been treated as a change in accounting policy, under IAS 8, as it is not material.


ROBERT WALTERS PLC
Half-yearly Financial Results 2017
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
1. Statement of accounting policies
Basis of preparation
The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union. 
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 2016. 
The Group was profitable for the period and has considerable financial resources, including 18.4m of net cash at 30 June 2017, together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe 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 half-yearly financial results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of this report. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.
2. Financial information
The financial information on pages 5 to 13 was formally approved by the Board of Directors on 25 July 2017. The financial information set out in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. 
Statutory accounts prepared under IFRSs for the year ended 31 December 2016 for Robert Walters plc 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 2017 is unaudited but has been reviewed by the Company's auditor. Their report is attached on page 14. The financial information in respect of the period ended 30 June 2016 is also unaudited.
3.  Currency conversion
The presentational currency of the Group is Pounds Sterling and the condensed set of financial statements has been prepared on this basis. The main functional currencies of the Group's operating divisions are Pounds Sterling, the Euro, the Australian Dollar and the Japanese Yen.
The condensed consolidated income statement for the period ended 30 June 2017 has been prepared using, among other currencies, the average exchange rate of 1.1625 to the Pound (period ended 30 June 2016: 1.2841; year ended 31 December 2016: 1.2181); 141.3893 to the Pound (30 June 2016: 160.0445; 31 December 2016: 146.7317) and AU$1.6681 to the Pound (30 June 2016: AU$1.9547; 31 December 2016: AU$1.8144).
The condensed consolidated balance sheet as at 30 June 2017 has been prepared using the exchange rates on that day of 1.1381 to the Pound (30 June 2016: 1.2058; 31 December 2016: 1.1722); 145.7482 to the Pound (30 June 2016: 137.7140; 31 December 2016: 144.2890) and AU$1.6914 to the Pound (30 June 2016: AU$1.7991; 31 December 2016: AU$1.7118).


ROBERT WALTERS PLC
Half-yearly Financial Results 2017
4.
Segmental information







2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000
i)
Revenue:






Asia Pacific
185,265

154,862

348,636

UK
278,117

220,621

480,587

Europe
88,368

69,286

146,985

Other International 
10,954

6,651

22,327


562,704

451,420

998,535







ii)
Gross profit:






Asia Pacific
67,384

54,025

117,591

UK
48,277

40,196

86,675

Europe
37,981

28,242

60,062

Other International
10,887

5,634

14,002


164,529

128,097

278,330







iii)
Profit before taxation:






Asia Pacific
7,749

6,350

14,655

UK
4,010

1,846

6,396

Europe
4,397

2,108

4,243

Other International
 90

(246)

948

Operating profit 
16,246

10,058

26,242

Net finance costs
 (678)

1,133

1,899

Profit before taxation
15,568

11,191

28,141







iv)
Total assets:






Asia Pacific
60,524

63,841

63,621

UK
156,291

136,342

146,599

Europe
44,740

33,429

37,168

Other International
11,199

12,216

8,704

Unallocated corporate assets*
59,244

47,158

72,385


331,998

292,986

328,477







v)
Total liabilities:






Asia Pacific
(33,963)

(28,627)

(31,000)

UK
(127,251)

(105,245)

(117,732)

Europe
(25,076)

(22,670)

(27,576)

Other International
(6,422)

(9,597)

(5,086)

Unallocated corporate liabilities*
(36,062)

(31,688)

(45,140)


(228,774)

(197,827)

(226,534)







*For the purposes of segmental analysis, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.


ROBERT WALTERS PLC
Half-yearly Financial Results 2017
4.
Segmental information (continued)







2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000
vi)
Revenue by business grouping:






Robert Walters
318,954

276,123

599,356

Resource Solutions
243,750

175,297

399,179


562,704

451,420

998,535
5. 
Taxation







2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000

Current tax
4,623

3,411

7,931

Deferred tax
 (186)

1

313

Total tax charge for the period
4,437

3,412

8,244
The tax charge is based on the expected annual tax rate of 28.5% (2016: 29.3%) on profit before taxation.
6.
Dividends







2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000

Amounts recognised as distributions to equity holders in the period:






Final dividend for 2016 of 6.2p (2015: 5.13p)
4,195

3,966

4,316

Interim dividend for 2016 of 2.3p (2015: 1.95p)
-

-

1,620


4,195

3,966

5,936








Proposed interim dividend for 2017 of 2.75p (2016: 2.30p)
1,877

1,620

n/a
The proposed interim dividend was approved by the Board on 25 July 2017 and has not been included as a liability at 30 June 2017.

ROBERT WALTERS PLC
Half-yearly Financial Results 2017
7.
Earnings per share

The calculation of earnings per ordinary share is based on the profit for the period attributable to equity holders of the Parent and the weighted average number of shares of the Company.


2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000

Profit for the period attributable to equity holders of the Parent
11,131

7,779

19,897









Number of shares

Number of shares

Number of shares

Weighted average number of shares:






Shares in issue throughout the period
80,507,284

86,175,371

86,251,859

Shares issued in the period
92,076

95,145

74,666

Shares cancelled in the period
(1,668,798)

-

(1,652,089)

Treasury and own shares held
(10,822,054)

(13,046,447)

(12,799,910)

For basic earnings per share
68,108,508

73,224,069

71,874,526

Outstanding share options
7,821,209

6,766,373

6,470,656

For diluted earnings per share
75,929,717

79,990,442

78,345,182
8. 
Notes to the cash flow statement







2017

2016

2016


6 mths to

6 mths to

12 mths to


30 June

30 June

31 December


Unaudited

Unaudited

Audited


'000

'000

'000

Operating profit for the period
16,246
10,058

26,242

Adjustments for:





Depreciation and amortisation charges
2,238
2,037

4,179

Loss on disposal of property, plant and equipment and computer software
178
44

666

Charge in respect of share-based payment transactions
2,607

2,354

4,590

Operating cash flows before movements in working capital
21,269
14,493

35,677

Increase in receivables
(14,819)
(22,946)

(29,634)

Increase in payables
11,018
17,494

31,135

Cash generated from operating activities
17,468
9,041

37,178









ROBERT WALTERS PLC
Half-yearly Financial Results 2017
9. Bank loans 
In January 2017, the Group renewed and extended to four years its committed financing facility of 45.0m, which expires in December 2020. At 30 June 2017, 30.3m (2016: 25.2m) was drawn down under this facility.
The Group has a short-term facility of Renminbi 25m (2.8m) of which Renminbi 5m (0.6m) was drawn down as at 30 June 2017. The loan is secured against cash deposits in Hong Kong.
10. Related party transactions
During the first six months of the year, there were related party transactions totalling 77,000 (2016: 26,000) with Tay Associates Limited, a related party through a Director of Robert Walters plc. 
There were no outstanding balances as at 30 June 2017.
All transactions were undertaken on an arms-length basis.
11. 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 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 10 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,
Alan Bannatyne
Chief Financial Officer
25 July 2017

ROBERT WALTERS PLC
Half-yearly Financial Results 2017
INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC
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 2017 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated 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 11. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an Independent Review Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this R0eport, or for the conclusions we have formed.
Directors' responsibilities
The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review.
Scope of review 
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, 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 Ireland) 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.
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 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Statutory Auditor
London, United Kingdom
25 July 2017

This information is provided by RNS
The company news service from the London Stock Exchange
  END
IR LLFSRDRIEFID