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

Robert WaltersAnnouncement

30/07/2015 07:00

RNS Number : 4925U
Robert Walters PLC
30 July 2015
30 July 2015
ROBERT WALTERS PLC
(the "Company", or the "Group")
Half-yearly financial results for the six months ended 30 June 2015
PROFITS UP 74%
Robert Walters plc (LSE: RWA), the leading international recruitment consultancy, today announces its half-yearly financial results for the six months ended 30 June 2015.
Financial and Operational Highlights
H1 2015
H1 2014
% change
% change (constant currency*) 
Revenue
377.6m
310.0m
+22%
+25%
Gross profit (net fee income)
113.9m
101.9m
+12%
+15%
Operating profit
9.0m
5.3m
+68%
+75%
Profit before taxation
8.7m
5.0m
+74%
+82%
Basic earnings per share
8.0p
4.5p
+78%
* Constant currency is calculated by applying prior period exchange rates to local currency results for the current and prior periods.
 Strong net fee income and profit growth across all of the Group's regions producing a 74% increase in profit before taxation to 8.7m.
 UK net fee income up 20% to 38.7m (2014: 32.2m) and operating profit more than doubled to 2.8m (2014: 1.3m).
 Broad-based growth across London and the regions. 
 Financial services, commerce finance and sales & marketing delivered the strongest growth.
 Asia Pacific net fee income up 9% (10%*) to 47.0m (47.7m*) (2014: 43.3m) and operating profit up 37% (45%*) to 4.7m (4.9m*) (2014: 3.4m).
 Strong growth across emerging markets with net fee income in Indonesia, Korea, Taiwan and Vietnam all growing in excess of 100% year-on-year. Our larger business in Thailand also delivered an exceptional performance.
 Some progress in Australia but market remains challenging. New Zealand performed well.
 Solid performances from established and market-leading businesses in Hong Kong, Japan, Malaysia and Singapore. 
 Europe net fee income up 2% (14%*) to 22.3m (24.9m*) (2014: 21.9m) and operating profit up 91% (142%*) to 1.0m (1.3m*) (2014: 0.5m).
 Excellent performance in the Netherlands across both permanent and contract.
 Another period of strong growth in Spain and Ireland, a continuation of the recovery we have seen over the last two years.
 Solid performance from our contract business in France, whilst permanent recruitment remains challenging. 
 Other International net fee income up 31% (24%*) to 5.9m (5.6m*) (2014: 4.5m) and operating profit of 0.4m (0.3m*) (2014: break-even).
 Record performances in the US, Middle East and South Africa. Market conditions in Brazil remain tough.
 Resource Solutions, the Group's recruitment process outsourcing business continued to deliver good net fee income growth across both new and existing clients.
 Group headcount increased by 9% to 2,728 (2014: 2,496).
 Interim dividend increased by 18% to 1.95p per share (2014: 1.65p).
 Strong balance sheet with net cash of 14.6m as at 30 June 2015 (30 June 2014: 14.7m).
Robert Walters, Chief Executive, said: 
"The Group has produced a strong first half performance delivering a substantial 74% increase in profit before taxation despite foreign exchange headwinds. All of the Group's regions performed well with both client and candidate confidence improving across most of our markets. Particularly encouraging is the impressive growth we are seeing from our newer businesses in emerging markets in Asia and further signs of a recovery in financial services. 
"The Group's excellent trading performance, underpinned by our ongoing focus on consultant productivity has enabled us to continue to deliver strong operational gearing during the first half. Current trading is in line with our expectations and the Group remains confident of its outlook for the full year."
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 2015 on 6 October 2015.
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial Officer
+44 (0) 20 7379 3333
Newgate Communications
Fergus Wylie
Madeleine Palmstierna
+44 (0) 20 7680 6550
About Robert Walters
Robert Walters is a market-leading international specialist professional recruitment consultancy with over 2,700 staff spanning 24 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. 
Businesses worldwide rely on us to find the very best specialist professionals to drive their business forward and those same professionals trust us to manage their long-term careers.
www.robertwalters.com
Robert Walters plc
Half-yearly financial results for the six months ended 30 June 2015
Interim Management Report
The Group has produced a strong first half performance delivering a substantial 74% (82%*) increase in profit before taxation to 8.7m (9.0m*) (2014: 5.0m) despite foreign exchange headwinds.
Revenue was up 22% (25%*) to 377.6m (388.1m*) (2014: 310.0m) and gross profit (net fee income) increased by 12% (15%*) to 113.9m (116.9m*) (2014: 101.9m). Operating profit increased by 68% (75%*) to 9.0m (9.4m*) (2014: 5.3m). The Group has also maintained a strong balance sheet with net cash of 14.6m as at 30 June 2015 (30 June 2014: 14.7m). Permanent recruitment currently represents 70% (2014: 70%) of the Group's recruitment net fee income.
All of the Group's regions performed well with both client and candidate confidence growing across most of our markets. Particularly encouraging is the impressive growth we are seeing from our newer businesses in emerging markets in Asia and ongoing signs of a recovery in financial services. 
The Group's excellent trading performance, underpinned by our ongoing focus on consultant productivity has enabled us to continue to deliver strong operational gearing. In parallel, we have also continued to invest for the future, growing front office staff numbers in high performing businesses. Group headcount now stands at 2,728 (30 June 2014: 2,496). 
Asia Pacific (41% of net fee income)
Revenue was 133.2m (2014: 113.3m) and net fee income increased by 9% (10%*) to 47.0m (47.7m*) (2014: 43.3m) delivering a 37% (45%*) increase in operating profit to 4.7m (4.9m*) (2014: 3.4m). 
Australia, our largest business in the region, has now delivered three successive quarters of single digit growth, however the market remains challenging. Permanent hiring activity has increased but is unpredictable whilst contract has performed well. Our business in New Zealand delivered strong operating profit growth. 
In Asia, our businesses in emerging markets continued to deliver excellent results with Indonesia, Korea, Taiwan and Vietnam all growing net fee income in excess of 100% year-on-year. Our business in Thailand also performed extremely well whilst our larger more established businesses in Hong Kong, Japan, Malaysia and Singapore produced solid performances consolidating our market-leading position across the region. 
Resource Solutions in Asia continues to further penetrate existing clients and also secured a number of new client wins during the period.
United Kingdom (34% of net fee income)
Revenue in the UK was 184.3m (2014: 140.3m) and net fee income increased by 20% to 38.7m (2014: 32.2m) delivering a more than doubling of operating profit to 2.8m (2014: 1.3m).
Candidate and client confidence in the UK has continued to improve with recruitment activity levels showing broad-based growth across both London and the regions. In London, financial services, commerce finance and sales & marketing were the strongest performers in the first half, with Manchester and Milton Keynes the standouts at a regional level. A new office was opened in St. Albans in the first half to further build on our strong UK performance.
Resource Solutions continued to produce strong growth in net fee income across both existing and new clients. 
Europe (20% of net fee income)
Revenue was 54.2m (2014: 51.9m) and net fee income increased by 2% (14%*) to 22.3m (24.9m*) (2014: 21.9m) producing a 91% (142%*) increase in operating profit to 1.0m (1.3m*) (2014: 0.5m).
Our business in the Netherlands enjoyed a very strong first half across both permanent and contract recruitment whilst both Spain and Ireland continued to grow at an excellent pace, a continuation of the trend we have seen over the last two years. Belgium delivered solid net fee income growth as did our French contract business, however the permanent recruitment market in France remained challenging throughout the first half. As a market-leader in France, the Group is well positioned to benefit from any recovery in permanent hiring activity. 
Other International (5% of net fee income)
Other International comprises the US, South Africa, the Middle East and Brazil. Revenue was 5.9m (2014: 4.6m), net fee income increased by 31% (24%*) to 5.9m (5.6m*) (2014: 4.5m) and operating profit increased to 0.4m (0.3m*) (2014: break-even).
The US, South Africa and the Middle East all delivered record performances, with our office in Dubai delivering the strongest year-on-year growth. The US has benefited from a recovery in financial services in New York to complement the long-term growth we have seen in the digital space in California, whilst in South Africa multi-nationals in particular are now recruiting for growth. Market conditions in Brazil remain challenging although our business has delivered an increase in net fee income year-on-year. 
Cash flow
The Group maintained a strong net cash position of 14.6m as at 30 June 2015 (30 June 2014: 14.7m). Working capital in the period has increased by 2.0m and notable cash outflows included a dividend of 3.2m, 3.1m of tax payments and capital expenditure of 1.4m.
Dividend
The interim dividend will be increased by 18% to 1.95p per share (2014: 1.65p) and will be paid on 16 October 2015 to those shareholders on the Company's register as at 4 September 2015.
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 are Pounds Sterling, the Euro, 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 2014, namely the economic environment, 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 
The outlook for the second half of the year is generally positive with candidate and client confidence improving across all of the Group's regions. We will continue to focus on improving consultant productivity whilst also investing in front office headcount. Trading since the half year has been in line with our expectations and the Group remains confident of its prospects for the full year.
Leslie Van de Walle
Chairman
29 July 2015
Robert Walters 
Chief Executive
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
CONDENSED CONSOLIDATED INCOME STATEMENT
2015
2014
2014
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
377,608
309,988
679,604
Cost of sales 
(263,667)
(208,063)
(464,286)
Gross profit 
4
113,941
101,925
215,318
Administrative expenses
(104,954)
(96,577)
(197,098)
Operating profit 
4
8,987
5,348
18,220
Finance income
53
77
137
Finance costs
(326)
(297)
(464)
(Loss) gain on foreign exchange
(52)
(151)
266
Profit before taxation
8,662
4,977
18,159
Taxation
5
(2,685)
(1,667)
(6,904)
Profit for the period
5,977
3,310
11,255
Earnings per share (pence):
7
Basic
8.0
4.5
15.3
Diluted
7.2
4.0
13.9
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
AND EXPENSE
2015
2014
2014
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
5,977.
3,310
11,255
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations
(4,266)
(617)
(1,553)
Total comprehensive income and expense for the period
1,711.
2,693
9,702
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
CONDENSED CONSOLIDATED BALANCE SHEET
2015
2014
2014
30 June
30 June
31 December
Unaudited
Unaudited
Audited
Note
'000
'000
'000
Non-current assets
Intangible assets
9,689
9,529
9,577
Property, plant and equipment
7,112
9,019
8,156
Deferred tax assets
8,569
8,572
8,216
25,370
27,120
25,949
Current assets
Trade and other receivables
170,777
159,298
168,240
Corporation tax receivables
463
1,397
117
Cash and cash equivalents
26,609
15,216
38,205
197,849
175,911
206,562
Total assets
223,219
203,031
232,511
Current liabilities
Trade and other payables
(127,394)
(123,326)
(125,527)
Corporation tax liabilities
(3,106)
(2,076)
(3,672)
Bank overdrafts and loans
9
(11,968)
(476)
(23,904)
Provisions
(347)
(260)
(377)
(142,815)
(126,138)
(153,480)
Net current assets
55,034
49,773
53,082
Non-current liabilities
Deferred tax liabilities
(27)
(29)
(10)
Provisions
(1,727)
(1,443)
(1,647)
(1,754)
(1,472)
(1,657)
Total liabilities
(144,569)
(127,610)
(155,137)
Net assets
78,650
75,421
77,374
Equity
Share capital
17,248
17,192
17,192
Share premium
21,829
21,753
21,753
Other reserves
(73,410)
(73,410)
(73,410)
Own shares held
(6,430)
(4,787)
(8,765)
Treasury shares held
(19,860)
(19,860)
(19,860)
Foreign exchange reserves
(1,834)
3,368
2,432
Retained earnings
141,107
131,165
138,032
Total equity
78,650
75,421
77,374
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2015
2014
2014
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
11,125
2,327
11,270
Income taxes paid 
(3,055)
(1,056)
(3,232)
Net cash generated from operating activities
8,070
1,271
8,038
Investing activities
Interest received
53
77
137
Purchases of computer software
(495)
(447)
(1,016)
Purchases of property, plant and equipment
(933)
(1,292)
(2,294)
Purchase of non-controlling interest
(498)
-
(482)
Net cash used in investing activities
(1,873)
(1,662)
(3,655)
Financing activities
Equity dividends paid
(3,237)
(2,866)
(4,087)
Proceeds from issue of equity
132
14
15
Interest paid
(326)
(297)
(464)
Proceeds from bank loans
522
-
12,381
Repayment of bank loans
(12,458)
(11,000)
-
Purchase of own shares
- 
-
(4,032)
Proceeds from exercise of share options
120.
408
465
Net cash (used) generated in financing activities
(15,247)
(13,741)
4,278
Net (decrease) increase in cash and cash equivalents
(9,050)
(14,132)
8,661
Cash and cash equivalents at beginning of the period
38,205.
30,071
30,071
Effect of foreign exchange rate changes
(2,546)
 (723)
(527)
Cash and cash equivalents at end of the period
26,609.
15,216
38,205
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
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 2014
17,177
21,753
(73,410)
(5,876)
(19,860)
3,985
130,113
73,882
Profit for the period
-
-
-
-
-
-
3,310
3,310
Foreign currency translation differences
-
-
-
-
-
(617)
-
(617)
Total comprehensive income and expense for the period
-
-
-
-
-
(617)
3,310
2,693
Dividends paid
-
-
-
-
-
-
(2,866)
(2,866)
Credit to equity for equity-settled share-based payments
-
-
-
-
-
-
1,744
1,744
Deferred tax on share-based payment transactions 
-
-
-
-
-
-
(455)
(455)
Transfer to own shares held on exercise of equity incentives
-
-
-
1,089
-
-
(681)
408
New shares issued
15
-
-
-
-
-
-
15
Unaudited balance at 30 June 2014
17,192
21,753
(73,410)
(4,787)
(19,860)
3,368
131,165
75,421
Profit for the period
-
-
-
-
-
-
7,945
7,945
Foreign currency translation differences
-
-
-
-
-
(936)
-
(936)
Total comprehensive income and expense for the period
-
-
-
-
-
(936)
7,945
7,009
Dividends paid
-
-
-
-
-
-
(1,221)
(1,221)
Credit to equity for equity-settled share-based payments 
-
-
-
-
-
-
(36)
(36)
Deferred tax on share-based payment transactions
-
-
-
-
-
-
175
175
Transfer to own shares held on exercise of equity incentives
-
-
-
(412)
-
-
4
(408)
New shares issued
-
-
-
(3,566)
-
-
-
(3,566)
Balance at 31 December 2014
17,192
21,753
(73,410)
(8,765)
(19,860)
2,432
138,032
77,374
Profit for the period
-
-
-
-
-
-
5,977
5,977
Foreign currency translation differences
-
-
-
-
-
(4,266)
-
(4,266)
Total comprehensive income and expense for the period
-
-
-
-
-
(4,266)
5,977
1,711
Dividends paid
-
-
-
-
-
-
(3,237)
(3,237)
Credit to equity for equity-settled share-based payments 
-
-
-
-
-
-
2,100
2,100
Deferred tax on share-based payment transactions
-
-
-
-
-
-
570
570
Transfer of own shares held on exercise of equity incentives
-
-
-
2,335
-
-
(2,335)
-
New shares issued
56
76
-
-
-
-
-
132
Unaudited balance at 30 June 2015
17,248
21,829
(73,410)
(6,430)
(19,860)
(1,834)
141,107
78,650
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
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 for the year ended 31 December 2014. 
The Group was profitable for the period and has considerable financial resources, including 14.6m of net cash at 30 June 2015, 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. 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 29 July 2015. 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 2014 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 2015 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 2014 is also unaudited.
3.  Currency conversion
The reporting currency of the Group is Pounds Sterling and the condensed set of financial statements has been prepared on this basis.
The condensed consolidated income statement for the period ended 30 June 2015 has been prepared using, among other currencies, the average exchange rate of 1.3643 to the Pound (period ended 30 June 2014: 1.2125; year ended 31 December 2014: 1.2407); 183.2010 to the Pound (30 June 2014: 171.0413; 31 December 2014: 174.1942) and AU$1.9475 to the Pound (30 June 2014: AU$1.8304; 31 December 2014: AU$1.8274).
The condensed consolidated balance sheet as at 30 June 2015 has been prepared using the exchange rates on that day of 1.4165 to the Pound (30 June 2014: 1.2492; 31 December 2014: 1.2780); 192.8900 to the Pound (30 June 2014: 172.8960; 31 December 2014: 186.3180) and AU$2.0525 to the Pound (30 June 2014: AU$1.8099; 31 December 2014: AU$1.9046).
4.
Segmental information
2015
2014
2014
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
133,211
113,266
251,363
UK
184,325
140,268
311,941
Europe
54,195
51,902
106,351
Other International 
5,877
4,552
9,949
377,608
309,988
679,604
ii)
Gross profit:
Asia Pacific
47,039
43,273
90,536
UK
38,660
32,225
71,100
Europe
22,313
21,900
43,798
Other International
5,929
4,527
9,884
113,941
101,925
215,318
iii)
Profit before taxation:
Asia Pacific
4,717
3,431
10,502
UK
2,825
1,348
5,248
Europe
1,026
533
2,173
Other International
419
36
297
Operating profit 
8,987
5,348
18,220
Net finance costs
(325)
(371)
(61)
Profit before taxation
8,662
4,977
18,159
iv)
Total assets:
Asia Pacific
49,910
50,079
53,265
UK
108,254
96,970
102,471
Europe
24,175
26,235
24,496
Other International
5,240
4,563
5,741
Unallocated corporate assets*
35,640
25,184
46,538
223,219
203,031
232,511
v)
Total liabilities:
Asia Pacific
(23,931)
(22,545)
(24,947)
UK
(85,979)
(83,425)
(80,224)
Europe
(16,126)
(15,781)
(17,503)
Other International
(3,432)
(2,792)
(4,877)
Unallocated corporate liabilities*
(15,101)
(3,067)
(27,586)
(144,569)
(127,610)
(155,137)
*For the purposes of segmental analysis, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.
4.
Segmental information (continued)
2015
2014
2014
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
238,817
215,560
463,685
Resource Solutions
138,791
94,428
215,919
377,608
309,988
679,604
5. 
Taxation
2015
2014
2014
6 mths to
6 mths to
12 mths to
30 June
30 June
31 December
Unaudited
Unaudited
Audited
'000
'000
'000
Current tax
2,384
1,786
6,545
Deferred tax
301
(119)
359
Total tax charge for the period
2,685
1,667
6,904
The tax charge is based on the expected annual tax rate of 31.0% (2014: 33.5%) on profit before taxation.
6.
Dividends
2015
2014
2014
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 2014 of 4.35p (2013: 3.86p)
3,237
2,866
3,179
Interim dividend for 2014 of 1.65p (2013: 1.54p)
-
-
1,267
3,237
2,866
4,446
Proposed interim dividend for 2015 of 1.95p (2014: 1.65p)
1,451
1,227
n/a
The proposed interim dividend was approved by the Board on 29 July 2015 and has not been included as a liability at 30 June 2015.
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.
2015
2014
2014
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
5,977
3,310
11,255
Number of shares
Number of shares
Number of shares
Weighted average number of shares:
Shares in issue throughout the period
85,970,809
85,886,614
85,886,614
Shares issued in the period
138,014
38,322
59,929
Treasury and own shares held
(11,192,927)
(11,879,901)
(12,161,441)
For basic earnings per share
74,915,896
74,045,035
73,785,102
Outstanding share options
7,922,488
8,042,278
7,017,561
For diluted earnings per share
82,838,384
82,087,313
80,802,663
8. 
Notes to the cash flow statement
2015
2014
2014
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
8,987
5,348
18,220
Adjustments for:
Depreciation and amortisation charges
1,915
1,799
3,951
Loss on disposal of property, plant and equipment and computer software
134
125
350
Change in respect of share-based payment transactions
2,100
1,744
1,708
Operating cash flows before movements in working capital
13,136
9,016
24,229
Increase in receivables
(7,080)
(6,519)
(16,097)
Increase (decrease) in payables
5,069
(170)
3,138
Cash generated from operating activities
11,125
2,327
11,270
9. Bank loans 
In January 2014, the Group renewed and extended its three-year committed financing facility to 35m, which expires in November 2016. At 30 June 2015, 10.9m was drawn down under this facility.
The Group has a short-term facility of Renminbi 15m (1.6m) of which Renminbi 10m (1.0m) remains outstanding as at 30 June 2015. The loan is secured against cash deposits in Hong Kong.
10. Related party transactions
There have been no related party transactions or changes in the related party relationships, described in the latest Annual Report, that have had a material effect on the financial position or performance of the Group in the first six months of the financial year.
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
29 July 2015
ROBERT WALTERS PLC
Half-yearly Financial Results 2015
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 2015 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 report, 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 the 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 2015 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
Chartered Accountants and Statutory Auditor
London, United Kingdom
29 July 2015

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