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

Robert WaltersAnnouncement

28/07/2016 07:06

RNS Number : 4507F
Robert Walters PLC
28 July 2016
28 July 2016
ROBERT WALTERS PLC
(the "Company", or the "Group")
Half-yearly financial results for the six months ended 30 June 2016
NET FEE INCOME UP 9%
Robert Walters plc (LSE: RWA), the leading international recruitment consultancy, today announces its half-yearly financial results for the six months ended 30 June 2016.
Financial and Operational Highlights
H1 2016
H1 2015
% change
% change (constant currency*) 
Revenue
451.4m
377.6m
20%
17%
Gross profit (net fee income)
128.1m
113.9m
12%
9%
Operating profit
10.1m
9.0m
12%
(2%)
Profit before taxation
11.2m
8.7m
29%
15%
Basic earnings per share
10.6p
8.0p
33%
n/a
* Constant currency is calculated by applying prior period exchange rates to local currency results for the current and prior periods.
 Growth strongest in our Asia Pacific and Continental European regions which together now account for 64% of the Group's net fee income. 
 Asia Pacific net fee income up 15% (10%*) to 54.0m (51.5m*) (2015: 47.0m) and operating profit up 35% (16%*) to 6.4m (5.5m*) (2015: 4.7m).
 Japan, our largest business in the region, Taiwan, Indonesia and Thailand all delivered record performances.
 Australia produced the strongest growth rates we have seen for four years.
 Solid performances from businesses in Hong Kong, mainland China and Singapore. 
 First office opened in the Philippines.
 UK net fee income up 4% to 40.2m (2015: 38.7m) producing an operating profit of 1.8m (2015: 2.8m).
 Weaker performance against an uncertain political and economic backdrop.
 Significant investment in Resource Solutions to implement two major client wins.
 Europe net fee income up 27% (19%*) to 28.2m (26.5m*) (2015: 22.3m) and operating profit more than doubled to 2.1m (1.8m*) (2015: 1.0m).
 Excellent performance in France and Benelux across both permanent and contract recruitment. 
 Spain and Switzerland continue to go from strength to strength.
 Group headcount of 2,902 (30 June 2015: 2,728).
 Interim dividend increased by 18% to 2.30p per share (30 June 2015: 1.95p).
 Group funded the purchase of 4.2m shares by the Employee Benefit Trust for 13.5m at an average price of 3.17 during the period. A further 1.9m shares have been purchased for 5.3m at an average price of 2.75 since the period end.
 Strong balance sheet with net cash of 10.2m as at 30 June 2016 (30 June 2015: 14.6m).
Robert Walters, Chief Executive, said: 
"The Group achieved a 9% increase in net fee income in constant currency, with growth rates strongest in our Asia Pacific and Continental European regions. Profits in the first half were impacted by weakness in the UK due to uncertainty surrounding the EU referendum and significant investment in Resource Solutions to support two new and large scale client wins. Both engagements will be profitable in the second half.
"The results highlight the strength of our global, diversified business with our blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing and a geographic footprint spanning 25 countries including many of the world's fastest growing and emerging recruitment markets. Current trading is in line with market expectations 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 2016 on 17 October 2016.
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial Officer
+44 (0) 20 7379 3333
Newgate Communications
Madeleine Palmstierna
Charlotte Coulson
Steffan Williams
+44 (0) 20 7680 6550
About Robert Walters
Robert Walters is a market-leading international specialist professional recruitment consultancy with over 2,900 staff spanning 25 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 2016
Interim Management Report
Revenue was up 20% (17%*) to 451.4m (443.0m*) (2015: 377.6m) and gross profit (net fee income) increased by 12% (9%*) to 128.1m (123.8m*) (2015: 113.9m). Operating profit increased 12% (down 2%*) to 10.1m (8.8m*) (2015: 9.0m) benefiting from a foreign exchange gain of 1.3m on the translation of overseas earnings. Profit before taxation increased by 29% (15%*) to 11.2m (10.0m*) (2015: 8.7m) including a foreign currency gain of 1.4m. The Group has maintained a strong balance sheet with net cash of 10.2m as at 30 June 2016 (30 June 2015: 14.6m). 
Permanent recruitment currently represents 69% (2015: 70%) of the Group's recruitment net fee income. Group headcount now stands at 2,902 (30 June 2015: 2,728).
Growth was strongest in our Asia Pacific and Continental European regions which together now account for 64% of the Group's net fee income. Our recruitment process outsourcing business, Resource Solutions also continues to win new clients and grow net fee income strongly.
Our first half results once again highlight the strength of our globally diversified business - a blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing coupled with a global footprint spanning 25 countries including many of the world's fastest growing and emerging recruitment markets.
Asia Pacific (42% of net fee income)
Revenue was 154.9m (2015: 133.2m) and net fee income increased by 15% (10%*) to 54.0m (51.5m*) (2015: 47.0m) delivering a 35% (16%*) increase in operating profit to 6.4m (5.5m*) (2015: 4.7m). 
In Asia, the standout performances were delivered by our businesses in Japan, now the largest operation in the region, Korea, Indonesia, Thailand and Taiwan. Growth rates in mainland China and Hong Kong were more muted but positive whilst Singapore was flat year-on-year. We opened our first office in the Philippines to further reinforce our market leading position in the Asia region. Our footprint in Asia now covers 11 countries, many of which represent some of the world's fastest growing and developing recruitment markets. 
Australia had a good first half delivering the strongest rate of growth we have seen for four years, with our businesses in central Sydney, Chatswood, Parramatta and Adelaide producing particularly strong results. In New Zealand, both our Auckland and Wellington offices continue to go from strength to strength. 
Resource Solutions in Asia also performed well across both existing and new clients and a new client sourcing centre has been established in Hyderabad to support this growth. 
United Kingdom (31% of net fee income)
Revenue in the UK was 220.6m (2015: 184.3m) and net fee income increased by 4% to 40.2m (2015: 38.7m) delivering an operating profit of 1.8m (2015: 2.8m).
The UK has had an uncertain economic and political backdrop for much of the first half which has impacted client and candidate confidence and the speed of decision-making. Whilst the impact has been most keenly felt in the financial services space in London, there have been some notable bright spots with legal recruitment, commerce finance and a number of regional UK locations seeing an increase in activity.
Resource Solutions grew net fee income strongly, boosted by the winning of two new major client deals at the end of 2015. Significant investment was required to implement these engagements which has impacted UK profitability, however both deals will become profitable in the second half of the year. 
Europe (22% of net fee income)
Revenue was 69.3m (2015: 54.2m) and net fee income increased by 27% (19%*) to 28.2m (26.5m*) (2015: 22.3m). Operating profit more than doubled to 2.1m (1.8m*) (2015: 1.0m).
Our businesses across Europe had a strong first half with six countries growing net fee income in excess of 20%, underpinned by broad based growth across permanent, contract and interim recruitment. Our Benelux business repeated the strong performance we have seen over the last two years and in Spain, the exceptional growth we have seen for the last three years continued apace. 
Encouragingly, France, our largest business in the region, which has been slower to recover than our other European markets, delivered a record first half performance. In Germany and Switzerland, the management change we made last year has had a very positive effect with both markets now delivering strong rates of growth. 
Other International (5% of net fee income)
Other International comprises the US, South Africa, the Middle East and Brazil. Revenue was 6.7m (2015: 5.9m), net fee income was down 5% (down 7%*) to 5.6m (5.5m*) (2015: 5.9m) producing an operating loss of 0.2m (operating loss of 0.3m*) (2015: operating profit of 0.4m).
Our business in the Middle East delivered a record performance whilst in the US a reduction in hiring activity in financial services in New York was balanced out by the excellent performance we continue to see from our business in San Francisco. Market conditions in both South Africa and Brazil remain challenging. 
Cash flow
The Group maintained a strong net cash position of 10.2m as at 30 June 2016 (30 June 2015: 14.6m). Working capital in the period has increased by 3.5m and notable cash outflows included a dividend of 4.0m, 2.0m of tax payments and capital expenditure of 2.4m. During the period the Group funded the purchase of 4.2m shares by the Employee Benefit Trust for 13.5m at an average price of 3.17. A further 1.9m shares have been purchased for 5.3m at an average price of 2.75 since the period end.
Dividend
The interim dividend will be increased by 18% to 2.30p per share (2015: 1.95p) and will be paid on 14 October 2016 to those shareholders on the Company's register as at 2 September 2016.
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 2015, 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 
Current trading is in line with market expectations for the full year. Despite the current uncertainty in the UK market, the Group's diversified business model ensures we are well positioned to take advantage of growth opportunities as they arise. 
Leslie Van de Walle
Chairman
27 July 2016
Robert Walters 
Chief Executive
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
CONDENSED CONSOLIDATED INCOME STATEMENT
2016
2015
2015
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
451,420
377,608
812,715
Cost of sales 
(323,323)
(263,667)
(578,287)
Gross profit 
4
128,097
113,941
234,428
Administrative expenses
(118,039)
(104,954)
(211,325)
Operating profit 
4
10,058
8,987
23,103
Finance income
81
53
168
Finance costs
(316)
(326)
(630)
Gain (loss) on foreign exchange
1,368
(52)
(283)
Profit before taxation
11,191
8,662
22,358
Taxation
5
(3,412)
(2,685)
(7,068)
Profit for the period
7,779
5,977
15,290
Earnings per share (pence):
7
Basic
10.6
8.0
20.6
Diluted
9.7
7.2
18.7
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
2016
2015
2015
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
7,779
5,977
15,290
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations
10,810
(4,266)
(1,347)
Total comprehensive income for the period
18,589
1,711
13,943
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
CONDENSED CONSOLIDATED BALANCE SHEET
2016
2015
2015
30 June
30 June
31 December
Unaudited
Unaudited
Audited
Note
'000
'000
'000
Non-current assets
Intangible assets
11,508
9,689
10,788
Property, plant and equipment
8,055
7,112
7,740
Deferred tax assets
9,443
8,569
8,785
29,006
25,370
27,313
Current assets
Trade and other receivables
226,265
170,777
191,849
Corporation tax receivables
561
463
1,103
Cash and cash equivalents
37,154
26,609
43,378
263,980
197,849
236,330
Total assets
292,986
223,219
263,643
Current liabilities
Trade and other payables
(163,612)
(127,394)
(139,906)
Corporation tax liabilities
(4,708)
(3,106)
(4,276)
Bank overdrafts and loans
9
(26,947)
(11,968)
(25,573)
Provisions
(587)
(347)
(294)
(195,854)
(142,815)
(170,049)
Net current assets
68,126
55,034
66,281
Non-current liabilities
Deferred tax liabilities
(33)
(27)
(4)
Provisions
(1,940)
(1,727)
(1,933)
(1,973)
(1,754)
(1,937)
Total liabilities
(197,827)
(144,569)
(171,986)
Net assets
95,159
78,650
91,657
Equity
Share capital
17,268
17,248
17,249
Share premium
21,848
21,829
21,836
Other reserves
(73,410)
(73,410)
(73,410)
Own shares held
(16,684)
(6,430)
(7,136)
Treasury shares held
(19,860)
(19,860)
(19,860)
Foreign exchange reserves
11,895
(1,834)
1,085
Retained earnings
154,102
141,107
151,893
Total equity
95,159
78,650
91,657
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2016
2015
2015
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
9,041
11,125
23,214
Income taxes paid 
(2,012)
(3,055)
(7,433)
Net cash generated from operating activities
7,029
8,070
15,781
Investing activities
Interest received
81
53
169
Purchases of computer software
(1,232)
(495)
(2,058)
Purchases of property, plant and equipment
(1,214)
(933)
(3,929)
Purchase of non-controlling interest
-
(498)
(498)
Net cash used in investing activities
(2,365)
(1,873)
(6,316)
Financing activities
Equity dividends paid
(3,966)
(3,237)
(4,688)
Proceeds from issue of equity
31
132
140
Interest paid
(316)
(326)
(630)
Proceeds from bank loans
1,276
522
1,672
Repayment of bank loans
-
(12,458)
-
Purchase of own shares
(13,510)
- 
(822)
Proceeds from exercise of share options
4
120
452
Net cash used in financing activities
(16,481)
(15,247)
(3,876)
Net (decrease) increase in cash and cash equivalents
(11,817)
(9,050)
5,589
Cash and cash equivalents at beginning of the period
43,378
38,205
38,205
Effect of foreign exchange rate changes
5,593
(2,546)
(416)
Cash and cash equivalents at end of the period
37,154
26,609
43,378
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
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 2015
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 to own shares held on exercise of equity incentives
-
-
-
2,335
-
-
(2,355)
-
New shares issued and own shares purchased
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
Profit for the period
-
-
-
-
-
-
9,313
9,313
Foreign currency translation differences
-
-
-
-
-
2,919
-
2,919
Total comprehensive income and expense for the period
-
-
-
-
-
2,919
9,313
12,232
Dividends paid
-
-
-
-
-
-
(1,451)
(1,451)
Credit to equity for equity-settled share-based payments 
-
-
-
-
-
-
2,556
2,556
Deferred tax on share-based payment transactions
-
-
-
-
-
-
32
32
Transfer to own shares held on exercise of equity incentives
-
-
-
(336)
-
-
336
-
New shares issued and own shares purchased
1
7
-
(370)
-
-
-
(362)
Balance at 31 December 2015
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 of 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
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
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 2015. 
In the current financial year the Group has adopted the following newly effective standards and amendments, none of which had a material impact:
Annual improvements 2010 - 2012 cycle
Annual improvements 2012 - 2014 cycle
Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations  
Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation 
Amendments to IAS 27: Equity Method in Separate Financial Statements 
Amendments to IAS 1: Disclosure Initiative
The Group was profitable for the period and has considerable financial resources, including 10.2m of net cash at 30 June 2016, 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 27 July 2016. 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 2015 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 2016 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 2015 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 2016 has been prepared using, among other currencies, the average exchange rate of 1.2841 to the Pound (period ended 30 June 2015: 1.3643; year ended 31 December 2015: 1.3767); 160.0445 to the Pound (30 June 2015: 183.2010; 31 December 2015: 184.9947) and AU$1.9547 to the Pound (30 June 2015: AU$1.9475; 31 December 2015: AU$2.0337).
The condensed consolidated balance sheet as at 30 June 2016 has been prepared using the exchange rates on that day of 1.2058 to the Pound (30 June 2015: 1.4165; 31 December 2015: 1.3831); 137.7140 to the Pound (30 June 2015: 192.8900; 31 December 2015: 184.6435) and AU$1.7991 to the Pound (30 June 2015: AU$2.0525; 31 December 2015: AU$1.9046).
4.
Segmental information
2016
2015
2015
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
154,862
133,211
285,145
UK
220,621
184,325
403,437
Europe
69,286
54,195
112,676
Other International 
6,651
5,877
11,457
451,420
377,608
812,715
ii)
Gross profit:
Asia Pacific
54,025
47,039
96,270
UK
40,196
38,660
80,352
Europe
28,242
22,313
46,349
Other International
5,634
5,929
11,457
128,097
113,941
234,428
iii)
Profit before taxation:
Asia Pacific
6,350
4,717
12,930
UK
1,846
2,825
6,162
Europe
2,108
1,026
3,316
Other International
(246)
419
695
Operating profit 
10,058
8,987
23,103
Net finance costs
1,133
(325)
(745)
Profit before taxation
11,191
8,662
22,358
iv)
Total assets:
Asia Pacific
63,841
49,910
53,265
UK
136,342
108,254
102,471
Europe
33,429
24,175
24,496
Other International
12,216
5,240
5,741
Unallocated corporate assets*
47,158
35,640
46,538
292,986
223,219
232,511
v)
Total liabilities:
Asia Pacific
(28,627)
(23,931)
(24,947)
UK
(105,245)
(85,979)
(80,224)
Europe
(22,670)
(16,126)
(17,503)
Other International
(9,597)
(3,432)
(4,877)
Unallocated corporate liabilities*
(31,688)
(15,101)
(27,586)
(197,827)
(144,569)
(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)
2016
2015
2015
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
276,123
238,817
499,749
Resource Solutions
175,297
138,791
312,966
451,420
377,608
812,715
5. 
Taxation
2016
2015
2015
6 mths to
6 mths to
12 mths to
30 June
30 June
31 December
Unaudited
Unaudited
Audited
'000
'000
'000
Current tax
3,411
2,384
7,038
Deferred tax
1
301
30
Total tax charge for the period
3,412
2,685
7,068
The tax charge is based on the expected annual tax rate of 30.5% (2015: 31.6%) on profit before taxation.
6.
Dividends
2016
2015
2015
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 2015 of 5.13p (2014: 4.35p)
3,966
3,237
3,809
Interim dividend for 2015 of 1.95p (2014: 1.65p)
-
-
1,459
3,966
3,237
5,268
Proposed interim dividend for 2016 of 2.30p (2015: 1.95p)
1,461
1,459
n/a
The proposed interim dividend was approved by the Board on 27 July 2016 and has not been included as a liability at 30 June 2016.
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.
2016
2015
2015
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
7,779
5,977
15,290
Number of shares
Number of shares
Number of shares
Weighted average number of shares:
Shares in issue throughout the period
86,175,371
85,970,809
85,970,809
Shares issued in the period
95,145
138,014
204,562
Treasury and own shares held
(13,046,447)
(11,192,927)
(12,018,059)
For basic earnings per share
73,224,069
74,915,896
74,157,312
Outstanding share options
6,766,373
7,922,488
7,540,850
For diluted earnings per share
79,990,442
82,838,384
81,698,162
8. 
Notes to the cash flow statement
2016
2015
2015
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
10,058
8,987
23,103
Adjustments for:
Depreciation and amortisation charges
2,037
1,915
4,276
Loss on disposal of property, plant and equipment and computer software
44
135
719
Charge in respect of share-based payment transactions
2,354
2,099
4,656
Operating cash flows before movements in working capital
14,493
13,136
32,754
Increase in receivables
(22,946)
(7,080)
(25,711)
Increase in payables
17,494
5,069
16,171
Cash generated from operating activities
9,041
11,125
23,214
9. Bank loans  
In January 2016, the Group renewed and extended to four years its committed financing facility of 35.0m, which expires in December 2019. At 30 June 2016, 25.2m (2015: 10.9m) was drawn down under this facility.
The Group has a short-term facility of Renminbi 15m (1.6m) of which Renminbi 15m (1.6m) was drawn down as at 30 June 2016. 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 and Accounts, 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
27 July 2016
ROBERT WALTERS PLC
Half-yearly Financial Results 2016
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 2016 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, 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 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 2016 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
27 July 2016

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