REG - Robert Walters PLC - Q2 Trading Update: RECORD QUARTER

Robert WaltersAnnouncement

06/07/2022 07:01

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RNS Number : 4254R  Robert Walters PLC  06 July 2022

6 July 2022

 

ROBERT WALTERS PLC

 

(the 'Company' or the 'Group')

 

Trading update for the second quarter ended 30 June 2022

 

RECORD QUARTER

 

Financial and operational highlights

 

 Gross profit (Net fee income)  Q2 2022   Q2 2021  % change  % change (constant currency(*))

 Group                          £112.0m   £89.0m   26%       25%

 Asia Pacific                   £49.7m    £40.9m   22%       20%
 Europe                         £31.5m    £23.4m   35%       37%
 UK                             £20.4m    £18.0m   13%       13%
 Other International            £10.4m    £6.7m    56%       43%

* Constant currency is calculated by applying prior period average exchange
rates to local currency results for the current and prior years.

 

§ Record second quarter with Group net fee income up by 25%* (26% actual)
year-on-year.

§ Broad-based growth continued across all forms of recruitment - permanent,
contract, interim and recruitment process outsourcing.

§ Group further expanded its global footprint with the opening of a first
office in Italy (Milan) during the period.

§ 82% (2021: 80%) of the Group's net fee income is now generated by our
international businesses.

§ Asia Pacific net fee income up 20%* (22% actual) to £49.7m (2021:
£40.9m).

o  Strong performance across the region with 11 of 13 markets delivering
double-digit increases in net fee income year-on-year.

o  Japan and Australia, the region's largest businesses, increased net fee
income by 20%* and 11%* respectively. Elsewhere across the region, the
strongest rates of net fee income growth came from Taiwan (up 102%*),
Indonesia (up 52%*) and New Zealand (up 32%*). Mainland China net fee income
held up relatively well despite strict new lockdowns with net fee income
declining just 7%* year-on-year.

§ Europe net fee income up 37%* (35% actual) to £31.5m (2021: £23.4m).

o  Outstanding performance across the region with all markets delivering net
fee income growth in excess of 20%* year-on-year.

o  France, the Netherlands and Spain, the region's largest businesses,
increased net fee income by 23%*, 43%* and 41%* respectively.

§ UK net fee income up 13% to £20.4m (2021: £18.0m).

o  Recruitment activity levels continued to increase across both London and
the regions. Permanent recruitment activity remains most active as
organisations hired for the long-term. Strong rebound in financial services
recruitment.

o  Activity levels across Resource Solutions improved through the quarter.

§ Other International (the Americas, South Africa and the Middle East) net
fee income up 43%* (56% actual) to £10.4m (2021: £6.7m).

o  Record performances in the Middle East, Canada and Chile.

§ Continued investment in headcount. Headcount up by a further 7%
quarter-on-quarter to 4,051 (31 March 2022: 3,784).

§ During the quarter, the Group purchased 1,315,348 shares at an average
price of £6.05 for £8.0m through the Group's Employee Benefit Trust.

§ Strong balance sheet with net cash of £81.6m as at 30 June 2022 (30 June
2021: £112.8m).

 

Robert Walters, Chief Executive, commented:

 

"The jobs market has remained strong, and I am delighted that the Group has
delivered a record second quarter performance with net fee income increasing
by 25%* year-on-year. Group net fee income for the first half was up 27%*,
also a record.

 

"We have continued to invest in additional headcount to ensure we are able to
further capitalise on the current demand for talent that exists across our
global footprint and specialist disciplines, with staff numbers increasing by
7% since the end of March.

 

"This continued strong performance means that profit for the full year is now
expected to be slightly ahead of current market expectations."

 

The Group will publish its half-yearly results for the six months ended 30
June 2022 on 28 July 2022.

 

- Ends -

 

Further information

 

 Robert Walters plc                        +44 20 7379 3333

 Robert Walters, Chief Executive

 Alan Bannatyne, Chief Financial Officer

 Williams Nicolson                         +44 7767 345 563

 Steffan Williams

 

About Robert Walters Group

The Robert Walters Group is a market-leading international specialist
professional recruitment group with over 4,000 staff spanning 32 countries. We
specialise in the placement of the highest calibre professionals across the
disciplines of accountancy and finance, banking, engineering, HR, healthcare,
IT, legal, sales, marketing, secretarial and support and supply chain,
logistics 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.robertwaltersgroup.com (http://www.robertwaltersgroup.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.

 

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