REG - Robert Walters PLC - Q1 2025 Trading Update

Robert WaltersAnnouncement

15/04/2025 07:02

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RNS Number : 9838E  Robert Walters PLC  15 April 2025

 

 

 

 

15 April 2025

 

Trading update for the first quarter ended 31 March 2025

 

Challenging conditions persist; visibility limited by recent increased
macroeconomic uncertainty

Continued focus on executing strategic plan

 

 Q1               2025  2024  % change  % change (constant currency(*))

 Net fee income   £m    £m
 Group            67.3  81.3  (17%)     (16%)
 Asia Pacific     27.4  32.9  (16%)     (15%)
 Europe           21.9  28.7  (24%)     (22%)
 UK               12.6  13.1  (4%)      n/a
 Rest of World    5.4   6.6   (19%)     (18%)

*Unless stated otherwise, all net fee income growth rates are versus 2024 and
in constant currencies. Constant currency is calculated by applying prior
period average exchange rates to local currency results for the current and
prior years.

 

Group summary

§ Group net fee income down 16%*. Whilst forward activity levels remained
broadly stable in Asia-Pacific and the UK, the weaker sentiment seen in Europe
towards the latter stages of 2024 continued into the first quarter.

o  Specialist professional recruitment net fee income of £56.0m down 16%*,
with permanent (63% of fees) down 17%* and temporary (35% of fees, being
contract and interim) down 14%*.

o  Recruitment outsourcing net fee income of £11.3m down 16%*, as clients
remain cautious regarding volume hiring. Notwithstanding this, the deal
pipeline is encouraging.

§ Period end total headcount of 3,202 down 3% quarter-on-quarter (31 December
2024: 3,294) and down 16% year-on-year (31 March 2024: 3,812). Fee earner
headcount fell by 4% quarter-on-quarter (down 17% year-on-year) to 1,890,
whilst non-fee earner headcount fell by 1% quarter-on-quarter (down 14%
year-on-year) to 1,312. The Group remains highly selective in the replacement
of fee earner natural attrition, and continues to optimise both the front and
back office operating model - in-line with the medium-term margin improvement
programme.

§ Group net fee income per fee earner up 2% year-on-year in constant
currency, as fee rates remain stable and supported by positive mix and wage
inflation.

§ Q1 perm placements per perm fee earner decreased by 7% year-on-year to
0.76, reflective of market conditions and the strategic decision not to let
fee earner headcount fall wholly proportionally with volumes.

§ Consistent with the medium-term margin improvement programme, office
network consolidation continued during the quarter in the USA.

§ Period end net cash of c.£42m (31 December 2024: £53m) reflective of the
typical outflow profile of the first quarter.

 

Toby Fowlston, Chief Executive, commented:

"Global hiring markets remained challenging during the first quarter. We saw
some pockets of growth in the UK and broadly stable activity levels in
Asia-Pacific, however the weaker sentiment seen in Europe in late 2024 has
continued. More recently, increased uncertainty regarding the flow of global
trade due to tariffs is likely to be a further headwind to client and
candidate confidence in the near term - limiting visibility on the outlook for
the balance of the year at the present time. Continual focus is being applied
to all elements of our cost base.

 

We remain highly focused on our strategic initiatives to strengthen the
business. We are rigorously engaged in improving fee earner productivity
across our markets, driving efficiencies in our front and back-office teams,
optimising our office network and leveraging more co-ordinated procurement. In
today's rapidly changing world of work, clients need a wider range of services
than before. We have a full suite of talent solutions to support them,
delivered by experienced and motivated teams, and will continue to navigate
the protracted challenging trading environment."

 

Regional summary

§ Asia-Pacific: net fee income down 15%*. Specialist recruitment down 11%*.
In Japan (-7%*), there was more cautious client behaviour in perm but good
growth was seen in temp. Conditions in Australia (-11%*) remain more
favourable than New Zealand (-34%*), with demand for temps in the public
sector yet to improve in the latter. A resilient performance in Greater China
(-1%*) was led by growth in Mainland China (+12%*). South-East Asia declined
by 16%*. Recruitment outsourcing down 42%*, reflective of a client account not
being renewed.

§ Europe: net fee income down 22%*. Specialist recruitment down 22%*. In the
Netherlands (-30%*), there was increased uncertainty in temp from new
legislative enforcement powers regarding self-employment, whilst conditions in
France (-17%*) and Belgium (-15%*) remain tough. The turnaround in Spain
(-32%*) is in the early stages, however trading was broadly stable
sequentially. In Germany (-26%*), tougher conditions continued in perm,
however interim volumes were up year-on-year.

§ UK: net fee income down 4%. Specialist recruitment down 1%. Outperformance
continued in London (+22%). In the Regions (-22%), the comparative pre-dates
the recent office network consolidation. Recruitment outsourcing down 8%.

§ Rest of World: net fee income down 18%*. Specialist recruitment down 26%*.
More muted performance seen in the Middle East (-12%*), whilst USA performance
(-49%*) partly reflects  office network consolidation during the quarter.
Recruitment outsourcing down 1%*.

 

Conference call

Toby Fowlston, Chief Executive Officer, and David Bower, Chief Financial
Officer, will host a conference call for analysts and investors at 8:30am (UK)
today. The conference call can be accessed using the below details:

 

Dial in: +44 (0) 33 0551 0200

Password: Robert Walters Q1

 

Next news flow

The Company will publish a trading update for the second quarter ending 30
June 2025 on Tuesday 15 July 2025.

 

- Ends -

Enquiries

 

 Robert Walters plc

 Dami Tanimowo - Head of Investor Relations                                 +44 (0) 7340 660 425

 dami.tanimowo@robertwalters.com (mailto:dami.tanimowo@robertwalters.com)

 Data Counsel (Media enquiries)

 Steffan Williams                                                           +44 (0) 7767 345 563

 William Barker                                                             +44 (0) 7534 068 657

 rw@d (mailto:rw@datacounsel.uk) atacounsel.uk (mailto:rw@datacounsel.uk)

 

About Robert Walters

Established in 1985, Robert Walters is a global talent solutions business
operating in 31 countries across the globe. We support organisations to build
high-performing teams, and help professionals to grow meaningful careers. Our
client base ranges from the world's leading blue-chip corporates through to
SMEs and start-ups.

 

We deliver three core services:

 

·      Specialist professional recruitment - encompassing permanent and
temporary recruitment, interim management and executive search.

·      Recruitment outsourcing - enabling organisations to transfer all,
or part of, their recruitment needs to us either through recruitment process
outsourcing (RPO) or contingent workforce solutions (CWS).

·      Talent advisory - supporting the growth of organisations through
market intelligence, talent development, and future of work consultancy.

 

Our approximately 3,200 employees are passionate about powering people and
organisations to fulfil their unique potential. We take the time to listen to,
and fully connect with, the people and organisations we partner with. Our
ability to truly understand them and create and share their compelling stories
is what sets us apart.

www.robertwalters.com (http://www.robertwalters.com)

 

Forward looking statements

This announcement contains certain forward-looking statements.  These
statements are made by the directors in good faith based on the information
available to them at the time of their approval of this announcement and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information.

 

 

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