REG - Robert Walters PLC - Q1 Trading Update: STRONG START

Robert WaltersAnnouncement

07/04/2022 07:00

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RNS Number : 5527H  Robert Walters PLC  07 April 2022

7 April 2022

 

ROBERT WALTERS PLC

 

(the 'Company' or the 'Group')

 

Trading update for the first quarter ended 31 March 2022

 

STRONG START

 

Financial and operational highlights

 

 Gross profit (Net fee income)  Q1 2022  Q1 2021  % change  % change (constant currency(*))

 Group                          £98.4m   £77.3m   27%       30%

 Asia Pacific                   £43.9m   £32.8m   34%       37%
 Europe                         £29.5m   £21.8m   35%       40%
 UK                             £17.9m   £17.3m   4%        4%
 Other International            £7.1m    £5.4m    32%       30%

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

 

§ Recruitment activity levels continued to increase throughout the first
quarter with Group net fee income up by 30%* (27% actual) year-on-year.

o  Quarter ended strongly with a record March performance.

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

§ 82% (2021: 78%) of the Group's net fee income is now generated by our
international businesses with Asia Pacific and Europe delivering standout
performances.

§ Asia Pacific net fee income up 37%* (34% actual) to £43.9m (2021:
£32.8m).

o  Excellent performance across the region with 11 of 13 markets increasing
net fee income by 25%* or more year-on-year.

o  Japan and Australia, the region's largest businesses, increased net fee
income by 30%* and 25%* respectively. Elsewhere across the region, the
strongest rates of net fee income growth came from Hong Kong (up 82%*),
Indonesia (up 84%*) and Taiwan (up 89%*).

§ Europe net fee income up 40%* (35% actual) to £29.5m (2021: £21.8m).

o  Strong performance with all eight markets delivering net fee income growth
in excess of 25%* year-on-year.

o  Record performances in Switzerland (up 30%*), Belgium (up 46%*), Spain (up
49%*), Germany (up 63%*) and Portugal (up 93%*).

§ UK net fee income up 4% to £17.9m (2021: £17.3m).

o  Candidate and client confidence remains high. Improvement in financial
services recruitment activity in London. Technology and commerce finance
recruitment continue to be key drivers of growth across the UK market.

o  Activity levels across Resource Solutions clients in the UK were strong
but the time taken to onboard new staff has lengthened.

§ Other International (the Americas, South Africa and the Middle East) net
fee income up 30%* (32% actual) to £7.1m (2021: £5.4m).

o  Record performances in Chile, Mexico and the Middle East. In the US, both
New York and Los Angeles delivered strong performances.

§ Continued investment in headcount. Headcount up by a further 9%
quarter-on-quarter to 3,784 (30 December 2021: 3,484).

§ During the quarter, the Group purchased 708,723 shares at an average price
of £6.62 for £4.7m through the Group's Employee Benefit Trust.

§ Strong balance sheet with net cash of £105.9m as at 31 March 2022 (31
March 2021: £139.1m).

 

Robert Walters, Chief Executive, commented:

 

"Despite the ongoing uncertain global political backdrop, the trajectory of
our growth continued to be very positive through the first quarter with Group
net fee income increasing by 30%* year-on-year. Our Asia Pacific and Europe
regions delivered the strongest performances with net fee income growing by
37%* and 40%* respectively.

 

"We have continued to invest in additional headcount to ensure we are able to
take advantage of the demand for talent that exists across all of our markets
and specialist disciplines with staff numbers increasing by a further 9% since
the end of 2021.

 

"Current trading remains in line with Board expectations."

 

The Group will publish a trading update for the second quarter ending 30 June
2022 on 6 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 3,700 staff spanning 31 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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