REG - Robert Walters PLC - Q2 2025 Trading Update

Robert WaltersAnnouncement

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RNS Number : 0083R  Robert Walters PLC  15 July 2025

 

 

 

15 July 2025

 

Trading update for the second quarter ended 30 June 2025

 

Sequentially stable trading, but macroeconomic uncertainty more pronounced in
the quarter

 

 Q2               2025  2024  % change  % change (constant currency(*))

 Net fee income   £m    £m

 Group            72.7  84.8  (14%)     (13%)
 Asia Pacific     32.9  37.1  (11%)     (9%)
 Europe           21.5  27.8  (23%)     (22%)
 UK               12.1  13.2  (8%)      n/a
 Rest of World    6.2   6.7   (8%)      (2%)

 

 H1               2025   2024   % change  % change (constant currency(*))

 Net fee income   £m     £m

 Group            140.0  166.1  (16%)     (14%)
 Asia Pacific     60.4   70.0   (14%)     (12%)
 Europe           43.4   56.5   (23%)     (22%)
 UK               24.7   26.3   (6%)      n/a
 Rest of World    11.5   13.3   (13%)     (10%)

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

 

Group summary

§ Q2 Group net fee income down 13%*. Whilst net fees were higher than in the
first quarter (consistent with normal seasonal trends), macroeconomic
uncertainty became more pronounced, with forward indicators (new job flow and
interviews) slightly weaker compared to the end of the first quarter.

o  Specialist professional recruitment net fee income of £60.7m down 14%*,
with permanent (66% of fees) down 16%* and temporary (33% of fees, being
contract and interim) down 13%*.

o  Recruitment outsourcing net fee income of £12.0m down 6%*, with perm
volume hiring (RPO) flat*. The deal pipeline remains encouraging and workforce
consultancy continues to perform well.

o  Continued operational momentum in talent advisory, with good lead flow
driven by internal referrals from specialist professional recruitment and
recruitment outsourcing.

§ Further strategic actions implemented during the quarter to drive greater
efficiency:

o  Consistent with the 'four-box model', the Group closed its operations in
Brazil (<1% of 2024 Group NFI)

o  Management layers were removed in other specialist recruitment markets and
several loss-making teams were closed or merged.

§ The Group exited the first half with a monthly operating cost base of
£24.5m, down from c.£25m at the end of 2024 and with further cost reduction
planned for the second half.

§ Period-end total headcount of 3,125 down 2% quarter-on-quarter (31 March
2025: 3,202) and down 14% year-on-year (30 June 2024: 3,625). Fee earner
headcount of 1,815 down by 4% quarter-on-quarter (down 17% year-on-year),
whilst non-fee earner headcount of 1,310 was flat quarter-on-quarter (down 10%
year-on-year). The Group continues to be highly selective in replacing fee
earner natural attrition and is allocating resource in the front office to
areas with the most compelling returns.

§ Q2 Group net fee income per fee earner up 4%* year-on-year, driven by
favourable job mix and stable fee rates.

§ Q2 perm placements per perm fee earner decreased by 7% year-on-year to
0.85, reflective of strategic decision to not let fee earner levels fall
wholly proportionately with volumes and thereby maintain strong fee earner
average tenure ready for when end markets improve.

§ Period-end net cash of c.£30m as at 30 June 2025 (31 March 2025: c.£42m)
following payment of 2024 final dividend during the quarter.

 

Toby Fowlston, Chief Executive, commented:

"Whilst net fees were higher than in the first quarter, macroeconomic
uncertainty was more pronounced in Q2, with forward indicators in specialist
recruitment slightly weaker as a result relative to the end of Q1.
Geographically, we continued to see the most challenging conditions in Europe,
with a more resilient performance in the UK and stable trends in Asia-Pacific.

 

With the external environment continuing to constrain client and candidate
confidence, our planning assumption remains that there will be no material
improvement in hiring markets in the near term. However, we continue to have
high conviction in our disciplined entrepreneurialism strategy and therefore
took further strategic action during the quarter to drive greater efficiency.
We exited the first half with our monthly cost base having reduced on 2024
levels, and anticipate further progress in the second half of the year.

 

We remain 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 remain excited by the opportunity we have
to win as markets improve."

 

Regional summary

§ Asia-Pacific: net fee income down 9%*. Specialist professional recruitment
down 8%*. In Japan (-3%*), client caution continued in perm, partially offset
by growth in temp. In Australia (-9%*) and New Zealand (-31%*), temp volumes
remained lower than the prior year albeit grew quarter-on-quarter in New
Zealand. Tariff uncertainty in mainland China (flat*) drove a slightly weaker
performance in Greater China (-7%*) than seen in the first quarter, however a
positive performance was seen in Taiwan (+15%*). South-East Asia (-9%*)
improved sequentially, with a good performance in Singapore (+11%*) and
Indonesia (+16%*). Recruitment outsourcing down 25%*, continuing to reflect
the non-renewal of a client account.

§ Europe: net fee income down 22%*. Specialist professional recruitment down
22%*. In the Netherlands (-30%*), near-term client hesitancy continued due to
legislative enforcement powers on self-employment. Conditions remained tough
in France (-15%*) and Belgium (-24%*). Spain (-19%*) grew quarter-on-quarter
as the turnaround continues. Weaker conditions continued in perm in Germany
(-27%*).

§ UK: net fee income down 8%. Specialist professional recruitment down 14%.
London (-3%) continued to outperform the  Regions (-27%, -16% excluding
office closures). Recruitment outsourcing down 6%.

§ Rest of World: net fee income down 2%*. Specialist professional recruitment
down 14%*. The Middle East (+1%*) improved sequentially, whilst the USA
(-29%*, +13%* excluding office closures) grew excluding recent office
consolidation. Recruitment outsourcing up 22%*, with further momentum from the
first quarter.

 

Next news flow

The Company will publish its half-year financial results for the period ended
30 June 2025 on Thursday 31 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@datacounsel.uk (mailto:rw@datacounsel.uk)

 

About Robert Walters

Established in 1985, Robert Walters is a global talent solutions business
operating in 30 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, executive search and interim management.

·      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 3,100 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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