REG - Robert Walters PLC - Q3 2024 Trading Update

Robert WaltersAnnouncement

15/10/2024 07:00

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RNS Number : 1337I  Robert Walters PLC  15 October 2024

15 October 2024

 

ROBERT WALTERS PLC

(the 'Company' or the 'Group')

 

Trading update for the third quarter ended 30 September 2024

 

Continued focus on strengthening the business amidst challenging market
conditions

 

 Q3               2024  2023  % change  % change (constant currency(*))

 Net fee income   £m    £m
 Group            79.9  93.4  (14%)     (12%)
 Asia Pacific     35.0  40.9  (14%)     (12%)
 Europe           25.0  29.3  (14%)     (13%)
 UK               12.5  15.4  (19%)     n/a
 Rest of World    7.4   7.8   (6%)      (2%)

 

 Q3 year to date  2024   2023   % change  % change (constant currency(*))

 Net fee income   £m     £m
 Group            246.0  295.7  (17%)     (13%)
 Asia Pacific     105.0  128.2  (18%)     (12%)
 Europe           81.5   95.8   (15%)     (13%)
 UK               38.8   47.7   (19%)     n/a
 Rest of World    20.7   24.0   (14%)     (10%)

*Unless stated otherwise, all net fee income growth rates are versus 2023 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

§ Q3 Group net fee income down 12%*. Trading conditions were broadly
unchanged from the first half, with client and candidate confidence levels yet
to show signs of material improvement. Fees were down 13%* in the month of
September.

o  Specialist recruitment Q3 net fee income of £65.5m down 12%*, with
permanent (66% of fees) down 12%* and temporary (34% of fees, being contract
and interim) also down 12%*.

o  Recruitment outsourcing Q3 net fee income of £14.4m down 14%*, with
non-perm volume hiring slightly more resilient than perm.

§ Headcount down 4% quarter-on-quarter and down 17% year-on-year to 3,466 (30
June 2024: 3,625, 30 September 2023: 4,200). During the third quarter, fee
earners reduced by 3% and non-fee earners reduced by 7%. The Group continues
to be selective in replacing fee-earner natural attrition and is focused on
ensuring strong average fee earner tenure ready for when market conditions
improve.

§ Balance sheet remains strong, with net cash of £50m (excluding IFRS 16
leases) as at 30 September 2024 (30 June 2024: £49m).

 

Toby Fowlston, Chief Executive, commented:

"Global hiring markets remained challenging during the third quarter, bringing
the period of rebasing following the 2022 post-pandemic peak to around two
years. As set out at our half-year results in August, our assumption continues
to be that material improvement in client and candidate confidence levels will
be gradual and not likely to commence until 2025. Notwithstanding this, we are
continuously taking actions to unlock more of the potential of Robert Walters
through our 'disciplined entrepreneurialism' strategy - as set out at our
recent capital markets event.

 

Though market conditions mean second half fee income is unlikely to exceed
that seen during the first half, the programme of actions underway mean we
continue to aim for a profitable full-year outcome. As we approach the end of
2024, I am confident that we will close the year a stronger business than when
we entered. Our refreshed strategy, dedicated people and strong balance sheet
leave us well-positioned to continue to take the right actions for our
clients, candidates and wider stakeholders."

 

Regional summary

§ Asia-Pacific: net fee income down 12%* (Specialist recruitment down 10%*,
Recruitment outsourcing down 23%*). North-East Asia performance (-4%*)
underpinned by growth in Japan (+3%*), whilst conditions in South Korea were
softer. South-East Asia (+2%*) returned to growth. Australia & New Zealand
(-23%) remained challenging, principally driven by the tough backdrop for New
Zealand public sector temp hiring. In Greater China (-12%*), mainland China
grew though this was more than offset by softer conditions in Hong Kong.

§ Europe: net fee income down 13%* (Specialist recruitment also down 13%*).
As anticipated, activity in France (-17%*) was muted due to the Paris
Olympics, whilst Belgium (-14%*) continues to annualise a tough 2023
comparative and conditions in Spain (-24%*) were challenging. A more resilient
performance was seen in the Netherlands (-10%*) and Germany (-4%*).

§ UK: net fee income down 19% (Specialist recruitment down 26%, Recruitment
outsourcing down 13%). London (-19%) was more resilient than the regions
(-29%), with clients generally pausing activity pending clarity on employment
legislation and fiscal measures of the new UK government in the late October
Budget.

§ Rest of World: net fee income down 2%* (Specialist recruitment down 4%*,
Recruitment outsourcing up 2%*). The Middle East (+12%*) saw another good
quarterly performance, though this was more than offset by softer conditions
in LatAm (Brazil, Chile and Mexico). Conditions in the USA (-5%*) remain
challenging, albeit it annualised a lower comparative.

 

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

Passphrase (if prompted): Robert Walters Q3 trading

 

Next news flow

The Company will publish a trading update for the fourth quarter ending 31
December 2024 on Tuesday 14 January 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)

 Williams Nicolson (Media enquiries)

 Steffan Williams                                                           +44 (0) 7767 345 563

 William Barker                                                             +44 (0) 7534 068 657

 rw@williamsnicolson.com (mailto:rw@williamsnicolson.com)

 

 

 

 

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 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 approximately 3,500 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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