REG - Robert Walters PLC - Q3 Trading Update: STRONG PERFORMANCE

Robert WaltersAnnouncement

11/10/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221011:nRSK4015Ca&default-theme=true

RNS Number : 4015C  Robert Walters PLC  11 October 2022

11 October 2022

 

ROBERT WALTERS PLC

 

(the 'Company' or the 'Group')

 

Trading update for the third quarter ended 30 September 2022

 

STRONG PERFORMANCE. NET FEE INCOME UP 18%*

 

Financial and operational highlights

 

 Gross profit (Net fee income)  Q3 2022   Q3 2021  % change  % change (constant currency(*))

 Group                          £112.0m   £91.8m   22%       18%

 Asia Pacific                   £53.6m    £44.4m   21%       16%
 Europe                         £30.1m    £22.7m   33%       32%
 UK                             £17.6m    £18.7m   (6%)      (6%)
 Other International            £10.7m    £6.0m    78%       53%

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

 

Group highlights

§ Group net fee income grew 18%* (22% actual) year-on-year with all forms of
recruitment - permanent, contract, interim and recruitment process outsourcing
- delivering growth through the period.

§ 84% (2021: 80%) of the Group's net fee income is now generated by our
international businesses.

§ Investment in the opening of two new offices - Austin and Berlin.

§ Headcount up 5% quarter-on-quarter to 4,267 (30 June 2022: 4,051).

§ During the quarter, the Group purchased and cancelled 1,336,062 shares at
an average price of £4.90 for £6.6m.

§ Strong balance sheet with net cash of £93.5m as at 30 September 2022 (30
September 2021: £112.8m).

 

Regional highlights

§ Asia Pacific net fee income up 16%* (21% actual) to £53.6m (2021:
£44.4m).

o  Japan and Australia, the region's largest businesses, increased net fee
income by 23%* and 16%* respectively.

o  Elsewhere across the region, the strongest rates of net fee income growth
came from Taiwan (up 46%*), Indonesia (up 45%*), Thailand (up 32%*) and New
Zealand (up 29%*).

o  Net fee income in Mainland China declined 25%* year-on-year with market
conditions impacted by recent strict Covid lockdowns.

o  Record Resource Solutions performance.

§ Europe net fee income up 32%* (33% actual) to £30.1m (2021: £22.7m).

o  Strong performance across the region with eight out of nine markets
delivering double-digit net fee income growth.

o  France, the Netherlands and Spain, the region's largest businesses,
increased net fee income by 36%*, 37%* and 28%* respectively.

o  Germany continues to grow strongly and recently opened business in Italy
has started well.

§ UK net fee income down 6% year-on-year, against tough year-on-year
comparatives, to £17.6m (2021: £18.7m).

o  Rebound in financial services recruitment activity continued through the
quarter. Commerce finance recruitment activity also grew strongly
year-on-year.

o  More challenging market conditions across both technology recruitment and
Resource Solutions resulted in a moderate decline in net fee income
year-on-year.

§ Other International (the Americas, South Africa and the Middle East) net
fee income up 53%* (78% actual) to £10.7m (2021: £6.0m).

o  Good growth across South America with all markets growing net fee income
in excess of 45%* year-on-year.

o  In the Middle East, net fee income was up 59%*.

Robert Walters, Chief Executive, commented:

 

"The macro-economic backdrop became more uncertain as the quarter progressed.
Nevertheless, job flow remained largely strong, candidate shortages remained
acute, wage inflation continued to grow; and Group net fee income increased by
18%* year-on-year.

 

"84% of the Group's net fee income is now generated by our international
businesses. Asia Pacific and Europe, the Group's largest regions, continued to
produce good growth and it's also been encouraging to see our smaller
businesses across the Americas and Middle East delivering strong results. The
more volatile political and economic backdrop in the UK has impacted local
market confidence, resulting in a decline in UK net fee income year-on-year.

 

"Profit for the full year is expected to be in line with current market
expectations."

 

The Group will publish a trading update for the fourth quarter ending 31
December 2022 on 10 January 2023.

 

- Ends -

 

Further information

 

 Robert Walters plc                        +44 20 7379 3333

 Robert Walters, Chief Executive

 Alan Bannatyne, Chief Financial Officer

 Williams Nicolson

 Steffan Williams                          +44 7767 345 563

 Claire Foster                             +44 7525 665 504

 

About Robert Walters Group

The Robert Walters Group is a market-leading international specialist
professional recruitment group with over 4,200 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTDBLFFLBLBFBX