REG - Robert Walters PLC - Q4 2024 Trading Update

Robert WaltersAnnouncement

14/01/2025 07:00

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RNS Number : 1665T  Robert Walters PLC  14 January 2025

 

 

 

 

14 January 2025

 

Trading update for the fourth quarter ended 31 December 2024

 

Focused initiatives continue to strengthen the business amidst ongoing
challenging market conditions

 

 Q4               2024  2023  % change  % change (constant currency(*))

 Net fee income   £m    £m
 Group            75.5  91.4  (17%)     (14%)
 Asia Pacific     33.8  39.6  (15%)     (11%)
 Europe           24.2  30.5  (21%)     (17%)
 UK               11.7  13.8  (15%)     n/a
 Rest of World    5.8   7.5   (23%)     (19%)

 

 Q4 year to date  2024   2023   % change  % change (constant currency(*))

 Net fee income   £m     £m
 Group            321.5  386.8  (17%)     (14%)
 Asia Pacific     138.9  167.9  (17%)     (12%)
 Europe           105.7  126.3  (16%)     (14%)
 UK               50.5   60.9   (17%)     n/a
 Rest of World    26.4   31.7   (17%)     (13%)

*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

§ Q4 Group net fee income down 14%*. Consistent with the year as a whole,
trading conditions remained challenging throughout the quarter. Whilst fees
were slightly weaker than expected, activity levels were broadly stable in
most regions during October and November versus Q3.

o  Specialist professional recruitment Q4 net fee income of £62.1m down
14%*, with permanent (63% of fees) down 18%* and temporary (35% of fees, being
contract and interim) down 10%*.

o  Recruitment outsourcing Q4 net fee income of £13.4m down 14%*.

§ Period end total headcount of 3,294 down 5% quarter-on-quarter (30
September 2024: 3,466) and down 17% year-on-year (31 December 2023: 3,980).
Fee earner headcount fell by 7% quarter-on-quarter (down 17% year-on-year) to
1,964, whilst non-fee earner headcount fell by 2% quarter-on-quarter (down 18%
year-on-year) to 1,330. The Group continues to be highly selective in
replacing fee earner natural attrition and prioritise strong fee earner
average tenure ready for when market conditions improve.

§ Perm placements per perm fee earner decreased slightly to 0.82 (Q3 2024:
0.84, Q4 2023: 0.86). Net fee income per fee earner up 2%* year-on-year as fee
rates remained strong, underlining the value delivered to clients.

§ Office network consolidations implemented during the quarter in the UK,
France and New Zealand, consistent with the appraisal framework outlined at
the September 2024 Capital Markets Event.

§ Balance sheet remains strong, with net cash of c.£53m as at 31 December
2024 (30 September 2024: £50m).

 

Toby Fowlston, Chief Executive, commented:

"As seen throughout the year, 2024 closed with conditions in global hiring
markets remaining challenging - marked by muted client and candidate
confidence. Fourth quarter fee income was slightly weaker than expected, and
in addition further actions were taken on the cost base. As a result, we now
expect a broadly breakeven position at the profit before tax level for the
full year.

 

Notwithstanding the market backdrop, we remain focused on our initiatives to
strengthen the business. Consistent with the disciplined entrepreneurialism
strategy set out at last year's Capital Markets Event, we are rigorously
focused on 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. We have unified our brands under
the single banner of Robert Walters to better serve our clients, and have
further rolled out 'Zenith', our custom-built CRM. We are confident our
strategy will drive a conversion rate in excess of pre-pandemic levels in the
medium term as market conditions improve."

 

Regional summary

§ Asia-Pacific: Q4 net fee income down 11%* (Specialist recruitment down
11%*, Recruitment outsourcing down 9%*). In North-East Asia (-4%*), Japan
(-5%*) saw a slower end to the quarter. There were signs of conditions
stabilising in Australia (0%*), whilst New Zealand (-47%*) remains very
challenging, particularly in the public sector. In Greater China (-15%*),
mainland China and Taiwan were more resilient, however softer conditions
continued in Hong Kong. South-East Asia declined by 12%*.

§ Europe: Q4 net fee income down 17%* (Specialist recruitment also down
17%*). Challenging conditions persisted in France (-17%*) and Spain (-34%*),
whilst Belgium (-17%*) annualised a record prior year quarter and political
uncertainty impacted sentiment in Germany (-21%*). The Netherlands (-10%*)
continued to be somewhat more resilient.

§ UK: Q4 net fee income down 15% (Specialist recruitment down 23%,
Recruitment outsourcing down 12%). London (+3%) continued to outperform the
Regions (-45%), as the October UK Budget announcement impacted employer hiring
plans.

§ Rest of World: Q4 net fee income down 19%* (Specialist recruitment down
16%*, Recruitment outsourcing down 23%*). Challenging conditions in the USA
(-32%*) and LatAm (-29%*), with the Middle East (-3%*) more resilient.

 

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 Q4

 

Next news flow

The Company will publish full year results for the year ended 31 December 2024
on Thursday 6 March 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 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 approximately 3,300 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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