REG - Robert Walters PLC - Q4 Trading update: PROFIT AHEAD OF EXPECTATIONS

Robert WaltersAnnouncement

11/01/2022 07:05

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RNS Number : 9947X  Robert Walters PLC  11 January 2022

 

11 January 2022

 

ROBERT WALTERS PLC

 

(the 'Company' or the 'Group')

 

Trading update for the fourth quarter ended 31 December 2021

 

STRONG QUARTER WITH RECORD DECEMBER.

PROFIT AHEAD OF EXPECTATIONS

 

Financial and operational highlights

 

 Gross profit (Net fee income)  Q4 2021  Q4 2020  % change        % change (constant currency*)

 Group                          £95.1m   £71.4m   33%             39%

 Asia Pacific                   £44.8m   £30.2m   48%             56%
 Europe                         £27.0m   £21.2m   28%             36%
 UK                             £16.0m   £14.9m   7%              7%
 Other International            £7.3m    £5.1m          44%       48%

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

 

§ Strong trading momentum was maintained through the fourth quarter across
all of the Group's regions with Group net fee income up 39%* (33% actual)
year-on-year.

o  Quarter ended very strongly with a record December performance.

§ 83% (2020: 79%) of the Group's net fee income is now generated by our
international businesses.

§ Permanent and interim recruitment activity were the strongest drivers of
growth as organisations continued to confidently hire for the longer-term.

§ Contract and recruitment process outsourcing also grew very well reflecting
the strength of the end- to-end recruitment market.

§ Asia Pacific net fee income up 56%* (48% actual) to £44.8m (2020: £30.2m)
despite a number of markets, particularly in Asia, still under full or
signifcant lockdowns.

o  Japan and Australia, the two largest and most profitable businesses in
the region, continued to deliver excellent performances with net fee income
increasing by 63%* and 40%* respectively year-on-year.

o  Across Asia, performance was also strong with Indonesia (up 136%*), Hong
Kong (up 100%*), Singapore (up 55%*) and Mainland China (up 49%*) producing
particularly strong net fee income growth.

§ Europe net fee income up 36%* (28% actual) to £27.0m (2020: £21.2m).

o  Strong growth across the region with our two largest markets, France and
the Netherlands, delivering 23%* and 44%* growth in net fee income
respectively.

o  Excellent performance in Belgium, with net fee income up 42%*
year-on-year underpinned by a surge in permanent hiring. Spain also continued
to produce a strong performance, increasing net fee income by 40%*. Germany
also delivered a great result with net fee income up 44%* year-on-year.

§ UK net fee income up 7% to £16.0m (2020: £14.9m).

o  Candidate shortages continued to drive heightened competition for talent
across both London and the regions with the legal, commerce finance and
technology disciplines particularly active.

§ Other International (the Americas, South Africa and the Middle East) net
fee income up 48%* (44% actual) to £7.3m (2020: £5.1m).

o  Our business in Latin America, spanning Brazil, Chile and Mexico,
collectively grew net fee income by 115%* year-on-year. Our business in the
Middle East continues to go from strength to strength.

§ Continued investment in headcount across all markets and disciplines.
Headcount up by a further 3% to 3,484 (30 September 2021: 3,376).

§ The Group purchased 1,580,067 shares at an average price of £7.48 for
£11.9m through the Group's Employee Benefit Trust.

§ Strong balance sheet with net cash of £126.0m as at 31 December 2021 (31
December 2020: £154.8m). The Group also has a £60.0m committed loan facility
until 2024.

 

Robert Walters, Chief Executive, commented:

 

"The fourth quarter was another very strong period for the Group with net fee
income increasing by 39%* year-on-year. We are seeing candidate shortages
across all locations and disciplines, a fierce competition for talent and wage
inflation kicking in which together create huge opportunities across the
recruitment market.

 

"Group net fee income for the full year was up 21%*. Following a strong
quarter including a record December, trading is now comfortably ahead of
current profit expectations."

 

The Group will publish full year results for the year ended 31 December 2021
on 8 March 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 3,400 staff spanning 31 countries. We
specialise in the placement of the highest calibre professionals across the
disciplines of accountancy and finance, banking, engineering, HR, IT, legal,
sales, marketing, secretarial and support and supply chain 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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