REG - Robert Walters PLC - Q4 Trading Update

Robert WaltersAnnouncement

10/01/2023 07:00

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RNS Number : 1558M  Robert Walters PLC  10 January 2023

10 January 2023

 

ROBERT WALTERS PLC

 

(the 'Company' or the 'Group')

 

Trading update for the fourth quarter ended 31 December 2022

 

DIFFICULT MARKET CONDITIONS

 

Financial and operational highlights

 

 Gross profit (Net fee income)  Q4 2022   Q4 2021  % change  % change (constant currency(*))

 Group                          £105.3m   £95.1m   11%       8%

 Asia Pacific                   £46.8m    £44.8m   4%        3%
 Europe                         £32.8m    £27.0m   21%       18%
 UK                             £17.2m    £16.0m   8%        8%
 Other International            £8.5m     £7.3m    17%       2%

* 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 8%* (11% actual) year-on-year with all forms of
recruitment - permanent, contract, interim and recruitment process outsourcing
- continuing to grow despite the more uncertain market conditions.

§ All of the Group's regions delivered net fee income growth.

o  84% (2021: 83%) of the Group's net fee income is now generated by our
international businesses.

§ Headcount up 2% quarter-on-quarter to 4,356 (30 September 2022: 4,267).
Headcount peaked in November and declined in December reflecting the more
challenging market conditions.

§ During the quarter, the Group purchased and cancelled 693,818 shares at an
average price of £4.97 for £3.5m.

§ Strong balance sheet with net cash of £96.4m as at 31 December 2022 (31
December 2021: £126.6m).

 

Regional highlights

§ Asia Pacific net fee income up 3%* (4% actual) to £46.8m (2021: £44.8m).

o  Tough year-on-year comparatives across the region following a record final
quarter of 2021.

o  The strongest rates of net fee income growth were delivered by South Korea
(up 30%*), Malaysia (up 29%*) and New Zealand (up 18%*).

o  Net fee income in Japan and Australia, the region's largest businesses
declined by 2%* and 3%* respectively.

o  Net fee income in Mainland China declined 24%* year-on-year with market
conditions still heavily impacted by Covid disruption and restrictions.

o  Record quarter for Resource Solutions with net fee income up 33%*
year-on-year.

§ Europe net fee income up 18%* (21% actual) to £32.8m (2021: £27.0m).

o  Good performance across the region with six 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 21%*, 16%* and 12%* respectively.

o  Elsewhere across the region, Germany continued to grow strongly increasing
net fee income by 28%* year-on-year.

§ UK net fee income up 8% to £17.2m (2021: £16.0m).

o  Financial services, commerce finance and technology recruitment activity
levels held up well through the quarter despite the negative UK economic
backdrop. Notable uptick in contract recruitment.

o  Activity levels across Resource Solutions remained slightly muted with net
fee income down 6%*.

§ Two new client wins secured during the quarter. Seven net new clients
year-on-year provides a good platform for future growth.

§ Other International (the Americas, South Africa and the Middle East) net
fee income up 2%* (17% actual) to £8.5m (2021: £7.3m).

o  In the Americas, our businesses in South America performed strongly with
all markets increasing net fee income by over 20%* year-on-year. Tough market
conditions across the US resulted in a significant decline in net fee income.

o  The Middle East, the largest business in the region, increased net fee
income by 3%* against tough prior year comparatives.

 

Robert Walters, Chief Executive, commented:

 

"The global macro-economic backdrop became increasingly uncertain as the
quarter progressed resulting in a softening of recruitment activity levels
across many of the Group's markets. Nevertheless, the Group continued to see
growth, albeit more muted, across all regions and all forms of recruitment -
permanent, temporary, interim and recruitment process outsourcing - with net
fee income for the fourth quarter up 8%* year-on-year.

 

"Group net fee income for the full year was up 20%* with full year profit
expected to be a record, albeit slightly below current market expectations.

 

"The Group has a strong global brand, a diverse breadth of geographies,
disciplines and revenue streams and remains well positioned to both respond to
and take advantage of any future market challenges and opportunities as they
arise."

 

The Group will publish full year results for the year ended 31 December 2022
on 9 March 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 4,300 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.

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