REG - Robert Walters PLC - RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022
10/03/2023 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:20230310:nRSJ5168Sa&default-theme=true
RNS Number : 5168S Robert Walters PLC 10 March 2023
10 March 2023
ROBERT WALTERS PLC
(the "Company", or the "Group")
Results for the year ended 31 December 2022
RECORD YEAR
Robert Walters plc (LSE: RWA), the leading international recruitment group,
today announces its results for the year ended 31 December 2022.
Financial and Operational Highlights
2022 2021 % change % change (constant currency*)
Revenue £1,099.6m £970.7m 13% 12%
Gross profit (net fee income) £428.2m £353.6m 21% 20%
Operating profit £58.2m £54.1m 8% 9%
Profit before taxation £55.6m £50.2m 11% 12%
Basic earnings per share 56.2p 46.3p 21% N/A
Proposed final dividend per share 17.0p 15.0p 13% N/A
* Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
Group highlights
§ Record Group performance with profit before taxation increasing by 11%
(12%*) year-on-year to an all-time high of £55.6m (2021: £50.2m).
§ Fierce competition for talent and significant wage inflation across all
geographies and specialist disciplines during the first half of the year.
§ The global macro-economic backdrop became increasingly uncertain as the
second half of the year progressed resulting in a softening of recruitment
activity levels across many of the Group's markets. The Ukraine conflict, a
high inflation and high interest rate environment, significant cutbacks across
the global technology market and Covid-enforced lockdowns in Mainland China
all had a cumulative effect on market confidence.
§ Growth across all forms of recruitment - permanent, contract, interim and
recruitment process outsourcing.
§ Activity levels were strongest across permanent and interim during the
first half as organisations were confident to hire for the long-term. Contract
recruitment activity increased more significantly during the second half as
client and candidate confidence became more muted.
§ Permanent recruitment represented 70% (2021: 68%) of the Group's net fee
income.
§ Significant investment in Group headcount and infrastructure during the
year:
§ Headcount increased by 25% to 4,356 (2021: 3,484). Headcount growth slowed
during the second half reflecting the tightening market conditions.
§ First office opened in Italy (Milan). Three new offices opened in existing
markets: Austin, Berlin, and Bilbao.
§ Continued development and roll out of the Group's new customer relationship
management (CRM) platform.
§ 83% (2021: 81%) of Group net fee income now derived from our international
businesses.
§ Continued focus on ESG:
§ During 2022, we helped over 48,600 people and 13,000 organisations fulfil
their unique potential through providing new careers and valued team members.
§ Finalist for the second successive year at the ESG Reporting Awards. Winner
of nine awards across equity, diversity & inclusion, employee engagement
and employer brand.
§ The Group has been offsetting the equivalent of our carbon emissions since
2015 and has committed to a net zero target on Scope 1 and Scope 2 emissions
by 2040.
§ Joined the UN Global Compact initiative.
§ Over 1,100 employees were promoted during the year of which 59% were
female.
§ Proposed final dividend of 17.0p per share (2021: 15.0p per share).
§ In 2022, the Group purchased 2,024,071 shares at an average price of £6.25
for £12.7m through the Group's Employee Benefit Trust. A further 2,029,880
shares were purchased at an average price of £4.93 for £10.0m and cancelled.
§ Strong balance sheet with net cash of £97.1m as at 31 December 2022 (31
December 2021: £126.6m).
§ As per a separate announcement made today, Robert Walters to retire as
Group CEO and to be succeeded by Toby Fowlston.
Regional highlights
§ Asia Pacific net fee income up 18% (16%*) to £193.8m (£191.2m*) (2021:
£164.2m) and operating profit increased by 3% (3%*) to £37.5m (£37.6m*)
(2021: £36.5m).
§ Europe net fee income up 30% (31%*) to £124.1m (£124.7m*) (2021: £95.3m)
and operating profit increased by 29% (31%*) to £17.6m (£17.9m*) (2021:
£13.7m).
§ UK net fee income up 8% to £74.0m (2021: £68.7m) and operating profit
increased by 1% to £3.4m (2021: £3.3m).
§ Other International (the Americas, South Africa and the Middle East) net
fee income was up 43% (29%*) to £36.3m (£32.9m*) (2021: £25.4m) delivering
an operating loss of £0.3m (operating loss of £0.1m*) (2021: operating
profit of £0.6m).
Robert Walters, Chief Executive, said:
"As published separately today, I have decided that the time is right for me
to announce that I will be retiring as Group CEO at the Group's Annual General
Meeting in April this year. It has been an honour and privilege to have led
the Group over the last 38 years and to have such a worthy successor in place
in Toby, who has been with the Group since joining as a consultant in 1999, is
a true testament to the Group's ability to grow our future leaders from within
and is hopefully an inspiration to all our employees across the globe.
"Turning to our results, the Group delivered a record performance in 2022,
despite the increasingly uncertain macro-economic backdrop which emerged as
the year progressed, with net fee income up 21% and operating profit hitting
an all-time high of £58.2m.
"Net fee income grew across all forms of recruitment - permanent, contract,
interim and recruitment process outsourcing and we continued to invest in
growing the Group's global footprint with the opening of our first office in
Italy, and new offices in Austin, Berlin and Bilbao.
"The market uncertainty we experienced during the second half of the year has
tipped over into the early months of 2023. Whilst it's too early to tell
whether this is a short-lived correction or a more prolonged economic
slowdown, we have successfully managed the business through numerous economic
cycles and I am confident that the Group's strong brand, experienced senior
management team and diverse breadth of geographies, disciplines and revenue
streams ensures we are well positioned to quickly respond to any further
deterioration of market confidence or equally to rapidly capitalise on market
opportunities as they arise."
The Company will be holding a presentation for analysts at 10.30am today.
The Company will publish a trading update for the first quarter ending 31
March 2023 on 6 April 2023.
Further information
Robert Walters plc +44 (0) 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 deliver specialist recruitment consultancy, staffing, recruitment process
outsourcing and managed services across the globe. We match highly skilled
professionals to permanent, contract and interim roles across the disciplines
of accountancy & finance, banking, engineering, HR, healthcare,
technology, legal, sales, marketing, secretarial & support, and supply
chain, logistics & procurement. Our client base ranges from the world's
leading blue-chip corporates and financial services organisations through to
SMEs and start-ups.
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.
Robert Walters plc
Results for the year ended 31 December 2022
Chair's Statement
Firstly, I would like to say how privileged I am to have returned to the role
of Chair of the Robert Walters Group, one of the global standard bearers of
the specialist professional recruitment industry. I'd also like to thank my
Board colleagues and the executive team for making my transition into the role
as seamless as possible.
Turning now to the Group's results, I am delighted to be able to report that
in 2022 the Group delivered a second consecutive record annual performance
with operating profit increasing by 8% (9%*) to an all-time high of £58.2m
(2021: £54.1m). This performance has been delivered despite the increasingly
uncertain macro-economic backdrop that impacted many of the Group's markets
during the second half of the year.
Revenue was up 13% (12%*) to £1.1bn (2021: £970.7m) and net fee income
increased by 21% (20%*) to £428.2m (2021: £353.6m). Operating profit
increased by 8% (9%*) to £58.2m (2021: £54.1m) and profit before taxation
increased by 11% (12%*) to £55.6m (2021: £50.2m). Earnings per share
increased by 21% to 56.2p per share (2021: 46.3p per share). The Group has
maintained a very strong balance sheet with net cash of £97.1m as at 31
December 2022 (31 December 2021: £126.6m).
Whilst all the Group's regions delivered net fee income growth, Asia Pacific
and Europe delivered the strongest performances and combined now represent 75%
of the Group's net fee income reflecting how internationally diverse the Group
has become and the strength of the Group's global brand and geographic
footprint.
Employee Engagement
Our people are the lifeblood of our business, and we recognise the importance
of continually listening to feedback to ensure we are positioned as an
employer of choice across not only the recruitment market but the wider
business community.
During the year, the Group undertook its first global employee engagement
survey, underpinned by the market-leading Glint platform. With an 82% response
rate across the globe, our people told us that they feel there is a strong
level of communication in our teams, that everyone has an equal opportunity to
succeed regardless of their background and that the Group offers good
long-term career opportunities. The Group's overall engagement score was 79%
which is above Glint's global engagement benchmark for excellence when mapped
across all surveyed businesses globally. That said, there are always learnings
and opportunities to improve and our management teams across the globe have
been in dialogue with their local teams to action and implement changes to
address those areas of development raised. The global employee engagement
survey will be run annually moving forward, with the second iteration
scheduled for quarter two of this year.
Environmental, Social and Governance (ESG)
ESG is a key priority for the Group, and we continue to strive to ensure that
the Group is adopting all relevant best practice and setting meaningful short
and long-term targets. Highlights from the year include:
i. Purpose
· The Group's purpose is to power people and organisations to
fulfil their unique potential and it is the foundation that underpins what we
do as a business.
· During 2022, we helped over 48,600 people and 13,000
organisations fulfil that unique potential through providing new careers and
valued team members.
ii. Materiality Assessment and Strategy
· The Group engaged Sillion, a leading ESG consultancy, to
undertake a Group-wide ESG materiality assessment.
· The output of the materiality assessment resulted in the
development of a refreshed ESG framework and targets focused on the six key
pillars of Engaging our workforce; Enhancing our Equity, Diversity &
Inclusion initiatives; Responding to a sustainable world of work; Reducing our
environmental impact; Supporting our communities; and Being a responsible
business.
iii. Engaging our workforce
· We continued to invest in the development of our people
delivering over 3,500 learning and development sessions across the globe.
· We are especially proud of our long-term commitment to grow
our leaders from within and I am very pleased to report that over 1,100
employees were promoted during the year of which 59% were female, as we
continue to strive to improve gender balance across the Group.
· With Covid restrictions easing we were also able to re-start
our international mobility programme with 43 staff members transferring
between our international businesses during the year.
iv. Enhancing our Equity, Diversity & Inclusion initiatives
· Global and regional ED&I councils, chaired by our Global
Head of ED&I, continue to champion best practice across the Group and
ensure that our people have a voice and can feed into our overall strategy and
approach.
· Two global ED&I webinars hosted for our clients in
partnership with our global ED&I partner, Vercida Consulting.
· Held a series of internal and external events and developed
marketing campaigns on a broad range of themes such as Pride, Black History
Month, World Menopause Day, Neurodiversity and International Women's Day.
· Multiple Employee Resource Groups established encompassing
LGBTQ+ staff and allies, disability, working parents and carers.
v. Reducing our environmental impact
· 18,990 trees planted through our 'Plant a Tree' initiative
where a tree is planted for each permanent placement made by our Robert
Walters and Walters People businesses and for each Resource Solutions
employee.
· The Group has been offsetting the equivalent of our carbon
emissions since 2015 through the World Land Trust Carbon Balanced Programme.
· The Group has set a target to achieve net-zero for Scope 1
and Scope 2 greenhouse gas emissions by 2040.
vi. Supporting our communities
· Over £150k raised by employees through the Group's 11th
annual Global Charity Day. The Group has raised over £1m for charities across
the globe since its inception in 2012.
· Investment, resourcing and mentoring support to goodjob, an
initiative co-founded by one of the Group's consultants to help displaced
Ukrainians find meaningful employment.
· Supported Amdaris, our global customer relationship
management (CRM) technology partner to create roles for 11 Ukrainian
technology professionals to support the Group's technology and transformation
programme.
vii. Accreditations
· In January 2023, the Group joined the UN Global Compact, the
world's largest corporate sustainability initiative.
· The Group has been a member of the FTSE4Good Index for the
last 14 years.
viii. Awards
· Finalist for the second consecutive year in the ESG Reporting
Awards for Best Sustainability Reporting in the Services category.
· Winner of nine awards and finalists in another 10 across the
ESG spectrum including employee engagement, employee value proposition,
employee policies, innovation in ED&I, corporate engagement and cultural
development programmes.
The Group's ESG Committee comprising members of our operational management
team, Board, business support functions and ESG champions from across the
business met six times during the year. The Committee is responsible for
ensuring the Group remains at the forefront of developments in the ESG space,
to ensure best practice is devolved across the globe and to provide all of our
people with a dedicated forum through which to champion new ideas.
Board
Brian McArthur-Muscroft retired as a Non-executive Director at the Group's
Annual General Meeting in April having served his full nine year term and on
behalf of the Board I would like to formally thank him for his counsel and
contribution to the Group's success. I would also like to thank Ron Mobed, who
stepped down as Non-executive Chair in July and Tanith Dodge who served as
Interim Non-executive Chair until my appointment in November, and I am
delighted that Tanith has remained with the Board to provide her insight and
guidance as Senior Independent Non-executive Director.
Dividend and Share Buy Backs
The Board will be recommending a 13% increase in the final dividend to 17.0p
per share, which combined with the interim dividend of 6.5p per share would
result in a 15% increase in the total dividend to 23.5p per share (2021:
20.4p).
In 2022, the Group purchased 2m shares at an average price of £6.25 per share
through the Group's Employee Benefit Trust. A further 2m shares were purchased
at an average price of £4.93 for £10.0m and cancelled. The Board is
authorised to re-purchase up to 10% of the Group's issued share capital and
will be seeking approval for the renewal of this authority at the Group's
Annual General Meeting on 27 April 2023.
Last and most certainly not least, I would like to take this opportunity to
thank all of our amazing people across the globe for their continued drive and
commitment. To help over 48,600 people and 13,000 organisations fulfil their
unique potential through providing new careers and valued team members is a
great achievement of which everyone should be very proud.
Leslie Van de Walle
Chair
9 March 2023
*Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
Chief Executive's Statement
The Group delivered a record performance in 2022 despite the increasingly
uncertain macro-economic backdrop which emerged as the year progressed.
In a continuation of the positive market conditions we experienced in the
latter half of 2021, competition for talent was fierce and wage inflation
significant - often circa 20% plus for job movers with high-demand and niche
skill sets - during the first half of the year. However, recruitment activity
levels softened, time to hire lengthened and candidate and client confidence
waned as the second half of the year progressed, even though the competition
for highly sought after professionals remained relatively high. The Ukraine
conflict, a high inflation and high interest rate environment, significant
cutbacks across the global technology market and Covid-enforced lockdowns in
Mainland China all had a cumulative effect on market confidence.
Whilst permanent and interim recruitment were the dominant drivers of growth
during the first half, contract recruitment activity increased during the
second half as flexible, short-term recruitment decision-making became
prevalent. The Group's blend of revenue streams - permanent, contract, interim
and recruitment process outsourcing - remains a clear strength and source of
competitive advantage and resilience when market conditions become tougher
enabling us to continue to meet the changing requirements of our clients and
candidates and produce record results. The Group's permanent to contract
recruitment mix is now 70%:30% (2021: 68%:32%).
The Group continued to invest for the long-term in line with our strategy for
growth which is centred on international expansion and discipline
diversification. We expanded our international footprint with the opening of
our first office in Italy and also further expanded our office network in
existing markets with new offices in Austin, Berlin and Bilbao. We continued
to roll out new teams and specialist disciplines to capitalise on growth
opportunities with a further 49 new teams created during the period following
the 47 new teams created in the prior year. We now have a technology
recruitment business in every one of our territories globally and are actively
working to ensure our legal, interim and contract recruitment solutions are
further expanded over the course of the next year.
Group headcount is up 25% year-on-year and now stands at 4,356 (2021: 3,484).
Headcount growth slowed in the second half of the year reflecting the
tightening market conditions.
Technology and Innovation
The Group's long-term investment in technology has continued to enable the
Group to provide hybrid-working solutions to our people, where required, and
ensured no impact on our ability to deliver the highest quality of service to
our clients and candidates through our ongoing use of digital CVs and video
interviewing.
With the threat of Covid continuing to recede in many parts of the world, the
trend towards more face-to-face interviews, in-office working and client and
candidate entertainment and networking, which we saw begin to return at the
back end of 2021, continued to gather momentum as the year progressed.
The Group's most significant technology investment - the development and roll
out of Zenith our new customer relationship management (CRM) platform -
progressed well through the year and remains in line with budget. We are in
year three of a planned four-year development and roll out programme and have
significantly enhanced the product to a greater level of functionality over
and above our first pilot roll out in the Middle East and regional deployments
in our smaller Americas businesses. The next deployment to our South East Asia
region, scheduled for quarter two this year, will be at circa 90% of full
planned system functionality.
Our Innovation team has continued to explore and implement new technology
solutions that meet the need of freeing up our consultants' time to focus on
building long-term relationships with our candidates and clients or improving
processes in our business partner functions. Of particular note in 2022 has
been the roll out of a bespoke CV formatting tool which has significantly
enhanced our capability to showcase our candidates to existing and potential
clients, resurfacing candidates through artificial intelligence (AI) chat
capability and the digitisation of our reference checking processes.
Market Intelligence and Insights
During the year, we further invested in our market intelligence and insights
solutions which provide our clients with access to comprehensive global
internal and external datasets to better inform recruitment searches and
talent attraction strategies. Clients are able to access a range of bespoke
services covering, for example, salary and benefits benchmarking, diversity
and inclusion trends, talent mapping, competitor analysis and relocation
analysis all of which we provide on a local, regional or global basis
depending on client need. These services are a clear source of competitive
advantage, particularly in less developed and less mature recruitment markets
and are an increasingly significant source of revenue across both our Robert
Walters and Resource Solutions operations.
Our global content programme, encompassing whitepapers, e-guides, webinars,
events and podcasts continues to go from strength to strength with over
120,000 client and candidate engagements during the year.
Review of Operations
Asia Pacific (46% of Group net fee income)
Revenue was £519.6m (2021: £427.0m), net fee income increased by 18% (16%*)
to £193.8m (£191.2m*) (2021: £164.2m) and operating profit increased by 3%
(3%*) to £37.5m (£37.6m*) (2021: £36.5m).
In Mainland China, our business was significantly impacted by extended periods
of Covid-related lockdown and restrictions with operating profit declining by
45%* year-on-year. The ripple effect of the slowdown of the Chinese economy
and disruption to supply chains was felt right across the region particularly
during the second half of the year.
Japan, the Group's largest and most profitable business where we have a
market-leading position, proved resilient and still delivered a record
performance increasing net fee income by 16%* and operating profit by 6%*
despite the backdrop of slowing trade with China. Elsewhere across Asia,
standout performances came from South Korea and Thailand with operating profit
increasing by 22%* and 31%* respectively, with a special mention also to Hong
Kong which shrugged off the impact of Covid restrictions to bounce-back with a
29%* increase in operating profit.
Australia, the second largest business in the region, was also impacted by the
slowdown in trade with China but nevertheless delivered a solid performance
with net fee income up 9%* and operating profit up 4%*. Our business in New
Zealand, where we have a dominant market position in the specialist
professional recruitment space, produced outstanding results, increasing net
fee income and operating profit by over 20%* year-on-year to record levels.
Resource Solutions had a record year across the region increasing net fee
income by 31%* year-on-year underpinned by a number of new client wins and
extensions.
Europe (29% of Group net fee income)
Revenue was £276.5m (2021: £216.1m), net fee income increased by 30% (31%*)
to £124.1m (£124.7m*) (2021: £95.3m) and operating profit increased by 29%
(31%*) to £17.6m (£17.9m*) (2021: £13.7m).
Excellent performance across the region, with seven out of nine markets
delivering record levels of net fee income with our blend of permanent,
contract and interim recruitment solutions continuing to provide a competitive
advantage.
France, the largest business in the region, performed strongly more than
doubling operating profit year-on-year and the Netherlands and Belgium both
delivered record levels of net fee income and operating profit. We further
invested in growing the regional footprint of our business in Spain with the
opening of an office in Bilbao - we now have four offices across the country
enabling us to service a wider network of clients and candidates.
Germany had a record year in terms of both net fee income and operating profit
with our newer interim teams performing well alongside our more established
permanent business. The addition of an office in Berlin provides us with wider
coverage across this important market for the Group long-term.
During the second quarter, we opened the Group's first office in Italy, in
Milan. This new business has started well, and we are excited at the
opportunity to develop a scale business in one of Europe's largest economies.
UK (17% of Group net fee income)
Revenue was £259.7m (2021: £297.6m), net fee income increased by 8% to
£74.0m (2021: £68.7m) and operating profit increased by 1% to £3.4m (2021:
£3.3m).
Recruitment activity levels remained relatively strong throughout the year
across the disciplines of financial services, legal and commerce finance with
technology also holding up well despite the rightsizing trend seen across
parts of the sector. Regulatory requirements are ever-changing and
increasingly complex which bolstered demand for regulatory, risk and
compliance professionals whilst the continued emergence of the UK as a fintech
hub also served to boost demand for both banking and technology professionals.
Net fee income in Resource Solutions declined by 6% year-on-year with
placement rates impacted in the first half of the year by candidate shortages
and delays in the time taken to onboard new hires. Encouragingly, the business
has won seven net new clients year-on-year which provides a good platform for
long-term growth.
Other International (8% of Group net fee income)
Other International encompasses the Americas, South Africa and the Middle
East. Revenue was £43.8m (2021: £30.0m), net fee income increased by 43%
(29%*) to £36.3m (£32.9m*) (2021: £25.4m) producing an operating loss of
£0.3m (operating loss of £0.1m*) (2021: operating profit of £0.6m).
Our business in the US, which is solely focused on permanent recruitment, has
been significantly impacted by the large-scale technology layoffs that have
hit corporate America and as a result was loss-making for the year. The effect
of these layoffs has had a negative effect on candidate confidence and rippled
into other specialist disciplines.
The Group's newer businesses in South America continued to perform well with
both Chile and Mexico more than doubling operating profit year-on-year. Our
business in the Middle East continued to go from strength to strength with net
fee income increasing by 28%* and operating profit by 255%*.
Outlook
The global macro-economic backdrop became increasingly uncertain as 2022
progressed and this uncertainty has tipped over into the early months of 2023.
Whilst it's too early to tell whether this is a short-lived correction or a
more prolonged economic slowdown, we have successfully managed the business
through numerous economic cycles and I am confident that the Group's strong
brand, experienced senior management team and diverse breadth of geographies,
disciplines and revenue streams ensures we are well positioned to quickly
respond to any further deterioration of market confidence or equally to
rapidly capitalise on market opportunities as they arise.
Robert Walters
Chief Executive
9 March 2023
*Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years.
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
ROBERT WALTERS PLC ON THE PRELIMINARY STATEMENT OF ANNUAL RESULTS
As the independent auditor of Robert Walters plc we are required by UK Listing
Rules to agree to the publication of the company's preliminary statement of
annual results for the year ended 31 December 2022 which include the financial
and operational highlights, the Chairman's Statement, the Chief Executive's
Statement, and summarised financial statements.
Use of our report
This report and our auditor's report on the company's financial statements are
made solely to the company's members, as a body, in accordance with Chapter 3
of part 16 of the Companies Act 2006 and the terms of our engagement. Our
audit work has been undertaken so that we might state to the company's members
those matters we have agreed to state to them and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body, for our
audit work, for our auditor's report on the financial statements or this
report, or for the opinions we have formed.
Responsibilities of directors and auditor
The Directors of the Company are responsible for the preparation, presentation
and publication of the preliminary statement of annual results in accordance
with the UK Listing Rules. We are responsible for agreeing to the publication
of the preliminary statement of annual results, having regard to the Financial
Reporting Council's Bulletin "The Auditor's Association with Preliminary
Announcements made in accordance with the requirements of UK Listing Rules".
Status of our audit of the financial statements
Our audit of the annual financial statements of the Company is complete and we
signed our auditor's report on 9 March 2023. Our auditor's report is not
modified and contains no emphasis of matter paragraph.
Our auditor's report on the full financial statements contained the following
information regarding key audit matters and how they were addressed by us in
the audit, our application of materiality and the scope of our audit.
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its
environment, including the Group's system of internal control, and assessing
the risks of material misstatement in the financial statements. We also
addressed the risk of management override of internal controls, including
assessing whether there was evidence of bias by the Directors that may have
represented a risk of material misstatement.
We designed an audit strategy to ensure we have obtained the required audit
assurance for each component for the purposes of our Group audit opinion (ISA
600 (UK)). Components were scoped in to address aggregation risk and to ensure
sufficient coverage was obtained of Group balances on which to base our audit
opinion.
Our involvement with component auditors
For the work performed by component auditors, we determined the level of
involvement needed in order to be able to conclude whether sufficient
appropriate audit evidence has been obtained as a basis for our opinion on the
Group financial statements as a whole. Our involvement with component auditors
included the following:
Significant components · We focussed our Group audit scope primarily on the audit work at
four significant components, which were subject to full scope audit
procedures.
· These significant components contribute 30% (2021: 35%) of the
Group profit before taxation, 30% (2021: 34%) of the Group net fee income, and
41% (2021: 38%) of the Group revenue.
· The four components considered to be significant were Robert
Walters plc, Resource Solutions Limited (UK), Robert Walters Operations
Limited (UK) and Robert Walters Japan KK (Japan).
· For the Japanese component, following involvement in risk
assessment and setting the overall audit approach and strategy at the planning
stage with the component auditor, we performed a detailed review of the
testing performed and attended in person meetings with local management and
the component auditor (a local BDO member firm in Japan) to challenge
conclusions reached.
· The audits of the remaining UK significant components were
performed by the Group audit team.
Full scope audits · Sixteen further components were subject to full scope audit
procedures due to size, geographical coverage and aggregation risk in addition
to the four identified significant components above (twenty in total).
· These components contribute 48% (2021: 44%) of the Group profit
before taxation, 43% (2021: 39%) of the Group net fee income, and 46% (2021:
46%) of the Group revenue.
· Full scope audits on Resource Solutions Europe Limited, Robert
Walters Holdings Limited and Robert Walters Dubai Limited were performed by
Group audit team.
· The full scope audits on other components were performed by BDO
Member Firms under direction and supervision of the Group audit team.
· The Group audit team directed work for all full scope components
through detailed instructions, remote briefings and review of selected working
papers on significant risk areas.
Specified audit procedures · Specified audit procedures were performed by the Group audit team
to address the risk of material misstatement arising from key balances in
smaller components, with testing performed on certain material balances within
these components.
· This specific scope testing was performed on components that
contribute 21% (2021: 16%) of the Group profit before taxation, 17% (2021:
16%) of the Group net fee income, and 8% (2021: 10%) of the Group revenue.
Remaining components · All other components were scoped in for analytical review
procedures performed by the Group audit team to confirm our conclusion that
there were no significant risks of material misstatement of the aggregated
financial information.
Parent Company & Consolidation · The Group audit team performed testing of the consolidation and
related consolidation adjustments posted in preparation of the Group financial
statements.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified, including those
which had the greatest effect on: the overall audit strategy, the allocation
of resources in the audit, and directing the efforts of the engagement team.
This matter was addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on this matter.
Key audit matter How the scope of our audit addressed the key audit matter
Revenue recognition for permanent and temporary placements (Note 1) · The significant risk in revenue recognition lies within the · The operating effectiveness of key controls in the revenue cycle
existence, accuracy, and valuation of unbilled revenues, due to the high were tested where relevant. For permanent placements, we have considered
degree of judgement and scope for fraud/error. controls over the signing of the contract, evidence of candidate acceptance
and allocation of cash receipts. For temporary placements we checked that
· For permanent placements, revenue is recognised when a start date timecards and the rate applied have been appropriately approved.
is confirmed and a candidate has accepted in writing. An Earned But Not
Invoiced (EBNI) provision is made based on historical experience, for a · Permanent placements recorded around year-end were sampled and
proportion of placements where the candidate accepts but are expected to agreed to confirmation of candidate acceptance and start date to ensure that
reverse their acceptance prior to start date. This is calculated as a the point of revenue recognition was supportable.
percentage of the accrued income balance. Whether the percentage applied
remains valid is considered to be a matter of significant management · For those permanent candidates that had accepted but had not
judgement. started at the year‑end, where revenue is recorded in accrued income, we
challenged the appropriateness of the provision rate applied by reference to
· For temporary placements, the Group's policy is to recognise the rate of historical and actual 'back-outs' post year-end.
revenue as the service is provided at contractually agreed rates. There is a
risk that timecards are not appropriately approved or are not submitted on · We tested the operating effectiveness of key controls around the
time, or that incorrect rates are applied and therefore that the related correct application of contract rates to invoicing and agreed a sample of
revenue does not exist, is inaccurate or is not recognised in the appropriate rates used to contractual documentation.
financial year.
· We recalculated the accrued income and associated costs
recognised for a sample of late timecards or timecards straddling the year-end
(where the approved timecard was submitted after the year-end but related to
services provided in the year).
Key observations:
· We did not identify any material indication that revenue, that
has not yet been invoiced does not exist or is not valued appropriately.
· We did not identify any material indication that revenue has not
been recognised in the correct period or at the correct value.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit,
and in evaluating the effect of misstatements. We consider materiality to be
the magnitude by which misstatements, including omissions, could influence the
economic decisions of reasonable users that are taken on the basis of the
financial statements.
In order to reduce to an appropriately low level the probability that any
misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when
evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the
financial statements as a whole and performance materiality as follows:
Group Parent Company
Materiality £2.7m (2021: £2.4m) £2.4m (2021: £2.2m)
Basis 5.0% of profit before taxation (2021: 5.0% of profit before taxation). 3.5% of net assets (2021: 3.5%)
Rationale Profit before taxation is considered to be the most appropriate benchmark Net assets is considered to be the most appropriate benchmark as the Parent
based on market practice and investor expectations. Company does not trade.
Performance materiality £1.9m (2021: £1.7m) based on 70% (2021: 70%) of materiality. £1.7m (2021: £1.5m) based on 70% (2021: 70%) of materiality.
Based on history of adjustments and an assessment of the aggregated error Based on history of adjustments and an assessment of the aggregated error
risk. risk.
Measure Application
Component materiality £0.3m - £2.4m (higher of 15% Group performance materiality or 3% NFI) Our audit work at each component, excluding the Parent company, was executed
at levels of materiality applicable to each individual entity as approved by
(2021: £0.3m - £2.2m) the Group audit team and in each case, lower than that applied to the Group.
Reporting threshold £110,000 (2021: £96,000) The amount agreed with the Audit and Risk Committee for which all individual
audit differences in excess of this amount will be reported. We also agreed to
report differences below this threshold that, in our view, warranted reporting
on qualitative grounds.
Qualitative disclosures We also reported to the Audit and Risk Committee on disclosure matters that we
identified when assessing the overall presentation of the financial
statements.
Procedures performed to agree to the preliminary statement of annual results
In order to agree to the publication of the preliminary statement of annual
results of the company we:
· checked the accuracy of extraction of the financial information in
the preliminary statement from the audited financial statements of the
Company;
· considered whether any "alternative performance measures" and
associated narrative explanations may be misleading; and
· read the management commentary and considered whether it is in
conflict with the information that we have obtained in the course of our
audit.
Sandra Thompson (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
9 March 2023
Consolidated Income Statement
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
Notes £s millions £s millions
Revenue 1 1,099.6 970.7
Cost of sales (671.4) (617.1)
Gross profit (net fee income) 428.2 353.6
Administrative expenses (370.0) (299.5)
Operating 58.2 54.1
profit
Finance income 0.4 0.4
Finance 2 (3.5) (3.0)
costs
Gain (loss) on foreign exchange 0.5 (1.3)
Profit before 55.6 50.2
taxation
Taxation 3 (16.5) (16.7)
Profit for the year 39.1 33.5
Attributable to:
Owners of the Company 39.1 33.5
Earnings per share 5
(pence):
Basic 56.2 46.3
Diluted 53.4 43.7
The amounts above relate to continuing operations.
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
£s millions £s millions
Profit for the year 39.1 33.5
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations 6.0 (7.4)
Total comprehensive income and expense for the year 45.1 26.1
Attributable to:
Owners of the Company 45.1 26.1
Consolidated Balance Sheet
AS AT 31 DECEMBER 2022
2022 2021
Notes £s millions £s millions
Non-current assets
Intangible 6 29.3 24.7
assets
Property, plant and 7 14.3 9.0
equipment
Right-of-use 8 71.6 62.6
asset
Deferred tax assets 10.0 11.2
125.2 107.5
Current assets
Trade and other receivables 9 221.4 190.4
Corporation tax receivables 4.3 6.1
Cash and cash equivalents 123.2 142.3
348.9 338.8
Total assets 474.1 446.3
Current liabilities
Trade and other 10 (179.6) (173.5)
payables
Corporation tax liabilities (5.0) (12.5)
Bank overdrafts and borrowings 11 (26.1) (15.7)
Lease liabilities (18.3) (15.2)
Provisions (0.8) (1.3)
(229.8) (218.2)
Net current assets 119.1 120.6
Non-current liabilities
Lease liabilities (58.1) (51.2)
Deferred tax liabilities (0.2) (0.2)
Provisions (2.1) (1.9)
(60.4) (53.3)
Total liabilities (290.2) (271.5)
Net assets 183.9 174.8
Equity
Share capital 15.8 16.1
Share premium 22.6 22.6
Other reserves (71.4) (71.8)
Own shares held (40.5) (29.9)
Treasury shares held (9.1) (9.1)
Foreign exchange reserves 11.1 5.1
Retained earnings 255.4 241.8
Equity attributable to owners of the Company 183.9 174.8
( )
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
Notes £s millions £s millions
Operating profit 58.2 54.1
Adjustments for:
Depreciation and amortisation charges 21.7 21.0
Impairment of right-of-use assets (reversal) - (1.1)
Loss on disposal of property, plant and equipment and computer software 0.4 0.3
Charge in respect of share-based payment transactions 2.5 2.3
Unrealised foreign exchange loss (gain) 3.8 (0.3)
Operating cash flows before movements in working capital 86.6 76.3
Increase in receivables (25.0) (42.2)
(Decrease) increase in payables (2.0) 8.6
Cash generated from operating activities 59.6 42.7
Income taxes paid (21.5) (9.1)
Net cash from operating activities 38.1 33.6
Investing activities
Interest received 0.4 0.4
Investment in intangible (7.1) (8.7)
assets
Purchases of property, plant and equipment (8.8) (4.5)
Net cash used in investing activities (15.5) (12.8)
Financing activities
Equity dividends 4 (15.2) (11.9)
paid
Interest paid (1.0) (0.8)
Interest on lease liabilities (2.5) (2.2)
Principal paid on lease liabilities (16.8) (16.4)
Proceeds from financing facility 37.1 41.8
Repayment of financing facility (26.7) (26.1)
Share buy-back for cancellation (10.0) -
Purchase of own shares (12.7) (12.3)
Proceeds from exercise of share options 0.2 0.2
Proceeds from issue of equity 0.1 0.5
Net cash used in financing activities (47.5) (27.2)
Net decrease in cash and cash equivalents (24.9) (6.4)
Cash and cash equivalents at beginning of year 142.3 155.5
Effect of foreign exchange rate changes 5.8 (6.8)
Cash and cash equivalents at end of year 123.2 142.3
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2022
Share capital Share premium Other reserves Own shares held Treasury shares held Foreign exchange reserves Retained earnings Total equity
Group £s millions £s millions £s millions £s millions £s millions £s millions £s millions £s millions
Balance at 1 January 2021 16.0 22.2 (71.8) (18.1) (9.1) 12.5 217.6 169.3
Profit for the year - - - - - - 33.5 33.5
Foreign currency translation differences - - - - - (7.4) - (7.4)
Total comprehensive income and expense for the year - - - - - (7.4) 33.5 26.1
Dividends paid - - - - - - (11.9) (11.9)
Credit to equity for equity-settled share-based payments - - - - - - 2.3 2.3
Tax on share-based payment transactions - - - - - - 0.6 0.6
Transfer to own shares held on - - - 0.3 - - (0.3) -
exercise of equity incentives
New shares issued and own shares purchased 0.1 0.4 - (12.1) - - - (11.6)
Balance at 31 December 2021 16.1 22.6 (71.8) (29.9) (9.1) 5.1 241.8 174.8
Profit for the year - - - - - - 39.1 39.1
Foreign currency translation differences - - - - - 6.0 - 6.0
Total comprehensive income and expense for the year - - - - - 6.0 39.1 45.1
Dividends paid - - - - - - (15.2) (15.2)
Credit to equity for equity-settled share-based payments - - - - - - 2.5 2.5
Tax on share-based payment transactions - - - - - - (0.9) (0.9)
Transfer to own shares held on exercise of equity incentives - - - 1.9 - - (1.9) -
Share repurchase and cancellation (0.4) - 0.4 - - - (10.0) (10.0)
New shares issued and own shares purchased 0.1 - - (12.5) - - - (12.4)
Balance at 31 December 2022 15.8 22.6 (71.4) (40.5) (9.1) 11.1 255.4 183.9
Statement of Accounting Policies
FOR THE YEAR ENDED 31 DECEMBER 2022
Accounting Policies
Basis of preparation
Robert Walters plc is a public company limited by shares, incorporated and
domiciled in the United Kingdom under the Companies Act. The financial report
for the year ended 31 December 2022 has been prepared in accordance with the
historical cost convention and with international accounting standards in
conformity with the requirements of the Companies Act 2006 and with UK adopted
International Financial Reporting Standards (IFRSs).
The Group has a strong balance sheet with net cash as at 31 December 2022 of
£97.1m, a £60.0m four-year committed financing facility until March 2026
(£26.1m was drawn down as at 31 December 2022), a blend of revenue streams
covering permanent, contract, interim and recruitment process outsourcing and
a diverse range of clients and suppliers across 31 countries. As a
consequence, the Directors believe that the Group is well placed to manage its
business risks successfully. After making enquiries, the Directors have formed
a judgement, at the time of approving the financial statements, that there is
a reasonable expectation that the Group has adequate resources to continue in
operational existence and meet its liabilities as they fall due over the
three-year assessment period. The Directors have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the entity's ability to continue
as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue. For this reason, the Directors
continue to adopt the going concern basis in preparing the accounts.
The financial information in this announcement, which was approved by the
Board of Directors on 9 March 2023, does not constitute the Company's
statutory accounts for the year ended 31 December 2022 but is derived from
these accounts. Statutory accounts for 2021 have been delivered to the
Registrar of Companies and those for 2022 will be delivered following the
Company's Annual General Meeting. The auditors have reported on these
accounts; their reports were unqualified, did not draw attention to any
matters by way of emphasis without qualifying their report and did not contain
statements under Section 498(2) or (3) of the Companies Act 2006.
The Annual General Meeting of Robert Walters plc will be held on 27 April 2023
at 11 Slingsby Place, St Martin's Courtyard, London WC2E 9AB.
1. Segmental information
2022 2021
£s millions £s millions
i) Revenue:
Asia Pacific 519.6 427.0
UK 259.7 297.6
Europe 276.5 216.1
Other International 43.8 30.0
1,099.6 970.7
ii) Gross profit (net fee income):
Asia Pacific 193.8 164.2
UK 74.0 68.7
Europe 124.1 95.3
Other International 36.3 25.4
428.2 353.6
1. Segmental information (continued)
2022 2021
£s millions £s millions
iii) Operating profit and profit before taxation:
Asia Pacific 37.5 36.5
UK 3.4 3.3
Europe 17.6 13.7
Other International (0.3) 0.6
Operating profit 58.2 54.1
Net finance costs (2.6) (3.9)
Profit before taxation 55.6 50.2
The analysis of revenue by destination is not materially different to the
analysis by origin and the analysis of finance income and costs are not
significant.
The Group is divided into geographical areas for management purposes, and it
is on this basis that the segmental information has been prepared.
2022 2021
£s millions £s millions
iv) Revenue by business grouping:
Robert Walters(1) 868.5 700.0
Resource Solutions (recruitment process outsourcing) 231.1 270.7
1,099.6 970.7
(1) Walters People is included within Robert Walters
2022 2021
£s millions £s millions
v) Revenue by service grouping:
Permanent 281.9 229.5
Temporary 670.5 632.3
Interim 119.9 88.3
Other 27.3 20.6
1,099.6 970.7
2. Finance costs
2022 2021
£s millions £s millions
Interest on financing facilities 1.0 0.8
Lease interest 2.5 2.2
Total borrowing costs 3.5 3.0
3. Taxation
2022 2021
£s millions £s millions
Current tax charge
Corporation tax - UK 0.2 0.1
Corporation tax - Overseas 14.7 15.8
Adjustments in respect of prior years
Corporation tax - UK - (0.8)
Corporation tax - Overseas 0.8 0.3
15.7 15.4
Deferred tax
Deferred tax - UK 0.5 0.7
Deferred tax - Overseas (0.4) (0.4)
Adjustments in respect of prior years
Deferred tax - UK (0.2) 0.4
Deferred tax - Overseas 0.9 0.6
0.8 1.3
Total tax charge for year 16.5 16.7
Profit before taxation 55.6 50.2
Tax at standard UK corporation tax rate of 19% (2021: 19%) 10.6 9.5
Effects of:
Unrelieved losses 0.7 1.2
Tax exempt income and other expenses not deductible (0.4) 0.8
Other timing differences 0.3 (0.3)
Overseas earnings taxed at different rates 4.0 5.1
Adjustments to tax charges in previous years 1.5 0.5
Impact of tax rate change (0.2) (0.1)
Total tax charge for year 16.5 16.7
Tax recognised directly in equity
Tax on share-based payment transactions 0.9 (0.6)
The tax charge is based on the expected annual effective tax rate of 29.7%
(2021: 33.3%) on profit before taxation. The effective tax rate is higher than
the standard UK rate of 19%, primarily as a result of overseas taxation in
Japan, Australia and the Netherlands, and the impact of adjustments to
accounting profit in the tax calculation and the movement in deferred tax
asset in relation to accruals and provisions.
The UK Government announced its intention to increase the rate of corporation
tax from 19% to 25% with effect from 1 April 2023. The change in corporation
tax from 19% to 25% has been substantively enacted and therefore the effects
of the increase have been included in the calculation of deferred tax in the
financial results.
4. Dividends
2022 2021
£s millions £s millions
Amounts recognised as distributions to equity holders in the year:
Interim dividend paid of 6.5p per share (2021: 5.4p) 4.5 3.9
Final dividend for 2021 of 15.0p per share (2020: 11.0 p) 10.7 8.0
15.2 11.9
Proposed final dividend for 2022 of 17.0p per share 11.5 10.7
(2021: 15.0p)
The proposed final dividend of £11.5m is subject to approval by shareholders
at the Annual General Meeting and has not been included as a liability in
these financial statements.
The final dividend, if approved, will be paid on 26 May 2023 to those
shareholders on the register as at 28 April 2023.
5. Earnings per share
The calculation of earnings per share is based on the profit for the year
attributable to equity holders of the Parent and the weighted average number
of shares of the Company.
2022 2021
Number Number
of shares of shares
Weighted average number of shares:
Shares in issue throughout the year 80,689,295 80,167,760
Shares issued in the year 203,095 310,858
Shares cancelled during the year (529,847) -
Treasury and own shares held (10,784,800) (8,152,297)
For basic earnings per share 69,577,743 72,326,321
Outstanding share options 3,687,416 4,266,350
For diluted earnings per share 73,265,159 76,592,671
2022 2021
£s millions £s millions
Profit for the year attributable to equity holders of the Parent 39.1 33.5
6. Intangible assets
Goodwill Computer software Assets under construction Total
£s millions £s millions £s millions £s millions
Cost:
At 1 January 2021 8.0 11.3 5.5 24.8
Additions - 8.7 - 8.7
Disposals - (0.3) - (0.3)
Transfers - 5.5 (5.5) -
Foreign currency translation differences 0.1 (0.5) - (0.4)
At 31 December 2021 8.1 24.7 - 32.8
Additions - 7.5 - 7.5
Disposals - (3.6) - (3.6)
Transfers - - - -
Foreign currency translation differences - 0.1 - 0.1
At 31 December 2022 8.1 28.7 - 36.8
Accumulated amortisation and impairment:
At 1 January 2021 - 6.6 - 6.6
Charge for the year - 1.7 - 1.7
Disposals - (0.3) - (0.3)
Foreign currency translation differences - 0.1 - 0.1
At 31 December 2021 - 8.1 - 8.1
Charge for the year - 2.9 - 2.9
Disposals - (3.5) - (3.5)
Foreign currency translation differences - - - -
At 31 December 2022 - 7.5 - 7.5
Carrying value:
At 1 January 2021 8.0 4.7 5.5 18.2
At 31 December 2021 8.1 16.6 - 24.7
At 31 December 2022 8.1 21.2 - 29.3
7. Property, plant and equipment
Fixtures, fittings and office equipment Computer equipment Total
£s millions £s millions £s millions
Leasehold improvements
£s millions
Cost:
At 1 January 2021 9.7 18.5 11.1 39.3
Additions 0.4 2.6 1.5 4.5
Disposals (0.9) (2.8) (1.5) (5.2)
Foreign currency translation differences (0.1) (0.8) (0.2) (1.1)
At 31 December 2021 9.1 17.5 10.9 37.5
Additions 2.3 4.1 3.1 9.5
Disposals (1.0) (2.5) (0.5) (4.0)
Foreign currency translation differences (0.1) 0.7 0.3 0.9
At 31 December 2022 10.3 19.8 13.8 43.9
Accumulated depreciation and impairment:
At 1 January 2021 7.8 12.8 9.6 30.2
Charge for the year 0.9 1.9 1.4 4.2
Disposals (0.9) (2.6) (1.4) (4.9)
Foreign currency translation differences (0.3) (0.6) (0.1) (1.0)
At 31 December 2021 7.5 11.5 9.5 28.5
Charge for the year 0.6 1.7 1.6 3.9
Disposals (1.0) (2.3) (0.4) (3.7)
Foreign currency translation differences 0.2 0.5 0.2 0.9
At 31 December 2022 7.3 11.4 10.9 29.6
Carrying value:
At 1 January 2021 1.9 5.7 1.5 9.1
At 31 December 2021 1.6 6.0 1.4 9.0
At 31 December 2022 3.0 8.4 2.9 14.3
8. Leases
Right-of-use assets Equipment Vehicles Total
£s millions £s millions £s millions
Buildings
£s millions
Cost:
At 1 January 2021 87.7 0.6 5.3 93.6
Additions 11.0 - - 11.0
Lease modifications 6.9 - 0.8 7.7
Disposals (9.0) - - (9.0)
Foreign currency translation differences (2.4) (0.3) (0.4) (3.1)
At 31 December 2021 94.2 0.3 5.7 100.2
Additions 18.0 - 2.3 20.3
Lease modifications 1.3 - - 1.3
Disposals (3.7) (0.2) - (3.9)
Foreign currency translation differences 3.2 - 0.5 3.7
At 31 December 2022 113.0 0.1 8.5 121.6
Accumulated depreciation and impairment:
At 1 January 2021 30.9 0.3 2.9 34.1
Charge for the year 13.8 0.1 1.2 15.1
Impairment (1.1) - - (1.1)
Disposals (9.0) - - (9.0)
Foreign currency translation differences (1.1) (0.2) (0.2) (1.5)
At 31 December 2021 33.5 0.2 3.9 37.6
Charge for the year 13.3 0.1 1.5 14.9
Impairment - - - -
Disposals (3.7) (0.2) - (3.9)
Foreign currency translation differences 1.0 - 0.4 1.4
At 31 December 2022 44.1 0.1 5.8 50.0
Carrying value:
At 1 January 2021 56.8 0.3 2.4 59.5
At 31 December 2021 60.7 0.1 1.8 62.6
At 31 December 2022 68.9 - 2.7 71.6
An impairment loss was recognised in 2020 which was subsequently reversed in
2021, less any further depreciation for 2021, due to an improvement in
operations. The impairment review completed in 2022 results in no impairment
to be recognised in 2022.
9. Trade and other receivables
2022 2021
£s millions £s millions
Receivables due within one year:
Trade receivables 142.9 116.1
Other receivables 6.3 7.9
Prepayments 8.8 6.2
Accrued income 63.4 60.2
221.4 190.4
Included within accrued income is a provision against the cancellation of
placements where a candidate may reverse their acceptance prior to the start
date.
The value of this provision as of 31 December 2022 is £1,892,000 (31 December
2021: £2,433,000). The movement in the provision during the year is a credit
to the income statement of £541,000 (2021: charge of £775,000). Contract
assets are expected to convert into contract receivables within three months
of recognition.
Trade and other payables: amounts falling due within one year
10.
2022 2021
£s millions £s millions
Trade payables 8.7 7.0
Other taxation and social security 34.7 23.7
Other payables 25.4 27.4
Accruals and deferred income 110.8 115.4
179.6 173.5
There is no material difference between the fair value and the carrying value
of the Group's trade and other payables.
Bank overdrafts and borrowings
11.
2022 2021
£s millions
£s millions
Bank overdrafts and borrowings: current 26.1 15.7
26.1 15.7
The borrowings are repayable as follows:
Within one year 26.1 15.7
26.1 15.7
In October 2022, the Group renewed its four-year committed financing facility
of £60.0m which expires in March 2026. At 31 December 2022, £26.1m (2021:
£15.7m) was drawn down under this facility.
In 2021, the Group had a short-term facility of Renminbi 25m (£2.9m) of which
Renminbi nil (£nil) was drawn down as at 31 December 2021, the loan expired
during the year. The loan was secured against cash deposits in Hong Kong.
The Directors estimate that the fair value of all borrowings is not materially
different from the amounts stated in the Consolidated Balance Sheet of £26.1m
(2021: £15.7m).
The Group has not entered into any reverse factoring arrangements during the
year ended 31 December 2022 (2021: none).
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 FR UKVOROKUORURRecent news on Robert Walters
See all newsREG - Robert Walters PLC - Holding(s) in Company
AnnouncementREG - Robert Walters PLC - Director/PDMR Shareholding
AnnouncementREG - Robert Walters PLC - Q1 2024 Trading Update
AnnouncementREG - Robert Walters PLC - Block listing Interim Review
AnnouncementREG - Robert Walters PLC - Holding(s) in Company
Announcement