Robert Walters annual profit to beat expectations

Robert Walters said annual profit would easily beat expectations after good trading momentum during the first quarter.

The recruitment company said gross profit fell 12% to £77.3m in the three months to the end of March. The result was a big improvement on the 26% drop in the final quarter of 2020 and declines of 30% or more in the two quarters before that.

Activity across permanent, contract, interim and recruitment outsourcing were all positive in the first quarter, Robert Walters said. The company said it hired 74 recruiters during the quarter to take advantage of opportunities, taking headcount to 3,221.

Robert Walters' shares rose 5.7% to 670p at 08:17 GMT, taking the shares to their highest value since September 2018.

Chief Executive Robert Walters said: "The positive momentum in the group's performance since quarter two 2020 has continued through the first quarter of 2021, with candidate and client confidence sequentially improving across most of the group's global footprint.

"Whilst it is still difficult to be certain that there will be no further globally disruptive events ahead, the board is currently confident that profit for the year is likely to be comfortably ahead of market expectations."

Gross profit fell 3% at constant currency to £32.8m in Asia Pacific, Robert Walters' biggest market, and by 12% to £17.3m in the UK where client and candidate confidence showed signs of improvement, especially in London and in legal and technology sectors.

Profit fell 15% in Europe to £21.8m and 25% at constant currency to £5.4m in other international markets.