Robert Walters Q2 underpinned by international growth as UK profit drops
Recruiter Robert Walters posted a 7% jump in second-quarter net fee income on Tuesday as strength in the international business offset weakness in the UK.
FTSE All-Share
4,387.94
16:49 25/04/24
FTSE Small Cap
6,412.53
17:14 25/04/24
Robert Walters
394.00p
16:40 25/04/24
Support Services
10,523.75
17:09 25/04/24
In an update for the second quarter to 30 June, the company said group net fee income rose to £106.4m from £99m in the same period a year ago.
Net fee income in Asia Pacific was up 9% at £44.2m, while Europe saw 13% growth to £27.7m and other international - which includes the Americas, the Middle East and South Africa - saw 23% growth to £9.2m. In the UK, however, net fee income fell 8% to £25.2m.
The company said client and candidate confidence was weaker as a result of political turmoil in the UK, while tough year-on-year comparatives also weighed.
In Asia Pacific, the group enjoyed a record performance in Japan, but Hong Kong was impacted by recent political unrest. There were "encouraging signs of momentum" in Singapore and Malaysia, Robert Walter said.
In Europe, meanwhile, there was good growth across the region, with France, Germany, the Netherlands and Portugal all growing in excess of 15% year-on-year. In addition there was an "encouraging" bounce-back in France, the largest business in the region, following the impact of the gilets jaunes demonstrations in the first quarter.
Chief executive Robert Walters said: "Our international businesses have continued to perform well and now represent 76% of group net fee income. The UK has been impacted by Brexit-related uncertainty, however the group's diverse geographic footprint and blend of revenue streams ensures we are well positioned for the future.
"Current trading remains in line with market expectations for the full year."
At 0920 BST, the shares were up 0.1% at 600.50p.