TIDMRWA
RNS Number : 8630E
Robert Walters PLC
09 July 2019
9 July 2019
ROBERT WALTERS PLC
(the 'Company' or the 'Group')
Trading update for the second quarter ended 30 June 2019
PERFORMANCE IN LINE WITH EXPECTATIONS
Financial and operational highlights
Gross profit (Net fee Q2 2019 Q2 2018 % change % change
income) (constant
currency*)
Group GBP106.4m GBP99.9m 7% 5%
----------- ---------- --------- ------------
Asia Pacific GBP44.2m GBP40.5m 9% 7%
----------- ---------- --------- ------------
Europe GBP27.7m GBP24.6m 13% 13%
----------- ---------- --------- ------------
UK GBP25.2m GBP27.3m (8%) (8%)
----------- ---------- --------- ------------
Other International GBP9.2m GBP7.5m 23% 18%
----------- ---------- --------- ------------
* Constant currency is calculated by applying prior period
average exchange rates to local currency results for the current
and prior years.
-- Solid second quarter performance with Group net fee income up
5% (7% actual) year-on-year.
-- 76% (2018: 73%) of the Group's net fee income now derived
from overseas businesses.
-- Continued investment in growing international footprint -
first office opened in Mexico (Mexico City) and a fourth office
opened in the Netherlands (Utrecht).
-- Asia Pacific net fee income up 7% (9% actual).
o In Asia, record performance in Japan. Emerging markets
continue to perform well. Hong Kong impacted by recent political
unrest. Encouraging signs of momentum in Singapore and
Malaysia.
o Single digit growth in Australia and a record performance in
New Zealand.
-- Europe net fee income up 13% (13% actual).
o Blend of permanent, contract and interim recruitment revenue
streams continues to be a key strength.
o Good growth across the region with France, Germany,
Netherlands and Portugal all growing in excess of 15%
year-on-year.
o Encouraging bounce-back in France, the Group's largest
business in the region, following the impact of the gilets jaunes
demonstrations during the first quarter.
-- UK net fee income down 8%.
o Client and candidate confidence was weaker during the quarter
as a result of UK political turmoil. Tough year-on-year
comparatives.
o The UK has delivered positive net fee income growth for the
first half with pockets of buoyancy across financial services,
technology and the regions.
-- Other International (the Americas, Middle East and South
Africa) net fee income up 18% (23% actual) with North America
delivering a strong performance.
-- 0.2m shares purchased through the Group's Employee Benefit
Trust at an average price of GBP5.80 for GBP1.1m.
-- Group headcount increased by 1% to 4,323 (31 March 2019:
4,277).
-- Strong balance sheet with net cash of GBP53.2m as at 30 June
2019 (30 June 2018: GBP22.9m).
Robert Walters, Chief Executive, commented:
"The Group produced a solid performance with net fee income for
the second quarter up 5% (7% actual) year-on-year. Net fee income
for the first half was up 8% (9% actual).
"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."
The Group will publish its half-yearly results for the six
months ended 30 June 2019 on 25 July 2019.
- Ends -
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial
Officer +44 20 7379 3333
Portland Communications
Steffan Williams
Simon Hamer
Lauren Gallagher +44 20 7554 1840
About Robert Walters
Robert Walters 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, 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.robertwalters.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.
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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