Robert Walters forecasts annual profit to surpass market expectations

Robert Walters reported an 11% fall in its group net fee income in Q1 to £77.3m

Robert Walters (LON:RWA), the recruitment company, has forecasted its yearly profit to be above expectations after a strong performance in Q1.

The FTSE All-share company disclosed an 11% drop in its net fee income in Q1 to £77.3m, while its fees fell by 24%, 31% and 33% respectively in the previous three quarters.

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The recruitment industry has been particularly affected by the pandemic as companies stopped hiring although competitors PageGroup and Hays showed some recent signs of optimism.

Robert Walters said in a trading update released on Tuesday that its activity across permanent, contract, interim and recruitment process outsourcing had all seen an increase in activity during the period confirming that 78% of the firm’s net fee income now came from its international operations.

The group’s Asia Pacific division’s net fee income fell by 3% to £32.8m with green shoots in Japan, the group’s most profitable business.

New Zealand and China returned to growth increasing net fee income by 16% and 58% respectively.

Robert Walters, chief executive, commented on the results as well as his confidence in the company’s ability to exceed market expectations in the coming year.

“I am pleased to report that 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. As a reflection of the improving market sentiment, we increased headcount during the quarter, with hiring focused in those geographies and disciplines showing the strongest signs of growth.”

“The improvement in market conditions has already enabled the Group to benefit from operational gearing. 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.”

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