Robert Walters PLC Trading Update for Q4 ended 31 December 2019 (2136Z)
09 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMRWA
RNS Number : 2136Z
Robert Walters PLC
09 January 2020
9 January 2020
ROBERT WALTERS PLC
(the 'Company' or the 'Group')
Trading update for the fourth quarter ended 31 December 2019
FULL YEAR PROFIT IN LINE WITH EXPECTATIONS DESPITE CHALLENGING
MARKET CONDITIONS
Financial and operational highlights
Gross profit (Net fee Q4 2019 Q4 2018 % change % change
income) (constant
currency*)
Group GBP94.2m GBP102.3m (8%) (7%)
---------- ----------- --------- ------------
Asia Pacific GBP38.5m GBP40.0m (4%) (4%)
---------- ----------- --------- ------------
Europe GBP27.7m GBP27.6m 1% 4%
---------- ----------- --------- ------------
UK GBP20.7m GBP26.8m (23%) (23%)
---------- ----------- --------- ------------
Other International GBP7.3m GBP7.9m (7%) (7%)
---------- ----------- --------- ------------
* Constant currency is calculated by applying prior period
average exchange rates to local currency results for the current
and prior years.
-- Group net fee income for the fourth quarter down 7% (down 8%
actual) against a backdrop of significant political and economic
uncertainty, particularly in the UK.
-- 78% (2018: 74%) of the Group's net fee income now derived
from overseas businesses.
-- Asia Pacific net fee income down 4% (down 4% actual).
o In Asia Pacific, Japan, Korea, New Zealand and the Philippines
delivered the strongest rates of net fee income growth. Market
conditions in Hong Kong were extremely challenging given the
ongoing protests.
o Resource Solutions impacted by the hiring slowdown across a
number of financial services clients.
o Robust performance in Australia with Sydney, Chatswood and
Brisbane the strongest performers.
-- Europe net fee income up 4% (1% actual).
o Blend of permanent, contract and interim recruitment revenue
streams continues to be a strength.
o The Netherlands and Spain delivered record results. Robust
performance in France, the region's largest business, with net fee
income growing 6%. Trading conditions in Germany and Switzerland
were more challenging.
-- UK net fee income down 23%.
o During the quarter client and candidate confidence
deteriorated, across both recruitment and recruitment process
outsourcing, due to the political uncertainty related to Brexit and
the General Election.
-- Other International (the Americas, Middle East and South
Africa) net fee income down 7% (down 7% actual).
-- Group headcount decreased by 5% to 4,027 (30 September 2019:
4,258) with reductions focused in the Resource Solutions business,
in line with client's reduced hiring levels.
-- Strong balance sheet with net cash of GBP78.9m as at 31
December 2019 (31 December 2018: GBP74.3m).
Robert Walters, Chief Executive, commented:
"Trading conditions in the fourth quarter proved challenging
with client and candidate confidence impacted by political
turbulence around Brexit, the UK General Election, Hong Kong
protests and the US/China trade standoff.
"Whilst Group net fee income for the fourth quarter was down 7%
(8% actual), net fee income for the full year was up 2% (3% actual)
year-on-year. We expect profit for the full year to be in line with
market expectations."
The Group will publish its full year results for the year ended
31 December 2019 on 3 March 2020.
- 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 +44 20 7554 1853
About Robert Walters
Robert Walters is a market-leading international specialist
professional recruitment group with over 4,000 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
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END
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