TIDMRWA
RNS Number : 4920V
Robert Walters PLC
14 April 2021
The below is a correction to the Trading Update announcement
released on 14 April 2021 (RNS Number: 3605V). The below
announcement corrects the disclosure in respect of the growth split
of certain business components in France. No further amendments
have been made to the Trading Update
14 April 2021
ROBERT WALTERS PLC
(the 'Company' or the 'Group')
Trading update for the first quarter ended 31 March 2021
PROFIT AHEAD OF EXPECTATIONS
Financial and operational highlights
Gross profit (Net fee income) Q1 2021 Q1 2020 % change % change
(constant
currency*)
Group GBP77.3m GBP87.4m (12%) (11%)
---------- ---------- --------- ------------
Asia Pacific GBP32.8m GBP34.5m (5%) (3%)
---------- ---------- --------- ------------
Europe GBP21.8m GBP25.4m (14%) (15%)
---------- ---------- --------- ------------
UK GBP17.3m GBP19.7m (12%) (12%)
---------- ---------- --------- ------------
Other International GBP5.4m GBP7.8m (31%) (25%)
---------- ---------- --------- ------------
* Constant currency is calculated by applying prior period
average exchange rates to local currency results for the current
and prior years.
-- Positive trading momentum continued through the first quarter
underpinned by further signs of improving market conditions across
the Group's major regions.
-- Group net fee income for the first quarter was down 11% (12%
actual) year-on-year representing a significant improvement on the
26% (24% actual), 30% (31% actual) and 34% (33% actual) declines of
the preceding three quarters.
-- Activity levels across permanent, contract, interim and
recruitment process outsourcing all trended positively through the
quarter.
-- 78% (2020: 77%) of the Group's net fee income now derived
from international operations.
o Asia Pacific, the Group's largest region, now accounts for 42%
of Group net fee income (2020: 39%).
-- Asia Pacific net fee income down 3% (5% actual) to GBP32.8m
(2020: GBP34.5m).
o Positive signs of an uptick in recruitment activity in Japan,
the Group's most profitable business, with net fee income down just
5% (11% actual) year-on-year. Australia also delivered robust
results with net fee income down 12% (4% actual). Encouragingly
both New Zealand and Mainland China returned to growth increasing
net fee income by 16% (22% actual) and 58% (57% actual),
respectively.
-- Europe net fee income down 15% (14% actual) to GBP21.8m
(2020: GBP25.4m).
o Spain returned to growth during the quarter; and while France
(permanent and interim) was 3% lower, it returned to growth of 13%
in March.
-- UK net fee income down 12% to GBP17.3m (2020: GBP19.7m).
o Despite a hard lockdown spanning the entire quarter, there
were early signs of an improvement in client and candidate
confidence, particularly in London and across the legal and
technology disciplines. In Resource Solutions, our recruitment
process outsourcing business, client volumes improved significantly
as the quarter progressed.
-- Other International (the Americas, South Africa and the
Middle East) net fee income down 25% (31% actual) to GBP5.4m (2020:
GBP7.8m).
o Strong performance in Chile with net fee income increasing 41%
(46% actual) year-on-year albeit from a small base. Difficult
quarter in New York against tough comparatives.
-- The large majority of the Group's offices are open, however
the picture remains volatile in line with local infection rates and
government policies.
o Our pre-Covid investment in technology continues to enable our
staff to seamlessly and productively work remotely where required
without impacting service levels to our candidates and clients.
-- Investment in headcount to take advantage of opportunities in
those markets and disciplines showing strongest growth. Headcount
increased by 74 during the quarter to 3,221 (31 December 2020:
3,147).
-- Strong balance sheet with net cash of GBP139.1m as at 31
March 2021 (31 March 2020: GBP109.8m). The Group also has a GBP60m
committed loan facility which expires in 2024.
Robert Walters, Chief Executive, commented:
"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."
The Group will publish a trading update for the second quarter
ending 30 June 2021 on 7 July 2021.
- Ends -
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial
Officer +44 20 7379 3333
Williams Nicolson
Steffan Williams +44 7767 345 563
About Robert Walters Group
The Robert Walters Group is a market-leading international
specialist professional recruitment group with over 3,200 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.robertwaltersgroup.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.
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END
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