1 August 2023
Half-yearly financial results for the six months ended 30 June 2023
Robert Walters Group, the leading international recruitment group, today announces its half-yearly financial results for the six months ended 30 June 2023.
Toby Fowlston, Chief Executive Officer, said: “The reduced client and candidate confidence levels that the Group first signalled during the second half of last year have yet to show sustained signs of improvement across many of the Group’s markets and specialist disciplines. As a result, Group net fee income for the first half of 2023 declined 5% in constant currency against a record prior year comparative. Contract and interim recruitment have outperformed permanent, as organisations increasingly sought more flexible solutions to their hiring needs.
“Our Europe and Asia Pacific regions, which together account for 76% of Group net fee income have proven to be most resilient, with the impact more acutely felt in our UK, US and Mainland China businesses, particularly across permanent recruitment, where confidence to hire and confidence to move jobs has been most noticeably affected.
“In the face of current trading pressures, we intend to protect the Group’s strategic core, focus on consultant productivity and sensibly manage our cost base whilst continuing to prudently invest in attracting and developing our people and our global infrastructure for the long-term.
“We have a strong global brand and balance sheet, a diverse international footprint, a healthy blend of revenue streams across all forms of recruitment and talent advisory solutions, all of which ensure we are very well placed to swiftly capitalise on a return of market confidence over the longer term.”
Financial and operational highlights
| H1 2023 | H1 2022 |
% change | % change (constant currency*) | |
| Revenue | £548.3m | £538.6m | 2% | 1% |
| Gross profit (net fee income) | £202.3m | £210.5m | (4%) | (5%) |
| Operating profit | £11.2m | £27.7m | (60%) | (57%) |
| Profit before taxation | £8.1m | £26.4m | (70%) | (67%) |
| Basic earnings per share | 7.8p | 27.5p | (72%) | n/a |
| Interim dividend per share | 6.5p | 6.5p | 0% | n/a |
Group highlights
- Group net fee income (gross profit) down 4% (5%*) to £202.3m (£199.7m*) (2022: £210.5m) against a record prior year. Candidate and client confidence levels have yet to show sustained improvement across many of the Group’s markets and specialist disciplines.
- Contract and interim recruitment have outperformed permanent, as organisations increasingly sought more flexible solutions to their hiring needs.
- Contract and interim recruitment now represent 33% of the Group’s net fee income (2022: 29%).
- 84% of the Group’s net fee income (2022: 82%) now derived from our international businesses.
- Our Europe and Asia Pacific regions, which together account for 76% of Group net fee income have proven to be most resilient, with the adverse impact most acutely felt in our UK, US and Mainland China businesses.
- Group headcount is up 6% year-on-year to 4,280 (30 June 2022: 4,051) but down 3% quarter-on-quarter, largely due to natural attrition, in line with more challenging trading conditions.
- Over the last two years, the Group has invested in attracting and developing our people and in evolving our global infrastructure and intends to continue to protect our strategic core whilst sensibly managing our cost base.
- Strong balance sheet with net cash of £69.8m as at 30 June 2023 (30 June 2022: £81.8m).
- Interim dividend maintained at 6.5p per share (2022: 6.5p).
- Current trading remains in line with Board expectations.
Regional highlights
- Asia Pacific (43% of Group net fee income)
- Net fee income down 7% (6%*) to £87.2m (£87.9m*) (2022: £93.7m) and operating profit down 47% (44%*) to £8.6m (£9.1m*) (2022: £16.2m).
- Europe (33% of Group net fee income)
- Net fee income up 9% (5%*) to £66.5m (£63.9m*) (2022: £61.1m) and operating profit down 41% (45%*) to £4.3m (£4.0m*) (2022: £7.3m).
- UK (16% of Group net fee income)
- Net fee income down 15% to £32.3m (2022: £38.0m) producing an operating profit of £0.1m (2022: £3.6m).
- Rest of World (the Americas, Middle East and South Africa) (8% of Group net fee income)
- Net fee income down 8% (12%*) to £16.3m (£15.5m*) (2022: £17.7m) producing an operating loss of £1.8m (operating loss of £1.3m*) (2022: operating profit of £0.6m).
The Company will publish a trading update for the third quarter ending 30 September 2023 on 10 October 2023.
Further information
Robert Walters plc +44 (0) 20 7379 3333
Toby Fowlston, Chief Executive Officer
Alan Bannatyne, Chief Financial Officer
Williams Nicolson +44 (0) 77 6734 5563
Steffan Williams
About Robert Walters Group
The Robert Walters Group is a market-leading international specialist professional recruitment group. With over 4,200 staff spanning 31 countries, we deliver specialist recruitment consultancy, staffing, recruitment process outsourcing and managed services across the globe. We match highly skilled professionals to permanent, contract and interim roles across the disciplines of accountancy & finance, banking, engineering, HR, healthcare, technology, legal, sales, marketing, secretarial & support, and supply chain, logistics & procurement. Our client base ranges from the world’s leading blue-chip corporates and financial services organisations through to SMEs and start-ups.
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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