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Late buy reported - the reason why the price shot up! 15:04:08 at a price of 337.9356, 8,000 shares for £27.03k
19.75 (+6.17%) increasing volumes this afternoon
Buying interest today, final results expected 26th February
Watch the directors' trades Over years the Walters' executive directors have proved canny at concerted trades that are six to nine months later seen as astute. Their last was 10 June when three added a total 93,915 shares at 315p, and although the price dipped to 273p during the autumn their medium-term judgment has proven correct by way of strong Q4 2014 progress. On 17 October the non-executive chairman added 10,000 shares at 283.5p, similarly astute. The chief executive - founder, Robert Walters - in particular tends to exercise care with his outlook statements and equity exposure, witness the caution about economic volatility in some of the group's largest markets. Ahead of results due 26 February the closed period will constrain share trading; but the directors' actions thereafter will need watching. So at 330p this stock has further upside potential ahead of strong results due and the prospect of European QE. If the directors then guide forecasts even higher and hold onto their stock, it will retain its appeal as a momentum play. But any selling will emphasise how exposed is the rating versus economic risks lurking.
http://www.iii.co.uk/articles/215950/stockwatch%3A-momentum-play-if-economic-recovery-lasts
"The Group continued to perform strongly in the fourth quarter. This excellent finish to the year means net fee income for the full year is £214.9m (£199m in 2013)" £250m market cap today Black Rock increasing their holding to 14.12% on December 23rd at approx 311-312p One to watch
Robert Walters: Investec buts target price from 237p to 235p maintaining a buy recommendation.
Robert Walters: Shore Capital downgrades to hold.
Meanwhile, the Questor team at The Independent has labelled recruitment group Robert Walters as a 'hold', after the firm said yesterday that the global economic backdrop is taking its toll on the industry with trading conditions tough in the UK, Europe and the Americas.
Robert Walters: Seymour Pierce keeps sell stance and 165p target; Panmure Gordon keeps sell rating and 127p target.
Robert Walters, Chief Executive, commented: "These are solid results, given a global economic backdrop that continues to be challenging. Trading conditions in the UK, Continental Europe, the Americas and South Africa remained broadly unchanged in the third quarter, whilst Asia Pacific has continued to be impacted by the ongoing weakness in the financial services sector. "The management structures that we have in place have always allowed us to react swiftly to market conditions; and our international brand strength, geographic and discipline diversity and experienced management team leave us well placed to meet these challenges and continue to deliver positive results." The Group will publish its fourth quarter and full year trading update on 8 January 2013.
· Solid third quarter results with Group net fee income up 3% on a constant currency basis. Overall, Group trading in line with expectations. · Sequential quarter on quarter growth in Asia Pacific. · Group completed the purchase of the remaining minority interest of its China business. · Resource Solutions, the Group's recruitment outsourcing business, has performed strongly and won a number of new clients. This is largely responsible for Group headcount increasing to 2,273 (30 June 2012: 2,159). · Strong net fee income growth rates in France and Germany. · Balance sheet remains strong with current net cash of £6.0m (30 June 2012: £4.5m).
http://www.investegate.co.uk/Article.aspx?id=201210040700098842N
Tempus also gives a warning on recruitment firms after the results of Robert Walters showed operating profits fell sharply in the first half. The group is trying to build up its resources recruitment business following a very difficult period in banking but this is taking time. The column thinks “the tide will turn” for recruiters but with the stock trading at 16 times earnings, the advice is hold.
Outlook Current trading remains difficult necessitating close management of the Group's cost base, particularly in those locations where market conditions are most challenging. We will continue to selectively invest in the long-term geographic growth and diversification of the Group and are confident that this strategy, combined with our strong balance sheet, market-leading global brand and experienced management team, will ensure that the Group is well positioned for the future.
Robert Walters, Chief Executive, commented: "Current trading remains difficult necessitating close management of the Group's cost base, particularly in those locations where market conditions are most challenging. We will continue to selectively invest in the long-term geographic growth and diversification of the Group and are confident that this strategy, combined with our strong balance sheet, market-leading global brand and experienced management team, will ensure that the Group is well positioned for the future."
OPERATIONAL HIGHLIGHTS · Resilient performance with Group net fee income up 4% against a backdrop of deteriorating market conditions, particularly during the second quarter. · Continued investment in the Group's long-term growth: o New offices opened in San Francisco, Rio de Janeiro, Milton Keynes and Parramatta. The Group now has 51 offices in 23 countries (2011: 44 offices in 21 countries). o Group headcount of 2,159 (2011: 1,932). o Average headcount increased by 15%. · Net fee income increased across all of the Group's regions. · Asia Pacific increased net fee income by 3% (0%*) to £45.9m (2011: £44.5m). o Region impacted by banking sector slowdown. o Tough year-on-year comparatives, particularly in the second quarter. o Continued diversification into other specialist disciplines expected to deliver growth in the second half. · UK net fee income grew by 5% to £23.9m (2011: £22.9m). o Respectable performance despite difficult market conditions. o Strong growth from Resource Solutions, the Group's recruitment process outsourcing business. · Europe net fee income up by 3% (8%*) to £19.9m (2011: £19.4m). o Strong performance in France and Germany, the region's largest and newest business respectively. · Americas and South Africa net fee income up by 11% (16%*) to £2.7m (2011: £2.4m). · Good balance of permanent (69%) and contract (31%) recruitment net fee income (2011: 71%:29%).
Half-yearly financial results for the six months ended 30 June 2012 FINANCIAL HIGHLIGHTS · Revenue of £275.0m (2011: £241.6m). · Net fee income (gross profit) of £92.4m (2011: £89.1m). · Operating profit of £3.4m (2011: £7.2m). · Profit before taxation of £3.1m (2011: £7.1m). · Basic earnings per share of 2.9p (2011: 6.5p). · Interim dividend maintained at 1.47p per share (2011: 1.47p). · Net cash of £4.6m as at 30 June 2012 (30 June 2011: £10.7m).
http://www.investegate.co.uk/Article.aspx?id=201208020700121109J
Panmure Gordon reiterated its "sell" recommendation for Robert Walters (RWA), with a reduced target price of 127p, from 131p. The job agency reported that weak demand from the banking sector lead to a 5% decline in both Asian and European profits and the broker believes this trend is likely to persist into 2013. As a result, Panmure cut its earnings per share forecasts by 19.3% to 7.1p for 2012 and 28.6% to 8.5p in 2013, putting the shares on a prospective multiple of 26.9 times for 2012 falling to 22.5 times in 2013. The shares tumbled by 5p to 191p.
Robert Walters, Chief Executive, said: "We have delivered a stable performance against a backdrop of deteriorating conditions in the global financial markets. This has been achieved by a long term strategy of investing in territories that offer the best growth prospects and we are also ensuring that we maintain a leading position in our more established markets. We are continuing with this strategy with new offices opened in the UK, Australia and Brazil. "We have a strong balance sheet and an experienced management team. We will continue to maintain our presence in the territories where market conditions are challenging, whilst also investing in the business for the long term to take advantage of growth opportunities in new and emerging markets." As at June 30th, the company had net cash of £4.5m (June 30th 2011: £10.7m).
A banking sector slow-down in the Asia Pacific put a dent in net fee income in the second quarter at recruitment firm Robert Walters. Group profit in the second quarter fell 3 per cent, or 2 per cent on a constant currency basis, from £49.2m a year ago to £47.6m this time round, which the group hailed as a "stable performance" against a deteriorating market. Regionally, in the UK net fee income was flat at £12.1m, in Europe it fell five per cent from £10.5m to £10.0m, in the Americas and South Africa it rose four per cent from £1.5m to £1.6m, and in the Asia Pacific region it declined five per cent from £25.1m to £23.9m. The company was keen to emphasise that Resource Solutions, its recruitment outsourcing business, performed strongly during the three month period, but admitted Europe was affected by ongoing Eurozone financial and political uncertainty.
Robert Walters, Chief Executive, commented: "We have delivered a stable performance against a backdrop of deteriorating conditions in the global financial markets. This has been achieved by a long term strategy of investing in territories that offer the best growth prospects and we are also ensuring that we maintain a leading position in our more established markets. We are continuing with this strategy with new offices opened in the UK, Australia and Brazil. "We have a strong balance sheet and an experienced management team. We will continue to maintain our presence in the territories where market conditions are challenging, whilst also investing in the business for the long term to take advantage of growth opportunities in new and emerging markets." The Group will publish its Half-yearly Financial Results for the six months ended 30 June 2012 on 2 August 2012.
· Stable second quarter performance against deteriorating market. · Asia Pacific impacted by banking sector slowdown; successful diversification into other disciplines expected to deliver return to growth in the second half. · Resource Solutions, the Group's recruitment outsourcing business, performed strongly. · Europe was impacted by ongoing Eurozone financial and political uncertainty, although France and Germany produced net fee income growth. · Three new offices opened during the period - Milton Keynes, Parramatta and Rio de Janeiro. The Group now has 51 offices in 23 countries. · Balance sheet remains strong, with net cash of £4.5m as at 30 June 2012 (30 June 2011: £10.7m). · Group headcount of 2,159 (31 December 2011: 2,047).
http://www.investegate.co.uk/Article.aspx?id=201207050700079636G