Robert Walters backs annual targets, eyes Mid-East impact as fees fall

(Alliance News) - Robert Walters PLC on Wednesday said first-quarter trading was in line with expectations, though net fees edged lower on-year.

The London-based recruitment firm estimated net fees had fallen 2% at constant currency in the three months ended March 31, including a 5% decline in specialist recruitment, offset by 13% growth in recruitment outsourcing.

Within specialist recruitment, permanent roles decreased by 2%, while temporary placements fell 11%.

Net fees for specialist recruitment slipped to GBP65.2 million from GBP67.3 million a year prior. Europe saw the steepest decline of 13% on a reported basis to GBP19.1 million, as hiring conditions "remained generally tough".

Asia Pacific fees declined 1% to GBP27.2 million, though Japan returned to growth, while the UK edged up 1% to GBP12.6 million. Rest of World fell 16%, with the Middle East down 15% "against the backdrop of geopolitical tension" while the Americas grew 11%.

Chief Executive Toby Fowlston commented: "It was encouraging that the momentum we saw in the second half of last year in certain specialist recruitment markets, such as the UK, Spain and New Zealand, continued into the early months of 2026. Furthermore, Japan, the group's largest market, also returned to growth after a tough last quarter.

That said, market conditions in northern Europe remained challenging overall. Elsewhere in the group, we were encouraged to see our recruitment outsourcing business return to growth for the first time since late 2022.

Fowlston continued: "Whilst the hiring market impact of the Middle East conflict appears to remain, at this point, limited to the region itself, we remain mindful of the potential downstream macroeconomic impact in other markets should tensions be protracted, and our guidance for 2026 group net fees remains unchanged."

The company ended March with GBP20.1 million in net cash, down slightly from GBP26.2 million at December 31, but nonetheless "in-line with the board's expectations and reflecting the typical seasonal profile", Robert Walters said. It expects to end 2026 with a stable net cash position compared to a year prior.

The firm's headcount was down 10% to 2,880 people at the end of March from 3,202 on-year.

Robert Walters shares rose 3.6% to 87.60 pence on Wednesday around noon in London.

By Holly Munks, Alliance News reporter

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