Robert Walters reports 'record' first half performance

(Sharecast News) - Recruitment group Robert Walters reported a "record" first half performance on Thursday, with group net fee income up 27% to £210.5m, and its operating profit rising 15% year-on-year to £27.7m.

The London-listed company said its revenue was 15% higher year-on-year for the six months ended 30 June, at £538.6m, while its profit before tax grew 19% to £26.4m.

Basic earnings per share came in at 27.5p, up 32% on the first half of 2021, as the board hiked the interim dividend by 20% to 6.5p.

Robert Walters reported "acute" talent shortages and wage inflation across all geographies and specialist professional disciplines, with "fierce competition" for talent as demand continued to outstrip supply.

It said recruitment activity levels were strong across all forms of recruitment - permanent, contract, interim and recruitment process outsourcing.

Permanent recruitment now represented 71% of the group's net fee income, compared to 67% last year, while 82% of its net fee income was now derived from its international businesses, compared to 79%.

During the half, Robert Walters opened its first office in Italy, in Milan, while its total headcount expanded 16% over the six months to 4,051.

It said its "hybrid" working model continued to operate successfully across the globe, underpinned by its long-term investment in technology.

The company purchased 2,024,071 shares at an average price of 625p each for £12.7m through its employee benefit trust in the period, while its board authorised a share buyback of up to £10m shares for cancellation.

Its directors described the balance sheet as "strong", with net cash of £81.8m as at 30 June, compared to £122.8m a year earlier.

"The group delivered a record first half performance with all regions growing both net fee income and operating profit," said Robert Walters' namesake chief executive officer, Robert Walters.

"An acute shortage of professionals coupled with growing wage inflation has resulted in a significant increase in job churn and a fierce competition for talent across all of the group's geographies and specialist disciplines."

Walters said the firm was continuing to invest in additional headcount during the half-year, to ensure it could further capitalise on the current, global demand for talent.

"Looking ahead, we are yet to see signs of any slowdown in job market activity despite the volatile macro-economic backdrop and inflationary pressure that is being experienced across global markets.

"Current trading remains in line with the recently upwardly revised market expectations."

Robert Walters said it would update the market on its third quarter of trading for the three months ending 30 September on 11 October.

At 0810 BST, shares in Robert Walters were up 3.19% at 536.6p.

Reporting by Josh White at Sharecast.com.

Robert Walters