Robert Walters sees FY profit 'comfortably ahead' of market expectations

(Sharecast News) - Recruiter Robert Walters said on Thursday that full-year profit was set to be "comfortably ahead" of market expectations after strong third-quarter trading.
The group reported a 26% jump in Q3 gross profit to £91.8m, with Asia Pacific seeing the strongest growth, of 46% to £44.4m. Meanwhile, UK profit rose 17% to £18.7m and Europe profit was up 15% at £22.7m.

In Asia Pacific, Japan and Australia - the two most profitable businesses in the region - delivered "excellent" performances, with net fee income in excess of 40% year-on-year. Robert Walters said mainland China "continued to go from strength-to-strength", with net fee income doubling year-on-year for the second consecutive quarter.

As far the UK is concerned, candidate and client confidence accelerated across both London and the UK regions, with recruitment activity levels highest across the legal, technology and commerce finance disciplines. Activity levels in Resource Solutions, the group's recruitment process outsourcing business, remained strong, in line with increasing client demand.

Chief executive Robert Walter noted that the profit jump had been achieved despite the majority of markets in its largest and most profitable region, Asia Pacific, experiencing full or significant lockdowns for much of the period.

"With candidate and client confidence accelerating across all recruitment disciplines and candidate shortages becoming ever more acute, the competition for talent is fierce," he said.

"Significant wage inflation has emerged particularly for the most sought after skill-sets. In short, the jobs market is hot.

"I am pleased to report that the group has once again benefited from operational gearing and that profit for the full year is expected to be comfortably ahead of current market expectations."