(Alliance News) - Robert Walters PLC on Thursday said that "challenging macro-economic conditions" had affected profit across all markets, but the group said it intends to "capitalise on growth opportunities" in 2024.
The London-based recruitment firm said gross profit totalled GBP91.4 million for the quarter ended December 31, down 13% from GBP105.3 million a year before.
Quarterly profit for the Asia Pacific region, comprising 43% of the group's gross profit, fell 15% to GBP13.6 million from GBP46.8 million a year ago. While the group said that performance was strong in Japan, its largest single market, this was undone by "muted" conditions in Australia and a flat performance in south east Asia.
In Europe, Robert Walters' second largest market, profit fell to GBP30.5 million from GBP32.8 million, while UK profit dropped 19% to GBP13.8 million.
The group said that pretax profit for the full year remains in line with market expectations at GBP20.5 million, more than halved from GBP55.6 million in 2022.
However, Robert Walters said that its balance sheet "remains strong", with GBP79.8 million in net cash as of December 31.
Looking ahead, Chief Executive Officer Toby Fowlston said: "Despite the challenging macro-economic conditions, the group has delivered a resilient fourth quarter and 2023 profit before tax will be in-line with market expectations. We have a healthy blend of income streams, a highly diversified international footprint, and a strong global brand and balance sheet. I am very proud of our people and how we continue to work through this period of market uncertainty.
"We remain confident in the long-term structural drivers that underpin demand for our services. Our ongoing focus on productivity, our management of costs, and commitment to retaining core consultant capacity, positions us well to capitalise on growth opportunities when conditions improve."
Full year results for the group will be published on March 7.
Shares in Robert Walters were up 3.7% at 425.00 pence each in London on Thursday morning.
By Hugh Cameron, Alliance News reporter
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Robert Walters (RWA)