Robert Walters Regulatory News (RWA)

1 March 2018

ROBERT WALTERS PLC

(the "Company", or the "Group")

Results for the year ended 31 December 2017

OPERATING PROFIT UP 60%; DIVIDEND UP 50%

Robert Walters plc (LSE: RWA), the leading international recruitment group, today announces its results for the year ended 31 December 2017.

Financial and Operational Highlights

* Constant currency is calculated by applying prior period exchange rates to local currency results for the current and prior periods.

§ Record performance with operating profit increasing by 60% (54%*) to £41.9m (2016: £26.2m) and profit before taxation increasing by 44% (50%*) to £40.6m (2016: £28.1m).

§ 71% of the Group's net fee income derived from outside of the UK.

§ All regions grew both net fee income and operating profit.

§ Asia Pacific net fee income up 16% (11%*) to £136.6m (£131.1m*) (2016: £117.6m) and operating profit up 21% (14%*) to £17.7m (£16.8m*) (2016: £14.7m).

§ In Asia, growth continued to be broad-based across both established and emerging markets with Japan, Hong Kong, Vietnam and Indonesia all delivering excellent results.

§ Good performance across Australia and a record set of results in New Zealand.

§ Resource Solutions won several new multi-country contracts across the region.

§ UK net fee income up 16% to £100.9m (2016: £86.7m) producing an 84% increase in operating profit to £11.8m (2016: £6.4m).

§ Activity levels in London were strongest across technology, legal and financial services. In the regions, Manchester and St. Albans were the standout performers.

§ Resource Solutions delivered impressive net fee income growth and entered new industry sectors winning clients in retail, mobile telecommunications, fintech and property management.

§ Europe net fee income up 34% (26%*) to £80.6m (£75.5m*) (2016: £60.1m) and operating profit increased 168% (149%*) to £11.3m (£10.5m*) (2016: £4.2m).

§ Outstanding performance across the region.

§ Belgium, Germany, Portugal, the Netherlands and Spain all delivered net fee income growth in excess of 20% year-on-year.

§ Our French business, our largest in the region, grew net fee income by 18% and delivered a significant increase in operating profit.

§ Blend of permanent, contract and interim recruitment businesses is a pillar of strength and point of differentiation.

§ Other International (Brazil, Canada, South Africa, the Middle East and the USA) net fee income up 93% (87%*) to £27.1m (£26.2m*) (2016: £14.0m) and operating profit increased by 16% (41%*) to £1.1m (£1.3m*) (2016: £0.9m).

§ Strongest growth across the North America region. Market conditions in Brazil remain challenging but encouraging to see our local business deliver net fee income growth in excess of 50%.

§ Group headcount increased by 17% to 3,793 (2016: 3,229).

§ The Group purchased 2.1m shares at an average price of £3.79 for £8.0m which were subsequently cancelled. An additional 0.4m shares have also been purchased at an average price of £4.03 for £1.8m through the Group's Employee Benefit Trust.

§ Strong balance sheet with net cash of £31.1m as at 31 December 2017 (31 December 2016: £22.5m).

Robert Walters, Chief Executive, said:

"The Group delivered a record performance in 2017 increasing operating profit by 60% year-on-year. We continued to benefit from both our international footprint which covers 28 countries including many of the world's fastest-growing and exciting recruitment markets and our blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing.

"The Group has successfully maintained the momentum of 2017 and started the year strongly. As a result, we look ahead with confidence."

The Company will be holding a presentation for analysts at 11.00am today at Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London EC2V 5DE.

The Company will publish an interim management statement for the first quarter ending 31 March 2018 on 10 April 2018.

Further information

About Robert Walters

Robert Walters is a market-leading international specialist professional recruitment group with over 3,700 staff spanning 28 countries. We specialise in the placement of the highest calibre professionals across the disciplines of accountancy and finance, banking, engineering, HR, IT, legal, sales, marketing, secretarial and support and supply chain and procurement. Our client base ranges from the world's leading blue-chip corporates and financial services organisations through to SMEs and start-ups. The Group's outsourcing division, Resource Solutions is a market leader in recruitment process outsourcing and managed services.

www.robertwalters.com

Forward looking statements

This announcement contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them at the time of their approval of this announcement and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

Robert Walters plc

Results for the year ended 31 December 2017

Chairman's Statement

The Group delivered an outstanding performance in 2017, increasing profit before taxation by 44% (50%*) to a record £40.6m (2016: £28.1m). All of the Group's regions delivered increases in both gross profit (net fee income) and operating profit and 71% (2016: 69%) of the Group's net fee income is now derived from overseas businesses.

Revenue was up 17% (14%*) to £1.2bn (2016: £1.0bn) and net fee income increased by 24% (20%*) to £345.2m (2016: £278.3m). Operating profit was up 60% (54%*) to £41.9m (2016: £26.2m) and earnings per share increased by 55% to 42.9p per share (2016: 27.7p per share). The Group further strengthened its balance sheet with net cash of £31.1m as at 31 December 2017 (31 December 2016: £22.5m). The Group's ratio of permanent and contract recruitment net fee income is 68% permanent to 32% contract (2016: 69%:31%).

During the year, headcount increased by 17% to 3,793 (2016: 3,229). Headcount investment is highest in those regions and business units demonstrating the strongest potential for accelerated growth.

The Board will be recommending a 50% increase in the final dividend to 9.3p per share which combined with the interim dividend of 2.75p per share would result in a 42% increase in the total dividend to 12.05p per share (2016: 8.5p).

In 2017, the Group purchased 2.1m shares at an average price of £3.79 for £8.0m, which were subsequently cancelled. An additional 0.4m shares were purchased at an average price of £4.03 for £1.8m through the Group's Employee Benefit Trust. The Board is authorised to re-purchase up to 10% of the Group's issued share capital and will be seeking approval for the renewal of this authority at the Annual General Meeting on 17 May 2018.

As recently announced, I will be stepping down from my role as the Group's Non-executive Chairman on 1 March. It has been a privilege to serve on the Board for the past five years and I have absolutely no doubt that the Robert Walters Group will continue to go from strength to strength. I would like to take this opportunity, one final time, to thank all of the Group's staff for their hard work and support in delivering a high-quality service to our candidates and clients.

Leslie Van de Walle

Chairman

28 February 2018

Chief Executive's Statement

Review of Operations

The Group's ability to deliver its best ever performance was, once again, testament to the success of our long-term strategy for growth; founded on the two pillars of international expansion and discipline diversification.

Our international footprint covers 28 countries, and most crucially, encompasses some of the world's fastest growing and exciting recruitment markets as well as more mature and well-established locations that continue to have significant scope for additional growth.

The breadth of solutions we can provide to our clients, from permanent, contract and interim recruitment through to recruitment process outsourcing is also a key point of differentiation in our ability to provide a true end-to-end recruitment offering to both candidates and clients.

Asia Pacific (40% of Group net fee income)

Revenue was £370.2m (2016: £348.6m) and net fee income increased by 16% (11%*) to £136.6m (£131.1m*) (2016: £117.6m) and operating profit increased by 21% (14%*) to £17.7m (£16.8m*) (2016: £14.7m).

One of the key strengths of the Group is its presence in both established and emerging recruitment markets and nowhere is this more prevalent than in Asia Pacific. The Group operates in 13 countries and has an unrivalled footprint across the region.

In Asia, the Group's most profitable single country, Japan, enjoyed yet another record year in both Tokyo and Osaka, reinforcing our market leading position in this exciting market. Hong Kong, another of the Group's well-established scale businesses, also had a record year whilst market conditions in Singapore remained more challenging. Across our emerging markets, all businesses delivered record performances and continued to grow net fee income and market share.

Australia had a good year and a particularly strong fourth quarter, benefiting from our footprint of offices covering five states; our focus on margin growth in the SME market; and high growth disciplines such as technology, digital and contract. New Zealand had a record year with the Group's successful sponsorship of the recent British & Irish Lions Tour helping to further build our brand profile and market leading position.

Resource Solutions continued to grow its client base across the region, winning a number of multi-country contracts with new clients. A new Global Service Centre was opened in Manila during the year to complement our existing site in India.

UK (29% of Group net fee income)

Revenue was £569.6m (2016: £480.6m), net fee income increased by 16% to £100.9m (2016: £86.7m) and operating profit increased by 84% to £11.8m (2016: £6.4m).

In the UK and particularly in London and the South East, candidate and client confidence levels remain somewhat cautious. However, activity levels in certain sectors and disciplines were strong. In London, growth was strongest across technology, legal, financial services and commerce finance. In the regions, growth was broad-based with St. Albans and Manchester in particular delivering the strongest rates of growth, benefiting from a focus on SMEs and the trend of a number of large businesses moving operations outside of London.

Resource Solutions continued to deliver impressive rates of growth and encouragingly won several clients in new industry sectors including retail, mobile telecommunications, fintech and property management.

Europe (23% of Group net fee income)

Revenue was £189.1m (2016: £147.0m), net fee income increased by 34% (26%*) to £80.6m (£75.5m*) (2016: £60.1m) and operating profit increased by 168% (149%*) to £11.3m (£10.5m*) (2016: £4.2m).

The Group has a geographic footprint that spans nine countries. Performance was outstanding across the region with both net fee income and operating profit increasing significantly year-on-year.

Belgium, Germany, Portugal, the Netherlands and Spain all delivered net fee income increases in excess of 20%. Our French business, our largest in the region, grew net fee income by 18% and delivered a significant increase in operating profit.

Other International (8% of Group net fee income)

Other International encompasses Brazil, Canada, South Africa, the Middle East and the USA. Revenue was £36.9m (2016: £22.3m), net fee income increased by 93% (87%*) to £27.1m (£26.2m*) (2016: £14.0m) and operating profit increased by 16% (41%*) to £1.1m (£1.3m*) (2016: £0.9m).

Market conditions in Brazil remain challenging but it has been positive to see our business deliver in excess of 50% growth in net fee income year-on-year. Our new business in Canada has started well whilst in the US, although financial services remains tough, other market sectors, particularly technology and digital continue to be strong. The Middle East was largely flat year-on-year whilst in South Africa, we are seeing good growth from Sub-Saharan markets as our brand presence grows across the region.

Board Changes

Leslie Van de Walle will be stepping down from his role as Non-executive Chairman on 1 March 2018. On behalf of myself and the Board, I would like to thank Leslie for his strong contribution to the Group over the last five years and wish him all the best for the future. Carol Hui, who is currently Senior Independent Director will step up to the role of Non-executive Chairman whilst Brian McArthur-Muscroft will take on the role of Senior Independent Director. The Board is in the process of identifying an additional Non-executive Director.

Outlook

The Group has successfully maintained the momentum of 2017 and started the year strongly. As a result, we look at the year ahead with confidence.

Robert Walters

Chief Executive

28 February 2018

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF ROBERT WALTERS PLC ON THE PRELIMINARY ANNOUNCEMENT OF ROBERT WALTERS PLC

As the independent auditor of Robert Walters plc we are required by UK Listing Rule LR 9.7A.1(2)R to agree to the publication of Robert Walters plc's preliminary announcement statement of annual results for the year ended 31 December 2017.

The preliminary statement of annual results for the year ended 31 December 2017 includes financial and operational highlights, the Chief Executive's Statement, the Chairman's Statement and summarised financial statements. We are not required to agree to the publication of the presentation to analysts.

The directors of Robert Walters plc are responsible for the preparation, presentation and publication of the preliminary statement of annual results in accordance with the UK Listing Rules.

We are responsible for agreeing to the publication of the preliminary statement of annual results, having regard to the Financial Reporting Council's Bulletin "The Auditor's Association with Preliminary Announcements made in accordance with UK Listing Rules".

Status of our audit of the financial statements

Our audit of the annual financial statements of Robert Walters plc is complete and we signed our audit report on 28 February 2018. Our audit report is not modified and contains no emphasis of matter paragraph.

Our audit report on the full financial statements sets out the following key audit matters which had the greatest effect on our overall audit strategy; the allocation of resources in our audit; and directing the efforts of the engagement team, together with how our audit responded to those key audit matters and the key observations arising from our work:

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we did not provide a separate opinion on these matters.

Procedures performed to agree to the preliminary announcement of annual results

In order to agree to the publication of the preliminary announcement of annual results of Robert Walters plc we carried out the following procedures:

(a) checked that the figures in the preliminary announcement covering the full year have been accurately extracted from the audited financial statements and reflect the presentation to be adopted in the audited financial statements;

(b) considered whether the information (including the management commentary) is consistent with other expected contents of the annual report;

(c) considered whether the financial information in the preliminary announcement is misstated;

(d) considered whether the preliminary announcement includes a statement by directors as required by section 435 of CA 2006 and whether the preliminary announcement includes the minimum information required by UKLA Listing Rule 9.7A.1;

(e) where the preliminary announcement includes alternative performance measures ("APMs"), considered whether appropriate prominence is given to statutory financial information and whether:

· the use, relevance and reliability of APMs has been explained;

· the APMs used have been clearly defined, and have been given meaningful labels reflecting their content and basis of calculation;

· the APMs have been reconciled to the most directly reconcilable line item, subtotal or total presented in the financial statements of the corresponding period; and

· comparatives have been included, and where the basis of calculation has changed over time this is explained.

(f) read the management commentary and any other narrative disclosures and considered whether they are fair, balanced and understandable.

Use of our report

Our liability for this report, and for our full audit report on the financial statements is to the company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for our audit report or this report, or for the opinions we have formed.

John Charlton FCA (Senior statutory auditor)

For and on behalf of Deloitte LLPStatutory Auditor

London, United Kingdom

28 February 2018

Consolidated Income Statement

FOR THE YEAR ENDED 31 DECEMBER 2017

The amounts above relate to continuing operations.

Consolidated Statement of Comprehensive Income

FOR THE YEAR ENDED 31 DECEMBER 2017

Consolidated Balance Sheet

AS AT 31 DECEMBER 2017

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 31 DECEMBER 2017

Consolidated Statement of Changes in Equity

FOR THE YEAR ENDED 31 DECEMBER 2017

¹An immaterial adjustment of £1.25 million has been made to increase brought forward retained earnings. £0.195 million of this adjustment is related to the 2015 financial year. The adjustment was made in order to recognise two changes in the prior year in the application of the revenue recognition policy in part of the business (the impact on the equivalent balance sheet and income statement captions is similarly immaterial).

The first change relates to permanent placements. These were previously recognised by this component when a candidate started a position. However, given the maturity of the market for this part of the business, the Group considers that it is more appropriate to recognise this revenue when the candidate accepts a position and the start date is determined, in line with the rest of the Group, as this reflects the underlying agreements. A provision is made for candidates who fail to start employment after accepting the offer and is based on the historic rate of 'back-outs'. The adjustment has not been treated as a change in accounting policy, under IAS 8, as it is not material.

The second change relates to temporary placements. The adjustment made is to recognise the impact of timesheets received after the year‑end date, where work was performed during the 2016 financial year. The adjustment has also not been treated as a change in accounting policy, under IAS 8, as it is not material.Statement of Accounting Policies

FOR THE YEAR ENDED 31 DECEMBER 2017

Robert Walters plc is a public Company limited by shares incorporated and domiciled in the UK under the Companies Act. The financial report for the year ended 31 December 2017 has been prepared in accordance with the historic cost convention and with International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations as adopted for use by the European Union, though this announcement does not itself contain sufficient information to comply with IFRSs.

The Group had net cash of £31.1m at 31 December 2017. Despite the volatile and uncertain global economic conditions, the Group remains confident of its long-term growth prospects. The Group has a strong balance sheet and considerable financial resources, together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully. After making enquiries, the Directors have formed a judgement, at the time of approving the accounts, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the accounts.

The financial information in this announcement, which was approved by the Board of Directors on 28 February 2018, does not constitute the Company's statutory accounts for the year ended 31 December 2017 but is derived from these accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered following the Company's Annual General Meeting. The auditors have reported on these accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The Annual General Meeting of Robert Walters plc will be held on 17 May 2018 at 11 Slingsby Place, St Martin's Courtyard, London WC2E 9AB.

* For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.

The analysis of revenue by destination is not materially different to the analysis by origin and the analysis of finance income and costs are not significant.

All transactions between reportable segments were undertaken on an arms-length basis.

The Group is divided into geographical areas for management purposes, and it is on this basis that the segmental information has been prepared.

*For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.

The carrying value of goodwill primarily relates to the acquisition of Talent Spotter in China (£1,199,000) and the acquisition of the Dunhill Group in Australia (£6,847,000). The historical acquisition cost of Talent Spotter was £768,000, with the movement to the current carrying value a result of foreign currency translation differences. Goodwill is tested annually for impairment, or more frequently if there are indications that goodwill might be impaired. The recoverable amount of the goodwill is based on value-in-use in perpetuity. The key assumptions in the value-in-use are those regarding expected changes to cash flow during the period, growth rates and the discount rates.

Estimated cash flow forecasts are derived from the most recent financial budgets and an assumed average growth rate of 5% for years two and three, which does not exceed the long-term average potential growth rate of the respective operations. The forecast for revenue and costs as approved by the Board reflect the latest industry forecasts and management expectations based on past experience.

The value of the cash flows is then discounted at a post-tax rate of 10.5% (pre-tax rate of 14.4%), based on the Group's estimated weighted average cost of capital and risk adjusted depending on the location of goodwill. The weighted average cost of capital has also been adjusted for a terminal growth rate, between 2-3% depending on location, for year four onwards.

Management has undertaken sensitivity analysis taking into consideration the impact in key assumptions. This included reducing the cash flow from year two onwards by 0%, 10% and 20% in absolute terms. The sensitivity analysis shows no impairment would arise under each scenario.

Included within accrued income is a provision against the cancellation of placements where a candidate may reverse their acceptance prior to the start date. The value of this provision as of 31 December 2017 is £1,892,000 (31 December 2016: £1,716,000). The movement in this provision during the year is a charge to administrative expenses in the income statement of £176,000 (2016: £266,000).

There is no material difference between the fair value and the carrying value of the Group's trade and other payables.

In January 2017, the Group renewed and extended to four years its committed financing facility of £45m which expires in December 2020. At 31 December 2017, £30.2m (2016: £38.9m) was drawn down under this facility. The Group also has a non-recourse £15m facility.

The Group has a short-term facility of Renminbi 25m (£2.9m) of which Renminbi 5m (£0.6m) was drawn down as at 31 December 2017. The loan is secured against cash deposits in Hong Kong.

The Directors estimate that the fair value of all borrowings is not materially different from the amounts stated in the Consolidated Balance Sheet of £30,784,000 (2016: £40,070,000).

Net cash is defined as cash and cash equivalents less bank loans.