Robert Walters Regulatory News (RWA)

 26 February 2015

ROBERT WALTERS PLC

(the 'Company' or the 'Group')

Results for the year ended 31 December 2014

PROFITS UP 80%

Robert Walters plc (LSE: RWA), the international specialist professional recruitment consultancy, today announces its results for the year ended 31 December 2014.

Financial and Operational Highlights

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

· Strong net fee income growth in constant currency across all of the Group's regions driving an 80% increase in profit before taxation, to £18.2m.

· Excellent performance in the UK with net fee income increasing by 24%.

o Growth across both London and the regions.

o Increased activity in permanent financial services recruitment in London.

· Asia Pacific net fee income up 8% in constant currency.

o Emerging market strategy has proven successful with our newer operations in Malaysia, Thailand, and Vietnam, in particular, delivering excellent growth in net fee income.

o Strong growth also delivered across more established markets such as Japan, Singapore and Hong Kong.

o Australia returned to growth during the fourth quarter. Record performance in New Zealand.

· Europe net fee income up 10% in constant currency.

o Excellent contract growth in France and Benelux.

o Permanent recruitment grew strongly in Belgium and Ireland. Spain delivered record net fee income.

· Other International net fee income up 35% in constant currency.

o Middle East business more than doubled net fee income year-on-year.

o US had a record year across both New York and San Francisco.

· Resource Solutions, the Group's recruitment process outsourcing business continued to deliver significant net fee income growth in the UK and Asia across both new and existing clients.

· Final dividend per share increased 13% to 4.35p (2013: 3.86p).

· Group headcount increased to 2,631 (2013: 2,307).

· 1.3m shares were purchased at an average price of £3.11 for £4.0m, in line with the Group's share buyback programme.

· Strong balance sheet with net cash of £14.3m as at 31 December 2014 (2013: £18.6m).

Robert Walters, Chief Executive, said:

"We delivered an excellent performance in 2014, increasing profit before taxation by 80%. This is testament to the strength, depth and diversity that the Group now has in terms of both geography and discipline.

"Early trading in 2015 has been in line with expectations. Whilst we are mindful of continued Eurozone uncertainty, we believe we are very well positioned to capitalise on both current and future growth opportunities."

The Company will be holding a presentation for analysts at 10am today at Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London EC2V 5DE.

The Group will publish an Interim Management Statement for the first quarter ended 31 March 2015 on 8 April 2015.

- Ends -

For further information please contact:

About Robert Walters

Robert Walters is a market-leading international specialist professional recruitment consultancy with over 2,600 staff spanning 24 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.

Businesses worldwide rely on us to find the very best specialist professionals to drive their business forward and those same professionals trust us to manage their long-term careers.

www.robertwalters.com

Robert Walters plc

Results for the year ended 31 December 2014

Chairman's Statement

I am very pleased to report that the Group delivered an exceptionally strong performance in 2014, increasing profit before taxation by 80% (91%*). Our strategy of long-term investment in the business across both our established businesses and high-growth potential, emerging recruitment markets has enabled us to leverage the Group's operational gearing to deliver an excellent result for the year.

Revenue was up 14% (19%*) to £679.6m (2013: £597.7m) and gross profit (net fee income) increased by 8% (14%*) to £215.3m (2013: £199.2m). Operating profit was up 68% (78%*) to £18.2m (2013: £10.8m) and earnings per share increased by 82% to 15.3p per share (2013: 8.4p per share). The Group has a strong balance sheet with net cash of £14.3m as at 31 December 2014 (31 December 2013: £18.6m). Permanent recruitment represents 69% (2013: 69%) of recruitment net fee income.

In line with our strategy, we have grown staff numbers in emerging markets and in mature markets where activity levels are increasing and additionally we have won a number of new Resource Solutions clients in the UK and Asia. Headcount at the end of the year increased by 14% to 2,631 (2013: 2,307).

The Board will be recommending a 13% increase in the final dividend to 4.35p per share which combined with the interim dividend of 1.65p per share will result in a total dividend of 6.0p per share (2013: 5.4p). In 2014, 1.3m shares were purchased at an average price of £3.11 for £4.0m through the Group's long-term share buy-back programme. 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 3 June 2015.

Finally, I would like to thank everyone in the Group for their hard work, drive, commitment and loyalty.

Leslie Van de Walle

Chairman

25 February 2015

Chief Executive's Statement

Review of Operations

The excellent performance in 2014 served to further highlight the strength, depth and diversity that the Group now has in terms of both geography and discipline. We have been able to leverage this strength to deliver an 80% (91%*) increase in profit before taxation, a result that was particularly impressive given that market conditions in two of the Group's largest markets, Australia and France, remained challenging for much of last year.

We have a strong blend of permanent and contract recruitment net fee income, a truly global footprint of growing recruitment businesses across both established and embryonic recruitment markets plus a market-leading recruitment process outsourcing business - all of which is underpinned by a powerful international brand and a strong and experienced senior management team.

The recruitment industry continues to evolve through the advent of new resourcing strategies and technologies and we remain firmly at the forefront of these developments. The role of a high-quality specialist professional recruitment consultancy, such as Robert Walters, to filter and manage the increased volume of data and the number of communication channels available to candidates and clients has never been more important. In addition, our Resource Solutions business ensures we are extremely well placed to benefit from the trend towards an outsourced recruitment model.

Asia Pacific (42% of net fee income)

Revenue was £251.4m (2013: £260.1m) and net fee income was £90.5m (2013: £92.1m) an increase of 8% in constant currency. This delivered an operating profit increase of 45% (59%*) to £10.5m (£11.5m*) (2013: £7.2m).

In Asia we have benefited from strong growth within our larger, more mature and market-leading businesses in Japan, Singapore and Hong Kong and, very encouragingly, we are also now seeing positive returns from our more recent investments in a number of the region's emerging recruitment markets. Our operations in Malaysia, Thailand and Vietnam in particular have delivered excellent net fee income growth and, critically, have the capacity to grow into substantial businesses.

Australia returned to growth in the fourth quarter and in New Zealand, our businesses in Auckland and Wellington both delivered record performances.

Resource Solutions in Asia won a number of new clients and also successfully extended a number of existing client deals.

UK (33% of net fee income)

Revenue was £311.9m (2013: £235.7m), net fee income increased by 24% to £71.1m (2013: £57.2m) and operating profit more than doubled to £5.2m (2013: £2.5m).

The UK had an excellent year as both client and candidate confidence continued to improve. Growth was broad-based and spread across both London and the regions, with disciplines such as commerce finance, legal and sales & marketing delivering particularly strong performances. Also of particular note, was the beginning of a recovery in the permanent financial services market in London, with recruitment levels across risk, compliance and projects particularly high.

To continue to build on this performance and further extend our regional presence, we have opened a new office in St. Albans.

Resource Solutions continued to deliver impressive results increasing net fee income significantly year-on-year.

Europe (20% of net fee income)

Revenue was £106.4m (2013: £93.9m) and net fee income increased 4% (10%*) to £43.8m (£46.1m*) (2013: £42.0m) producing a 73% increase in operating profit to £2.2m (£2.3m*) (2013: £1.3m).

Market conditions across the Eurozone were mixed. In France, our largest business in the region, the permanent recruitment market remained challenging, however our contract business continues to go from strength to strength and produced excellent growth.

Recruitment activity levels across the Benelux region were more favourable, with our business in Belgium the standout performer across both the permanent and contract markets. We continue to focus on Germany as a key growth market for the Group and are also very encouraged by the strong performance in a number of our smaller markets in the region such as Spain and Ireland.

Other International (5% of net fee income)

Revenue was £9.9m (2013: £8.0m) and net fee income increased by 25% (35%*) to £9.9m (£10.7m*) (2013: £7.9m) producing an operating profit of £0.3m (operating profit of £0.2m*) (2013: operating loss of £0.2m).

Other International comprises the US, South Africa, the Middle East and Brazil. Our business in the US had a record year with both San Francisco and New York delivering excellent growth. In New York, much like London, we have seen a recovery in the permanent financial services market with areas such as compliance particularly active, whilst the technology-driven San Francisco market remains extremely buoyant.

Client and candidate confidence in Brazil remains low, our office in Dubai more than doubled net fee income year-on-year whilst in South Africa net fee income grew strongly and we are now one of the largest international players in the market.

Current Trading and Outlook

Having entered seven new countries since 2010, the Robert Walters Group now has over 2,600 staff spanning 24 countries. We have focused on increasing the profitability and productivity of our fledging businesses and the Group as a whole, delivering an 80% uplift in profit before taxation and an increase in consultant productivity.

Early trading in 2015 has been in line with expectations. Whilst we are mindful of continued Eurozone uncertainty, we believe we are very well positioned to capitalise on both current and future growth opportunities.

Robert Walters

Chief Executive

25 February 2015

Consolidated Income Statement

FOR THE YEAR ENDED 31 DECEMBER 2014

The amounts above relate to continuing operations.

Consolidated Statement of Comprehensive Income

FOR THE YEAR ENDED 31 DECEMBER 2014

Consolidated Balance Sheet

AS AT 31 DECEMBER 2014

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 31 DECEMBER 2014

Consolidated Statement of Changes in Equity

FOR THE YEAR ENDED 31 DECEMBER 2014

Statement of Accounting Policies

FOR THE YEAR ENDED 31 DECEMBER 2014

Robert Walters plc is a Company incorporated in the United Kingdom under the Companies Act.

The financial report for the year ended 31 December 2014 has been prepared in accordance with the historical 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 £14.3m at 31 December 2014. 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 ajudgement, 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 25 February 2015, does not constitute the Company's statutory accounts for the year ended 31 December 2014 but is derived from these accounts. Statutory accounts for 2013 have been delivered to the Registrar of Companies and those for 2014 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 3 June 2015 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.

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 (£1,101,000) and the historic 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 6% for years two to five, which does not exceed the long-term average potential growth rate of the respective operations. The forecast for revenue and costs 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 6.6% (pre-tax rate of 10.7%), based on the Group's estimated weighted average cost of capital and risk adjusted depending on the location of goodwill. The forecast cash flow analysis has also been adjusted for a terminal growth rate, between 2-4% depending on location, for year six onwards.

Management has undertaken sensitivity analysis taking into consideration the impact in key assumptions. This included reducing the cash flow growth 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 prepayments and 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 2014 is £1,411,000 (31 December 2013: £1,115,000). The movement in the provision during the year is a charge to administrative expenses in the income statement of £296,000 (2013: £60,000).

As at 31 December 2014, in the UK, invoices aggregating £4.2m were sold under a non-recourse factoring arrangement, incurring charges of £0.1m.

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

In January 2014, the Group renewed and extended its three-year committed financing facility to £35.0m which expires in November 2016. At 31 December 2014, £23.4m (2013: £11.0m) was drawn down under this facility.

The Group has a short-term facility of Renminbi 10m (£1.0m) of which Renminbi 5m (£0.5m) remains outstanding as at 31 December 2014. 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 £23,904,000 (2013: £11,496,000).

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