Recruiter Robert Walters sees income jump by 18%
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Professional recruiter Robert Walters saw profits skyrocket in the third quarter, thanks to continued strength in the hyper-competitive global job market.
The London-listed company saw net fee and commission income rise 26 percent in the three months ended September 30 to £112 million in the three months ended September 30.
The company already delivered a better-than-expected performance in the second quarter and now expects full-year earnings to be “in line” with current market expectations.
Professional recruiter saw profits skyrocket in the third quarter as the hyper-competitive global job market allowed recruiter to stay on track with annual forecasts
Robert Walters shares were up more than 5 percent, trading at 515.30p around 9am Tuesday morning after the release of the buoyant results.
The specialized financial and corporate recruiting service focuses on finding professionals in the accounting, banking, engineering, HR, IT and legal sectors, among others.
It also announced that Leslie Van de Walle, who is currently a non-executive director of HSBC, has been named non-executive chairman and will join the board on November 1.
Van de Walle said: ‘I am delighted to rejoin the Robert Walters Group as chairman.
‘I have thoroughly enjoyed working with the Board of Directors and the Executive team during my previous stint with the Group and I am looking forward to getting started. The recruiting industry is so dynamic and fast paced and it is a real privilege to once again work with one of the industry’s flag bearers.”
Widespread labor shortages, combined with high levels of voluntary redundancy and rising salaries, have led to a struggle to hire new talent and a financial boon to the recruiting industry.
Commerce has been further boosted by the shift to hybrid work, with Robert Walters noting earlier this year that companies were becoming more “location agnostic” and relying on virtual platforms when deciding who to hire.
It noted that demand for full-time positions was particularly strong in the Asia-Pacific region, with fee income rising 16 percent to £53.6 million, compared to £44.4 million in 2021.
Chief executive and founder Robert Walters said: ‘The more volatile political and economic backdrop in the UK has had an impact on local market confidence, leading to a year-on-year decline in UK net fees’
On a constant exchange rate basis, fee income doubled in Taiwan, increased more than half in Indonesia and increased 20 percent and 11 percent respectively in the two largest Asian markets Japan and Australia.
In Japan and Australia, net commission income increased by 23 percent and 16 percent, respectively.
Elsewhere in the region, the strongest growth in net fee income came from Taiwan (up 46 percent), Indonesia (up 45 percent), Thailand (up 32 percent) and New Zealand (up 29 percent).
Meanwhile, net income in mainland China fell 25 percent year-on-year with “market conditions impacted by recent strict Covid lockdowns.”
In the UK, net income declined 6 percent year-on-year to £17.6m, compared to £18.7m in 2021, attributed to ‘more challenging market conditions for both technology recruitment and resource solutions’.
Commenting on the results, CEO and founder Robert Walters said: “The macroeconomic backdrop became more uncertain as the quarter progressed.
‘Nevertheless, the job flow remained largely strong, the candidate shortage remained acute, wage inflation continued to grow; and the group’s net fee and commission income grew 18 percent year-over-year. 84 percent of the Group’s net fee and commission income is now generated by our international operations.
“Asia Pacific and Europe, the Group’s largest regions, continued to produce good growth and it is also encouraging to see strong results from our smaller businesses in the Americas and the Middle East.
“The more volatile political and economic backdrop in the UK has had an impact on local market confidence, leading to a year-on-year decline in UK net fee and commission income.
Full year earnings are expected to be in line with current market expectations.
Founded in 1985, Robert Walters now has more than 3,700 employees in 27 countries.
The company specializes in placing professionals in the disciplines of accountancy and finance, banking, engineering, HR, IT, legal, sales & marketing and supply chain and procurement.
The Group will publish a trading update on January 10, 2023 for the fourth quarter ended December 31, 2022.
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