UK-based recruitment firm Robert Walters (RWA: LSE) provided a trading update today for the fourth quarter ended 31 December 2023. Group net fee income was down 10% in constant currency (CC), reflecting the continued challenging macro-economic conditions across many of the group's markets.

All regions reported a decline in constant currency.

Toby Fowlston, Chief Executive, said, "Despite the challenging macro-economic conditions, the group has delivered a resilient fourth quarter and FY23 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.”

In Robert Walters’ company-compiled consensus for FY23 profit before tax, the mean average of five analyst estimates, stands at £20.5 million.

Group Net Fee Income by region was as follows.

In Asia-Pacific, net fee income was down 9% (CC). The group reported a strong performance in its largest single country of Japan (net fee income +10% (CC) over the year while South East Asia (flat in CC) also held up well. Market conditions in Australia (-27% in constant currency) remain muted.

In Europe, net fee income was down 7% (CC), albeit improved sequentially versus the previous quarter (Q3 2023: £29.3 million). Belgium saw net fee income rise 33% in constant currency, with growth also seen in Germany (+5% in constant currency) despite the weak economic backdrop. Meanwhile, year-on-year performance was softer in the group's largest European markets of France (net fee income -9% in constant currency) and the Netherlands (-17% in constant currency).

In the UK net fee income was down 19% in constant currency and on a reported basis. Activity levels remain more resilient in UK regions compared to London.

Rest of World comprises the Americas, South Africa and the Middle East. Net fee income was down 8% (CC). Challenging conditions remain in the USA (net fee income -9% in constant currency), though this was partially offset by a better performance in Mexico and South Africa.

Headcount was down by 5% quarter-on-quarter and by 9% year-on-year to 3,980 (30 September 2023: 4,200, 31 December 2022: 4,356), as the group continued to focus on driving consultant productivity, which improved marginally quarter-on-quarter.

Robert Walters last traded at £420.00, up 2.44% on the day and 22.09% above the 52-week low of £344.00 set on 23 October 2023. The company has a market cap of £296.66 million.