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View All NewsUK – Robert Walters’ deputy CEO stepping down; reports revenue up 7% in constant currency
Robert Walters Plc (RWA: LSE), a UK-based global recruiter, on Friday reported Giles Daubeney will be stepping down from the board and his role as deputy CEO after working for the company for more than 30 years. The announcement came as the London-based firm also announced earnings for 2018 with revenue up 7% in constant currency. Robert Walters cited strength in its Asia Pacific and European regions.
Daubeney will officially step down on May 17 at the company’s annual general meeting. He was included in Staffing Industry Analysts’ 2018 Staffing 100 Europe list of most influential people in the European staffing industry. Daubeney joined the company in 1988 and became deputy CEO in January 2016.
In its earnings, the company reported revenue rose 7%, or 5.8% on a reported basis, and gross margin improved to 31.8% from 29.6%.
| (£ thousands) | FY 2018 | FY 2017 | % change | % change (in constant currency) |
| Revenue | £1,233,171 | £1,165,776 | 5.8% | 7% |
| Gross profit | £392,018 | £345,248 | 13.5% | 15% |
| Gross margin | 31.8% | 29.6% | ||
| Profit for the year | £35,562 | £29,335 | 21.2% |
Gross profit rose by 16% in constant currency in the Asia Pacific region, and gross profit in Japan increased by more than 20% in constant currency. The company noted demand for bilingual candidates from both multinationals and, increasingly, local Japanese businesses was very strong. In Australia, growth was strongest in Melbourne, Perth and Adelaide; the company said it benefited from its increased focus on small- and medium-sized firms and higher growth disciplines such as fintech, technology and digital.
In the UK, gross profit rose by 7%. “The UK recruitment market as a whole has been impacted by the uncertainty surrounding Brexit with clients and candidates becoming increasingly cautious,” according to the company.
Growth in Europe was broad-based during 2018 with gross profit rising 24% in constant currency.
Gross profit in its other international segments rose 14% in constant currency. The segment includes the Americas, South Africa and the Middle East.
Full-year results
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| Asia Pacific | £394,059 | £370,248 | 6.4% | $500,069 |
| UK | £571,864 | £569,610 | 0.4% | $725,707 |
| Europe | £237,075 | £189,056 | 25.4% | $300,853 |
| Other international | £30,173 | £36,862 | -18.1% | $38,290 |
Quote
“It’s inevitable that the current uncertainty surrounding Brexit will continue to affect client and candidate confidence in the UK,” Chief Executive Robert Walters said. “We are a truly global business with 73% of net fee income derived from outside of the UK, a global footprint covering 30 countries and well-established operations in all those locations that might benefit from any potential movement of business and staff from the UK. 2019 has started well, in line with the board’s expectations, and the group is well positioned to continue to take advantage of market opportunities as they arise.”
Share price and market cap
Robert Walters shares closed up 12.17% on Friday to £590.00; the company had a market cap of £445.9 million, according to FT.com.