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UK – Robert Walters reports H1 up 17% in constant currency, UK revenue increases

14 September 2017

International recruitment firm Robert Walters (RWA: LSE) reported revenue of £562.7 million for the six months ending 30 June 2017, an increase of 17% in constant currency compared with last year.

(£ millions) H1 2017 H1 2016 Change Constant Currency
Revenue 562.7 451.4 25% 17%
Gross Profit 164.5 128.1 28% 18%
Operating Profit 16.2 10.1 62% 44%

The group reported profit before tax of £15.6 million, up 39% (46% in constant currency) from £11.2 million last year.

“The group delivered a record performance in the first half benefiting from both our international footprint which now spans 28 countries, including many of the world’s fastest growing and emerging recruitment markets, and the breadth of recruitment solutions we provide to our clients,” the company said in a statement.

Revenue broken down by geographic segment was as follows:

(£ millions) H1 2017 H1 2016 Change
Asia Pacific 185.2 154.8 19.6%
UK 278.1 220.6 26.0%
Europe 88.3 69.2 27.6%
Other International 10.9 6.6 65.1%

“In Asia, performance was strong across both our established and emerging markets. Japan, the region’s largest market had a record first half as did our business in Hong Kong,” the group stated.

“While the UK has had a mixed and volatile economic backdrop for the first six months of the year, we were still able to deliver good growth across several recruitment disciplines and locations,” Robert Walters said. “In London, we saw strong growth in the financial services space, whilst both our commerce finance and technology teams also performed well. Regional growth was broad-based with Manchester, St. Albans and Milton Keynes the standout performers. Resource Solutions continued to perform strongly, winning a number of new client deals and successfully expanding its service range within existing clients.”

In Europe, Robert Walters stated that France, the region’s largest business, the Netherlands, Belgium and Spain all delivered record performances.

Meanwhile, in Other International, which comprises of North America, South Africa, the Middle East and Brazil, “market conditions across this diverse set of territories was mixed.”

Robert Walters added that permanent recruitment currently represents 69% (2016: 69%) of the group’s recruitment net fee income. Group headcount now stands at 3,495 (30 June 2016: 2,902).

“With full-year profit forecasts having been upgraded only a few weeks ago in response to our second quarter trading update, current trading is in line with current market expectations. We enter the second half of the year with confidence that the Group’s platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise,” the group stated.

In trading yesterday Robert Walters Plc (RWA:LSE) set a new 52-week high during the session when it reached £535.00. Over this period, the share price is up 50.15%. Shares closed on Wednesday at £520.00, down 1.88% on the day. Based on its current share price the company has a market value of £387.57 million.