International recruitment firm Robert Walters (RWA: LSE) provided a trading update for the third quarter ended 30 September 2019. Group net fee income increased by 2% in constant currency to £105.6 million with the company citing an uncertain political backdrop in a number of markets.

The company said its full year profit before tax is only expected to match the prior year.

According to The Guardian, analysts had previously expected 2019  full year pre-tax profit to grow to £52 million, from £49 million. 

Net Fee Income by region was as follows.

Robert Walters added that 76% of the group’s net fee income now derived from overseas businesses, compared to 72% last year.

The group said it had to go up against significant political uncertainty across several markets including Brexit, US-China trade tensions as well as Hong Kong protests.

All growth figures below are in constant currency unless otherwise noted.

Asia Pacific net fee income was up 3%. In Asia Pacific, Japan, Malaysia, Vietnam and New Zealand delivered the strongest performances; all increasing net fee income in excess of 13%. Australia reported 4% net fee income growth with activity levels highest in Sydney and Melbourne.

Europe net fee income was up 9%. Robert Walters said a blend of permanent, contract and interim recruitment revenue streams continues to be a key strength.

The group also cited a good performance in France, the region’s largest business, which increased net fee income in excess of 10%. The Netherlands, Spain and Switzerland all increased net fee income in excess of 15%.

In the UK, net fee income was down 11%. Client and candidate confidence continued to be generally weak in the UK across both the recruitment and recruitment outsourcing markets.

The group added that certain sectors have proved resilient, particularly across the IT market nationwide, while on a regional basis, Birmingham and Milton Keynes delivered solid growth.

The Other International region (the Americas, Middle East and South Africa) saw net fee income up 12%, with the US, Canada and the Middle East performing strongly. The group said its new businesses in Mexico and Chile have started well.

Robert Walters, Chief Executive, commented, “Whilst visibility is limited, the group’s international footprint and diverse blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing ensures we are well positioned to respond to any market opportunities as and when they arise whilst also having the agility to closely manage our cost base.”

Rival PageGroup also issued a profit warning today citing global political uncertainties.

Robert Walters set a new 52-week low during today's trading session when it reached £430.00. Over this period, the share price is down -29.20%. As of last trade it reached £453.10, down 7.53% on the day. Based on its current share price the company has a market value of £372.25 million.