Robert Walters Remains Confident Despite Decline in Gross Profit

By Najat Kantouar

Robert Walters, the British recruitment company, is confident in achieving full-year market expectations, even though it experienced a significant drop in gross profit in certain regions, particularly the U.K. and Asia Pacific businesses.

In the third quarter that ended on September 30, the group’s gross profit decreased by 13% on a constant currency basis, amounting to £93.4 million ($114.3 million), compared to £112.3 million in the same period last year. This decline was attributed to the underperformance of several core regions within the group.

Notably, Asia Pacific, Europe, and the U.K. saw net fee income declines of 16%, 3%, and 13%, respectively. However, the Middle East and South Africa experienced growth of 3% and 74%.

The group generated 84% of its net fee income through its international businesses.

The net cash balance dropped to £65.0 million compared to £69.9 million.

Despite the ongoing global macro-economic uncertainties, CEO Toby Fowlston expressed that the company’s third-quarter performance was resilient. Hiring activity levels remained stable, with contract and interim recruitment surpassing permanent recruitment as organizations sought shorter-term solutions to meet their hiring needs.

As of 0811 GMT, shares were up 1.0 pence or 0.3% at 356.0 pence.

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