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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Business & education services

Robert Walters warns on profits as hiring softens, sending shares lower

Robert Walters PLC (LSE:RWA)'s shares tumbled 6% as it warned that full-year profits, although at record levels, would be slightly below current market expectations.

Updating investors on fourth-quarter trading, the international recruitment group said: “The global macro-economic backdrop became increasingly uncertain as the quarter progressed resulting in a softening of recruitment activity levels across many of the group's markets.”

“Nevertheless, the group continued to see growth, albeit more muted, across all regions and all forms of recruitment - permanent, temporary, interim and recruitment process outsourcing - with net fee income for the fourth quarter up 8% year-on-year.”

Group net fee income for the full year was up 20%, it said, although in the fourth quarter this slowed to 8%.

Strong growth in Europe (18%) and the UK (8%) was offset by a slower rise in Asia Pacific of 3% with net fee income in China down 24%.

The update sent shares in fellow recruiters Hays PLC (LSE:HAS) down 5.4% and PageGroup PLC (LSE:PAGE) down 6.5%.

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