Robert Walters PLC (LSE:RWA) announced that its eponymous founder is stepping down as its chief executive as it reported record pretax profits for 2022 on higher revenue despite a tough economic backdrop.
The recruitment company said pretax profit rose to £55.6mln for the year ended 31 December 2022, compared with £50.2mln in 2021, as revenue increased to £1.1 bn, from £970.7mln.
The firm's net fee income rose to £428.2mln in 2022, up from £353.6mln, with strength in all its regions - Asia net fee income was up 18%, Europe rose 30%, the UK increased by 8%, while the Americas, South Africa and the Middle East grew by 43%.
The company is proposing a final dividend of 17.0p per share, up from 15.0p in 2021, taking the total payout for the year to 23.5p from 20.4p.
In the results statement, Robert Walters said: "The market uncertainty we experienced during the second half of the year has tipped over into the early months of 2023. Whilst it's too early to tell whether this is a short-lived correction or a more prolonged economic slowdown, we have successfully managed the business through numerous economic cycles and I am confident that the group's strong brand, experienced senior management team and diverse breadth of geographies, disciplines and revenue streams ensures we are well positioned to quickly respond to any further deterioration of market confidence or equally to rapidly capitalise on market opportunities as they arise."
In a separate statement, the company said its chief executive Robert Walters has decided to retire and will step down from the board with effect from 27 April 2023, to be replaced by Toby Fowlston.
The company noted that Fowlston has spent most of his career with the group, having joined as a consultant in London in 1999, and has since held senior positions leading its recruitment operations in both the UK and Asia Pacific, the group's largest and most profitable region.
In the statement, Robert Walters said: "It has been an honour and privilege to have led the group over the last 38 years and to have such a worthy successor in place in Toby, who has been with the group since joining as a consultant in 1999, is a true testament to the group's ability to grow our future leaders from within and is hopefully an inspiration to all our employees across the globe."
Victoria Scholar, head of investment at interactive investor, commented: “Walters founded the company 37 years ago and has grown the specialist recruitment consultancy into a business that employs 4,300 workers across 31 locations. It listed on the LSE for the second time in 2000 with shares up around 170% since then. However, shares have fallen sharply since the peak in January 2022.
"The stock is bucking the wider market downturn in today’s session, staging gains as investors cheer the change in leadership. The recruiter reported full-year headcount up 25% to 4,356 but warned of market uncertainty in the second half that has tipped into the early months of 2023.”
In early trading on Friday, shares in Robert Walters were 3.7% higher at 510p.