Robert Walters PLC (LSE:RWA) has reported a 4% rise in gross profit for its first quarter but warned that market uncertainty continues to impact recruitment activity.
The international recruiter said gross profit in the first quarter of 2023 was £102.4mln, up from £98.4mln in the fourth quarter of 2022, boosted by strong growth from its European business, although its UK arm fell back.
In the Q1 trading update, Robert Walters, the company's chief executive, commented: “As reported with our recent year-end results, the market uncertainty we experienced in the latter stages of last year has tipped over into the first quarter of 2023.”
“Our businesses in Europe, the Middle East and South America held up relatively well whilst Asia Pacific and the UK experienced single-digit dips in net fee income albeit against tough and record prior year comparatives,” he added.
Asia Pacific net fee income fell by 3% to £43.4mln with net fee income in mainland China down 44% year-on-year with market conditions still impacted by Covid disruption.
It was a brighter picture in Europe where net fee income advanced by 10% to £34.3mln but in the UK net fee income fell by 9% to £16.3mln with activity levels more muted year-on-year across both London and the regions.
Walters noted that market fundamentals such as vacancy levels and salary inflation remain relatively robust which “gives cause for optimism that activity levels will bounce back when global market conditions become more benign.”