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Business & education services

Robert Walters UK arm hit hardest in 'challenging' recruitment market

Recruiter Robert Walters PLC (LSE:RWA) followed Pagegroup's update yesterday with a similarly low-key assessment of the health of the white-collar jobs market.

Third quarter net income was down 14% at £79.9 million, it said, with candidate confidence low and businesses reluctant to hire.

Recruitment fees fell 12% and outsourcing down by 14%, with the UK seeing the largest overall drop, at 19%, to £12.5 million although all key business areas struggled.

Walters said it reduced its own headcount by 4% quarter-on-quarter making a 17% crop year-on-year to 3,466 (30 September 2023: 4,200).

Net cash at the quarter end was £50 million.

Toby Fowlston, chief executive, commented: "Global hiring markets remained challenging during the third quarter.

“As set out at our half-year results in August, our assumption continues to be that material improvement in client and candidate confidence levels will be gradual and not likely to commence until 2025.

“Though market conditions mean second half fee income is unlikely to exceed that seen during the first half, the programme of actions underway mean we continue to aim for a profitable full-year outcome.”

Shares were unchanged at 351p.

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