Shares in Robert Walters PLC (LSE:RWA) fell 5% to 130p after the recruiter said hiring markets remain patchy, with continued weakness in northern Europe offsetting improving conditions in the UK and parts of the southern hemisphere.
In a trading update for the fourth quarter to the end of December, the group reported a 14% fall in net fee income for the period, broadly in line with earlier quarters but with widening regional divergence.
Management said trends in the final months of the year were consistent with the third quarter, suggesting that any global recovery in hiring remains uneven and fragile.
There were brighter spots. Specialist recruitment in the UK grew strongly, with net fees up 25%, supported by a recovery in London and a return to growth in the regions for the first time since late 2022.
Spain also showed further signs of improvement as a turnaround continues, while Australia and New Zealand saw positive momentum in temporary hiring.
These gains were outweighed by continued pressure in northern Europe, where regulatory change and political uncertainty weighed on demand. Net fees across Europe fell 23% in the quarter, with France, Germany and the Benelux markets all proving difficult.
Looking ahead, chief executive Toby Fowlston said the group was better positioned than a year ago but cautioned that the timing of any sustained recovery remains uncertain.
Robert Walters expects 2026 net fee income to be slightly below 2025, even as further cost savings and a leaner workforce support margins.