Shares in Robert Walters PLC (LON:RWA) zipped higher on Wednesday as the recruiter told investors it expects profits to beat full-year expectations after a record performance in the second quarter.
The staffing group reported a gross profit of £86.3mln for the three months to June 30, up 16% from the £69.3mln it posted for the same period in 2016.
UK businesses hiring again
Like most of its peers, Robert Walters saw a dip in hiring from UK firms in the immediate aftermath of Brexit but that trend started to reverse towards the end of 2016.
Indeed, that increased recruitment activity in its home market - which accounts for almost a third of its total income - has continued into this year, with second quarter gross profits up 13%.
Activity was strongest across the financial services, commerce and IT sectors in London, although the company did note that there was “good growth” in St Albans and Milton Keynes.
That contrasts with what Page Group PLC (LON:PAGE) said earlier this week. Walters’ larger peer blamed political uncertainties as it saw its net fee income in the UK fall by 4.5% in the same period.
Global diversification paying off
The diversification into global markets is also working out well for Robert Walters. Its European arm put in an “excellent performance” in the quarter just gone, with gross profits jumping by 19%.
Unlike the UK there were no sectors in particular that stood out, although Spain was the best performer at a country level, growing gross profits by more than 70%.
Asia Pacific net income rose by 10% while North America and Brazil continue their rapid growth.
READ:Recruiter Robert Walters sees record first quarter, with net fee income up 20% year-on-year
FY profit to be ahead of expectations
“The group has delivered another record performance in the second quarter again benefiting from our international footprint and the breadth of recruitment solutions we provide,” said chief executive Robert Walters.
“Net fee income for the first six months of the year is up 18% and the board is confident that profit before tax for the full year will be ahead of current market expectations.”
At the end of the period, Robert Walters had a strong balance sheet with net cash of £18.4mln (H1 2016: £8.7mln).
Interim results for the six months to 30 June will be published in two weeks on 26 July.
Shares rose by 4.7% to 445p.