leadf
logo-loader
viewRobert Walters

Robert Walters profits stall as recruitment market freezes in face of widespread uncertainty

UK revenues shrank 11% in the period, which the company blamed on nervousness both from employers and prospective employees

Robert Walters - Robert Walters profits stall as recruitment market freezes in face of widespread uncertainty

Robert Walters PLC (LON:RWA) no longer expects profits to grow this year after its hiring in the UK stagnated in the third quarter due to “weak” client and candidate confidence.

Net revenue growth slowed to £105.6mln in the three months to March, up 4% on the previous year but well down on the 9% seen in the first half.

READ: Robert Walters growth slows as UK recruitment turns negative and Brexit uncertainty lingers

“Ongoing uncertainty surrounding Brexit, the US-China trade tariff standoff and Hong Kong protests, coupled with the significant impact of the gilets-jaunes protests” all contributed to softening trading conditions in the last three months.

Chief executive Robert Walters said that “as a result of these macro uncertainties, the Group now anticipates delivering annual profits in line with the prior year”. 

In 2018, the recruiter posted profits of £49.1mln.

UK activity was the worst hit in the last quarter with revenue shrinking 11% in the period, which the company blamed on nervousness both from employers and prospective employees. 

Robert Walters fared better in international trading which now accounts for 76% of the company’s net fee income, and Continental European income was up 9%. 

Competitor PageGroup also warned today of a worsening trading outlook, slashing its full-year expectations by 10%.

Shares in Robert Walters dropped 8% to 451.5p in early trading on Tuesday morning.
 

Quick facts: Robert Walters

Price: 398 GBX

LSE:RWA
Market: LSE
Market Cap: £302.75 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

GinsGlobal Managing Director sees Healthcare and Healthcare innovation as...

HANetf and GinsGlobal Index Funds' Managing Director Anthony Ginsberg joined Steve Darling from Proactive to share details about the success of their Healthcare Innovations ETF. Ginsberg discusses how COVID-19 had made a direct impact on that fund, especially in the telemedicine...

47 minutes ago

2 min read