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Business & education services

Robert Walters upgrades profit expectations thanks to ‘hot’ jobs market

Recruiters are bouncing back worldwide as increased business confidence means more companies are hiring new staff

Robert Walters (LSE:RWA) PLC said full-year profits will be “comfortably ahead” of guidance after particularly strong trading in the third quarter.

Recruiters are bouncing back worldwide as increased business confidence means more companies are hiring new staff.

"With candidate and client confidence accelerating across all recruitment disciplines and candidate shortages becoming ever more acute, the competition for talent is fierce,” said chief executive Robert Walters.

“Significant wage inflation has emerged particularly for the most sought-after skill-sets. In short, the jobs market is hot.”

The news comes a day after competitor PageGroup (LSE:PAGE) raised its full year profit forecast for the second time in three months, thanks to a similar pickup in trading driven by the hiring of technology staff.

Robert Walters’ gross profit climbed 26% to £92mln in the quarter ended 30 September compared to last year, with the period ending with net cash of £126mln and a £60mln committed loan facility.

The group hired more people, with headcount up by 5% to 3,376 compared to the previous quarter.

Shares rose 3% to 754.47p on Thursday morning.

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