Robert Walters PLC (LSE:RWA) reported a “strong” performance for the third quarter to end-September 2022 with net fee income rising 18% on the back of growth in all forms of recruitment, although it noted that the global economic backdrop is becoming increasingly uncertain.
The specialist professional recruitment company said it expects profits for 2022 to be in line with market forecasts.
Group net fees in the three months to September 30, 2022, grew to 112mln from £91.8mln in the third quarter last year, with job flow remaining “strong”, candidate shortages remaining “acute” and wage inflation continuing to grow, the company said in a statement.
It noted that 84% of its net fee income was generated by its international business, with fee income from Europe, Asia Pacific and other international operations increasing by 32%, 16%, and 53% respectively.
However, net fee income in Mainland China fell by 25% year-on-year after market conditions were impacted by recent strict COVID-19 lockdowns.
In the UK, net fee income dropped by 6% in the third quarter against tough comparatives last year, with “the more volatile political and economic backdrop in the UK” impacting local market confidence, the group said.
The rebound in financial services recruitment activity continued through the quarter, while more challenging market conditions led to declines in net fee income from technology recruitment and Resource Solutions, it added.
Headcount grew by 5% quarter-on-quarter to 4,267 as at end-September, up from 4,051 on June 30, 2022.
In a separate statement, the company announced the appointment of Leslie Van de Walle as its non-executive chair. He will join the company's board on November 1, 2022, succeeding interim chair Tanith Dodge.
Robert Walters said it has a strong balance sheet with net cash of £93.5mln, compared with £112.8mln a year ago.
The group said it will publish a trading update for the fourth quarter ending December 31, 2022, on January 10, 2023.