REG - Robert Walters PLC - 2024 Half-Year Results
01/08/2024 07:00
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RNS Number : 6808Y Robert Walters PLC 01 August 2024
1 August 2024
ROBERT WALTERS PLC
Interim results for the six months ended 30 June 2024
Continued actions to strengthen performance amidst challenging market
conditions
Group financial summary 2024 2023 Change CC change*
Six months ended 30 June
Revenue £459.3m £548.3m (16%) (13%)
Gross profit (net fee income) £166.1m £202.3m (18%) (14%)
Operating profit £0.2m £11.2m (98%) (96%)
Conversion rate %** 0.1% 5.5% (5.4) pp
(Loss)/Profit before taxation £(2.3)m £8.1m nm
Basic (loss)/earnings per share (3.7)p 7.8p nm
Interim dividend per share 6.5p 6.5p -
Net cash*** £48.8m £69.8m nm
* Constant currency is calculated by applying prior year exchange rates to
local currency results for the current and prior years and denoted by '*'
throughout this announcement
**Conversion rate is calculated by expressing operating profit as a proportion
of net fee income.
***Net cash is cash and cash equivalents net of bank overdrafts and
borrowings.
'nm' denotes where change is 'not measured'
Group strategic and operational summary
§ Group net fee income down 14%* to £166.1m, reflecting the rebasing in
hiring market conditions relative to the post-pandemic peak.
§ Specialist professional recruitment net fee income down 12%*, with
permanent (66% of fees) down 14%* and temporary (33% of fees, being contract
and interim) more resilient and down 9%*.
§ Recruitment outsourcing net fee income down 23%*.
§ Fees remain geographically well-diversified, with no single country
accounting for more than a sixth of Group net fee income in the first half.
§ Operating profit of £0.2m (H1 2023: £11.2m), reflective of the reduced
trading volumes, the operating leverage of the Group's model and the foreign
exchange impact particularly from the Japanese Yen. Included in operating
costs is c.£2m of redundancy costs.
§ Period end headcount down 15% year-on-year to 3,625 (30 June 2023: 4,280).
The Group continues to match headcount with demand in local markets, whilst
being well-positioned for an improvement in conditions.
§ Actions to strengthen medium-term performance in progress, including:
differentiating on the quality of service; better penetration of existing
markets; and improved fee earner productivity and people efficiency,
underpinned by technology.
§ Balance sheet remains strong, with period-end net cash of £48.8m (30 June
2023: £69.8m).
§ Reflecting the strong balance sheet and actions taken to date to ensure the
business is well-positioned for an improvement in end markets, interim
dividend maintained at 6.5p per share.
Toby Fowlston, Chief Executive, commented:
"During the first half, the business continued to experience challenging
hiring market conditions. This reflects the sustained period of lower client
and candidate confidence impacting the sector since hiring markets reached
their most recent peak in the second quarter of 2022. This had a marked impact
on our financial performance during the first half.
Our near-term planning assumes that any material improvement in confidence
levels will be gradual, and likely not occur before 2025, however 2024 is not
a lost year. We are implementing the key elements of our medium-term plan to
further strengthen the business. We are pursuing the right actions to continue
to differentiate Robert Walters on the quality of its service, drive higher
penetration in our existing markets, and improve productivity and people
efficiency. We look forward to sharing fuller details on our activities at our
capital markets event in September."
Group trading summary
Net fee income 2024 2023 Change(1) Constant currency change(1)
Six months ended 30 June
£m unless stated otherwise
Specialist professional recruitment 139.6 167.6 (17%) (12%)
Of which permanent 91.8 112.9 (19%) (14%)
Of which temporary 46.8 53.9 (13%) (9%)
Perm % mix 66% 67% (1) pp n/a
Temp % mix 33% 32% 1 pp n/a
Recruitment outsourcing 26.5 34.7 (24%) (23%)
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
§ Asia-Pacific (42% of Group net fee income): net fee income down 13%*, with
specialist professional recruitment down 10%* and recruitment outsourcing down
30%*. Japan grew by 2%* and Greater China (-8%*) demonstrated relative
resilience. Conditions in Australia and New Zealand (-21%*) remain tough.
§ Europe (34% of Group net fee income): net fee income down 13%*, almost
wholly reflecting specialist professional recruitment (-13%*). Softness in
France (-18%*) was compounded by recent political uncertainty, with both the
Netherlands (-9%*) and Belgium (-3%*) more resilient.
§ UK (16% of Group net fee income): net fee income down 18%, with specialist
professional recruitment down 20% and recruitment outsourcing down 17%. London
(-16%) developed sequential momentum, whilst the regions (-25%) remain softer.
§ Rest of World (8% of Group net fee income): net fee income down 15%*, with
specialist professional recruitment down 9%* and recruitment outsourcing down
24%*. The Middle East (-4%*) was sequentially stable across the first half,
with a solid performance also seen in Mexico (+1%*). The USA (-18%*) remains
challenging.
Outlook
Current trading remains unchanged from that reported at the Company's second
quarter update on 15 July 2024. Notwithstanding challenging markets, good
progress was made on cost reduction during the first half. Further momentum is
expected as we move through the year, helping to mitigate the second half
year-on-year fee income impact to an even greater degree than achieved during
the first half.
Results presentation
The Company will host a results presentation webcast at 8:30am today,
accessible live via the following link:
https://brrmedia.news/RWA_HY24 (https://brrmedia.news/RWA_HY24)
A recording of the presentation and subsequent conference call will be
available on the Company's website shortly after the event.
Capital markets event
As previously announced, the Company will host a capital markets event on
Thursday 26 September 2024 at its central London offices, starting at 2pm. To
register, please contact investor.relations@robertwalters.com
(mailto:investor.relations@robertwalters.com) .
- Ends -
Enquiries
Robert Walters plc
Toby Fowlston - Chief Executive Officer
David Bower - Chief Financial Officer
Dami Tanimowo - Head of Investor Relations +44 (0) 7340 660 425
dami.tanimowo@robertwalters.com (mailto:dami.tanimowo@robertwalters.com)
Williams Nicolson (Media enquiries)
Steffan Williams +44 (0) 7767 345 563
William Barker +44 (0) 7534 068 657
rw@williamsnicolson.com (mailto:rw@williamsnicolson.com)
About Robert Walters
Established in 1985, Robert Walters is a global talent solutions business
operating in 31 countries across the globe. We support organisations to build
high-performing teams, and help professionals to grow meaningful careers. Our
client base ranges from the world's leading blue-chip corporates through to
SMEs and start-ups.
We deliver three core services:
· Specialist professional recruitment - encompassing permanent and
temporary recruitment, executive search and interim management.
· Recruitment outsourcing - enabling organisations to transfer all,
or part of, their recruitment needs to us either through recruitment process
outsourcing (RPO) or contingent workforce solutions (CWS).
· Talent Advisory - supporting the growth of organisations through
market intelligence, talent development, and future of work consultancy.
Our approximately 3,600 employees are passionate about powering people and
organisations to fulfil their unique potential. We take the time to listen to,
and fully connect with, the people and organisations we partner with. Our
ability to truly understand them and create and share their compelling stories
is what sets us apart.
www.robertwalters.com (http://www.robertwalters.com)
Forward looking statements
This announcement contains certain forward-looking statements. These
statements are made by the directors in good faith based on the information
available to them at the time of their approval of this announcement and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information.
Robert Walters plc
Interim results for the six months ended 30 June 2024
CHIEF EXECUTIVE'S REVIEW
During the first half, the business faced the challenging conditions of
current hiring markets. Since hiring markets reached their most recent peak in
the second quarter of 2022, there has been a material, and now sustained,
period of lower client and candidate confidence. In this context, our business
was not immune, as seen by first-half Group net fee income which was down 14%*
on the prior year and a reported loss before tax. As disappointing as those
financial results are, the challenging market conditions we face also bring
with them opportunities. For my leadership team and I, it has served to deepen
our conviction in our medium-term plan to further strengthen the business.
During the first half, in addition to tightly managing the cost base and
pursuing operational excellence, we took steps to clarify the key elements of
our medium-term plan and to pursue the right actions.
People
At Robert Walters, our purpose is to power people and organisations to fulfil
their unique potential. Our clients rely on us to understand their unique
business strategy, culture and hiring needs, and match that with the highest
quality talent. People leadership is, therefore, essential to how we run our
own business - including creating an environment which allows all of our
people, whatever their background, to perform to the best of their ability.
A hugely important element of people leadership has been having the right
people in the right roles within my immediate team. The team I am privileged
to lead combines several decades of Robert Walters experience with recent key
hires who bring fresh perspectives, complementary business experience,
critical core competences, and have made an immediate positive impact on the
business in the first half.
More widely across our business, we have defined our key leadership
behaviours, placing an emphasis on authenticity, care and an entrepreneurial
mindset. As a relationship-based recruiter, in our specialist professional
recruitment offering for example, these behaviours will continue to help us
differentiate our services from purely transactional competitors, and ensure
that our pipeline is consistently bringing through future leaders. This
approach also positions us strongly for when the pace of hiring in our markets
begins to accelerate, underpinned by the trusted relationships we have
nurtured with our clients and candidates through challenging markets.
Geographical penetration
We have well-scaled businesses in some of the largest hiring markets globally.
However, we also have businesses in mid-sized markets where Robert Walters is
not yet a top three competitor. We see an opportunity to develop our
portfolio, appropriately and selectively scaling in our existing markets that
most excite us.
Our Japan business best exhibits this blueprint. Since launching in Tokyo in
1999, our Japan business has grown to contain over 70 teams, serving
increasingly specialised industry verticals. With the structural tailwind of
acute labour shortages in Japan forecast for the next few decades, Robert
Walters has a differentiated offering particularly catering to bilingual
candidates and the multinational enterprises that seek them. This combines to
support sustainably strong fee rates and a well-above Group average conversion
rate.
In continental Europe, Belgium, the Netherlands and France stand out in terms
of their critical mass. These businesses are more evenly-weighted between perm
and temp than the two-thirds (perm) one-third (temp) specialist professional
recruitment global average seen during the first half. Specifically on the
temp side, we are building competency in the 'interim' space - being senior
executive and mid-managerial candidates able to bring their experience to bear
for clients over shorter fixed terms.
We will continue to pursue geographical penetration as a key driver of our
medium-term organic growth strategy.
Fee earner productivity and people efficiency
As a business, we are increasingly focused on fee earner productivity and,
more broadly, people efficiency.
Looked at in terms of perm placements per fee earner per month, our regions
are at different levels of productivity today relative to their most recent
peaks in the second quarter of 2022. In Asia-Pacific, whilst North-East Asia,
South-East Asia and Greater China are approaching their recent peak fee earner
productivity, Australia & New Zealand remain further behind. In some of
our European markets, fee earner productivity has surpassed the post-pandemic
peak, whilst the UK, though much improved over the first half, still lags. We
will continue to closely monitor fee earner productivity trends in the second
half, using the data to ensure we are adequately matched to demand in our
local markets, whilst well-positioned for a sustained improvement in
confidence levels as and when they arrive.
There is also work to be done to ensure our non-fee earner headcount is
appropriately based and structured to support the needs of our global
business. We are reviewing the best operating model for our central support
functions (finance, HR, legal, marketing and technology) to determine whether
roles should be based in each of our trading markets - as is sometimes optimal
- or 'offshore' in service centres that cater for a whole region.
Fee earner productivity and wider people efficiency is also underpinned by our
technology. During the first half we extended the rollout of 'Zenith', our
custom-built CRM, to our teams in the UK, Ireland and South Africa. Currently,
60% of the Group's markets are now benefiting from this significant upgrade.
As a great example of how we are leveraging the benefits of generative AI in
our human relationship-based business, our AI job ad writer was integrated
into Zenith during the first half - giving our fee earners more time to invest
in client and candidate relationships.
Finally, we are also giving thought to our office footprint. Our offices are
where our people come together to collaborate and be close to the clients and
candidates they serve. However, the needs we have in this area have evolved,
particularly given the changes brought by the pandemic. Since I became Group
Chief Executive, and in recognition of this, we have consolidated our office
footprint in Australia, France, Malaysia, the Netherlands, Thailand, the UK
and the USA, being very clear that the consolidated in-country network enables
our people to more effectively serve their clients and candidates. We can see
further opportunities in this area.
Winning as one Robert Walters
Just after the end of the first half, we externally launched our new brand
identity - bringing the multiple brands through which we have traded
historically under the single banner of 'Robert Walters'. At its core, the
brand unification will enable us to better serve our clients and will help us
fulfil our vision to be the world's most trusted talent solutions business.
We know that the talent requirements and hiring processes of businesses have
arguably evolved more rapidly in the last four years than the 20 that preceded
them. We also know that the needs and expectations of today's professionals
are changing just as quickly. In response, we have combined all of our
expertise, across specialist professional recruitment, recruitment outsourcing
and talent advisory, to go to market as one, enabling us to offer a full suite
of talent solutions to help organisations address their hiring challenges.
As our clients benefit from the solutions we offer as one Robert Walters, we
see a clear opportunity to introduce them to the full suite of our offering
where we currently only partner with them in one area. For example, client
awareness of our recruitment process outsourcing offering is just 11%,
compared to considerably higher levels for professional recruitment. Our move
to one Robert Walters will help us convert this opportunity.
Conclusion
As I conclude this review, I want to recognise our people - who make Robert
Walters such a great place to work. The current market conditions mean we must
demonstrate tenacity and resilience to an even greater extent than during the
hiring surge of the recent past, and I see this dedication in action from so
many of our people each day.
I believe we have clear opportunities within our grasp to further strengthen
Robert Walters over the medium-term and, together with all our people, I'm
excited to do so on behalf of all our stakeholders.
Toby Fowlston
Chief Executive Officer
31 July 2024
OPERATING REVIEW
Asia Pacific (42% of Group net fee income)
The Group's Asia-Pacific business comprises the specialist professional
recruitment offering in North-East Asia (Japan and South Korea), Australia
& New Zealand, South-East Asia (Indonesia, Malaysia, Philippines,
Singapore, Thailand and Vietnam) and Greater China (Mainland China, Hong Kong
and Taiwan), as well as the region-wide recruitment outsourcing offering.
Recruitment outsourcing accounted for 10% of Asia-Pacific net fee income in
the first half.
Six months ended 30 June 2024 2023 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 70.0 87.2 (20%) (13%)
Specialist professional recruitment 63.3 77.1 (18%) (10%)
Recruitment outsourcing 6.7 10.1 (33%) (30%)
Spec. professional recruitment Perm % mix 72% 72% -
Spec. professional recruitment Temp % mix 27% 27% -
Operating costs (66.9) (78.6) (15%) (7%)
Operating profit 3.1 8.6 (64%) (62%)
Conversion rate 4.4% 9.8% (5.4) pp n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
H1 net fee income was down 10%*, with both perm and temp fees lower
year-on-year by this proportion and the perm/temp mix therefore unchanged. The
reduction in perm fee income was driven by lower placement volumes, reflective
of market conditions, with average fees broadly stable. The reduction in temp
fee income was driven by lower temp volumes year-on-year, with the most marked
reduction in Australia and New Zealand where, in the case of the latter, the
government reduced the use of temp labour following the late 2023 national
elections.
Elsewhere in the region, fee income was resilient in North-East Asia (-1%*),
driven by a 2%* increase in Japan where both the number of temps working and
fee earner productivity in perm were up marginally on the prior year. As a
result of the foreign exchange headwind from the weaker Japanese Yen, in
reported terms Japan net fee income was down 12% on the prior year. Greater
China net fee income was down 8%*, with a strong performance in mainland China
(+13%*) - where new leadership has re-focused the go-to-market strategy - more
than offset by Hong Kong (-23%*), where financial services sectoral confidence
levels remain low. In South-East Asia, net fee income was down 15%* on the
prior year, with a lengthened time-to-hire observed particularly for more
senior roles.
Recruitment outsourcing
H1 net fee income was down 30%*, reflecting lower hiring volumes from the
largely financial services-weighted client base.
Operating costs
Operating costs were down 7%*. Period end headcount reduced by 14%
year-on-year, with a reduction in both fee earners and support staff.
Europe (34% of Group net fee income)
The Group's Europe business predominantly comprises the specialist
professional recruitment offering in Northern Europe (Belgium, France,
Germany, Ireland, the Netherlands and Switzerland) and Southern Europe (Italy,
Portugal and Spain). Recruitment outsourcing accounted for 1% of Europe net
fee income in the first half.
Six months ended 30 June 2024 2023 Change(1) % Chg(1) CCY
£m unless otherwise stated
Net fee income 56.5 66.5 (15%) (13%)
Specialist professional recruitment 56.0 65.7 (15%) (13%)
Recruitment outsourcing 0.5 0.8 (44%) (45%)
Spec. professional recruitment Perm % mix 53% 56% (3) pp
Spec. professional recruitment Temp % mix 47% 44% 3 pp
Operating costs (54.1) (62.2) (13%) (11%)
Operating profit 2.4 4.3 (45%) (42%)
Conversion rate 4.2% 6.5% (2.3) pp n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
H1 net fee income was down 13%*, with perm down 17%*, whilst temp (-7%*) was
more resilient - thereby growing its share of the mix year-on-year. The
reduction in perm fee income was broadly proportionate with lower placement
volumes year-on-year, whilst average fees were stable. Lower temp fee income
is reflective of lower temp volumes, with weaker conditions in the Group's
largest European temp markets of France and the Netherlands partly offset by
growth in Belgium.
In the Group's largest European market of France, H1 fee income was down 18%*.
Muted confidence amongst French clients and candidates as the year began
(reflected in Q1 fee income -15%* year-on-year) was further impacted towards
the end of the half by political uncertainty. Combined with the Paris
Olympics, this pulled forward the commencement of the seasonal lull in hiring
activity typically seen during the third quarter. Netherlands (-9%*) was more
resilient and has been broadly stable sequentially since the third quarter of
2023, whilst Belgium (-3%*) annualised a record H1 prior year comparative. The
continued rebasing in market conditions relative to the post-pandemic peak was
also seen in Spain (-19%*), which also annualised a record level of H1 fee
income in 2023. In Germany (-13%*), the group's fifth largest European market,
performance improved as the half progressed (Q1: -21%* year-on-year, Q2: -4%*
year-on-year).
Operating costs
Operating costs were down by 11%*. Period end headcount fell 21% year-on-year,
with a reduction in both fee earners and support staff.
UK (16% of Group net fee income)
The Group's UK business comprises the specialist professional recruitment
offering in London and the regions, as well as recruitment outsourcing and
talent advisory services. Recruitment outsourcing is the most material in the
UK of any of the Group's reportable segments, accounting for 56% of net fee
income in the first half. As well as Robert Walters co-locating its people on
client sites to perform volume hiring (in common with the other reportable
segments), UK recruitment outsourcing also includes the provision of
contingent workforce solutions such as the fledgling, but high growth,
'Workforce Consultancy' offering.
Six months ended 30 June 2024 2023 % Change(1)
£m unless otherwise stated
Net fee income 26.3 32.3 (18%)
Specialist professional recruitment 11.4 14.4 (20%)
Recruitment outsourcing 14.9 17.9 (17%)
Spec. professional recruitment Perm % mix 74% 75% (1) pp
Spec. professional recruitment Temp % mix 26% 25% 1 pp
Operating costs (28.6) (32.2) (11%)
Operating (loss)/ profit (2.3) 0.1 nm
Conversion rate nm 0.2% n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
H1 net fee income was down 20%, with perm fee income down 21% and temp
slightly more resilient - with its mix share marginally up as a result. Lower
perm fee income was driven by lower placement volumes, with average fees up
year-on-year. Lower temp fee income reflects the lower temp volumes
year-on-year. In London (-16%), improved momentum (Q1: -26% year-on-year, Q2:
-6% year-on-year) was driven by two consecutive quarters of sequential growth,
led by the accounting and finance vertical. Conditions were softer in the
regions (-25%), however sequential momentum was stable as the half closed (Q2
fee income up 4% v. Q1).
Recruitment outsourcing
H1 net fee income was down 17%, primarily driven by lower perm hiring volumes
through the predominantly financial services sector client base. Client
confidence levels re-set sharply lower in the first quarter of 2023 and,
though recovery commenced through the first half of this year, perm hiring
requirements still lagged those of a year ago. The lower confidence levels
were also seen in volume temp hiring requirements being more resilient
year-on-year.
Although still a modest proportion of UK recruitment outsourcing net fee
income today, Workforce Consultancy continued to perform well during the first
half - and indeed ahead of management's expectations. Having been launched in
2022, and initially offered to existing Robert Walters' clients only, first
half fee income was up 40% on the prior year, with a product conversion ratio
in excess of 30%.
Operating costs
Operating costs were down by 11%. Period end headcount fell 8% year-on-year,
with a reduction in both fee earners and support staff.
Rest of World (8% of Group net fee income)
The Group's Rest of World business comprises the specialist professional
recruitment offering in North America (Canada and USA), South America (Brazil,
Chile and Mexico), the Middle East and South Africa, as well as the
region-wide recruitment outsourcing and talent advisory offering. Recruitment
outsourcing accounted for 33% of Rest of World net fee income in the first
half.
Six months ended 30 June 2024 2023 Change(1) % Chg.(1) CCY
£m unless otherwise stated
Net fee income 13.3 16.3 (18%) (15%)
Specialist professional recruitment 8.9 10.3 (14%) (9%)
Recruitment outsourcing 4.4 6.0 (26%) (24%)
Spec. professional recruitment Perm % mix 98% 100% (2) pp
Spec. professional recruitment Temp % mix 1% - 1 pp
Operating costs (16.3) (18.1) (9%) (6%)
Operating loss (3.0) (1.8) nm nm
Conversion rate nm nm n/a n/a
(1)Percentage movements throughout this announcement are based on full
unrounded results, not the rounded figures in the tables.
NB c.1% of specialist professional recruitment net fee income is classified as
'Other', and not categorised in either perm or temp. As such the aggregate of
perm and temp % mix may not sum to 100%.
Specialist professional recruitment
H1 net fee income was down 9%*, almost wholly reflecting perm performance.
Lower perm placement volumes were partially offset by growth in average fees
year-on-year in both North and South American markets.
H1 fee income in the Middle East, the Group's largest Rest of World market,
was down 4%* and stable sequentially across the first two quarters. Meanwhile,
in the USA (-18%*), hiring conditions in the technology sector remained tough.
Mexico (+1%*) saw the strongest performance of the South American markets.
While Chile (-13%*) was softer, it remains an attractive market given its
prospects for continued export-led GDP growth.
Recruitment outsourcing
H1 net fee income was down 24%*, largely driven by lower levels of volume
hiring in perm on behalf of financial services clients.
Operating costs
Operating costs fell by 6%*. Period end headcount was 24% lower year-on-year,
with reductions in both fee earners and support staff.
FINANCIAL REVIEW
These financial results have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the United Kingdom.
Group statutory results
The headline statutory financial results for the Company are presented below.
£m Six months ended 30 June 2024 Six months ended 30 June 2023
Revenue 459.3 548.3
Cost of sales (293.2) (346.0)
Gross profit (net fee income) 166.1 202.3
Administrative expenses (165.9) (191.1)
Operating profit 0.2 11.2
Net finance costs (2.0) (2.2)
Loss on foreign exchange (0.5) (0.9)
(Loss)/profit before tax (2.3) 8.1
Taxation (0.1) (2.8)
(Loss)/profit for the period (2.4) 5.3
Attributable to:
Equity holders of the Company (2.4) 5.3
Revenue
Revenue for the Group is the total income from the placement of permanent and
temporary (comprising contract and interim) staff, and therefore includes the
remuneration costs of temporary candidates and the total cost of advertising
recharged to clients. It also includes outsourcing fees, consultancy fees and
the margin derived from payrolling contracts charged by Robert Walters to its
clients. Revenue in the period decreased by 16% to £459.3m.
Gross profit (net fee income)
Net fee income is the total placement fees of permanent candidates, the margin
earned on the placement of temporary candidates and the margin from
advertising. It also includes the outsourcing, consultancy and payrolling
margin earned by the Company. Net fee income is the primary financial top-line
metric used to evaluate business performance.
Net fee income in the period decreased by 18% to £166.1m, principally driven
by the lower volume of permanent placements and on-payroll temporary workers
in specialist professional recruitment, and the lower level of volume hiring
in recruitment outsourcing.
Operating profit
Operating profit in the period decreased to £0.2m, reflecting the underlying
trading performance and the inherent operating leverage in the Group's model
whereby the lower net fee income (down 18%) was not proportionately matched,
in the short-term, by lower operating costs (down 13%).
The majority of the Group's operating costs (c.70%) relate to staff, being
front office fee earners (recruitment consultants) and non-fee earners (front
office support staff as well as back-office support staff across various
corporate functions such as finance, HR, IT, legal and marketing). Included in
operating costs is c.£2m of redundancy costs incurred in the period.
Interest and financing costs
The Group incurred a net interest charge for the period of £2.0m (H1 2023:
£2.2m).
A foreign exchange loss of £0.5m (H1 2023: £0.9m) arose during the period on
translation of the Group's intercompany balances and external borrowings.
Taxation
The tax charge in the period was £0.1m (H1 2023: £2.8m), which is
substantially lower than the expected effective tax rate for the full year due
to the incidence of interim profits and losses in various overseas markets,
versus the expected outturn in each market for the full financial year.
The effective tax rate ("ETR") for the full year is expected to be higher than
the prior full-year ETR (2023 ETR: 36.0%), reflecting both the higher rate of
taxation on profits in many of the overseas markets in which the Group
operates, as well as the incidence of losses in a number of overseas markets
in the current year.
Cash flow and financing
Cash generated from operations in the period was £0.4m (H1 2023: £14.9m).
£m Six months ended 30 June 2024 Six months ended 30 June 2023
Operating profit 0.2 11.2
Depreciation and amortisation charges 11.4 11.8
Other non-cash items (2.2) (0.8)
Increase in working capital (9.0) (7.3)
Cash generated by operations 0.4 14.9
Net interest and associated borrowing costs (0.1) (2.2)
Repayment of lease principal (8.9) (7.6)
Taxation (3.5) (4.3)
Capital expenditure - Intangibles (3.4) (2.7)
Capital expenditure - property, plant & equipment (1.4) (5.8)
Free cash flow (16.9) (7.7)
Share buyback - (1.9)
Equity dividends paid (11.2) (11.5)
Other 0.2 0.2
Net movement in cash (exc. financing facility) (27.9) (20.9)
Impact of foreign exchange (3.2) (6.4)
Opening net cash 79.9 97.1
Closing net cash 48.8 69.8
During the period, net cash decreased by £31.1m to £48.8m (31 December 2023
net cash: £79.9m).
Working capital increased during the period by £9.0m (H1 2023: £7.3m),
reflecting the usual first half working capital cycle of the Group.
The Company was free cash flow negative in the period in the sum of £16.9m
(H1 2023: £7.7m). Repayment of lease liabilities of £8.9m (H1 2023: £7.6m)
relates to the Group's office estate. There were also additions in the right
of use assets of £9.3m (H1 2023: £9.5m) relating to the Group's office
estate which are non-cash items. Intangibles capital expenditure of £3.4m (H1
2023: £2.7m) principally comprises spend to further develop the Group's
in-house CRM system. Property, plant and equipment capital expenditure of
£1.4m (H1 2023: £5.8m) principally relates to the Group's office estate.
During the period, the average amount drawn on the Group's financing facility
reduced and amounted to £14.6m at the period end (30 June 2023: £19.1m) as
stronger cash management saw more cash repatriated to the UK, which resulted
in a reduction in the related interest paid.
Dividend
Reflecting the strong balance sheet, and the actions taken to date to ensure
the business is well-positioned for an improvement in end markets, the Board
has declared an interim dividend of 6.5p per share (H1 2023: 6.5p), which will
be paid on 27 September 2024 to shareholders on the register on 30 August
2024.
Foreign exchange impact
The Group's primary overseas functional currencies are the Japanese Yen, the
Euro and the Australian Dollar.
The impact of foreign exchange movements between H1 2024 and H1 2023 resulted
in a £8.0m decrease in reported net fee income and a £0.2m decrease in
operating profit for the Group.
Principal risks and uncertainties
The Group's principal risks and uncertainties, together with mitigating
actions, are detailed on pages 52-58 of the Company's Annual Report &
Accounts 2023. Since the publication of the Annual Report & Accounts, the
Board has assessed the Group's risk profile and does not believe the principal
risks and uncertainties are different in nature overall to those detailed.
ROBERT WALTERS PLC
Half-yearly Financial Results 2024
CONDENSED CONSOLIDATED INCOME STATEMENT
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
Note £m £m £m
Continuing operations
Revenue 3 459.3 548.3 1,064.1
Cost of sales (293.2) (346.0) (677.3)
Gross profit (net fee income) 3 166.1 202.3 386.8
Administrative expenses (165.9) (191.1) (360.5)
Operating profit 3 0.2 11.2 26.3
Finance income 0.4 0.2 0.6
Finance costs (2.4) (2.4) (4.8)
Loss on foreign exchange (0.5) (0.9) (1.3)
(Loss) profit before taxation 3 (2.3) 8.1 20.8
Taxation 4 (0.1) (2.8) (7.4)
(Loss) profit for the period (2.4) 5.3 13.4
(Loss) earnings per share (pence): 6
Basic (3.7) 7.8 20.1
Diluted (3.7) 7.4 19.0
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE
2024 2023 2023
6 mths to 6 mths to 12 mths to 31 Dec
30 June 30 June Audited
Unaudited Unaudited
£m £m £m
(Loss) profit for the period (2.4) 5.3 13.4
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of overseas operations (5.1) (10.7) (8.6)
Total comprehensive income and expense for the period (7.5) (5.4) 4.8
ROBERT WALTERS PLC
Half-yearly Financial Results 2024
CONDENSED CONSOLIDATED BALANCE SHEET
2024 2023 2023
30 June 30 June 31 December
Unaudited Unaudited Audited
Note £m £m £m
Non-current assets
Intangible assets 36.1 30.9 33.8
Property, plant and equipment 13.5 15.7 15.3
Right-of-use assets 68.9 71.9 67.5
Lease receivables 3.8 - 4.0
Deferred tax assets 14.3 9.9 11.8
136.6 128.4 132.4
Current assets
Trade and other receivables 168.5 202.2 182.5
Lease receivables 1.0 - 0.8
Corporation tax receivables 4.1 5.9 4.3
Cash and cash equivalents 63.4 88.9 95.7
237.0 297.0 283.3
Total assets 373.6 425.4 415.7
Current liabilities
Trade and other payables (123.7) (155.8) (148.0)
Corporation tax liabilities (3.5) (3.4) (4.8)
Bank overdrafts and borrowings 7 (14.6) (19.1) (15.8)
Lease liabilities (18.3) (17.6) (18.0)
Provisions (1.5) (1.0) (0.7)
(161.6) (196.9) (187.3)
Net current assets 75.4 100.1 96.0
Non-current liabilities
Deferred tax liabilities (0.1) (2.0) (0.2)
Lease liabilities (62.1) (58.9) (61.2)
Provisions (2.0) (2.0) (2.1)
(64.2) (62.9) (63.5)
Total liabilities (225.8) (259.8) (250.8)
Net assets 147.8 165.6 164.9
Equity
Share capital 15.3 15.6 15.3
Share premium 22.6 22.6 22.6
Other reserves (70.9) (71.2) (70.9)
Own shares held (37.4) (39.6) (37.8)
Treasury shares held (9.1) (9.1) (9.1)
Foreign exchange reserves (2.6) 0.4 2.5
Retained earnings 229.9 246.9 242.3
Equity attributable to owners of the Company 147.8 165.6 164.9
ROBERT WALTERS PLC
Half-yearly Financial Results 2024
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Operating profit for the period 0.2 11.2 26.3
Adjustments for:
Depreciation and amortisation charges 11.4 11.8 24.0
Impairment of right-of-use assets - 0.2 0.2
Gain on disposal of property, plant and equipment and computer software - (0.1) (0.2)
Charge in respect of share-based payment transactions 0.8 2.2 0.7
Unrealised foreign exchange gain (3.0) (3.1) (3.0)
Operating cash flows before movements in working capital 9.4 22.2 48.0
Decrease in receivables 9.5 10.8 32.2
Decrease in payables (18.5) (18.1) (25.7)
Cash generated from operating activities 0.4 14.9 54.5
Income taxes paid (3.5) (4.3) (9.0)
Net cash (used in) generated from operating activities (3.1) 10.6 45.5
Investing activities
Interest received 0.4 0.2 0.6
Investment in intangible assets (3.4) (2.7) (7.6)
Purchases of property, plant and equipment (1.4) (5.8) (8.3)
Sale of property, plant and equipment - - 1.1
Net cash used in investing activities (4.4) (8.3) (14.2)
Financing activities
Equity dividends paid (11.2) (11.5) (15.8)
Interest paid (0.5) (0.7) (1.4)
Interest on lease liabilities - (1.7) -
Principal paid on lease liabilities (8.9) (7.6) (15.9)
Proceeds from financing facility 16.4 6.5 10.4
Repayment of financing facility (17.6) (13.5) (20.7)
Proceeds from issue of equity 0.2 0.2 -
Share buy-back for cancellation - (1.9) (10.0)
Proceeds from exercise of share options - - 1.2
Net cash used in financing activities (21.6) (30.2) (52.2)
Net decrease in cash and cash equivalents (29.1) (27.9) (20.9)
Cash and cash equivalents at beginning of the period 95.7 123.2 123.2
Effect of foreign exchange rate changes (3.2) (6.4) (6.6)
Cash and cash equivalents at end of the period 63.4 88.9 95.7
ROBERT WALTERS PLC
Half-yearly Financial Results 2024
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Other reserves Own shares held Treasury shares held Foreign exchange reserves Retained earnings
Total equity
£m £m £m £m £m £m £m £m
Balance at 1 January 2023 15.8 22.6 (71.4) (40.5) (9.1) 11.1 255.4 183.9
Profit for the period - - - - - - 5.3 5.3
Foreign currency translation differences - - - - - (10.7) - (10.7)
Total comprehensive income and expense for the period - - - - - (10.7) 5.3 (5.4)
Dividends paid - - - - - - (11.5) (11.5)
Credit to equity for equity-settled share-based payments - - - - - - 2.2 2.2
Tax on share-based payment transactions - - - - - - (0.4) (0.4)
- - - 0.7 - - (0.7) -
Transfer to own shares held on exercise of equity incentives
Share repurchase and cancellation (0.2) - 0.2 - - - (3.4) (3.4)
New shares issued and own shares purchased - - - 0.2 - - - 0.2
Unaudited balance at 30 June 2023 15.6 22.6 (71.2) (39.6) (9.1) 0.4 246.9 165.6
Profit for the period - - - - - - 8.1 8.1
Foreign currency translation differences - - - - - 2.1 - 2.1
Total comprehensive income and expense for the period - - - - - 2.1 8.1 10.2
Dividends paid - - - - - - (4.3) (4.3)
Charge to equity for equity-settled share-based payments - - - - - - (1.5) (1.5)
Tax on share-based payment transactions - - - - - - 0.5 0.5
- - - 0.8 - - (0.8) -
Transfer to own shares held on exercise of equity incentives
Share repurchase and cancellation (0.3) - 0.3 - - - (6.6) (6.6)
New shares issued and own shares purchased - - - 1.0 - - - 1.0
Balance at 31 December 2023 15.3 22.6 (70.9) (37.8) (9.1) 2.5 242.3 164.9
Profit for the period - - - - - - (2.4) (2.4)
Foreign currency translation differences - - - - - (5.1) - (5.1)
Total comprehensive income and expense for the period - - - - - (5.1) (2.4) (7.5)
Dividends paid - - - - - - (11.2) (11.2)
Share repurchase and cancellation - - - - - - - -
- - - - - - 0.8 0.8
Credit to equity for equity-settled share-based payments
- - - - - - 0.6 0.6
Tax on share-based payment transactions
- - - 0.2 - - (0.2) -
Transfer to own shares held on exercise of equity incentives
New shares issued and own shares purchased - - - 0.2 - - - 0.2
Unaudited balance at 30 June 2024 15.3 22.6 (70.9) (37.4) (9.1) (2.6) 229.9 147.8
ROBERT WALTERS PLC
Half-yearly Financial Results 2024
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
1. Statement of accounting policies
Basis of preparation
These condensed set of interim financial statements for the six months to 30
June 2024 have been prepared in accordance with IAS 34 'Interim Financial
Reporting' and in compliance with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.
They do not include all of the information required for full annual financial
statements and should be read in conjunction with the 2023 Annual Report and
Accounts, which were prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006 and in
accordance with UK-adopted International Financial Reporting Standards
(IFRSs).
The accounting policies applied by the Group are as set out in detail in the
Annual Report and Accounts for the year ended 31 December 2023. The Group has
applied the same accounting policies and methods of computation in its interim
consolidated financial statements as in its 2023 annual financial statements,
accounting which is consistent with the Group's current accounting policies
except for amendments which applied for the first time in 2024, none of which
are expected to impact the Group as they are either not relevant to the
Group's activities or require accounting which is consistent with the Group's
current accounting policies.
There are a number of standards and interpretations which have been issued by
the International Accounting Standards Board that are effective for periods
beginning subsequent to 31 December 2024 that the Group has not adopted early
and which the Group does not believe will have a material impact on the
financial statements when adopted.
The financial information on pages 15 to 24 was formally approved by the Board
of Directors on 31 July 2024. The financial information set out in this
document does not constitute statutory accounts within the meaning of section
434 of the Companies Act 2006.
Statutory accounts prepared under IFRSs for the year ended 31 December 2023
for Robert Walters plc have been delivered to the Registrar of Companies. The
auditor's report on these accounts was not qualified, did not draw attention
to any matters by way of emphasis and did not contain statements under section
498(2) or (3) of the Companies Act 2006.
The financial information in respect of the period ended 30 June 2024 is
unaudited but has been reviewed by the Company's auditor. Their report is
included on page 26 and 27. The financial information in respect of the period
ended 30 June 2023 is also unaudited.
Going concern
Net fee income for the first half of 2024 continued to reflect the rebasing in
market conditions relative to the post-pandemic peak. This period of market
adjustment is now longer in duration than previously expected, with
macroeconomic turbulence and political uncertainty restraining client and
candidate confidence in certain geographies. However, the Group has
considerable financial resources, including £48.8m of net cash at 30 June
2024, together with a diverse range of clients and suppliers across different
geographic locations and sectors. As a consequence, the Directors believe the
Group is well placed to manage its business risks successfully.
The Directors have assessed the long-term prospects of the Company and the
Group based upon business plans, cash flow projections for the remaining 6
months ending 31 December 2024, the three-year period ending 31 December 2027,
and consideration of the uncertainties arising in the current economic
environment.
The three-year period was chosen as it is considered the longest timeframe
over which any reasonable view can be formed, given the nature of the market
in which the Group operates. Furthermore, the nature of recruitment activity
is highly reactive to market sentiment and the forward visibility of permanent
recruitment, which represents 62% of the Group's net fee income, can be
measured in weeks, whilst temporary recruitment and recruitment process
outsourcing may be less affected.
The forecasts and cash flow projections being used to assess going concern
have been comprehensively stress-tested by using simulation techniques
involving sensitivity analysis applying, in particular, projections of reduced
net fee income of up to 20% from forecasts each year over a three-year
period. In light of the current economic uncertainties, the Directors have
completed reverse stress testing, designed to explore the resilience of the
Group to the potential impact of the principal risks using various downside
scenarios. The scenarios included but were not limited to significant
reductions in revenue, losses of key clients, losses of key internal talent,
reputation damage, technology disintermediation, increases in debtor days, and
limited cost management. The Group also considered mitigating actions that
could be undertaken in the event of one or more of the scenarios occurring, or
that of an even more significant downturn, which included but are not limited
to, further reductions in capital expenditure, further reductions in
non-business critical expenditure as well as the potential for headcount
reductions. The scenarios were designed to be impactful but at the same time
realistic and the Group remained viable throughout.
It should be noted that the Group has limited forward visibility and
consequently there is still a high degree of uncertainty in respect of future
outcomes, however, the various stress test scenarios indicate that the Group
still has a strong balance sheet and can continue to operate within its
banking covenants.
Historically, the Group has successfully managed its cost base during previous
economic downturns. The Directors remain confident of the Group's long-term
growth prospects, with structural recruitment market fundamentals including
job vacancy levels, salary inflation and candidate shortages still holding
strong which continues to suggest that when market confidence recovers there
will likely be an increase in demand and candidate movement across all areas
of recruitment.
As a consequence, the Directors have formed a judgement, at the time of
approving the condensed set of financial statements, that there is a
reasonable expectation that the Group has adequate resources to continue in
operational existence and meet its liabilities as they fall due over the
three-year assessment period. For this reason, the Directors continue to adopt
the going concern basis in preparing the condensed set of financial
statements.
Cash management
At 30 June 2024, the Group has £48.8m of net cash, compared to £69.8m at 30
June 2023. The Group has a committed financing facility of £60.0m, which
expires in March 2027 and at 30 June 2024, £14.6m (30 June 2023: £19.1m) was
drawn down under this
facility.
Principal risks and uncertainties
The Board recognises the importance of identifying and actively monitoring the
full range of financial and non-financial risks facing the business, at both a
local and Group level. Since the year-end, the Board has assessed the
Company's risk profile and the likely consequences of any decision on the
long-term success of the Company, and inherently do not believe the principal
risks for the business are different in nature overall as those detailed
within the Principal Risks and Uncertainties section of the Annual Report and
Accounts for the year ended 31 December 2023. The Group continues to navigate
challenging macro-economic conditions and has implemented appropriate risk
mitigation strategies to address those risks. The Board continues to monitor
the ongoing impact on the business, with a robust Group-wide assessment of the
Company's risk profile currently in progress, incorporating both top-down and
bottom-up perspectives, including the identification and consideration of
emerging risks such as climate-related and cyber-related risk.
Significant accounting judgements and estimates
Judgement and estimates are continually evaluated and are based on historical
experience and other factors, including expectation of future events that are
believed to be reasonable under the circumstances. Due to inherent uncertainty
involved in making estimates and assumptions, actual outcomes could differ
from those assumptions and estimates.
Given the impact on the economy from the ongoing conflicts, political changes
and the current economic uncertainties, further review of the judgements and
estimates have been performed when preparing the half-yearly financial
results. Following the review, it was concluded that the significant
accounting judgements and estimates made by management were the same as those
that applied in the Group's Annual Report and Accounts for the year ended 31
December 2023.
2. Currency conversion
The presentational currency of the Group is Pounds Sterling and the condensed
set of financial statements have been prepared on this basis.
The Condensed Consolidated Income Statement for the period ended 30 June 2024
has been prepared using, among other currencies, the average exchange rate
of €1.1700 to the Pound (period ended 30 June 2023: €1.1409 ; year ended
31 December 2023: €1.1496); ¥192.4762 to the Pound (30 June 2023:
¥166.2789 ; 31 December 2023: ¥174.7122) and AU$1.9210 to the Pound (30 June
2023: AU$1.8243; 31 December 2023: AU$1.8720).
The Condensed Consolidated Balance Sheet as at 30 June 2024 has been prepared
using the exchange rates on that day of €1.1798 to the Pound (30 June 2023:
€1.1631 ; 31 December 2023: €1.1528); ¥203.3960 to the Pound (30 June
2023: ¥183.0240 ; 31 December 2023: ¥179.4630) and AU$1.8953 to the Pound
(30 June 2023: AU$1.9064 ; 31 December 2023: AU$1.8671).
3. Segmental information
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
i) Revenue:
Asia Pacific 202.7 253.0 484.9
UK 108.2 126.0 254.9
Europe 130.3 147.2 281.9
Rest of World 18.1 22.1 42.4
459.3 548.3 1,064.1
ii) Gross profit (net fee income):
Asia Pacific 70.0 87.2 167.9
UK 26.3 32.3 60.9
Europe 56.5 66.5 126.3
Rest of World 13.3 16.3 31.7
166.1 202.3 386.8
iii) Operating profit and (loss) profit before taxation:
Asia Pacific 3.1 8.6 19.3
UK (2.3) 0.1 (0.4)
Europe 2.4 4.3 11.4
Rest of World (3.0) (1.8) (4.0)
Operating profit 0.2 11.2 26.3
Net finance costs (2.5) (3.1) (5.5)
(Loss) profit before taxation (2.3) 8.1 20.8
The analysis of revenue by destination is not materially different to the
analysis by origin and the analysis of finance income and costs are not
significant.
The Group is divided into geographical areas for management purposes, and it
is on this basis that the segmental information has been prepared.
iv) Revenue by business grouping:
Specialist Professional Recruitment 360.2 430.8 836.0
Recruitment Outsourcing 99.1 117.5 228.1
459.3 548.3 1,064.1
v) Revenue by service grouping:
Permanent 102.2 128.0 242.7
Temporary 269.4 330.3 628.9
Interim 64.6 65.2 128.7
Other 23.1 24.8 63.8
459.3 548.3 1,064.1
4. Taxation
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Current tax 2.7 1.3 9.3
Deferred tax (2.6) 1.5 (1.9)
Total tax charge for the period 0.1 2.8 7.4
The interim tax charge for the period is calculated, on a country-by-country
basis, by assessing the expected full year effective tax rate for each country
and then applying that rate to the interim result for each country. Due to the
mix of loss and profit during the year, the tax charge for the interim period
was £0.1m, resulting in an effective tax rate of -2.4% (30 June 2023: 35.4%).
On 20 December 2021, the OECD published its proposal in relation to Global
Anti-Base Erosion Rules, which provide for an internationally co-ordinated
system of taxation to ensure that large multinational groups pay a minimum
level of corporate income tax in countries where they operate. On 23 March
2023, the UK government introduced draft legislation in Finance (No.2) Bill
2022-23 to implement Pillar 2 of the OECD/G20 inclusive framework. The new
rules will take effect from 2024 onwards. There remains a considerable
amount of uncertainty with respect to the detailed operation of the rules and
their impact. From an initial review of the Group's business and tax profile,
it is unlikely that the rules will have a material impact on the Group's tax
profile.
5. Dividends
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
Amounts recognised as distributions to equity holders in the period:
Final dividend for 2023 of 17.0p per share (2022: 17.0p) 11.2 11.5 11.5
Interim dividend for 2023 of 6.5p (2022: 6.5p) - - 4.3
11.2 11.5 15.8
Proposed interim dividend for 2024 of 6.5p (2023: 6.5p) 4.3 4.4 n/a
The proposed interim dividend was approved by the Board on 31 July 2024 and
has not been included as a liability at 30 June 2024.
6. Earnings per share
The calculation of earnings per ordinary share is based on the (loss) profit
for the period attributable to equity holders of the Parent and the weighted
average number of shares of the Company.
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
Number of shares Number of shares Number of shares
Weighted average number of shares:
Shares in issue throughout the period 76,429,714 78,928,095 78,928,095
Shares issued in the period 1,031 - 631
Shares cancelled in the period - (61,080) (1,121,137)
Treasury and own shares held (10,697,728) (11,112,624) (11,022,701)
For basic earnings per share 65,733,017 67,754,391 66,784,888
Outstanding share options 3,887,021 3,885,704 3,700,484
For diluted earnings per share 69,620,038 71,640,095 70,485,372
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
£m £m £m
(Loss) profit for the period attributable to equity holders of the Parent (2.4) 5.3 13.4
2024 2023 2023
6 mths to 6 mths to 12 mths to
30 June 30 June 31 Dec
Unaudited Unaudited Audited
(Loss) earnings per share (pence):
Basic (3.7) 7.8 20.1
Diluted (3.7) 7.4 19.0
7. Bank overdrafts and
borrowings
The Group has a committed financing facility of £60.0m, which expires in
March 2027.
At 30 June 2024, £14.6m (30 June 2023: £19.1m) was drawn down under this
facility.
8. Related party transactions
There were no related party transactions in the period to 30 June 2024 (30
June 2023: none), other than employment and share-based remuneration payments
to key management personnel and receipt of dividends for key management
shareholders. There were no outstanding balances as at 30 June 2024 (30 June
2023: none).
9. Registered office
The Company's registered office is located at 11 Slingsby Place, St Martin's
Courtyard, London, WC2E 9AB.
Responsibility Statement
We confirm to the best of our knowledge:
a) the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting';
b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of the important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the year); and
c) the interim management report and note 8 includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board,
David Bower
Chief Financial Officer
31 July 2024
INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2024 which comprises of the Condensed Consolidated Income Statement, the
Condensed Consolidated Statement of Comprehensive Income and Expense, the
Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow
Statement, the Condensed Consolidated Statement of Changes in Equity, and
related notes 1 to 9.
Basis for conclusion
We conducted our review in accordance with Revised International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410
(Revised)"). A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410 (Revised), however future events or conditions may cause the
group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
31 July 2024
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
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