Robert Walters PLC on Tuesday said its business was ‘resilient’ as it reported a drop in net fee income in the third quarter of its financial year, against a ‘record’ prior year.

The London-based recruitment company said net fee income totalled £93.4 million in the third quarter ended September 30, down 17% from £112.0 million a year before.

The company said that macroeconomic conditions remained ‘uncertain’ during the quarter but noted that client and candidate confidence levels were unchanged from the second quarter.

Robert Walters reduced its number of employees by 1.9% to 4,200 from 4,280 in the second quarter, saying this was to manage its cost base in line with market conditions.

Contract and interim recruitment outperformed permanent recruitment in the recent quarter, now representing a third of net fee income.

Activity levels were strongest across the UK regions, but Robert Walters emphasised the impact of high inflation and interest rates affecting confidence in the technology and financial services sectors.

Challenges remain in the US recruitment market, the company said, but it reported growth in the Middle East, South Africa and in Latin America, with net fee income in Mexico jumping by 78% in the third quarter annually.

Looking ahead, Chief Executive Toby Fowlston said: ‘The group’s strategic core remains strong, and we are focused on consultant productivity, cost discipline and long-term investments in our people and global infrastructure. The group is well positioned to swiftly capture opportunities when there is an upturn in market confidence and our expectations for the full year remain unchanged.’

The firm will publish a trading update for the fourth quarter on January 11.

Robert Walters shares rose 6.8% to 378.98 pence each on Tuesday morning in London.

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