Robert Walters PLC on Monday said it is highly confident despite challenging market cycles, as net fees declined due to weak job markets.
The London-based recruitment firm said net fees fell 15% to £84.8 million in the second quarter of 2024 from £99.9 million a year prior. The decline was the sharpest in the UK, by 18% to £13.2 million from £16.0 million.
The company’s gross profit fell 18% to £166.1 million from £202.3 million. The sharpest fall was in the Asia Pacific, where it declined by 20% to £70.0 million from £87.2 million a year ago.
Chief Executive Officer Toby Fowlston said the market adjustment after the post-pandemic peak is taking longer than previously expected, with any material improvement likely not occurring before 2025.
Looking ahead, CEO Fowlston said: ‘Our near-term planning now assumes that any material improvement in confidence levels will be gradual, and likely not occur before 2025. In this environment, we remain focused on being positioned to deliver the best outcomes for our clients and candidates, whilst maintaining tight cost discipline. These actions do not fully offset the first-half fee income reduction, but they position us well going into the second half of the year.’
More positively, he added: ‘Though current market conditions suggest a wider range of potential outcomes for the full-year than seen historically, I have high confidence in our experienced leadership team, which has successfully navigated many challenging market cycles. We are committed to our medium-term plan to further strengthen the business, details of which will be shared at our capital markets event in September.’
Robert Walters will publish its interim results on August 1.
Robert Walters shares rose 4.0% to 397.17 pence each midday Monday in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
