Robert Walters PLC on Tuesday noted ongoing tough market conditions in the recruitment market as it reported a lower headcount and declining net fees, as clients paused activity ahead of the UK government’s budget.

The London-based international recruitment company net fee income for the quarter ended September 30 of £79.9 million, down 14% from £93.4 million a year prior, and 12% on a constant currency basis.

It said trading conditions were broadly unchanged from the first half, with client and candidate confidence levels yet to show signs of material improvement.

Robert Walters noted that headcount was down 4% quarterly and 17% lower than a year ago, falling to 3,466 as at September 30 from 4,200 a year prior.

The company added that clients were pausing activity as they awaited clarity on employment legislation and fiscal measures of the new UK government in the budget that is due on October 30.

Robert Walters highlighted that net fee income was down globally in the third quarter, with Asia-Pacific being down 12%, Europe down 13%, UK down 19% and rest of the world net fee income being 2% lower than a year ago.

Chief Executive Officer Toby Fowlston said: ‘Global hiring markets remained challenging during the third quarter, bringing the period of rebasing following the 2022 post-pandemic peak to around two years. As set out at our half-year results in August, our assumption continues to be that material improvement in client and candidate confidence levels will be gradual and not likely to commence until 2025.’

Looking ahead, the company said second half fee income is unlikely to exceed the first half, though continues to expect profitable full-year.

Robert Walters shares fell 4.6% to 335.00 pence each on Tuesday morning in London.

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