Robert Walters PLC on Tuesday said it faced challenging trading conditions throughout the fourth quarter of 2024, with net fee income and hiring activity down across all regions. The company now expects a ‘broadly breakeven’ pretax profit for the full year.
The London-based international recruitment firm reported net fee income of £75.5 million for the three months to December 31, a 17% drop year-on-year from £91.4 million. For the full year to December 31, net fee income was £321.5 million, down 17% from £386.8 million in 2023.
Chief Executive Officer Toby Fowlston said: ‘As seen throughout the year, 2024 closed with conditions in global hiring markets remaining challenging - marked by muted client and candidate confidence. Fourth quarter fee income was slightly weaker than expected, and in addition further actions were taken on the cost base.
‘Notwithstanding the market backdrop, we remain focused on our initiatives to strengthen the business... We are confident our strategy will drive a conversion rate in excess of pre-pandemic levels in the medium term as market conditions improve.’
In regional performance, Asia-Pacific saw forth quarter net fee income fall by 15%, with stabilizing conditions in Australia offset by sharp declines in New Zealand and South-East Asia. Europe recorded a 21% drop, with France, Spain, and Germany experiencing significant challenges.
The UK saw a 15% decline, with London outperforming regional offices, while the Rest of the World segment fell 19%, impacted by weak markets in the US and Latin America.
The company reduced its headcount by 5% during the quarter, closing the year with 3,294 employees, down 17% year-on-year from 3,980 employees in December 2023. Fee earner headcount fell by 7% in the forth quarter, with the company continuing ‘to be highly selective in replacing fee earner natural attrition and prioritise strong fee earner average tenure ready for when market conditions improve’.
Robert Walters said its balance sheet remains strong, with net cash of £53 million as of December 31, 6% up from £50 million on September 30.
Shares in Robert Walters were up 1.0% at 308.00 pence in London on Tuesday afternoon.
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