Robert Walters forecasts annual profit to beat expectations after strong first quarter
Robert Walters has forecast annual profit to be ahead of expectations following a strong performance in its key regions in the first quarter.
The recruitment firm, which operates in 30 countries, reported a 11 per cent fall in its group net fee income in the first quarter to £77.3m. It reported a drop in fees of 24 per cent, 31 per cent and 33 per cent in the preceding three quarters respectively.
Recruiters have been badly hit by the pandemic which forced companies to halt hiring but peers PageGroup and Hays have recently shown signs of optimism.
Robert Walters said activity across permanent, contract, interim and recruitment process outsourcing had all picked up during the period with 78 per cent of the company’s net fee income now deriving from its international operations.
The company’s Asia Pacific division saw net fee income slip three per cent to £32.8m with green shoots in Japan, the group’s most profitable business. Both New Zealand and Mainland China returned to growth increasing net fee income by 16 per cent and 58 per cent, respectively.
In Europe net fee income dropped 15 per cent while the UK division fell 12 per cent to £17.3m.
“I am pleased to report that the positive momentum in the Group’s performance since quarter two 2020 has continued through the first quarter of 2021, with candidate and client confidence sequentially improving across most of the Group’s global footprint,” chief executive Robert Walters said.
“The improvement in market conditions has already enabled the Group to benefit from operational gearing. Whilst it is still difficult to be certain that there will be no further globally disruptive events ahead, the Board is currently confident that profit for the year is likely to be comfortably ahead of market expectations.”
The company said its headcount increased by 74 during the quarter.