Robert Walters expecting to break even in 2024

(Sharecast News) - Robert Walters said on Tuesday that it expects only a break-even result for the year at the pre-tax profit level as trading conditions remained challenging in the fourth quarter. In a trading update in October last year, the recruiter had said it was still aiming for a profitable full-year outcome despite tough market conditions.

In an update for the quarter to the end of December on Tuesday, it said group net fee income fell 14% to £75.5m. This was consistent with the year as a whole. While fees were slightly weaker than expected, activity levels were broadly stable in most regions in October and November versus the third quarter, it said.

Net fee income in specialist professional recruitment was 14% lower at £62.1m, with permanent down 18% and temporary down 10%. Recruitment outsourcing net fee income declined 14% to £13.4m.

By region, net fee income fell 11% in Asia-Pacific, 17% in Europe, 15% in the UK and 19% in Rest of World.

Chief executive 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. As a result, we now expect a broadly breakeven position at the profit before tax level for the full year.

"Notwithstanding the market backdrop, we remain focused on our initiatives to strengthen the business. Consistent with the disciplined entrepreneurialism strategy set out at last year's Capital Markets Event, we are rigorously focused on improving fee earner productivity across our markets, driving efficiencies in our front and back-office teams, optimising our office network and leveraging more co-ordinated procurement."