Expectations were high for Robert Walters' (RWA) full-year figures after the recruiter issued three profit upgrades last year - the shares have risen by more than a third since the group issued its last trading update in December. Nonetheless, a strong rise in net fee income across all of the group's regions still provided further encouragement for investors.
Net fee income at the recruiter's domestic UK business increased by almost a quarter during 2014, driven by increased candidate confidence. Numbers for the group's Asia Pacific segment were also heading in the right direction, as strong growth in the more mature businesses in Japan and Singapore was complemented by increased activity from newer offices in Thailand and Vietnam. However, performance across the eurozone was mixed. In France, the group's largest business in the region, trading conditions remained tough. Adverse currency movements meant net fee income for Europe grew just 4 per cent.
The resource solutions division has continued to grow at a faster rate than the rest of the business, driven by an increase in recruitment outsourcing in the US, UK and Asia Pacific regions. Revenues for this segment grew by 51 per cent to £216m during the year.
Broker Numis expects EPS of 15.7p this year, up from 15.3p in 2014.
ROBERT WALTERS (RWA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 351p | MARKET VALUE: | £270m | |
| TOUCH: | 351-353p | 12-MONTH HIGH: | 363p | LOW: 270p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 100p* | NET CASH: | 14.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 424 | 13.1 | 12.5 | 4.90 |
| 2011 | 528 | 15.1 | 14.1 | 5.15 |
| 2012 | 568 | 7.7 | 6.8 | 5.15 |
| 2013 | 598 | 10.1 | 8.4 | 5.40 |
| 2014 | 680 | 18.2 | 15.3 | 6.00 |
| % change | +14 | +80 | +82 | +11 |
Ex-div: 21 May Payment: 12 Jun *Includes intangible assets of £9.6m, or 12p a share | ||||
