UK financial services may be in robust shape in the face of the EU referendum, if the latest trading update from recruiter Robert Walters (RWA) is anything to go by. The group reported a 27 per cent increase in net fee income from the UK business following a "notable upturn" in financial services recruitment in London during the period.
Eponymous group chief executive Robert Walters said that while investors shouldn't read too far into trends in the financial services business, the group was seeing strong growth in areas including investment banking, as well as risk, compliance and audit. He added that jobs were largely permanent, middle management roles, which could be seen as a sign of continuing confidence in the UK banking industry.
Growth in the group's resource solutions business - where companies essentially outsource parts of their human resources departments to Robert Walters - was also partly responsible for the growth in financial services, Mr Walters said. The resource solutions business enjoyed strong net fee income growth in the UK and grew its client portfolio across Asia Pacific, where the group is investing in the division.
Shares in the recruiter climbed around 4 per cent in early trading on the day of the announcement. This is unsurprising, given overall net fee income climbed a record fifth during the three months to March. However, shares in both rival recruiters Hays (HAS) and PageGroup (PAGE) also rose 4 per cent. Panmure Gordon analyst Adrian Kearsey said the increase in Hays was likely due to Robert Walters' strong performance in Australia, a crucial territory for Hays. This could indicate a benign market, beneficial to other recruiters in the country.
"[I am] quite encouraged by the growth in Australia," said Mr Kearsey. "I don't think that's a flash in the pan. Australia has been increasingly positive." The movement in PageGroup's shares could be due to its UK financial services business benefiting from the same forces as Robert Walters, he added.
