The story of impending doom told by Robert Walters' share price collapse between July and November last year was not reflected in the group's results for 2011 or management's mood going into the new year.
Despite the turmoil in the eurozone, it was continental Europe that was the brightest spot for the group. Net fee income (NFI) rose 29 per cent to £39.1m, while operating profits tripled to £2.8m (18 per cent of the total). Market share gains in the group's key European market, France, and labour market deregulation in Germany – where a new office opening is planned this year – powered the growth, and management is optimistic about the outlook.
Asia Pacific now accounts for over half the group's NFI following 23 per cent growth in 2011. "In Asia Pacific [our growth] is not so much about macroeconomics," says eponymous chief executive Robert Walters. "It's about a shortage of bilingual international professionals."
Given the torrid state of the UK economy and Walter's exposure to investment banking, the company put in a credible performance by reporting 2.5 per cent growth in NFI. The UK now only accounts a quarter of net fees.
Broker Investec Securities continues to expect a dip in pre-tax profits to £10.5m this year and EPS of 8.8p (from £15.1m and 12.7p in 2011).
| Robert Walters (RWA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 236p | MARKET VALUE: | £180m | |
| TOUCH: | 235-236p | 12-MONTH HIGH: | 342p | LOW: 157p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 92p | NET CASH: | £17m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 320 | 24.9 | 23.2 | 4.70 |
| 2008 | 337 | 18.2 | 17.2 | 4.75 |
| 2009 | 300 | 1.3 | 0.3 | 4.75 |
| 2010 | 424 | 13.1 | 12.5 | 4.90 |
| 2011 | 528 | 15.1 | 14.1 | 5.15 |
| % change | +24 | +15 | +13 | +5 |
Ex-div: 23 May Payment: 15 Jun | ||||
