Ever since global equity markets slipped into reverse late last year, there has been a shareholder exodus from the UK-listed recruiters. Robert Walters (RWA) stoked fears in January with news of a modest reduction in headcount in the final three months of 2018, but its full-year numbers look decidedly more positive.
The group clocked up record earnings, with operating profits up 19 per cent to £49.7m. The Asia Pacific region and Europe largely accounted for the growth, though even the UK – despite Brexit uncertainty – grew net fees by seven per cent.
Headcount grew by almost a tenth in the year, a fact that seemed to reassure investors, though it is worth noting growth on that measure slowed from 17 per cent in 2017. Shares in the group rose by more than a tenth in reply.
While the outcome of Brexit remains unpredictable, Management said its global operations “hedged” it against trouble in the UK. Its German business has been expanding rapidly - net fees were up more than 70 per cent due to increased financial services hiring in Frankfurt - and it has offices in Paris and Dublin, other likely beneficiaries from a disorderly Brexit.
Bloomberg consensus estimates put 2019 adjusted EPS at 48.4p, up from 46.3p in 2018.
| ROBERT WALTERS (RWA) | ||||
| ORD PRICE: | 584p | MARKET VALUE: | £ 442m | |
| TOUCH: | 584-594p | 12-MONTH HIGH: | 814p | LOW: 475p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 202p | NET CASH: | £74.3m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 0.68 | 18.2 | 15.3 | 6.00 |
| 2015 | 0.81 | 22.4 | 20.6 | 7.08 |
| 2016 | 0.99 | 28.1 | 27.7 | 8.50 |
| 2017 | 1.17 | 40.6 | 42.9 | 12.05 |
| 2018 | 1.23 | 49.1 | 50.4 | 14.70 |
| % change | +5 | +21 | +17 | +22 |
| Ex-div: | 09 May | |||
| Payment: | 03 Jun | |||
