A solid year from recruiter Robert Walters (RWA) has resulted in a 50 per cent rise in the final dividend. The group finished with more than £30m in net cash, too, helped in part by a substantial rise in profitability and improved operating cash flow. According to the group’s eponymous chief executive, the numbers are the result of enhanced scale, which make the business more “robust, agile and better able to invest for the future”.
The group reported a good performance across the UK, with net fee income up 16 per cent to £101m, although it should be noted that fees and operating profits rose across all regions, including Europe, Asia Pacific and North America. Like close rival Hays (HYS), Mr Walters says Germany remains a key growth market, with net fee income growth in excess of 20 per cent last year. Across the wider world, market conditions remain “challenging” in Brazil, although this didn’t stop net fees from rising by more than 50 per cent.
Strong fee growth has led Investec analysts to expect a conversion ratio (operating profit to gross profit) of 12.1 per cent this year, and they have upgraded current-year EPS forecasts. The broker now expects EPS of 43.1p in 2018, compared with 38.9p in 2017.
| ROBERT WALTERS (RWA) | ||||
| ORD PRICE: | 668p | MARKET VALUE: | £503m | |
| TOUCH: | 662-672p | 12-MONTH HIGH: | 684p | LOW: 381p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 162p | NET CASH: | £31m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 0.60 | 10.1 | 8.4 | 5.40 |
| 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 |
| % change | +18 | +44 | +55 | +42 |
| Ex-div: | 10 May | |||
| Payment: | 1 Jun |
