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Robert Walters resilient at home and abroad

Despite a turbulent domestic and international backdrop, the recruiter still saw net fee income increase across all regions
July 26, 2019

Despite turbulence in a number of its markets during the first half of 2019, Robert Walters (RWA) reported a 4 per cent increase in adjusted operating profit to £21.5m at constant currencies. Net fee income (NFI) rose by 7 per cent to £205m, with double-digit growth achieved in the group’s two largest markets, France and Japan.

IC TIP: Buy at 582p

Par for the course these days, Brexit uncertainty served to hamper domestic candidate and client confidence. Despite this challenging backdrop, UK NFI still increased by 1 per cent to £52.9m, with robust regional growth and pockets of strong demand in financial services and technology.

The international business now comprises 74 per cent of group NFI, a 2 percentage point increase on last year. Accounting for 39 per cent of the group total, Asia Pacific NFI rose by 8 per cent on a constant currency basis to £78.7m, benefiting from an acute shortage of bilingual professionals. Although Hong Kong was adversely affected in the second quarter by political unrest, mainland China shrugged off trade war concerns to deliver NFI growth. Meanwhile, European NFI increased by 11 per cent at constant currencies to £54.3m, with Germany (considered a high potential growth market) surging by more than 40 per cent.

Bloomberg consensus forecasts point to adjusted pre-tax profit of £52.3m and EPS of 49.8p for the full year, rising to £57m and 54.2p in 2020.

ROBERT WALTERS (RWA)  
ORD PRICE:510pMARKET VALUE:£387m
TOUCH:512-524p12-MONTH HIGH:814pLOW: 475p
DIVIDEND YIELD:3.0%PE RATIO:10
NET ASSET VALUE:195p*NET CASH:£54.4m
Half-year to 30 JunTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201862620.621.24.0
201963520.921.74.5
% change+1+1+2+13
Ex-div:05 Sep   
Payment:18 Oct   
*Includes intangible assets of £11.9m, or 16p a share