30th Jul 2015 08:21
LONDON (Alliance News) - Recruitment consultancy Robert Walters PLC on Thursday posted a huge rise in pretax profit for the first half as the group increased its gross profit and revenue in the half amid growth in all of its regional markets.
Robert Walters said its pretax profit for the six months to the end of June was GBP8.7 million, sharply up from the GBP5 million it posted a year earlier. Total revenue for the group increased to GBP377.6 million in the half, up from GBP310 million, while its gross profit, or net fee income, increased to GBP113.9 million from GBP101.9 million.
The group said its UK net fee income rose by 20% in the half, with strong growth in its financial services, commerce finance and sales and marketing functions. Asia Pacific net fee income was up 9% thanks to strong growth in Indonesia, Korea, Taiwan and Vietnam, which helped to offset an improving but still challenging Australian market.
European net fee income was up 2%, dragged lower by the weak euro from a constant currency rise of 14%, with an excellent performance in the Netherlands, Spain and Ireland, which offset mixed conditions in France. Other international fee income was up 31%, with record performances in the US, the Middle East and South Africa.
The company said it would pay an interim dividend of 1.95 pence per share, up 18% year-on-year, on the back of the profit rise.
"The group has produced a strong first half performance delivering a substantial 74% increase in profit before taxation despite foreign exchange headwinds. All of the group's regions performed well with both client and candidate confidence improving across most of our markets. Particularly encouraging is the impressive growth we are seeing from our newer businesses in emerging markets in Asia and further signs of a recovery in financial services," said Robert Walters, the company's chief executive.
"The group's excellent trading performance, underpinned by our ongoing focus on consultant productivity has enabled us to continue to deliver strong operational gearing during the first half. Current trading is in line with our expectations and the group remains confident of its outlook for the full year," he added.
Shares in Robert Walters were up 0.4% to 441.3125 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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