1st Mar 2019 09:04
LONDON (Alliance News) - Shares in recruitment firm Robert Walters PLC jumped Friday after boosting its dividend following "strong" 2018 results which saw profit, revenue and net fee income rise.
Meanwhile, deputy boss and company veteran Giles Daubeney announced plans to leave the firm.
Shares in Robert Walters were 13% higher at 592.20 pence on Friday.
In 2018, pretax profit widened 21% to GBP49.1 million from GBP40.6 million the year prior, up 23% in constant currency. This was after revenue rose 5.8% to GBP1.23 billion from GBP1.17 billion the year before, up 7% in constant currency.
Net fee income rose 14% to GBP392.0 million from GBP345.2 million the year prior. In constant currency, net fee income also improved, by 15%.
Net fee income grew across all three of its main regions. Strongest growth, however, was in Europe, which was up 24% at constant currency and 25% in reported currency.
Robert Walters's largest region by net fee income - Asia Pacific - saw 16% constant currency and 13% reported currency growth in the year. Its next largest unit - the UK - also grew, but at a slower 7%.
The international markets division - which includes North America, South America, the Middle East and South Africa - saw net fee income rise 14% at constant currency and 10% at actual rates.
"The group has delivered another strong set of results," Chief Executive Officer Robert Walters said. "Our ability to produce a significant increase in profitability whilst also continuing to invest for the future with new country and office openings is testament to the success of our long-term strategy of international expansion and recruitment discipline diversification."
Robert Walters proposed a 10.70 pence final dividend per share, up 15% from 9.30p the year prior. For the full year, the dividend rose 22% to 14.70p from 12.05p the year before.
Net cash levels at the end of 2018 more than doubled to GBP74.3 million from GBP31.1 million the year prior.
"It's inevitable that the current uncertainty surrounding Brexit will continue to affect client and candidate confidence in the UK," Walters cautioned. "We are a truly global business with 73% of net fee income derived from outside of the UK, a global footprint covering 30 countries and well-established operations in all those locations that might benefit from any potential movement of business and staff from the UK."
"2019 has started well, in line with the board's expectations, and the group is well positioned to continue to take advantage of market opportunities as they arise," Walters added.
Robert Walters also announced Deputy CEO Giles Daubeney will step down from his role from May 17 after over 30 years at the firm.
"I joined a business that had one office and 34 staff and today we have over 4,000 employees and offices in 30 countries around the world," Daubeney said. "I have enjoyed the most incredible journey and worked with some brilliant people over three decades. The business is in fantastic shape and I have no doubt the group will continue to go from strength to strength."
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