3rd Mar 2020 11:23
(Alliance News) - Recruiter Robert Walters PLC on Tuesday said annual performance was "resilient" despite difficult trading conditions, with coronavirus set to hurt future profit.
Shares were 8.7% lower on Tuesday morning in London at a price of 484.00 pence each.
Revenue in 2019 was GBP1.22 billion, 1% lower than the year before. Excluding currency movements, the company's revenue fell 2%.
Pretax profit declined by 3% at actual rates to GBP47.4 million, with adjusted pretax profit rising 1% to GBP49.5 million.
London-based Robert Walters's net fee income rose 3% to a record GBP405.5 million, with all regions aside from the UK achieved net fee income growth. Asia Pacific rose 7% to GBP164.6 million, Europe rose 8% to GBP108.7 million, and Other International rose by 14% to GBP33.8 million.
Robert Walters's net fee income in the UK fell by 9% to GBP98.4 million, with customers reluctant to hire amid uncertainty over Brexit and the December general election.
Some 76% of the firm's net fee income was from outside the UK in 2019, up from 73% in 2018.
Robert Walters is proposing a final dividend of 11.0p per share. Combined with the interim dividend this gives a total of 15.5p, up 5% on the year before.
"The group delivered a resilient performance in 2019, increasing net fee income to record levels and maintaining profitability despite the political and economic turbulence that marked much of the year. Against this backdrop, Asia Pacific, Europe and Other International delivered growth whilst the UK was negatively impacted by a decline in candidate and client confidence," said Chair Carol Hui.
Looking ahead, Chief Executive Robert Walters said the global recruitment market remains "unpredictable" due to the coronavirus outbreak. This is "likely" to impact 2020 profit, though not detailed guidance was given.
"We will continue to monitor the coronavirus situation and update the market as appropriate," he added.
By George Collard; georgecollard@alliancenews.com
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