Final Results

ROBERT WALTERS PLC

Preliminary Results for the year ended 31 December 2009

FINANCIAL HIGHLIGHTS

·; Results ahead of expectations.

·; Net fee income (gross profit) down 25% (31% in constant currency*) to £104.4m (2008: £138.6m).

·; 68% of the Group's net fee income now generated from outside of the UK (2008: 67%).

·; Operating profit of £1.6m (£1.6m in constant currency) (2008: £18.6m).

·; Profit before taxation of £1.3m (2008: £18.2m).

·; Basic earnings per share of 0.3p (2008: 17.2p).

·; Final dividend maintained at 3.35p per share, giving a total dividend for the year of 4.75p per share (2008: 4.75p).

·; Strong cash position maintained, with £17.3m of net cash as at 31 December 2009 (31 December 2008: £22.2m).

OPERATIONAL HIGHLIGHTS

·; Grew market share as clients gravitated to Robert Walters as one of the larger recruitment brands with a global presence.

·; Group has maintained its presence in all the markets in which it operates.

·; Took advantage of lease expiry dates and consolidated two offices in Hong Kong and two offices in Tokyo into single office locations.

·; Emerged from 2009 as a stronger, leaner business.

FOCUS FOR 2010

·; Entry into Latin American recruitment market, with new office opening in Sao Paulo.

·; Building on our established position in Asia Pacific:

- Office opening in Beijing.

- Actively assessing opportunities in other cities in mainland China and the Asia Pacific region.

·; Continued investment to grow our Walters Interim business across Continental Europe.

·; Strategic hiring activity across all regions.

Robert Walters, Chief Executive, commented:

"During the year, we controlled our costs and managed our cash in the face of a global downturn that was unprecedented. In June we took the decision not to reduce headcount any further, nor to withdraw from any of our markets. This enabled us to maintain our strong international presence and we are now well positioned to take advantage of any improvements in trading conditions.

"We have emerged from last year as a stronger business. We are selectively hiring, we are investing in those regions where growth prospects are most evident and we are actively assessing opportunities to grow our coverage in existing markets."

* Constant currency is calculated by applying 2008 exchange rates to local currency results for the current and prior years.

ENQUIRIES:

Robert Walters plc

Preliminary results for the year ended 31 December 2009

Chairman's Statement

Despite the challenging economic environment that prevailed across the globe during 2009, the Group delivered a creditable performance and I would like to take this opportunity, on behalf of the Board, to thank all Robert Walters staff for their hard work, continued commitment and loyalty.

Results

Revenue decreased by 11% to £300.4m (2008: £337.3m) and gross profit ('net fee income') by 25% (31% in constant currency) to £104.4m (2008: £138.6m). Operating profit decreased to £1.6m (£1.6m in constant currency) (2008: £18.6m) whilst profit before taxation fell to £1.3m (2008: £18.2m). The Group maintained a strong cash position with net cash of £17.3m as at 31 December 2009 (2008: £22.2m).

In response to some of the toughest trading conditions experienced in the Group's history, action was taken to manage the cost base, principally by reducing headcount by 19% to 1,269 (2008: 1,571). As expected, our contract business proved more resilient than our permanent business and at the year-end had generated 40% of the Group's recruitment net fee income (2008: 35%).

The first half of the year was marked by a significant decline in hiring activity right across the globe.

Signs of market stabilisation did, however, emerge early in the second half of the year, driven by increases in permanent hiring activity, particularly in the financial services sector and Asia Pacific. As a result, we began selectively hiring to take advantage of these opportunities.

The Group now generates 68% (2008: 67%) of its net fee income from outside of the UK and has 37 offices in 17 countries.

The Board is recommending maintaining the final dividend at 3.35p per share (2008: 3.35p), which together with the interim dividend of 1.40p per share represents a total dividend of 4.75p per share (2008: 4.75p). The Board will be seeking shareholder approval for the renewal of the authority to repurchase shares of up to 10% of the Group's issued share capital at the Annual General Meeting on 21 May 2010.

Strategy

Our strategy has been to streamline our business through sensible cost reductions and strong cash management. We have also taken steps to ensure that we retain the best talent. Most significantly though, the Group has successfully maintained its global presence and has not withdrawn from any markets in which it operates. As one of the leading global recruiters, with an internationally recognised brand, this has enabled the Group to grow its market share. We are now well placed to capitalise further as the global economy recovers.

The Group will continue to invest in areas where it sees the most opportunity. We have identified Latin America as a key new market and will be opening an office in Sao Paulo. We will also be building on our established positions in Asia and Europe.

Philip Aiken

Chairman

3 March 2010

Chief Executive Officer's Statement

Introduction

During the year, we controlled our costs and managed our cash in the face of a global downturn that was unprecedented. In June we took the decision not to reduce headcount any further, nor to withdraw from any of our markets. This has enabled us to maintain a strong international presence and we are now well positioned to take advantage of any improvements in trading conditions.

Clients have continued to gravitate towards large, international recruitment brands, such as Robert Walters, with the ability to provide specialist recruitment solutions on both a global and local scale. The ability of the Group to also provide a full spectrum of complementary offerings such as recruitment process outsourcing, payroll, candidate assessments and reference checking has also been a significant competitive advantage.

Review of Operations

Asia Pacific (41% of net fee income)

Revenue was £122.5m (2008: £137.1m) and net fee income decreased by 26% (36% in constant currency) to £43.0m (2008: £58.1m) producing an operating profit of £3.3m (£3.2m in constant currency) (2008: £12.3m).

Whilst trading conditions across the region were particularly difficult during the first half, markets stabilised and recovered towards the end of the year. All of our operations increased net fee income and profitability during the second half, with particularly strong performances delivered in Australia, Singapore, Malaysia and mainland China. The dates of the expiry of lease agreements in Tokyo and Hong Kong enabled the Group to consolidate its operations in both cities into single office locations.

The Group is widely recognised as one of the leading specialist professional recruitment businesses in Asia. With the region expected to continue to lead the world's markets out of recession, the Group will invest in developing both existing and new markets and is well positioned to grow both net fee income and profitability.

UK (32% of net fee income)

Revenue was £116.5m (2008: £133.2m) and net fee income decreased by 26% to £33.8m (2008: £45.4m) producing an operating loss of £0.8m (2008: profit of £1.9m).

Despite an increase in hiring activity in the financial services sector during the second half, market conditions remained generally weak across all sectors and disciplines. Resource Solutions, our recruitment process outsourcing business, proved the exception, successfully growing the scope of services delivered to existing clients and securing a number of new accounts.

Our contract divisions continued to provide some hedge against the decline in permanent hiring and our regional UK offices showed a degree of resilience with a relatively modest decline in net fee income.

With visibility limited, the outlook for the UK market remains uncertain.

Europe (25% of net fee income)

Revenue was £59.4m (2008: £64.9m) and net fee income decreased by 22% (31% in constant currency) to £25.6m (2008: £33.0m) producing an operating loss of £0.7m (£0.6m in constant currency) (2008: profit of £4.5m).

Net fee income levels across the region stabilised in the second half of the year, after a decline during the first half. France was the region's strongest performer, benefiting from the investment made in the Walters Interim business over the last four years. We continued to invest in Walters Interim, opening a second office in Belgium during the first half. The Group also opened an office in Zurich, our first in Switzerland.

Whilst some markets in Europe have stabilised, the timing of a sustained recovery across the region is difficult to predict.

USA and South Africa (2% of net fee income)

Revenue was £2.0m (2008: £2.1m) and net fee income decreased by 8% (22% in constant currency) to £2.0m (2008: £2.1m) producing an operating loss of £0.2m (£0.2m in constant currency) (2008: £0.1m).

Our office in Johannesburg benefited from a market shortage of high calibre candidates and delivered an increase in both net fee income and operating profit. Our New York office increased net fee income during the second half of the year as the local market began to stabilise, but still returned a small loss for the year.

Current Trading & Outlook

Net fee income for January and February is ahead of the equivalent period in 2009.

The Group's balance sheet remains strong and we have emerged from last year as a stronger, leaner business. We are selectively hiring, we are investing in those regions where growth prospects are most evident and we are actively assessing opportunities to grow our coverage in existing markets.

Robert Walters

Chief Executive

3 March 2010

Consolidated Income Statement

FOR THE YEAR ENDED 31 DECEMBER 2009

Consolidated Statement of Recognised Income and Expense

FOR THE YEAR ENDED 31 DECEMBER 2009

Consolidated Balance Sheet

AS AT 31 DECEMBER 2009

Consolidated Cash Flow Statement

FOR THE YEAR ENDED 31 DECEMBER 2009

Consolidated statement of changes in equity

FOR THE YEAR ENDED 31 DECEMER 2009

Statement of Accounting Policies

FOR THE YEAR ENDED 31 DECEMBER 2009

The financial report for the year ended 31 December 2009 has been prepared in accordance with the historical cost convention and with International Financial Reporting Standards, including International Accounting Standards and Interpretations (IFRSs) as adopted for use by the European Union, though this announcement does not itself contain sufficient information to comply with IFRSs.

Although in certain markets and sectors our clients and suppliers are still experiencing difficult trading conditions, the Group has considerable financial resources including £17.3m of net cash at 31 December 2009 together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully. After making enquiries, the Directors have formed a judgement, at the time of approving the accounts, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason the Directors continue to adopt the going concern basis in preparing the accounts.

The financial information in this announcement, which was approved by the Board of Directors on 3 March 2010, does not constitute the Company's statutory accounts for the year ended 31 December 2009 but is derived from these accounts. Statutory accounts for 2008 have been delivered to the Registrar of Companies and those for 2009 will be delivered following the Company's Annual General Meeting. The auditors have reported on these accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The Annual General Meeting of Robert Walters plc will be held on 21 May 2010 at 55 Strand, London WC2N 5WR.

The analysis of revenue by destination is not materially different to the analysis by origin and the analyses of finance income and costs and inter-segment revenue are not significant.

The Group is divided into geographical areas for management purposes, and it is on this basis that the segmental information has been prepared.

For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans and corporate deferred tax balances.

The carrying value of goodwill relates to the acquisition of Talent Spotter (£993,000) and the historic acquisition of the Dunhill Group in Australia (£6,847,000). Goodwill is tested annually for impairment, or more frequently if there are indications that goodwill might be impaired. The recoverable amount of the goodwill is based on value in use over the next five years, calculated by preparing cash flow forecasts derived from the most recent financial budgets and an assumed growth rate of 3%, which does not exceed the long-term average potential growth rate of the respective operations. The value of the cash flows is then discounted at a post tax rate of 7.3% (pre-tax rate of 10.1%), based on the Group's weighted average cost of capital.

There is no material difference between the fair value and the carrying value of the Group's trade and other payables.

A euro denominated bank loan was taken out on 8 November 2006 at a fixed interest rate of 5.36% per annum and thus exposed the Group to fair value interest rate risk, currency risk being addressed by the Group's European operations. The initial value was £5.0m and the final repayment was made in June 2009.

A pounds sterling denominated bank loan was taken out on 8 November 2006 at a fixed rate of 6.94% per annum and thus exposed the Group to a fair value interest rate risk. The initial value was £5.0m and the final repayment was made in June 2009.

In March 2008, the Group borrowed renminbi 20m at a rate of the People Bank of China base rate plus 10% to finance the acquisition of Talent Spotter and provide working capital. Renminbi 10m is repayable over four years and the remainder is a short-term facility. The loan is secured against cash deposits in Hong Kong.

In May 2008, the Group entered into a trade loan facility of £12.5m at a rate of LIBOR plus 0.75%. This facility expired in April 2009.

In August 2009, the Group entered into a committed, three-year, £10m receivables financing agreement. At 31 December 2009, £0.9m was drawn down under this facility.

Net cash is defined as cash and cash equivalents less bank loans.