Half Yearly Report

26 AUGUST 2010

ROBERT WALTERS PLC

Half-yearly financial results for the six months ended 30 June 2010

ASIA PACIFIC DRIVES STRONG FIRST HALF PERFORMANCE

FINANCIAL HIGHLIGHTS

·; Net fee income (gross profit) up 45% (39%*) to £72.3m (2009: £50.0m).

·; Operating profit of £5.2m (£4.4m*) (2009: operating loss of £2.3m).

·; Profit before taxation of £5.1m (£4.3m*) (2009: loss before taxation of £2.6m).

·; Basic earnings per share of 4.8p (2009: loss per share of 3.7p).

·; Interim dividend maintained at 1.40p per share (2009: 1.40p).

·; Net cash of £12.9m as at 30 June 2010 (30 June 2009: £22.5m).

·; Purchased £2.0m of own shares through share buy-back programme.

OPERATIONAL HIGHLIGHTS

·; Group is now more internationally diverse than ever before with 70% of net fee income derived from outside the UK.

·; Strong recovery in permanent recruitment activity particularly within the financial services sector. Permanent recruitment now represents 70% of the Group's recruitment net fee income.

·; Outstanding performance in Asia Pacific with net fee income up 81% (64%*) to £34.4m (2009: £19.0m).

·; Trading conditions remained challenging across the UK and Continental Europe.

·; Opened an office in Sao Paulo, the Group's first in the fast developing South American recruitment market and a fourth office in Belgium. The Group now has 39 offices in 18 countries.

·; Significant investment in the business:

o Group headcount up 22% to 1,539 (2009: 1,260).

o Further investment in our IT, training and marketing infrastructure to underpin the Group's strategy for growth.

OUTLOOK

·; The diversity of our business means that whilst economic uncertainty currently exists across some of the markets in which we operate, we are very well positioned to take advantage of growth opportunities in the second half of the year.

·; We are continuing to expand in Asia, a region of huge potential in which we are the leading player, with the opening of our first office in South Korea and a third mainland China office in Beijing planned before the end of the year.

Robert Walters, Chief Executive, commented:

"These are very strong results on the back of a very difficult year in 2009. Our strategy of maintaining our global network of offices and minimising headcount reductions has paid off and we are already benefiting from the improved economic environment in many of our key markets.

"Our forward strategy is clear; keep a watchful eye on our cost base given economic conditions remain uncertain, but extend the Robert Walters footprint and brand in obvious growth markets such as Asia and South America. We believe this strategy will generate growth and offset any slowdown in other markets."

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

ENQUIRIES:

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Interim Management Report

We are pleased to report that the Group has delivered a strong first half performance. Revenue was up 33% to £188.8m (2009: £141.7m) and gross profit ('net fee income') by 45% (39% in constant currency) to £72.3m (2009: £50.0m), resulting in an operating profit of £5.2m (£4.4m in constant currency) (2009: operating loss of £2.3m) and a profit before taxation of £5.1m (£4.3m in constant currency) (2009: loss before taxation of £2.6m). The Group has maintained a strong cash position with net cash of £12.9m (30 June 2009: £22.5m).

We have seen a marked improvement in recruitment activity during the first six months of the year, particularly with regards to permanent recruitment as both candidate and employer confidence returned. Contractor numbers and contract net fee income also increased during the first half, albeit at a more modest rate. Permanent recruitment now represents 70% (2009: 59%) of the Group's recruitment net fee income.

In response to this increased demand, we have invested significantly in the business during the first six months of the year, increasing headcount to 1,539 and further developing our IT, training and marketing infrastructure to underpin the Group's growth.

The Group's strategy of international growth and diversification continues apace - 70% of the Group's net fee income comes from outside of the UK and we are now positioned as the leading specialist recruitment brand in the fast growing Asia market. The Group opened an office in Sao Paulo during the second quarter, its first in South America, and also a fourth office in Belgium. The Group now has 39 offices in 18 countries.

Asia Pacific (48% of net fee income)

Revenue was £84.5m (2009: £53.9m) and net fee income increased by 81% (64% in constant currency) to £34.4m (2009: £19.0m) producing an operating profit of £5.3m (£4.4m in constant currency) (2009: operating loss of £0.5m).

Our business in Asia delivered an outstanding performance, with Singapore, Hong Kong, Thailand and mainland China all more than doubling net fee income. Our businesses in Japan and Malaysia also produced significant increases in both net fee income and operating profit. We plan to build further on our market-leading position in the region with the opening of our first office in South Korea and a third mainland China office in Beijing during the second half of the year. The Group continues to research other territories and is actively investigating new markets in South East Asia.

Our operation in Australia, the largest in the region, produced strong net fee income and operating profit growth, driven by increased hiring activity across all areas. New Zealand delivered a solid performance in the first half, with demand levels more muted than those experienced in Australia.

United Kingdom (30% of net fee income)

Revenue was £69.5m (2009: £55.7m) and net fee income increased by 29% to £21.6m (2009: £16.7m) producing an operating profit of £0.1m (2009: operating loss of £0.8m).

The UK business experienced increased levels of activity most notably in the financial services sector. City-based recruitment has been particularly active especially across the areas of finance, IT and legal. Outside of financial services conditions remained challenging, with both our London commerce and regional businesses delivering comparatively modest net fee income growth during the first six months of the year.

Resource Solutions, our recruitment process outsourcing business, grew net fee income and won a number of new client engagements during the period.

Europe (20% of net fee income)

Revenue was £33.0m (2009: £31.1m) and net fee income increased by 8% (11% in constant currency) to £14.4m (2009: £13.4m) producing an operating loss of £0.1m (operating loss of £0.1m in constant currency) (2009: operating loss of £0.7m).

Europe delivered a small increase in net fee income against a backdrop of continuing economic uncertainty. Our business in the Netherlands which performed well throughout 2009 has been hit hard during the first half of the year; however, France and Belgium achieved a slight improvement in permanent net fee income and benefited from previous investment in our contract business over the last five years. Whilst market conditions remain challenging in both Ireland and Spain, our small businesses in these countries have shown signs of recovery.

The Americas and South Africa (2% of net fee income)

Revenue was £1.8m (2009: £0.9m) and net fee income increased by 105% (102% in constant currency) to £1.8m (2009: £0.9m) producing an operating loss of £0.1m (operating loss of £0.1m in constant currency) (2009: operating loss of £0.2m).

Our New York operation delivered an improved performance in the first half, with our diversification into sales & marketing and legal showing encouraging signs. In South Africa, we have continued to grow the net fee income we generate from local organisations to complement our strong multinational client base. We have also invested in additional headcount and successfully retained our BEE accreditation for the second consecutive year. Our fledgling office in Sao Paulo began generating net fee income only a few weeks after opening.

Cash flow

The Group has maintained a strong net cash position of £12.9m as at 30 June 2010 (30 June 2009: £22.5m) despite a significant increase in contractor numbers across the globe. Working capital has increased by £6.8m (2009: decrease of £9.5m). The Company purchased £2.0m of its own shares and paid a dividend of £2.3m in the period. Group capital expenditure was £0.6m.

Dividend

The interim dividend will be maintained at 1.40p per share (2009: 1.40p) and will be paid on 22 October 2010 to those shareholders on the Company's register on 10 September 2010.

Treasury management, currency risk and other principal risks and uncertainties affecting the business

The Group does not have material transactional exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations, the main functional currencies of the Group being sterling, the euro, the Australian dollar and the Japanese yen.

The other principal risks and uncertainties affecting the business activities of the Group remain those detailed within the Operating and Financial Review section of the Annual Report and Accounts for the year ended 31 December 2009, namely the strength of the employment market, temporary labour law and staff retention across the Group. The Board does not foresee a material change in respect of these factors for the remainder of the year.

Outlook

Whilst economic uncertainty currently exists across some of the markets in which we operate, the Group is more internationally diverse than at any other period in its history and well positioned to take advantage of growth opportunities particularly in many of the world's fastest growing markets.

Philip Aiken Robert Walters

Chairman Chief Executive

25 August 2010

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated income statement

Condensed consolidated statement of recognised income and expense

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated balance sheet

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated cash flow statement

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated statement of changes in equity

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Notes to the condensed set of financial statements

1. Statement of Accounting Policies 

Basis of preparation

The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

The accounting policies applied by the Group are set out in detail in the annual report for the year ended 31 December 2009, except for the adoption of IFRS 3 "Business Combinations (revised 2008)" and IAS 27 "Consolidated and Separate Financial Statements (revised 2008)", which do not have a significant impact.

The Group was profitable for the period and has considerable financial resources including £12.9m of net cash at 30 June 2010 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 despite the continued uncertain economic outlook.

After making enquiries, the Directors have formed a judgement, at the time of approving the half-yearly financial results, 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 condensed set of financial statements.

2. Financial information

The financial information on pages 5 to 13 was formally approved by the Board of Directors on 25 August 2010. The financial information set out in this document does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts prepared under IFRS for the year ended 31 December 2009 for Robert Walters plc have been delivered to the Registrar of Companies. The auditors' report on these accounts was not qualified, did not draw attention to any matters by way of emphasis and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The financial information in respect of the period ended 30 June 2010 is unaudited but has been reviewed by the Company's auditors. Their report is attached on page 14. The financial information in respect of the period ended 30 June 2009 is also unaudited.

3. Currency conversion

The reporting currency of the Group is pounds sterling and the condensed set of financial statements has been prepared on this basis.

The condensed consolidated income statement for the period ended 30 June 2010 has been prepared using, among other currencies, average exchange rates of €1.1492 to the pound (period ended 30 June 2009: €1.1188; year ended 31 December 2009: €1.1231); ¥139.635 to the pound (period ended 30 June 2009: ¥142.631; year ended 31 December 2009: ¥146.419) and AUD$1.7095 to the pound (period ended 30 June 2009: AUD$2.1023; year ended 31 December 2009: AUD$1.9944).

The condensed consolidated balance sheet as at 30 June 2010 has been prepared using the exchange rates on that day of €1.2348 to the pound (30 June 2009: €1.1760; 31 December 2009: €1.1113); ¥133.690 to the pound (30 June 2009: ¥157.857; 31 December 2009: ¥146.922) and AUD$1.7599 to the pound (30 June 2009: AUD$2.0533; 31 December 2009: AUD$1.7838).

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

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

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

The tax charge is based on the expected annual tax rate of 32.9% (2009: 2.5%) on profit before taxation.

The proposed interim dividend was approved by the Board on 25 August 2010 and has not been included as a liability at 30 June 2010.

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Note: There were an average of 2,251,622 outstanding share options for the six month period to 30 June 2009, but they are excluded from the calculation of diluted earnings per share as there was a loss for the period.

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

9. Bank loans

In August 2009, the Group entered into a committed, three-year, £10m receivables financing agreement. In June 2010, this facility was increased to £20m and will now expire on 31 May 2013.

10. Related party transactions

There have been no related party transactions or changes in the related party transactions described in the latest Annual Report that have had a material effect on the financial position or performance of the Group in the first six months of the financial year.

11. Registered office

The Company's registered office is located at 55 Strand, London, WC2N 5WR.

RESPONSIBILITY STATEMENT

We confirm to the best of our knowledge:

a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) the interim management report and note 10 includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board,

Alan Bannatyne

Group Finance Director

25 August 2010

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial results for the six months ended 30 June 2010 which comprises the condensed consolidated income statement, the condensed consolidated statement of recognised income and expense, the condensed consolidated balance sheet, the condensed consolidated cash flow statement, the condensed consolidated statement of changes in equity, and related notes 1 to 11. We have read the other information contained in the half-yearly financial results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial results are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial results in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the half-yearly financial results has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial results for the six months ended 30 June 2010 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditors

London, United Kingdom

25 August 2010