Robert Walters Reports Challenging Q1 as Hiring Markets Remain Difficult
Why we think this is bad
The trading update from Robert Walters indicates a challenging start to the year, with group net fee income down 16% year-on-year in constant currency. The company faced weaker sentiment in Europe, as well as increased macroeconomic uncertainty and trade-related headwinds that are limiting visibility on the outlook. While the company remains focused on executing its strategic initiatives, the overall tone of the update is negative, with several references to 'challenging conditions' and limited visibility.
Key Points
- Group net fee income down 16% year-on-year in constant currency
- Weaker sentiment in Europe continued from late 2024
- Increased uncertainty around global trade flows seen as a further headwind
- Specialist recruitment net fee income down 16%, with permanent down 17% and temporary down 14%
- Recruitment outsourcing net fee income down 16%
- Period end net cash of c.£42m, down from £53m at end of 2024
Summary
Robert Walters reported a 16% decline in group net fee income for the first quarter of 2025 compared to the prior year, with weaker sentiment in Europe and increased macroeconomic uncertainty limiting visibility on the outlook. The company's specialist professional recruitment net fee income fell 16%, with both permanent and temporary placements down. Recruitment outsourcing net fee income also declined 16%. The company remains focused on executing its strategic initiatives, including improving fee earner productivity, driving efficiencies, and optimizing its office network.