Robert Walters (RWA) H1 2024 earnings summary

Executive summary

• Net fee income declined 14–18% year-over-year in H1 2024 due to challenging global hiring markets and FX headwinds, with stable average fees but lower hiring volumes.

• Operating profit dropped to £0.2m, with a pre-tax loss of £2.3m versus an £8.1m profit last year; cost actions mitigated two-thirds of the fee income decline.

• Cost base was tightly managed, with operating costs down 13% year-over-year and headcount reduced by 15%.

• Operational focus included consultant efficiency, technology investment, and unifying the brand under 'One Robert Walters' to drive medium-term growth.

• Interim dividend maintained at 6.5p per share, reflecting confidence in future recovery and a strong balance sheet.

Financial highlights

• Net fee income for H1 2024 was £166.1m, down 14–18% year-over-year; revenue declined 16% to £459.3m.

• Operating profit fell 98% to £0.2m; pre-tax loss of £2.3m; basic loss per share was 3.7p.

• Net cash at period end was £48.8m–£49m, down from £69.8m a year ago.

• Free cash flow was negative £16.9m, reflecting lower profits and increased working capital.

• Interim dividend of 6.5p per share declared, in line with the prior year.

Outlook and guidance

• No material improvement in client and candidate confidence expected before 2025; gradual recovery anticipated.

• Further cost reduction actions expected in H2 to offset a greater proportion of fee income reduction.

• Effective tax rate expected to be higher than FY23 due to irrecoverable losses.

• Full-year guidance unchanged from the Q2 update; further details to be shared at the September capital markets event.