Robert Walters (RWA) Q1 2025 TU earnings summary

Executive summary

• Net fee income declined 16% year-on-year in Q1 2025, reflecting challenging trading conditions, macroeconomic uncertainty, and difficult hiring markets.

• Activity levels in specialist recruitment were stable, with job flow in line with Q1 last year and a typical seasonal uptick in March.

• Productivity per fee owner/earner increased 2% year-on-year, supported by stable fee rates, positive mix, and wage inflation effects.

• Strategic focus remains on cost control, productivity improvements, and office network optimization.

• Visibility for the remainder of the year is limited due to ongoing market uncertainty and global trade tariffs.

Financial highlights

• Group net fee income was £67.3m, down from £81.3m in Q1 2024, a 16% decrease in constant currency.

• Specialist professional recruitment net fee income fell 16% to £56.0m; permanent placements down 17%, temporary down 14%.

• Recruitment outsourcing net fee income dropped 16% to £11.3m, with clients remaining cautious on volume hiring.

• Net cash at quarter-end was approximately GBP 42 million, reflecting typical Q1 outflows for variable pay.

• Fee owner/earner headcount reduced by 16% year-on-year and 4% quarter-on-quarter, aligning with lower fee levels.

Outlook and guidance

• Near-term outlook remains uncertain due to increased global trade uncertainty and tariffs, limiting visibility for the rest of 2025.

• Headcount levels are expected to remain broadly stable, with selective hiring in areas of resilience or growth.

• Management continues to focus on strategic initiatives and margin improvement despite the protracted challenging environment.