Robert Walters (RWA) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 net fee income declined 12% year-over-year to £79.9 million, reflecting ongoing challenging market conditions and subdued client and candidate confidence.

• Year-to-date net fee income fell 13% in constant currency, with all regions experiencing declines.

• Cost base has been reduced, with headcount down 4% sequentially and fee earners down 20% since Q1 2023.

• Management continues to focus on strengthening the business and maintaining profitability through selective hiring and strategic initiatives.

• Net cash at quarter end was £50 million, reflecting a strong balance sheet.

Financial highlights

• Q3 Group net fee income: £79.9 million, down 12% year-over-year in constant currency.

• Specialist recruitment Q3 net fee income: £65.5 million, down 12%; permanent and temporary both down 12%.

• Recruitment outsourcing Q3 net fee income: £14.4 million, down 14%.

• Fee earner productivity grew year-over-year, despite a 3% decline in perm fee earner volume productivity.

• Net cash position at 30 September 2024: £50 million, up from £49 million at 30 June 2024.

Outlook and guidance

• Management expects gradual improvement in client and candidate confidence, with material recovery not likely until 2025.

• Second half net fee income is unlikely to exceed the £166 million recorded in the first half.

• Continued focus on cost reduction and productivity improvements to support profitability.

• The company aims for a profitable full-year outcome despite market challenges.