Robert Walters (RWA) Q4 2024 TU earnings summary

Executive summary

• Q4 group net fee income declined 14% year-on-year in constant currency, reflecting persistent challenging market conditions and muted client and candidate confidence throughout 2024.

• Specialist Recruitment fee income was £62.1 million, down 14% year-on-year; permanent placements fell 18%, while contract/interim declined 10%.

• Recruitment Outsourcing net fee income was £13.4 million, down 14% year-on-year.

• Group headcount ended at 3,294, a 5% reduction from Q3, with fee earners down 7% and non-fee earners down 2% sequentially.

• Net cash at period end was approximately £53 million, supporting ongoing strategic and operational initiatives.

Financial highlights

• Q4 Group net fee income: £75.5m, down 17% year-on-year (14% in constant currency).

• Full-year net fee income: £321.5m, down 17% year-on-year (14% in constant currency).

• Fee rates remained strong, driving a 2% year-on-year increase in net fee income per fee earner in constant currency.

• Group expects a broadly break-even profit before tax for the full year due to weaker-than-expected fee income and cost actions.

Outlook and guidance

• Market conditions remain challenging with few signs of improvement in client and candidate confidence.

• Strategic focus remains on efficiency, productivity, and optimizing the office network to drive future conversion rates above pre-pandemic levels.