7 March 2024
ROBERT
WALTERS PLC
(the
"Company", or the "Group")
Results for the year ended 31
December 2023
Resilient performance
underpinned by international diversification
Robert Walters plc (LSE: RWA), the
international specialist professional recruitment group, today
announces its results for the year ended 31
December 2023.
Financial summary
|
2023
|
2022
|
Change
|
Constant
currency change*
|
Gross profit (net fee
income)
|
£386.8m
|
£428.2m
|
(10%)
|
(8%)
|
Operating profit
|
£26.3m
|
£58.2m
|
(55%)
|
(52%)
|
Conversion rate %**
|
6.8%
|
13.6%
|
(680)
bps
|
n/a
|
Profit before taxation
|
£20.8m
|
£55.6m
|
(63%)
|
(60%)
|
Basic earnings per share
|
20.1p
|
56.2p
|
(64%)
|
n/a
|
Ordinary dividend per
share
|
23.5p
|
23.5p
|
-
|
n/a
|
Net cash
|
£79.9m
|
£97.1m
|
(18%)
|
n/a
|
* Constant currency is calculated by
applying prior year exchange rates to local currency results for
the current and prior years.
**Conversion rate is calculated by
expressing operating profit as a proportion of net fee
income.
Group highlights
§ Group net
fee income down 8%* to £386.8m against a record prior year
comparative, driven by softening macro-economic conditions in many
of the Group's markets as the year progressed.
§ In
recruitment, contract and interim (together "Temporary")
demonstrated good resilience (up 2%*) and accounted for 27% of net
fee income (2022: 24%). Permanent performance (down 10%*) was more
impacted as organisations sought out greater flexibility in their
talent needs.
§ In
outsourcing (delivered through Resource Solutions), net fee income
was down 15%*, reflecting account losses as greater focus applied
to driving required financial returns.
§ Highly
internationally diversified fee income, with no single country
accounting for more than a sixth of Group net fee income and 84% of
Group net fee income derived outside of the UK (2022:
83%).
§ Operating
profit down to £26.3m (2022: £58.2m), reflecting the operating
leverage impact of lower net fee income.
§ Conversion
rate improved to 8.2% during the second half (H1: 5.5%), reflecting
management actions taken to manage the Group's cost
base.
§ Headcount
down 9% year-on-year to 3,980 at period end (31 December 2022:
4,356), reflecting balanced approach to maintain core consultant
capacity in most resilient markets.
§ Continued
progress in the rollout of the Group's customer relationship
management ("CRM") solution, which was live across 50% of the
Group's markets (by number of countries) as at the year
end.
§ Year-end
net cash of £79.9m (31 December 2022: £97.1m), driven by cash
conversion1 of 207% (2022: 102%) and after returning
c.£26m to shareholders during the year in ordinary dividends and
share buybacks.
§ Proposed
final dividend of 17.0p per share, taking the total dividend for
the year to 23.5p per share (2022: 23.5p), underpinned by
internationally diversified business model, good cash generation
and balance sheet strength.
Regional highlights
§ Asia-Pacific (43% of Group net fee income):
net fee income down 9%*. Resilient performance in
Japan (down 1%*), while conditions remained challenging in
Australia (down 19%*). Performance in Mainland China stabilised in
the second half of the year.
§ Europe
(33% of Group net fee income): net fee
income flat*. Belgium performed extremely well with a second
consecutive record net fee income performance (up 21%*), and good
growth also delivered in Germany (up 8%*). Meanwhile, hiring
markets were weaker in France (down 3%*) and the Netherlands (down
5%*), albeit against a record comparative in both
countries.
§ UK (16% of
Group net fee income): net fee income down
18%. London recruitment (down 29%) impacted by financial services
and technology retrenchment, whilst recruitment in the regions
(down 7%) was more resilient.
§ Rest of
World (8% of Group net fee income): net fee
income down 12%*. Weakness in North America (down 40%*) driven by
technology sector, partially offset by growth in Mexico (up 68%*)
and South Africa (up 38%*).
Toby Fowlston, Chief Executive,
said:
"In what was a challenging year
right across our industry, I'm very proud of the contributions of
our people over the last 12 months. The international
diversification of our business underpinned our resilient
performance in 2023, despite labour demand contracting sharply
across our markets. We have begun to undertake initiatives to
significantly strengthen our business, which we expect to gain
further traction over the medium-term.
Our collective experience trading
through previous market cycles tells us that when conditions do
improve, the inflection can be rapid, and we therefore have strong
conviction in our decision to maintain our core consultant
capacity, whilst sensibly managing our cost
base."
Results presentation
The Company will host a results
presentation webcast at 10:30am today. The live webcast of the
presentation will be available at the following link:
https://brrmedia.news/RWA_FY23
A recording of the presentation and
accompanying conference call will be available on the Company's
website within 24 hours of the event.
Next news flow
The Company will publish a trading
update for the first quarter ending 31 March 2024 on Tuesday 16
April 2024.
1Cash conversion expressed as cash generated from operating
activities divided by operating profit
Enquiries
Robert Walters plc
Toby Fowlston - Chief Executive
Officer
David Bower - Chief Financial
Officer
Dami Tanimowo - Head of Investor
Relations
dami.tanimowo@robertwalters.com
|
+44 (0) 7340 660 425
|
Williams Nicolson (Media
enquiries)
Steffan Williams
Ashia Razzaq
rw@williamsnicolson.com
|
+44 (0) 7767 345 563
+44 (0) 7979 324 998
|
About Robert Walters
Group
The Robert Walters
Group is a market-leading international specialist professional
recruitment group with over 3,900 staff spanning 31 countries. We
specialise in the placement of the highest calibre professionals
across the disciplines of accountancy and finance, banking,
engineering, HR, healthcare, IT, legal, sales, marketing,
secretarial and support and supply chain, logistics and
procurement. Our client base ranges from the world's leading
blue-chip corporates and financial services organisations through
to SMEs and start-ups. The Group's outsourcing business, Resource
Solutions, serves the recruitment process outsourcing and managed
services markets.
www.robertwaltersgroup.com
Forward looking
statements
This announcement contains certain
forward-looking statements. These statements are made by the
directors in good faith based on the information available to them
at the time of their approval of this announcement and such
statements should be treated with caution due to the inherent
uncertainties, including both economic and business risk factors,
underlying any such forward-looking information.
Robert Walters plc
Results for the year ended 31
December 2023
Chief Executive's
Statement
2023 was a challenging year in most
hiring markets globally. For a talent partner with a presence in
such a breadth of geographical markets as Robert Walters, this
perhaps made the last year unlike any other that has preceded it in
terms of the sharp correction in market conditions. 2022 had
already seen geopolitical volatility and uncertainty, combined with
pent-up consumer demand following the lifting of most Covid-19
restrictions globally, start to drive significantly higher
inflation. In 2023 we saw the anticipated bounce-back in the
Chinese economy fail to materialise, and consolidation of a sharply
rising interest rate cycle across many countries, with a resultant
cooling in global labour markets.
Against this context I'm very proud
of the resilience our business has demonstrated, with Group net fee
income down 8%* on a record prior year comparative, and profit
before tax of £20.8m. One of the great strengths of this business
is the extent of our international diversification. This
diversification has meant that, even in a tough year such as this
one, we've seen some strong performances in our portfolio. Europe
held net fee income flat* versus the prior year. Within this, our
Belgian business was the standout performer. In Belgium we
have strong contract and interim businesses alongside permanent in
the mix, and Belgium not only recorded double-digit* year-on-year
growth in each quarter of 2023, it also grew sequentially
quarter-on-quarter through the year - a fantastic performance. We
continue to have a very strong position in Japan, the second
largest hiring market globally. The hyper-specialisation of that
business means we are able to pivot to serve the most appealing
sectors of the market as and when we detect signs of growth, and
that contributed to a resilient performance, with net fee income
marginally down (by 1%*) on a record prior year.
Continued focus on people
I cannot overstate how much a
business like ours is, fundamentally, powered by our people. We
are, of course, inextricably tied to global macro-economic shifts,
and a key competency for our business is anticipating,
understanding and exploiting those. However, more than any other
source of intelligence, we rely on our consultants, and the close
relationships they have with clients and candidates, to help us
achieve success year after year. Furthermore, the centricity of
people to our business model is seen when you step back and
consider what specialist recruitment is: being a trusted partner to
clients and candidates, supporting them through some of the most
consequential events in their professional lives - moments that
really matter.
That explains our conviction as a
business, proven through historical market cycle troughs, that
maintaining our core consultant capacity, of course balanced against sensible management of our cost base,
continues to be the right strategy. In particular, we have
maintained our core 'muscle' in those markets that excite us most,
and we have let natural attrition flow through on those fee earner
cohorts that are typically less productive. Looking out over the
rest of 2024, we will continue to maintain this balanced and
data-driven approach, ensuring we remain rightsized to capture
opportunities as and when they are presented.
Continued focus on
technology
2023 has also been a year in which,
as a society, perhaps more than ever in the recent past, we've
started to look ahead to the potential changes that technology, in
particular, generative artificial intelligence ("AI"), can
unleash.
We are clear that, for a business
like ours, application of AI is all about helping our people do
what they do best - build strong relationships that enable them to
be trusted partners to their clients and candidates. It's been
exciting to gauge the growing awareness that our people have of the
potential of AI to make them even more effective partners. That has
seen over 1,000 of our people join together as "AI trailblazers",
engaging with our own private version of Microsoft Azure Open AI Studio to
propose, test and refine specific AI use cases for our business.
Increasingly, our consultants are incorporating AI to enhance job
adverts and assist with sales outreach to name just a few examples.
This is only set to gain further traction over 2024.
The other key technology focus
during the year has been on our internally developed CRM solution.
Following its initial deployment on a minimum viable product basis
in the UAE in 2021, and the learnings from that deployment then
being taken on in 2022, it was great to see the rollout gather
momentum in 2023 such that the new CRM is now being used in 50% of
the Group's markets. The new CRM solution is specifically built for
how we function as a business and gives us a greater degree of
future flexibility compared to an "off the shelf" solution.
Additionally, it is supporting our consultants in completing core
CRM activities, on average, two-and-a-half times quicker than on
the legacy system. Everything we've learnt so far is being
incorporated into future rollouts, and this stands us in excellent
stead as we target having the majority of our consultants migrated
onto the new CRM by the end of 2024.
Looking further ahead
My 25 years with the Group, both in
the UK and across the Asia-Pacific region, as a consultant and then
at increasing levels of leadership, has enabled me to see what a
fantastic platform we have. We have a strong long-run track record
of growth ahead of that of our key markets, we are amongst the most
internationally diversified of our peer group - with no single
country market accounting for more than a sixth of Group net fee
income, and we benefit from incredibly strong brand equity that is
synonymous in our clients' minds with the specialist professional
segment that we serve.
In my new role as Group CEO, and
with this great platform in place, what really excites me are the
opportunities to drive an improvement in performance, ensuring the
business is well-positioned for the shifts in the world of work
that are already underway. We are clear there is more value we can
add for our clients and candidates by leveraging the Robert Walters
brand further across our three key offerings of recruitment,
outsourcing and advisory - and we will start to grasp this
opportunity in 2024. Additionally, and reflecting the desire of the
talent they need to attract, organisations will increasingly
require products and solutions from a trusted talent partner like
Robert Walters to help them successfully navigate and win in the
sustainable world of work. As such, it was highly satisfying for
our pioneering 'ESG for HR' consultancy solution to be recognised
at the TALiNT International Annual Recruitment Awards. Furthermore,
bringing greater focus to bear on our conversion of net fee income
to operating profit, and beginning to execute against a set of
initiatives to deliver this, is a key focus for the medium-term.
Underpinning all of this will be an unwavering commitment to
keeping the needs of clients and candidates firmly at the heart of
what we do.
In summary, I couldn't be prouder to
lead such a great business and, together with all of our people,
I'm excited by the opportunity we have to deliver for our clients
and candidates in the year ahead.
2024 outlook
During the first few weeks of 2024,
trading conditions across the Group's markets have, consistent with
the end of 2023, remained muted - albeit with some isolated pockets
of growth. We have begun to undertake initiatives to significantly
strengthen our business, which we expect to gain further traction
over the medium-term and which we will set out in more detail at a
Capital Markets Day in the autumn.
Our collective experience trading
through previous market cycles tells us that when conditions do
improve, the inflection can be rapid, and we therefore have strong
conviction in our decision to maintain our core consultant
capacity, whilst sensibly managing our cost base.
Toby Fowlston
Chief Executive Officer
7 March 2024
Operating review
Asia Pacific (43% of Group net fee
income)
The Group's Asia-Pacific business
comprises the recruitment offering in North-East Asia (Japan and
South Korea), Australia & New Zealand, South-East Asia
(Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam)
and Greater China (Mainland China, Hong Kong and Taiwan), as well
as the region-wide outsourcing and advisory offering through
Resource Solutions. Resource Solutions accounted for 11% of
Asia-Pacific 2023 net fee income.
£m
|
2023
|
2022
|
%
Change
|
% Change
(constant currency*)
|
Net fee income
Of
which Resource Solutions
|
167.9
18.8
|
193.8
22.0
|
(13%)
(14%)
|
(9%)
(13%)
|
Operating profit
|
19.3
|
37.5
|
(48%)
|
(45%)
|
Conversion rate
|
11.5%
|
19.3%
|
(780)
bps
|
n/a
|
Net fee income was down 9%*
year-on-year, most notably driven by Australia (-19%*) and Greater
China (-19%*). North-East Asia (flat*) delivered a more resilient
performance.
The Australia business was impacted
by the notable cooling through the year in the wider Australian
hiring market - a more material drop-off versus the 2022 peak
activity levels than seen in other regional markets. Lower levels
of client confidence drove some larger clients to markedly slow or
even pause hiring during the year, leading to lower activity levels
as a result.
Performance in Greater China did
contrast slightly between H1 and H2, with notably impacted
performance in the first half stabilising somewhat in the second
half. The anticipated bounce back in activity in the wider economy
from the late 2022 relaxation of Covid-19 control measures did not
materialise, as evidenced by three consecutive months of
contracting manufacturing activity (measured by PMI surveys) as the
first half came to a close. The rate of decline moderated in the
second half, with Mainland China H2 net fee income down 10%*
year-on-year (H1: -40%*).
North-East Asia, the majority of
which is the Japan business, registered the most resilient
performance throughout Asia-Pacific, with H1 net fee income down
2%*, improving to growth of 1%* in the second half. Well-positioned
to serve the needs of the highly developed Japanese hiring market -
the second largest hiring market globally - and reflecting the
competitive differentiation of the Robert Walters brand, the Japan
business has a breadth of discipline specialisms, enabling it to
pivot to service parts of the market seeing the most attractive
growth.
Europe (33% of Group net fee
income)
The Group's Europe business largely
comprises the recruitment offering in Northern Europe (Belgium,
France, Germany, Republic of Ireland, the Netherlands and
Switzerland) and Southern Europe (Italy, Portugal and Spain).
Outsourcing and advisory services through Resource Solutions
accounted for 1% of 2023 Europe net fee income.
£m
|
2023
|
2022
|
%
Change
|
% Change
(constant currency*)
|
Net fee income
Of
which Resource Solutions
|
126.3
1.4
|
124.1
1.9
|
2%
(28%)
|
0%
(31%)
|
Operating profit
|
11.4
|
17.6
|
(35%)
|
(37%)
|
Conversion rate
|
9.0%
|
14.2%
|
(520)
bps
|
n/a
|
Net fee income was flat*
year-on-year, with an outstanding result in Belgium (up 21%*),
strong performance in Germany (up 8%*) and good momentum in the
nascent Italy business (office opened Q2 2022) offset by a more
challenging market backdrop in the Group's largest European
businesses of France (down 3%*) and the Netherlands (down 5%*),
particularly during the second half of the year.
Belgium was the standout performer
in Europe, and the Group, during 2023, with trading momentum
accelerating as the year progressed (H1: up 14%*, H2: up 28%*)
notably driven by its interim business which places mid to
senior-level talent. The German business also performed strongly,
recording its highest ever net fee income performance (against an
already record 2022) and taking opportunities to grow its coverage
following the opening of the Berlin office during 2022.
Meanwhile, in France and the
Netherlands, good first half net fee income growth (up 3%* in
France, up 4%* in the Netherlands) gave way to a weaker second half
performance (France: H2 down 9%*, Netherlands: H2 down 13%*). The
combination of higher inflation and a lower growth macro-economic
outlook served to increase caution and hesitancy among both clients
and candidates. Nevertheless, as is true of other developed hiring
markets globally, the French and Dutch labour markets remain very
tight and extremely favourable for the highest skilled candidates
who continue to be sought after.
UK (16% of Group net fee
income)
The Group's UK business comprises
the recruitment offering in London and the regions, and outsourcing
and advisory through Resource Solutions. The Resource Solutions
segment is the most material in the UK of any of the Group's
reportable segments, accounting for more than 50% of 2023 net fee
income.
£m
|
2023
|
2022
|
%
Change
|
Net fee income
Of
which Resource Solutions
|
60.9
34.3
|
74.0
41.1
|
(18%)
(16%)
|
Operating (loss)/ profit
|
(0.4)
|
3.4
|
n/m
|
Conversion rate
|
(0.7%)
|
4.6%
|
(530)
bps
|
Net fee income was down 18%
year-on-year, with recruitment in London (down 29%) having the most
challenging performance, recruitment in the regions seeing more
resilience (down 7%) and Resource Solutions down 16%.
London recruitment was not immune to
the more challenging sectoral backdrop for the financial services
and technology industries. Much lower levels of venture capital
funding for technology start-ups acted as both a headwind on new
vacancies, as well as driving job losses - with both client and
candidate confidence severely impacted as a result. The legal and
accounting disciplines held up better in London, albeit both saw
some further softening in the second half compared to the
first.
Performance in the regions was
fairly even across the year, underpinned by accounting - where the
Robert Walters brand has a long-developed specialism and is
recognised as such by clients.
Under new leadership as 2023 closed,
the UK business will sharpen focus on productivity and cost
management, whilst seeking to take further share across its key
disciplines as market conditions continue to favour stronger
players.
Rest of World (8% of Group net fee
income)
The Group's Rest of World business
comprises the recruitment offering in North America (Canada and
USA), South America (Brazil, Chile and Mexico), the Middle East and
South Africa, as well as the region-wide outsourcing and advisory
offering through Resource Solutions. Resource Solutions accounted
for 40% of Rest of World 2023 net fee income.
£m
|
2023
|
2022
|
%
Change
|
% Change
(constant currency*)
|
Net fee income
Of
which Resource Solutions
|
31.7
12.6
|
36.3
14.4
|
(13%)
(13%)
|
(12%)
(11%)
|
Operating profit
|
(4.0)
|
(0.3)
|
n/m
|
n/m
|
Conversion rate
|
(12.6%)
|
(0.8%)
|
(1180)
bps
|
n/a
|
Net fee income was down 12%*
year-on-year, with challenging conditions in North America (down
40%*) and as faced by Resource Solutions (down 11%*) partially
offset by growth in Mexico (up 68%*) and South Africa (up
38%*).
Hiring markets were weak in North
America, particularly in technology where the Q1 failure of Silicon
Valley Bank dented confidence in funding the sector. As the year
progressed, job losses at larger and more established technology
firms added to much reduced levels of venture capital funding
available to fledgling technology companies, acting to dampen
sector sentiment amongst both clients and candidates.
In Mexico, a more benign
macro-economic backdrop (growing employment levels, inflation
falling towards low-single digits) combined with market share gains
to drive a strong, profitable performance. Meanwhile in South
Africa, which also serves markets in west and east Africa, the
business continued to benefit from the strong Robert Walters brand
and candidate networks built over the last several years, driving a
double-digit conversion rate.
Our Rest of World segment gives us
good positions in some of the most attractive hiring markets of the
future which, over time, have the potential to become good profit
contributors.
*Constant currency is calculated by
applying prior year exchange rates to local currency results for
the current and prior years.
Financial review
These financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the United Kingdom.
Group statutory results
The headline statutory financial
results for the Company are presented below.
£m
|
2023
|
2022
|
Revenue
|
1,064.1
|
1,099.6
|
Cost of sales
|
(677.3)
|
(671.4)
|
Gross profit (net fee
income)
|
386.8
|
428.2
|
Administrative expenses
|
(360.5)
|
(370.0)
|
Operating profit
|
26.3
|
58.2
|
Net finance costs
|
(4.2)
|
(3.1)
|
(Loss)/gain on foreign
exchange
|
(1.3)
|
0.5
|
Profit before tax
|
20.8
|
55.6
|
Taxation
|
(7.4)
|
(16.5)
|
Profit for the year
|
13.4
|
39.1
|
|
|
|
Attributable to:
|
|
|
Equity holders of the
Company
|
13.4
|
39.1
|
|
|
|
Revenue
Revenue for the Group is the total
income from the placement of permanent and temporary (comprising
contract and interim) staff, and therefore includes the
remuneration costs of temporary candidates and the total cost of
advertising recharged to clients. It also includes outsourcing
fees, consultancy fees and the margin derived from payrolling
contracts charged by Resource Solutions to its clients.
Revenue was down 3% to £1,064.1m. In
recruitment, net fee income on temporary placements was flat
year-on-year, with the associated higher remuneration costs of
temporary candidates that is included in revenue partially
offsetting the lower net fee income (down 12% in reported terms) on
permanent placements.
Gross profit (net fee
income)
Net fee income is the total
placement fees of permanent candidates, the margin earned on the
placement of temporary candidates and the margin from advertising.
It also includes the outsourcing, consultancy and payrolling margin
earned by Resource Solutions. Net fee income is the primary
financial top-line metric used to evaluate business
performance.
Net fee income was down 10%
year-on-year, driven by the lower volume of permanent placements as
hiring markets globally corrected from the record activity levels
seen in 2022. At 52% of the 2023 total, H1 net fee income accounted
for a higher proportion than seen in the prior year (2022 H1 net
fee income: 49% of total), reflecting the more pronounced slowdown
across the Group's markets as the year progressed.
Operating profit
Operating profit was down 55% to
£26.3m, driven by the operating leverage impact whereby the lower
net fee income (down 10%) was not matched, in the short-term, by
proportionately lower operating costs (down 3%).
The majority of the Group's
operating costs (c.70%) relate to staff, being fee earners
(recruitment consultants) and non-fee earners (support staff across
various corporate functions such as marketing, HR, IT, legal and
finance). Though period end headcount of 3,980 was down 9%
year-on-year (31 December 2022: 4,356), the average headcount
during 2023 was up 6% year-on-year as the adjustment in headcount
to match activity levels in more challenging markets was second
half weighted. In addition, there was a limited amount of
restructuring in some leadership roles, and all of the related
costs were charged to the income statement in the ordinary course,
as opposed to being recognised as exceptional costs.
Interest and financing
costs
The Group incurred a net interest
charge for the year of £4.2m (2022: £3.1m), of which £3.4m (2022:
£2.5m) relates to the interest charge on lease liabilities, being
predominantly office leases.
The Group has a £60.0m financing
facility, currently due to expire in March 2027. At the year-end
date, £15.8m (31 December 2022: £26.1m) was drawn down under this
facility.
A foreign exchange loss of £1.3m
(2022: £0.5m gain) arose during the year on translation of the
Group's intercompany balances and external borrowings.
Taxation
The tax charge in 2023 was £7.4m
(2022: £16.5m) which gives an effective tax rate ("ETR") of 36.0%
(2022: 29.7%). On 1 April 2023, the main UK corporation tax rate
increased from 19% to 25%. The ETR is higher than the 2023 blended
average UK rate of 23.5% primarily as a result of higher rates of
taxation in some of the Group's major overseas markets such as
Japan, France and the Netherlands and the impact of adjustments to
accounting profits in the tax calculation and the movement in the
deferred tax asset.
Over the medium term, other than
governmental changes to corporation tax rates, the key factor
affecting the ETR is likely to be the mix of profits generated
across various tax jurisdictions.
Earnings per share
Basic earnings per share for the
year fell to 20.1p (2022: 56.2p), reflecting the underlying trading
performance. The weighted average number of shares decreased to
66.8m (2022: 69.6m), as a result of the Company's share buyback
programme.
Cash flow and financing
The Group's business model continues
to be highly cash generative with cash conversion in 2023 of 207%
(2022: 102%).
£m
|
2023
|
2022
|
Operating profit
|
26.3
|
58.2
|
Depreciation and amortisation
charges
|
24.0
|
21.7
|
Other non-cash items
|
(2.3)
|
6.7
|
Decrease/(increase)in working
capital
|
6.5
|
(27.0)
|
Cash generated by
operations
|
54.5
|
59.6
|
Net interest and associated
borrowing costs
|
(0.8)
|
(3.1)
|
Repayment of lease
principal
|
(15.9)
|
(16.8)
|
Taxation
|
(9.0)
|
(21.5)
|
Capital expenditure -
Intangibles
|
(7.6)
|
(7.1)
|
Net capital expenditure - property,
plant & equipment
|
(7.2)
|
(8.8)
|
Free cash flow
|
14.0
|
2.3
|
Purchase of own shares
|
-
|
(12.7)
|
Share buyback
|
(10.0)
|
(10.0)
|
Equity dividends paid
|
(15.8)
|
(15.2)
|
Other
|
1.2
|
0.3
|
Net movement in cash (exc. financing
facility)
|
(10.6)
|
(35.3)
|
Impact of foreign
exchange
|
(6.6)
|
5.8
|
Opening net cash
|
97.1
|
126.6
|
Closing net cash
|
79.9
|
97.1
|
Working capital
The working capital net inflow of
£6.5m (2022: net outflow of £27.0m) was principally driven by the
lower net fee income compared to the prior year, and consequently
lower trade receivables balance.
Capital expenditure
Intangibles capital expenditure of
£7.6m (2022: £7.1m) principally comprises spend to further develop
the Group's in-house CRM system.
Property, plant and equipment net
capital expenditure of £7.2m (2022: £8.8m spend, nil sale proceeds)
comprises spend of £8.3m, principally on the Group's office estate,
partially offset by sale proceeds of £1.1m.
Dividend
Given the strength of the Group's
balance sheet and the Board's confidence in the medium to long term
outlook and performance of the business, the Board is proposing a
final dividend of 17.0p per share. Together with the interim
dividend of 6.5p per share paid in September 2023, this takes the
total dividend for the year to 23.5p, in-line with that for the
prior year.
Share buyback
During the first half of the year,
the Company purchased 0.8m shares at an average price of £4.15 per
share for £3.4m and subsequently cancelled those shares. During the
second half of the year, the Company purchased a further 1.7m
shares at an average price of £3.87 per share for £6.6m and
cancelled those shares. In aggregate, the Company therefore
repurchased £10.0m of shares for cancellation (2022:
£10.0m).
Capital allocation
During the year, the Group has
reviewed its capital allocation strategy to ensure alignment with
maximising shareholder value and providing clarity to all
stakeholders. The Group's business model remains highly cash
generative, enabling investment opportunities to be funded through
the free cash flow of the Group.
The Board continues to recognise the
value of a strong balance sheet, and targets net cash (excluding
IFRS 16 leases) of at least £50m. As noted elsewhere, we believe in
the fundamental growth drivers of the Group's strategy and hence
will consider all investment in those opportunities that provide
sufficient headroom above the Group's cost of capital. These
investments will focus on improving the efficiency and productivity
of our people, improving the candidate and client experience, and
increasing the geographic penetration and discipline
diversification of the Group.
We will seek to maintain a dividend
cover ratio of 1.75-2.25x through the cycle, however the Group may
allow cover to fall outside this range at points in the cycle, such
as at present. Where this is the case, the Group will seek a clear
route to return to this range, balancing the continued development
of the business and the needs of all the Group's
stakeholders.
Finally, should the Group hold cash
in excess of its target, and should the Board expect this position
to continue for the medium term, then consideration will be given
to returning the excess capital to shareholders through either a
share buyback programme, special dividends, or a combination of the
two.
Foreign exchange impact
The Group's primary overseas
functional currencies are the Japanese Yen, the Australian Dollar
and the Euro.
The impact of foreign exchange
movements between 2023 and 2022 resulted in a £5.5m decrease in
reported net fee income and £1.4m decrease in operating profit for
the Company.
INDEPENDENT AUDITOR'S REPORT TO THE
SHAREHOLDERS OF
ROBERT WALTERS PLC ON THE
PRELIMINARY STATEMENT OF ANNUAL RESULTS
As the independent auditor of Robert
Walters plc we are required by UK Listing Rules to agree to the
publication of the Company's preliminary statement of annual
results for the year ended 31 December 2023 which includes the
financial summary, Group and Regional highlights, the Chief
Executive's Statement, Financial review and summarised financial
statements.
Use of our report
This report and our auditor's report
on the Company's financial statements are made solely to the
Company's members, as a body, in accordance with Chapter 3 of part
16 of the Companies Act 2006 and the terms of our engagement. Our
audit work has been undertaken so that we might state to the
Company's members those matters we have agreed to state to them and
for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company's members as a body, for our audit work,
for our auditor's report on the financial statements or this
report, or for the opinions we have formed.
Responsibilities of directors and
auditor
The Directors of the Company are
responsible for the preparation, presentation and publication of
the preliminary statement of annual results in accordance with the
UK Listing Rules. We are responsible for agreeing to the
publication of the preliminary statement of annual results, having
regard to the Financial Reporting Council's Bulletin "The Auditor's
Association with Preliminary Announcements made in accordance with
the requirements of UK Listing Rules".
Status of our audit of the financial
statements
Our audit of the annual financial
statements of the Company is complete and we signed our auditor's
report on 7 March 2024. Our auditor's report is not modified and
contains no emphasis of matter paragraph.
Our auditor's report on the full
financial statements contained the following information regarding
the scope of our audit, our application of materiality and key
audit matters and how they were addressed by us in the
audit.
An overview of the scope of our
audit
Our Group audit was scoped by
obtaining an understanding of the Group and its environment,
including the Group's system of internal control, and assessing the
risks of material misstatement in the financial statements. We also
addressed the risk of management override of internal controls,
including assessing whether there was evidence of bias by the
Directors that may have represented a risk of material
misstatement.
We designed an audit strategy to
ensure we have obtained the required audit assurance for each
component for the purposes of our Group audit opinion (ISA 600
(UK)). Components were scoped in to address aggregation risk and to
ensure sufficient coverage was obtained of Group balances on which
to base our audit opinion.
Our involvement with component
auditors
For the work performed by component
auditors, we determined the level of involvement needed in order to
be able to conclude whether sufficient appropriate audit evidence
has been obtained as a basis for our opinion on the Group financial
statements as a whole. Our involvement with component auditors
included the following:
Significant components
|
§ We
focussed our Group audit scope primarily on the audit work at four
significant components, which were subject to full scope audit
procedures.
§ These
significant components contribute 26% (2022: 30%) of the Group
profit before taxation, 28% (2022: 30%) of the Group net fee
income, and 39% (2022: 41%) of the Group revenue.
§ The four
components considered to be significant were Robert Walters plc,
Resource Solutions Limited (UK), Robert Walters Operations Limited
(UK) and Robert Walters Japan KK (Japan).
§ For the
Japanese component, following involvement in risk assessment and
setting the overall audit approach and strategy at the planning
stage with the component auditor, we visited the component auditor
(a local BDO member firm in Japan) and performed a detailed review
of the testing. We attended in person meetings with local
management and the component auditor to challenge conclusions
reached.
§ The audits
of the remaining UK significant components were performed by the
Group audit team.
|
Full scope audits
|
§ Sixteen
further components were subject to full scope audit procedures due
to size, geographical coverage and aggregation risk in addition to
the four identified significant components above (twenty in
total).
§ These
components contribute 29% (2022: 48%) of the Group profit before
taxation, 33% (2022: 43%) of the Group net fee income, and 39%
(2022: 46%) of the Group revenue.
§ Full scope
audits on Resource Solutions Europe Limited, Robert Walters
Holdings Limited and Robert Walters Dubai Limited was performed by
the Group audit team.
§ The full
scope audits on other components were performed by BDO Member Firms
under direction and supervision of the Group audit team.
§ The Group
audit team directed work for all full scope components through
detailed instructions, remote briefings and review of selected
working papers on significant risk areas.
|
Specified audit
procedures
|
§ Specified
audit procedures were performed by the Group audit team to address
the risk of material misstatement arising from key balances in
smaller components, with testing performed on certain material
balances within these components.
§ This
specific scope testing was performed on components that contribute
37% (2022: 21%) of the Group profit before taxation, 34% (2022:
17%) of the Group net fee income, and 19% (2022: 8%) of the Group
revenue.
|
Remaining components
|
§ All other
components were scoped in for analytical review procedures
performed by the Group audit team to confirm our conclusion that
there were no significant risks of material misstatement of the
aggregated financial information.
|
Parent Company &
Consolidation
|
§ The Group
audit team performed testing of the consolidation and related
consolidation adjustments posted in preparation of the Group
financial statements.
|
Key audit matters
Key audit matters are those matters
that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and
include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified,
including those which had the greatest effect on: the overall audit
strategy, the allocation of resources in the audit, and directing
the efforts of the engagement team. This matter was addressed in
the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on this matter.
Key audit matter
|
How the scope of our audit addressed
the key audit matter
|
Revenue recognition for permanent
and temporary placements (Note 1)
|
§ The
significant risks in revenue recognition lies within:
§ For
temporary placements, in the existence and accuracy of unbilled
revenue and completeness of revenue at year end; and
§ For
permanent placements, in the existence, accuracy, and completeness
of unbilled revenues, due to the high degree of judgement and
estimation uncertainty.
§ For
permanent placements, revenue is recognised when a start date is
confirmed and a candidate has accepted in writing. An Earned
But Not Invoiced (EBNI) provision is made based on historical
experience, for a proportion of placements where the candidate
accepts but are expected to reverse their acceptance prior to start
date. This is calculated as a percentage of the accrued income
balance. Whether the percentage applied remains valid is considered
to be a matter of significant management judgement.
§ For
temporary placements, the Group's policy is to recognise revenue as
the service is provided at contractually agreed rates. There
is a risk that timecards are not appropriately approved or are not
submitted on time, or that incorrect rates are applied and
therefore that the related revenue does not exist, is inaccurate or
is not recognised in the appropriate financial year.
|
§ The
operating effectiveness of direct controls in the revenue cycle was
tested where relevant. For permanent placements, we have
considered controls over the signing of the contract, evidence of
candidate acceptance and allocation of cash receipts. For
temporary placements we checked that timecards and the rate applied
have been appropriately approved.
§ Permanent
placements recorded around year end were sampled and agreed to
confirmation of candidate acceptance and start date, to ensure that
the point of revenue recognition was supportable.
§ For those
permanent candidates that had accepted but had not started at the
year-end, where revenue is recorded in accrued income, we
challenged the appropriateness of the provision rate applied by
reference to the rate of historical and actual 'back-outs' post
year-end.
§ We tested
the operating effectiveness of direct controls around the correct
application of contract rates to invoicing and agreed a sample of
rates used to contractual documentation.
§ We
recalculated the accrued income and associated costs recognised for
a sample of late timecards or timecards straddling the year end
(where the approved timecard was submitted after the year end but
related to services provided in the year).
Key observations:
§ We did not
identify any material indication that revenue that has not yet been
invoiced does not exist, is incomplete or is not valued
appropriately.
|
|
|
|
Our application of
materiality
We apply the concept of materiality
both in planning and performing our audit, and in evaluating the
effect of misstatements. We consider materiality to be the
magnitude by which misstatements, including omissions, could
influence the economic decisions of reasonable users that are taken
on the basis of the financial statements.
In order to reduce to an
appropriately low level the probability that any misstatements
exceed materiality, we use a lower materiality level, performance
materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily
be evaluated as immaterial as we also take account of the nature of
identified misstatements, and the particular circumstances of their
occurrence, when evaluating their effect on the financial
statements as a whole.
Based on our professional judgement,
we determined materiality for the financial statements as a whole
and performance materiality as follows:
|
Group
|
Parent Company
|
Materiality
|
£1.7m (2022: £2.7m)
|
£1.5m (2022: £2.4m)
|
Basis
|
5.0% of 5-year average profit before
taxation (2022: 5.0% of profit before taxation).
|
Lower of 3.5% of net assets (2022:
3.5%) or 90% Group materiality
|
Rationale
|
5-year average profit before
taxation is considered to be the most appropriate benchmark based
on market practice, investor expectations and recent macro-economic
factors.
|
Net assets is considered to be the
most appropriate benchmark as the Parent Company does not
trade.
|
Performance materiality
|
£1.2m (2022: £1.9m) based on 70%
(2022: 70%) of materiality.
Based on history of adjustments and
an assessment of the aggregated error risk.
|
£1.1m (2022: £1.7m) based on 70%
(2022: 70%) of materiality.
Based on history of adjustments and
an assessment of the aggregated error risk.
|
|
Measure
|
Application
|
Component materiality
|
£0.3m - £1.5m (higher of 15% Group
performance materiality or 3% net fee income)
(2022: £0.3m -£2.4m)
|
Our audit work at each component,
excluding the Parent company, was executed at levels of materiality
applicable to each individual entity as approved by the Group audit
team and in each case, lower than that applied to the
Group.
|
Reporting threshold
|
£70,000
(2022: £110,000)
|
The amount agreed with the Audit and
Risk Committee for which all individual audit differences in excess
of this amount will be reported. We also agreed to report
differences below this threshold that, in our view, warranted
reporting on qualitative grounds.
|
Qualitative disclosures
|
We also reported to the Audit and
Risk Committee on disclosure matters that we identified when
assessing the overall presentation of the financial
statements.
|
|
Procedures performed to agree to the
preliminary statement of annual results
In order to agree to the publication
of the preliminary statement of annual results of the Company
we:
·
checked the accuracy of extraction of the
financial information in the preliminary statement from the audited
financial statements of the Company;
·
considered whether any "alternative performance
measures" and associated narrative explanations may be misleading;
and
·
read the management commentary and considered
whether it is in conflict with the information that we have
obtained in the course of our audit.
Sandra Thompson (Senior Statutory
Auditor)
For and on behalf of BDO LLP,
Statutory Auditor
London, UK
7 March 2024
Consolidated Income
Statement
FOR THE YEAR ENDED 31 DECEMBER
2023
|
|
2023
|
2022
|
|
Notes
|
£
millions
|
£
millions
|
Revenue
|
1
|
1,064.1
|
1,099.6
|
Cost of sales
|
|
(677.3)
|
(671.4)
|
Gross profit (net fee
income)
|
|
386.8
|
428.2
|
Administrative
expenses
|
|
(360.5)
|
(370.0)
|
Operating profit
|
|
26.3
|
58.2
|
Finance income
|
|
0.6
|
0.4
|
Finance costs
|
2
|
(4.8)
|
(3.5)
|
(Loss) gain on foreign
exchange
|
|
(1.3)
|
0.5
|
Profit before taxation
|
|
20.8
|
55.6
|
Taxation
|
3
|
(7.4)
|
(16.5)
|
Profit for the year
|
|
13.4
|
39.1
|
|
|
|
|
Attributable to:
|
|
|
|
Owners of the Company
|
|
13.4
|
39.1
|
Earnings per share
(pence):
|
5
|
|
|
Basic
|
|
20.1
|
56.2
|
Diluted
|
|
19.0
|
53.4
|
The amounts above relate to
continuing operations.
Consolidated Statement of
Comprehensive Income
FOR THE YEAR ENDED 31 DECEMBER
2023
|
2023
|
2022
|
|
£
millions
|
£
millions
|
Profit for the year
|
13.4
|
39.1
|
Items that may be reclassified
subsequently to profit or loss:
|
|
|
Exchange differences on translation
of overseas operations
|
(8.6)
|
6.0
|
Total comprehensive income and
expense for the year
|
4.8
|
45.1
|
|
|
|
Attributable to:
|
|
|
Owners of the Company
|
4.8
|
45.1
|
Consolidated Balance
Sheet
AS AT 31 DECEMBER 2023
|
|
2023
|
2022
|
|
Notes
|
£
millions
|
£
millions
|
Non-current assets
|
|
|
|
Intangible assets
|
6
|
33.8
|
29.3
|
Property, plant and
equipment
|
7
|
15.3
|
14.3
|
Right-of-use
asset
|
8
|
67.5
|
71.6
|
Lease receivables
|
|
4.0
|
-
|
Deferred tax assets
|
|
11.8
|
10.0
|
|
|
132.4
|
125.2
|
Current assets
|
|
|
|
Trade and other
receivables
|
9
|
182.5
|
221.4
|
Lease receivables
|
|
0.8
|
-
|
Corporation tax
receivables
|
|
4.3
|
4.3
|
Cash and cash equivalents
|
|
95.7
|
123.2
|
|
|
283.3
|
348.9
|
Total assets
|
|
415.7
|
474.1
|
Current liabilities
|
|
|
|
Trade and other
payables
|
10
|
(148.0)
|
(179.6)
|
Corporation tax
liabilities
|
|
(4.8)
|
(5.0)
|
Bank overdrafts and
borrowings
|
11
|
(15.8)
|
(26.1)
|
Lease liabilities
|
|
(18.0)
|
(18.3)
|
Provisions
|
|
(0.7)
|
(0.8)
|
|
|
(187.3)
|
(229.8)
|
Net current assets
|
|
96.0
|
119.1
|
Non-current liabilities
|
|
|
|
Deferred tax liabilities
|
|
(0.2)
|
(0.2)
|
Lease liabilities
|
|
(61.2)
|
(58.1)
|
Provisions
|
|
(2.1)
|
(2.1)
|
|
|
(63.5)
|
(60.4)
|
Total liabilities
|
|
(250.8)
|
(290.2)
|
Net assets
|
|
164.9
|
183.9
|
Equity
|
|
|
|
Share capital
|
|
15.3
|
15.8
|
Share premium
|
|
22.6
|
22.6
|
Other reserves
|
|
(70.9)
|
(71.4)
|
Own shares held
|
|
(37.8)
|
(40.5)
|
Treasury shares held
|
|
(9.1)
|
(9.1)
|
Foreign exchange reserves
|
|
2.5
|
11.1
|
Retained earnings
|
|
242.3
|
255.4
|
Equity attributable to owners of the
Company
|
|
164.9
|
183.9
|
Consolidated Cash Flow
Statement
FOR THE YEAR ENDED 31 DECEMBER
2023
|
|
2023
|
2022
|
|
Notes
|
£
millions
|
£
millions
|
Operating profit
|
|
26.3
|
58.2
|
Adjustments for:
|
|
|
|
Depreciation and amortisation
charges
|
|
24.0
|
21.7
|
Impairment of right-of-use
asset
|
|
0.2
|
-
|
(Profit) loss on disposal of
right-of-use assets, property, plant and equipment and computer
software
|
|
(0.2)
|
0.4
|
Charge in respect of share-based
payment transactions
|
|
0.7
|
2.5
|
Unrealised foreign exchange
loss
|
|
(3.0)
|
3.8
|
Operating cash flows before
movements in working capital
|
|
48.0
|
86.6
|
Decrease (increase) in
receivables
|
|
32.2
|
(25.0)
|
Decrease in payables
|
|
(25.7)
|
(2.0)
|
Cash generated from operating
activities
|
|
54.5
|
59.6
|
Income taxes paid
|
|
(9.0)
|
(21.5)
|
Net cash from operating
activities
|
|
45.5
|
38.1
|
|
|
|
|
Investing activities
|
|
|
|
Interest received
|
|
0.6
|
0.4
|
Investment in intangible
assets
|
|
(7.6)
|
(7.1)
|
Purchases of property, plant and
equipment
|
|
(8.3)
|
(8.8)
|
Sale of property, plant and
equipment
|
|
1.1
|
-
|
Net cash used in investing
activities
|
|
(14.2)
|
(15.5)
|
|
|
|
|
Financing activities
|
|
|
|
Equity dividends
paid
|
4
|
(15.8)
|
(15.2)
|
Interest paid
|
|
(1.4)
|
(1.0)
|
Net interest on leases
|
|
-
|
(2.5)
|
Principal paid and received on lease
liabilities
|
|
(15.9)
|
(16.8)
|
Proceeds from financing
facility
|
|
10.4
|
37.1
|
Repayment of financing
facility
|
|
(20.7)
|
(26.7)
|
Share buy-back for
cancellation
|
|
(10.0)
|
(10.0)
|
Purchase of own shares
|
|
-
|
(12.7)
|
Proceeds from exercise of share
options
|
|
1.2
|
0.2
|
Proceeds from issue of
equity
|
|
-
|
0.1
|
Net cash used in financing
activities
|
|
(52.2)
|
(47.5)
|
Net decrease in cash and cash
equivalents
|
|
(20.9)
|
(24.9)
|
Cash and cash equivalents at
beginning of year
|
|
123.2
|
142.3
|
Effect of foreign exchange rate
changes
|
|
(6.6)
|
5.8
|
Cash and cash equivalents at end of
year
|
|
95.7
|
123.2
|
Consolidated
Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER
2023
|
Share
capital
|
Share
premium
|
Other
reserves
|
Own shares
held
|
Treasury
shares held
|
Foreign
exchange reserves
|
Retained
earnings
|
Total
equity
|
Group
|
£
millions
|
£
millions
|
£
millions
|
£
millions
|
£
millions
|
£
millions
|
£
millions
|
£
millions
|
Balance at 1 January 2022
|
16.1
|
22.6
|
(71.8)
|
(29.9)
|
(9.1)
|
5.1
|
241.8
|
174.8
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
39.1
|
39.1
|
Foreign currency translation
differences
|
-
|
-
|
-
|
-
|
-
|
6.0
|
-
|
6.0
|
Total comprehensive income and
expense for the year
|
-
|
-
|
-
|
-
|
-
|
6.0
|
39.1
|
45.1
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
(15.2)
|
(15.2)
|
Credit to equity for equity-settled
share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
2.5
|
2.5
|
Tax on share-based payment
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.9)
|
(0.9)
|
Transfer to own shares held on
exercise of equity incentives
|
-
|
-
|
-
|
1.9
|
-
|
-
|
(1.9)
|
-
|
Shares repurchased
for cancellation
|
(0.4)
|
-
|
0.4
|
-
|
-
|
-
|
(10.0)
|
(10.0)
|
New shares issued and own shares
purchased
|
0.1
|
-
|
-
|
(12.5)
|
-
|
-
|
-
|
(12.4)
|
Balance at 31 December
2022
|
15.8
|
22.6
|
(71.4)
|
(40.5)
|
(9.1)
|
11.1
|
255.4
|
183.9
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
13.4
|
13.4
|
Foreign currency translation
differences
|
-
|
-
|
-
|
-
|
-
|
(8.6)
|
-
|
(8.6)
|
Total comprehensive income and
expense for the year
|
-
|
-
|
-
|
-
|
-
|
(8.6)
|
13.4
|
4.8
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
(15.8)
|
(15.8)
|
Credit to equity
for equity-settled share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
0.7
|
0.7
|
Tax on share-based payment
transactions
|
-
|
-
|
-
|
-
|
-
|
-
|
0.1
|
0.1
|
Transfer to own shares held on
exercise of equity incentives
|
-
|
-
|
-
|
1.5
|
-
|
-
|
(1.5)
|
-
|
Share repurchase
and cancellation
|
(0.5)
|
-
|
0.5
|
-
|
-
|
-
|
(10.0)
|
(10.0)
|
New shares issued and own shares
purchased
|
-
|
-
|
-
|
1.2
|
-
|
-
|
-
|
1.2
|
Balance at 31 December
2023
|
15.3
|
22.6
|
(70.9)
|
(37.8)
|
(9.1)
|
2.5
|
242.3
|
164.9
|
Statement of Accounting
Policies
FOR THE YEAR ENDED 31 DECEMBER
2023
Accounting Policies
Basis of preparation
|
Robert Walters plc is a public
company limited by shares, incorporated and domiciled in the United
Kingdom under the Companies Act. The financial report for the year
ended 31 December 2023 has been prepared in accordance with the
historical cost convention and with international accounting
standards in conformity with the requirements of the Companies Act
2006 and with UK adopted International Financial Reporting
Standards (IFRSs).
The Group has a strong balance sheet
with net cash as at 31 December 2023 of £79.9m, a £60.0m four-year
committed financing facility until March 2027 (of which £15.8m was
drawn down as at 31 December 2023), a blend of revenue streams
covering permanent, contract, interim and recruitment process
outsourcing and a diverse range of clients and suppliers across 31
countries. As a consequence, the Directors believe that the Group
is well placed to manage its business risks successfully.
After making enquiries, the Directors have formed
a judgement, at the time of approving the financial statements,
that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence and meet its
liabilities as they fall due over the three-year assessment period.
The Directors have not identified any material uncertainties
relating to events or conditions that, individually or
collectively, may cast significant doubt on the entity's ability to
continue as a going concern for a period of at least twelve months
from when the financial statements are authorised for issue. For
this reason, the Directors continue to adopt the going concern
basis in preparing the accounts.
The financial information in this
announcement, which was approved by the Board of Directors on 7
March 2024, does not constitute the Company's statutory accounts
for the year ended 31 December 2023 but is derived from these
accounts. Statutory accounts for 2022 have been delivered to
the Registrar of Companies and those for 2023 will be
delivered following the Company's Annual General Meeting. The
auditors have reported on these accounts; their reports were
unqualified, did not draw attention to any matters by way of
emphasis without qualifying their report and did not contain
statements under Section 498(2) or (3) of the Companies Act
2006.
The Annual General Meeting of Robert
Walters plc will be held on 30 April 2024 at 11 Slingsby Place, St
Martin's Courtyard, London WC2E 9AB.
1.
|
Segmental information
|
|
|
2023
|
2022
|
|
|
£
millions
|
£
millions
|
i)
|
Revenue:
|
|
|
|
Asia Pacific
|
484.9
|
519.6
|
|
UK
|
254.9
|
259.7
|
|
Europe
|
281.9
|
276.5
|
|
Rest of World
|
42.4
|
43.8
|
|
|
1,064.1
|
1,099.6
|
|
|
|
|
ii)
|
Gross profit (net fee
income):
|
|
|
|
Asia Pacific
|
167.9
|
193.8
|
|
UK
|
60.9
|
74.0
|
|
Europe
|
126.3
|
124.1
|
|
Rest of World
|
31.7
|
36.3
|
|
|
386.8
|
428.2
|