Robert Walters (LSE:RWA) reported a 14% year-on-year fall in fourth-quarter net fee income on a constant currency basis, with overall group performance broadly stable compared with the prior quarter but marked by increasing divergence across regions.
The UK delivered strong growth in specialist recruitment, while trading trends improved in Spain and New Zealand. These gains were offset by continued weakness across northern Europe, alongside softer market conditions in parts of Asia Pacific and the Middle East. Management said the mixed regional picture reflects ongoing uncertainty in global hiring markets and differing paces of economic recovery.
In response, the group is taking further steps to tighten its cost base. Measures include headcount reductions, the closure of its smaller Canadian operation, and the migration of additional back-office activities into global business services hubs. Robert Walters ended the period with net cash of £26.2 million, providing financial flexibility as it prioritises portfolio management and productivity improvements.
Looking ahead, management expects net fee income in 2026 to come in slightly below 2025 levels, reflecting continued caution around global recruitment demand. However, growth in newer business lines — including recruitment outsourcing partnerships, early-stage talent solutions and consultancy services — is expected to provide some offset to weaker conditions in traditional hiring markets.
From a market perspective, the outlook is weighed down by declining revenues and profitability, while technical indicators point to bearish momentum. Valuation signals are mixed, with an attractive dividend yield contrasted by a negative price-to-earnings ratio. Limited recent earnings call and corporate update information restricts further visibility into near-term guidance.
More about Robert Walters
Robert Walters plc is a global specialist recruitment and talent solutions group. The majority of its net fee income is generated from permanent and temporary professional recruitment, with specialist roles accounting for more than 80% of group revenue. The business also provides recruitment outsourcing and talent advisory services, operating across Asia-Pacific, Europe, the UK and other international markets, with an increasing focus on early-stage talent advisory, workforce consultancy and outsourcing solutions.
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