Robert Walters (LSE:RWA) said first-half trading for 2026 was in line with board expectations, with recruitment activity showing signs of gradual improvement despite continuing challenging market conditions.
Group net fees declined 3% on a constant currency basis during the period, marking a notable improvement from the 14% fall recorded in 2025. The company reported stronger trading momentum in several key markets, including the UK, Japan, Spain and New Zealand, while approximately half of its specialist recruitment operations returned to growth.
The recruitment outsourcing business delivered a second consecutive quarter of net fee growth, benefiting from increased demand for consultancy services and improving volumes in permanent recruitment contracts. This helped offset weaker trading conditions across parts of Europe and the Middle East.
Management continued to focus on cost control during the first half, reducing headcount and improving fee earner productivity while maintaining a net cash position of £17.2 million. The company said current staffing levels are broadly aligned with market conditions but added that it will remain flexible as recruitment markets recover at varying rates across different regions.
Although trading trends are beginning to improve, Robert Walters’ outlook continues to be influenced by weaker financial performance, including lower revenue, tighter margins and ongoing losses. Technical indicators also remain negative, with the shares trading below key moving averages and momentum signals remaining weak. However, positive operating and free cash flow, together with an attractive dividend yield, provide some support, even though the recent decline in free cash flow and the group’s loss-making position continue to present risks.
About Robert Walters
Robert Walters is an international specialist recruitment and talent solutions company operating across Asia-Pacific, Europe, the UK and other global markets. The group provides permanent and temporary recruitment services alongside recruitment outsourcing and consultancy solutions, with specialist recruitment remaining its largest source of net fee income.
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