Robert Walters (LSE:RWA) reported a 12% year-on-year decline in third-quarter net fee income to £69.6 million, a slight improvement compared to the 13% drop recorded in the previous quarter.
The recruitment firm noted encouraging momentum in Asia Pacific and the UK, even as European markets continued to lag. Its specialist professional recruitment segment — the company’s largest revenue driver — saw net fee income fall 10% to £58.5 million. Permanent recruitment, which represents 67% of total fee income, declined 7%, while temporary recruitment fell 16%. Excluding Europe, permanent fees were down just 2% and temporary fees increased by 1%, highlighting stronger performance elsewhere.
“Our year-on-year fee income performance during the third quarter improved slightly compared to the second, albeit with some divergence across our geographic portfolio,” said Toby Fowlston, Chief Executive. “Whilst we are seeing signs of sustained improvement in a select number of hiring markets, overall conditions globally remain fragile.”
The company continued to tighten costs, reducing its monthly cost base to around £24 million in the third quarter from £24.5 million at the end of H1. It remains on track to achieve at least £10 million in annualized structural savings by 2027.
Regionally, Asia Pacific — the firm’s largest market — saw net fee income decline by just 2%, while the UK slipped 4%. Europe was the weakest region, falling 26% amid political uncertainty in France and legislative changes in the Netherlands that have impacted self-employment.
Robert Walters closed the quarter with net cash of £26.6 million, down slightly from £30.1 million at the end of June. Management plans to reassess the potential reinstatement of shareholder returns at the full-year results announcement in March 2026.
“Throughout our business we are highly focused on continuing to take the right actions to drive a return to profitability in 2026,” Fowlston added.
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