In This Article:
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Group Net Fee Income: Decreased by 14% year-on-year to GBP 321 million.
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Operating Costs: Reduced by 9%, with a GBP 44 million year-on-year reduction.
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Operating Profit: Approximately GBP 5 million, impacted by reduced top-line trading.
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Profit Before Tax: Break-even position.
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Loss Per Share: 9.1p.
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Net Cash: Ended the year at GBP 52.5 million.
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Final Dividend: Proposed at 17p per share, totaling 23.5p per share for the year.
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Specialist Recruitment Fees: Down 13%, with permanent fees down 14% and temporary fees down 10%.
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Recruitment Outsourcing Fees: Decreased by 18%.
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Workforce Consultancy Fees: Increased by 24% year-on-year.
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Average Group Headcount: Fell by 15% year-on-year.
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Free Cash Flow: GBP 8 million.
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Capital Expenditure: Approximately GBP 10 million, down 3% from the prior year.
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Structural Cost Savings: Over GBP 4 million secured, with further opportunities identified.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Robert Walters PLC (STU:RBW) has made good early progress on its strategic plan despite challenging global hiring conditions in 2024.
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The company has secured over GBP 4 million in structural cost savings, positioning it well for 2025.
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There is strong potential for growth in Japan, particularly in the interim management, workforce consultancy, and talent advisory sectors.
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The rollout of the Zenith CRM system is expected to enhance fee earner productivity and efficiency.
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The company is pursuing service line diversification with a focus on high-margin areas like interim management and workforce consultancy.
Negative Points
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Global hiring markets remained challenging in 2024, leading to a 14% reduction in group net fee income.
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Specialist recruitment fees were down 13%, with permanent fees declining by 14%.
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Recruitment outsourcing fees decreased by 18%, reflecting client caution in the financial services sector.
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Operating profit was significantly impacted, resulting in a break-even position at the profit before tax level.
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The company anticipates that an improvement in end markets is unlikely before the latter part of 2025.
Q & A Highlights
Q: Could you provide more color on the outperformance of the interim business in Belgium and the Netherlands, and your outlook for this segment in 2025? Also, do you see the business pivoting towards an increased Asia Pacific focus? A: The interim business performed well, particularly in Belgium and Germany, with stable performance in the Netherlands. This is driven by a high demand for skilled professionals on interim contracts. We expect strong conversion rates to continue. Regarding Asia Pacific, while it currently represents 43% of fees, we see significant growth potential, especially in Japan and Southeast Asia. However, Europe remains important, and we anticipate a balanced portfolio approach.