Recruiter Robert Walters posts smaller fee drop as hiring improves
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FILE PHOTO: Workers walk through the Canary Wharf financial district, ahead of a Bank of England decision on interest rate changes, in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
By Nithyashree R B
April 15 (Reuters) - Recruitment firm Robert Walters on Wednesday posted a narrower drop in first-quarter net fees following double-digit quarterly declines for nearly three years, as its largest market Japan returned to growth.
Shares of the legal and technology recruiter rose 4% after it signalled improving confidence in some of its markets, despite weakness in Europe, especially France and the Netherlands.
CEO Toby Fowlston told Reuters that bright spots were emerging in some geographies, including the U.S., Britain, and Spain.
"I think what quarter one is showing us - and again, it is early days - that perhaps there is more confidence returning in some of our markets now in the permanent sector," Fowlston said.
ENCOURAGING SIGNS
Analysts at Panmure Liberum said the firm's update was encouraging as the group also focuses on cost management amid a tough hiring market.
Robert Walters, which recruits professionals across finance, accounting, and corporate roles, makes 42% of its annual net fees from the Asia Pacific region, an exposure that underpins its stronger optimism about hiring activity than peers.
Rival recruiter PageGroup , whose largest markets remain Europe, Middle East, and Africa, on Tuesday warned of an increasingly uncertain outlook for the rest of the year due to the Middle East conflict and weakness in Germany and France.
However, Robert Walters said the impact to business from the Iran war remained limited, as the Middle East accounts for only 2% of its portfolio.
Income from net fees fell 2% to 65.2 million pounds ($88.39 million) for the quarter ended March 31, after 11 consecutive quarters of double-digit declines. The company kept its 2026 guidance unchanged.
Fowlston said greater confidence among candidates was starting to lift hiring volumes as professionals who had stayed in their jobs since the COVID-19 pandemic were starting to seek new job opportunities.
Meanwhile, larger rival Hays will post its third-quarter update on Thursday.
($1 = 0.7376 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Sherry Jacob-Phillips and Diti Pujara)
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