We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Robert Walters Plc | LSE:RWA | London | Ordinary Share | GB0008475088 | ORD 20P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -9.00 | -2.26% | 390.00 | 385.00 | 389.00 | 389.00 | 388.00 | 388.00 | 26,814 | 16:35:24 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Employment Agencies | 1.06B | 13.4M | 0.1831 | 21.25 | 284.66M |
From Apr 2019 to Apr 2024
TIDMRWA
RNS Number : 0769M
Robert Walters PLC
26 July 2017
26 July 2017
ROBERT WALTERS PLC
(the "Company", or the "Group")
Half-yearly financial results for the six months ended 30 June 2017
RECORD PROFITS
Robert Walters plc (LSE: RWA), the leading international recruitment group, today announces its half-yearly financial results for the six months ended 30 June 2017.
Financial and Operational Highlights
Hot Features
Premium
H1 2017 H1 2016 % change % change (constant currency*)
------------------------------- ---------- --------- --------- -----------------------------
Revenue GBP562.7m GBP451.4m 25% 17%
------------------------------- ---------- --------- --------- -----------------------------
Gross profit (net fee income) GBP164.5m GBP128.1m 28% 18%
------------------------------- ---------- --------- --------- -----------------------------
Operating profit GBP16.2m GBP10.1m 62% 44%
------------------------------- ---------- --------- --------- -----------------------------
Profit before taxation GBP15.6m GBP11.2m 39% 46%
------------------------------- ---------- --------- --------- -----------------------------
Basic earnings per share 16.3p 10.6p 54% n/a
------------------------------- ---------- --------- --------- -----------------------------
* Constant currency is calculated by applying prior period exchange rates to local currency results for the current and prior periods.
-- Record first half performance with operating profit increasing by 62% (44%*) to GBP16.2m (2016: GBP10.1m) and profit before tax increasing by 39% (46%*) to GBP15.6m (2016: GBP11.2m).
-- 71% of the Group's net fee income derived from our international businesses.
-- All regions delivered increases in both net fee income and operating profit.
-- Asia Pacific net fee income up 25% (10%*) to GBP67.4m (GBP59.3m*) (2016: GBP54.0m) and operating profit up 22% (3%*) to GBP7.7m (GBP6.5m*) (2016: GBP6.4m).
-- Strong performance in Asia across both established and emerging markets with Japan, Korea, Hong Kong, Indonesia, Thailand and Vietnam all delivering record performances.
-- Good first half in Australia with growth strongest in Queensland and South Australia. Recent sponsorship of the British & Irish Lions further cemented our market-leading position in New Zealand.
-- Resource Solutions won a number of new client deals across the region; requiring significant investment in upfront implementation costs.
-- UK net fee income up 20% to GBP48.3m (2016: GBP40.2m) producing a substantial uplift in operating profit to GBP4.0m (2016: GBP1.8m).
-- Activity levels strongest in London in financial services, commerce finance and technology.
-- Broad-based growth across the UK regions with Manchester, Milton Keynes and St. Albans the standout performers.
-- Resource Solutions performed strongly winning several new client deals and continued to benefit from the investment made in 2016.
-- Europe net fee income up 34% (22%*) to GBP38.0m (GBP34.4m*) (2016: GBP28.2m) and operating profit more than doubled to GBP4.4m (GBP3.7m*) (2016: GBP2.1m).
-- Strong growth across permanent, contract and interim recruitment.
-- France, Belgium, the Netherlands and Spain all delivered record performances with the latter increasing net fee income in excess of 70%.
-- Other International (North America, Brazil, the Middle East and South Africa) net fee income up 93% (67%*) to GBP10.9m (GBP9.4m*) (2016: GBP5.6m) producing an operating profit of GBP0.1m (GBP0.3m*) (2016: operating loss of GBP0.2m).
-- Group headcount increased by 20% to 3,495 (30 June 2016: 2,902).
-- Interim dividend increased by 20% to 2.75p per share (30 June 2016: 2.30p).
-- 2.1m shares have been purchased and cancelled at an average price of GBP3.79 for GBP8.0m. A further 0.4m shares were purchased at an average price of GBP4.03 for GBP1.7m through the Group's Employee Benefit Trust.
-- Strong balance sheet with net cash of GBP18.4m as at 30 June 2017 (30 June 2016: GBP10.2m).
Robert Walters, Chief Executive, said:
"The Group delivered a record performance in the first half increasing profit before tax by 39% (46%*) year-on-year. We continue to benefit from both our international footprint which now spans 28 countries, including many of the world's fastest growing and emerging recruitment markets, and the breadth of recruitment solutions we provide to our clients.
"We enter the second half of the year with confidence that the Group's platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise."
The Company will be holding a presentation for analysts at 10.30am today at Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London EC2V 5DE.
The Company will publish an interim management statement for the third quarter ending 30 September 2017 on 10 October 2017.
Further information
Robert Walters plc Robert Walters, Chief Executive Alan Bannatyne, Chief Financial Officer +44 (0) 20 7379 3333 Newgate Communications Steffan Williams Charlotte Coulson +44 (0) 20 7680 6550
About Robert Walters
Robert Walters is a market-leading international specialist professional recruitment group with over 3,400 staff spanning 28 countries. We specialise in the placement of the highest calibre professionals across the disciplines of accountancy and finance, banking, engineering, HR, IT, legal, sales, marketing, secretarial and support and supply chain and procurement. Our client base ranges from the world's leading blue-chip corporates and financial services organisations through to SMEs and start-ups. The Group's outsourcing division, Resource Solutions is a market leader in recruitment process outsourcing and managed services.
www.robertwalters.com
Forward looking statements
This announcement contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them at the time of their approval of this announcement and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
Robert Walters plc
Half-yearly financial results for the six months ended 30 June 2017
Interim Management Report
The Group delivered a record performance in the first half benefiting from both our international footprint which now spans 28 countries, including many of the world's fastest growing and emerging recruitment markets, and the breadth of recruitment solutions we provide to our clients.
Revenue was up 25% (17%*) to GBP562.7m (GBP529.4m*) (2016: GBP451.4m) and gross profit (net fee income) increased by 28% (18%*) to GBP164.5m (GBP151.4m*) (2016: GBP128.1m). Operating profit increased 62% (44%*) to GBP16.2m (GBP14.5m*) (2016: GBP10.1m) and profit before taxation increased by 39% (46%*) to GBP15.6m (GBP13.9m*) (2016: GBP11.2m). The Group has maintained a strong balance sheet with net cash of GBP18.4m as at 30 June 2017 (31 December 2016: GBP22.5m).
Permanent recruitment currently represents 69% (2016: 69%) of the Group's recruitment net fee income. Group headcount now stands at 3,495 (30 June 2016: 2,902).
Asia Pacific (41% of net fee income)
Revenue was GBP185.3m (2016: GBP154.9m) and net fee income increased by 25% (10%*) to GBP67.4m (GBP59.3m*) (2016: GBP54.0m) delivering a 22% (3%*) increase in operating profit to GBP7.7m (GBP6.5m*) (2016: GBP6.4m).
In Asia, performance was strong across both our established and emerging markets. Japan, the region's largest market had a record first half as did our business in Hong Kong whilst Malaysia also delivered an excellent performance across both Kuala Lumpur and our newer office in Penang. Our emerging market footprint in Asia covering Indonesia, Korea, Taiwan, Thailand, Vietnam and most recently, the Philippines, is unrivalled and it is very pleasing to report that all markets continued to deliver year-on-year operating profit growth thus providing the Group with a strong platform for the future. Elsewhere in the region, Singapore and Mainland China delivered robust performances against a backdrop of more challenging market conditions.
Australia had a good first half with growth strongest in Queensland and South Australia whilst New Zealand delivered strong double-digit growth in both net fee income and operating profit. The Group's recent sponsorship of the British & Irish Lions tour of New Zealand has further enabled us to cement our leadership position in this market.
Resource Solutions continued to grow its client portfolio across the region during the period. Significant upfront investment has been required to implement these new wins.
United Kingdom (29% of net fee income)
Revenue in the UK was GBP278.1m (2016: GBP220.6m) and net fee income increased by 20% to GBP48.3m (2016: GBP40.2m) delivering a more than doubling of operating profit to GBP4.0m (2016: GBP1.8m).
Whilst the UK has had a mixed and volatile economic backdrop for the first six months of the year, we were still able to deliver good growth across several recruitment disciplines and locations. In London, we saw strong growth in the financial services space, whilst both our commerce finance and technology teams also performed well. Regional growth was broad-based with Manchester, St. Albans and Milton Keynes the standout performers.
Resource Solutions continued to perform strongly, winning a number of new client deals and successfully expanding its service range within existing clients.
Europe (23% of net fee income)
Revenue was GBP88.4m (2016: GBP69.3m) and net fee income increased by 34% (22%*) to GBP38.0m (GBP34.4m*) (2016: GBP28.2m) delivering a substantial increase in operating profit to GBP4.4m (GBP3.7m*) (2016: GBP2.1m).
Europe delivered an excellent first half performance and, very encouragingly, activity was strong across permanent, contract and interim recruitment.
France, the region's largest business, the Netherlands, Belgium and Spain all delivered record performances with the latter increasing net fee income by more than 70% year-on-year. Germany was also a strong performer, increasing net fee income in excess of 30%, whilst Ireland delivered double-digit growth.
Other International (7% of net fee income)
Other International comprises North America, Brazil, the Middle East and South Africa. Revenue was GBP11.0m (2016: GBP6.7m), net fee income was up 93% (67%*) to GBP10.9m (GBP9.4m*) (2016: GBP5.6m) producing an operating profit of GBP0.1m (GBP0.3m*) (2016: operating loss of GBP0.2m).
Market conditions across this diverse set of territories was mixed. In Brazil and South Africa where macro-economic conditions are arguably most challenging, we bucked the market trend delivering net fee income increases of 59% and 16% respectively. Across North America, activity levels in New York were impacted by the tightening of the financial services market, in San Francisco demand in the digital and technology space remained strong whilst our new office in Toronto has shown promising early signs.
Cash flow
The Group maintained a strong net cash position of GBP18.4m as at 30 June 2017 (31 December 2016: GBP22.5m). Working capital in the period has increased by GBP3.7m resulting in GBP17.5m cash generated from operating activities. Notable cash outflows included a dividend of GBP4.2m, GBP3.4m of tax payments and capital expenditure of GBP4.0m. During the period, 2.1m shares have been purchased and cancelled at an average price of GBP3.79 for GBP8.0m. A further 0.4m shares were purchased at an average price of GBP4.03 for GBP1.7m through the Group's Employee Benefit Trust.
Dividend
The interim dividend will be increased by 20% to 2.75p per share (2016: 2.30p) and will be paid on 13 October 2017 to those shareholders on the Company's register as at 1 September 2017.
Treasury management, currency risk and other principal risks and uncertainties affecting the business
The Group does not have material transactional exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations. Overseas currency balances that are surplus to local working capital requirements are converted on a regular basis to Pounds Sterling. The main functional currencies of the Group's operating divisions are Pounds Sterling, the Euro, the Australian Dollar and the Japanese Yen.
The other principal risks and uncertainties affecting the Group's business activities remain those detailed within the Principal Risks and Uncertainties section of the Annual Report and Accounts for the year ended 31 December 2016, namely the economic environment, business model, people management, brand and reputation, laws and regulation and technology. The Board does not foresee a material change in respect of these factors for the remainder of the year.
Outlook
With full-year profit forecasts having been upgraded only a few weeks ago in response to our second quarter trading update, current trading is in line with current market expectations.
We enter the second half of the year with confidence that the Group's platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise.
Leslie Van de Walle Robert Walters Chairman Chief Executive 25 July 2017
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED INCOME STATEMENT
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
----------------------------- ------ --------------------- ---------- --------------------------
Continuing operations
Revenue 4 562,704 451,420 998,535
Cost of sales (398,175) (323,323) (720,205)
----------------------------- ------ --------------------- ---------- --------------------------
Gross profit 4 164,529 128,097 278,330
Administrative expenses (148,283) (118,039) (252,088)
----------------------------- ------ --------------------- ---------- --------------------------
Operating profit 4 16,246 10,058 26,242
Finance income 163 81 460
Finance costs (395) (316) (895)
(Loss) gain on foreign
exchange (446) 1,368 2,334
----------------------------- ------ --------------------- ---------- --------------------------
Profit before taxation 4 15,568 11,191 28,141
Taxation 5 (4,437) (3,412) (8,244)
----------------------------- ------ --------------------- ---------- --------------------------
Profit for the period 11,131 7,779 19,897
----------------------------- ------ --------------------- ---------- --------------------------
Earnings per share (pence): 7
Basic 16.3 10.6 27.7
Diluted 14.7 9.7 25.4
----------------------------- ------ --------------------- ---------- --------------------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------- ---------- ---------- ------------
Profit for the period 11,131 7,779 19,897
Items that may be reclassified
subsequently to profit or
loss:
Exchange differences on
translation of overseas
operations 20 10,810 12,953
--------------------------------- ---------- ---------- ------------
Total comprehensive income
for the period 11,151 18,589 32,850
--------------------------------- ---------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED BALANCE SHEET
2017 2016 2016
30 June 30 June 31 December
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------------- ----- ------------------------ ------------------ -----------------------
Non-current assets
Intangible assets 11,809 11,508 11,402
Property, plant and
equipment 9,356 8,055 8,183
Deferred tax assets 9,127 9,443 8,253
----------------------------- ----- ------------------------ ------------------ -----------------------
30,292 29,006 27,838
----------------------------- ----- ------------------------ ------------------ -----------------------
Current assets
Trade and other receivables 251,589 226,265 236,507
Corporation tax receivables 836 561 1,531
Cash and cash equivalents 49,281 37,154 62,601
----------------------------- ----- ------------------------ ------------------ -----------------------
301,706 263,980 300,639
----------------------------- ----- ------------------------ ------------------ -----------------------
Total assets 331,998 292,986 328,477
----------------------------- ----- ------------------------ ------------------ -----------------------
Current liabilities
Trade and other payables (189,379) (163,612) (178,008)
Corporation tax liabilities (5,139) (4,708) (5,069)
Loans 9 (30,923) (26,947) (40,070)
Provisions (641) (587) (1,244)
----------------------------- ----- ------------------------ ------------------ -----------------------
(226,082) (195,854) (224,391)
----------------------------- ----- ------------------------ ------------------ -----------------------
Net current assets 75,624 68,126 76,248
----------------------------- ----- ------------------------ ------------------ -----------------------
Non-current liabilities
Deferred tax liabilities - (33) -
Provisions (2,692) (1,940) (2,143)
----------------------------- ----- ------------------------ ------------------ -----------------------
(2,692) (1,973) (2,143)
----------------------------- ----- ------------------------ ------------------ -----------------------
Total liabilities (228,774) (197,827) (226,534)
----------------------------- ----- ------------------------ ------------------ -----------------------
Net assets 103,224 95,159 101,943
----------------------------- ----- ------------------------ ------------------ -----------------------
Equity
Share capital 15,711 17,268 16,101
Share premium 21,935 21,848 21,854
Other reserves (71,818) (73,410) (72,241)
Own shares held (18,384) (16,684) (19,906)
Treasury shares held (9,095) (19,860) (9,095)
Foreign exchange reserves 14,058 11,895 14,038
Retained earnings 150,817 154,102 151,192
Total equity 103,224 95,159 101,943
----------------------------- ----- ------------------------ ------------------ -----------------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
--------------------------------- ----- ------------------- ---------- ------------
Cash generated from operating
activities 8 17,468 9,041 37,178
Income taxes paid (3,418) (2,012) (7,693)
--------------------------------- ----- ------------------- ---------- ------------
Net cash generated from
operating activities 14,050 7,029 29,485
--------------------------------- ----- ------------------- ---------- ------------
Investing activities
Interest received 163 81 460
Purchases of computer
software (1,069) (1,232) (2,172)
Purchases of property,
plant and equipment (2,968) (1,214) (2,841)
Net cash used in investing
activities (3,874) (2,365) (4,553)
--------------------------------- ----- ------------------- ---------- ------------
Financing activities
Equity dividends paid (4,195) (3,966) (5,410)
Proceeds from issue of
equity 114 31 39
Interest paid (395) (316) (895)
Proceeds from bank loans - 1,276 14,350
Repayment of bank loans (9,114) - -
Share buy-back and cancellation (8,033) - (3,446)
Purchase of own shares (1,746) (13,510) (19,168)
Proceeds from exercise
of share options 670 4 26
Net cash used in financing
activities (22,699) (16,481) (14,504)
--------------------------------- ----- ------------------- ---------- ------------
Net (decrease) increase
in cash and cash equivalents (12,523) (11,817) 10,428
--------------------------------- ----- ------------------- ---------- ------------
Cash and cash equivalents
at beginning of the period 62,601 43,378 43,378
Effect of foreign exchange
rate changes (797) 5,593 8,795
--------------------------------- ----- ------------------- ---------- ------------
Cash and cash equivalents
at end of the period 49,281 37,154 62,601
--------------------------------- ----- ------------------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Own Treasury Foreign
Share Share Other shares shares exchange Retained Total
capital premium reserves held held reserves earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Balance at 1
January
2016 17,249 21,836 (73,410) (7,136) (19,860) 1,085 151,893 91,657
Profit for the
period - - - - - - 7,779 7,779
Foreign
currency
translation
differences - - - - - 10,810 - 10,810
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Total
comprehensive
income and
expense
for the period - - - - - 10,810 7,779 18,589
Dividends paid - - - - - - (3,966) (3,966)
Credit to
equity
for
equity-settled
share-based
payments - - - - - - 2,354 2,354
Deferred tax on
share-based
payment
transactions - - - - - - - -
Transfer to own
shares
held on
exercise
of equity
incentives - - - 3,958 - - (3,958) -
New shares
issued
and own shares
purchased 19 12 - (13,506) - - - (13,475)
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Unaudited
balance
at 30 June
2016 17,268 21,848 (73,410) (16,684) (19,860) 11,895 154,102 95,159
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Profit for the
period - - - - - - 12,118 12,118
Adjustment(1) - - - - - - 1,254 1,254
Foreign
currency
translation
differences - - - - - 2,143 - 2,143
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Total
comprehensive
income and
expense
for the period - - - - - 2,143 13,372 15,515
Dividends paid - - - - - - (1,444) (1,444)
Shares
repurchased
for
cancellation (1,169) - 1,169 - 10,765 - (14,211) (3,446)
Credit to
equity
for
equity-settled
share-based
payments - - - - - - 2,236 2,236 Deferred tax on share-based payment transactions - - - - - - (449) (449) Transfer to own shares held on exercise of equity incentives - - - 2,414 - - (2,414) - New shares issued and own shares purchased 2 6 - (5,636) - - - (5,628) ---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Balance at 31 December 2016 16,101 21,854 (72,241) (19,906) (9,095) 14,038 151,192 101,943 ---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Profit for the period - - - - - - 11,131 11,131 Foreign currency translation differences - - - - - 20 - 20 ---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Total comprehensive income and expense for the period - - - - - 20 11,131 11,151 Dividends paid - - - - - - (4,195) (4,195) Shares repurchased for cancellation (423) - 423 - - - (8,033) (8,033) Credit to equity for equity-settled share-based payments - - - - - - 2,607 2,607 Deferred tax on share-based payment transactions - - - - - - 713 713 Transfer of own shares held on exercise of equity incentives - - - 2,598 - - (2,598) - New shares issued and own shares purchased 33 81 - (1,076) - - - (962) Unaudited balance at 30 June 2017 15,711 21,935 (71,818) (18,384) (9,095) 14,058 150,817 103,224 ---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
(1)An immaterial adjustment of GBP1.25 million has been made to increase brought forward retained earnings. GBP0.195 million of this adjustment is related to the income statement for the 2015 financial year. The adjustment was made in order to recognise two changes in the current year in the application of the revenue recognition policy in part of the business (the impact on the equivalent balance sheet and income statement captions is similarly immaterial).
The first change relates to permanent placements. These were previously recognised by this part of the business when a candidate started a position. However, given the maturity of the market for this part of the business, the Group considers that it is more appropriate to recognise this revenue when the candidate accepts a position and the start date is determined, in line with the rest of the Group, as this reflects the underlying agreements. Provision is made for candidates who fail to start employment after accepting the offer and is based on the historic rate of "back-outs". The adjustment has not been treated as a change in accounting policy, under IAS 8, as it is not material.
The second change relates to temporary placements. The adjustment made is to recognise the impact of timesheets received after the year end date, where work was completed during the 2016 financial year. The adjustment has also not been treated as a change in accounting policy, under IAS 8, as it is not material.
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
1. Statement of accounting policies
Basis of preparation
The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.
The accounting policies applied by the Group are as set out in detail in the Annual Report and Accounts for the year ended 31 December 2016.
The Group was profitable for the period and has considerable financial resources, including GBP18.4m of net cash at 30 June 2017, together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe the Group is well placed to manage its business risks successfully.
After making enquiries, the Directors have formed a judgement, at the time of approving the half-yearly financial results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of this report. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.
2. Financial information
The financial information on pages 5 to 13 was formally approved by the Board of Directors on 25 July 2017. The financial information set out in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts prepared under IFRSs for the year ended 31 December 2016 for Robert Walters plc have been delivered to the Registrar of Companies. The auditor's report on these accounts was not qualified, did not draw attention to any matters by way of emphasis and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The financial information in respect of the period ended 30 June 2017 is unaudited but has been reviewed by the Company's auditor. Their report is attached on page 14. The financial information in respect of the period ended 30 June 2016 is also unaudited.
3. Currency conversion
The presentational currency of the Group is Pounds Sterling and the condensed set of financial statements has been prepared on this basis. The main functional currencies of the Group's operating divisions are Pounds Sterling, the Euro, the Australian Dollar and the Japanese Yen.
The condensed consolidated income statement for the period ended 30 June 2017 has been prepared using, among other currencies, the average exchange rate of EUR1.1625 to the Pound (period ended 30 June 2016: EUR1.2841; year ended 31 December 2016: EUR1.2181); Yen141.3893 to the Pound (30 June 2016: Yen160.0445; 31 December 2016: Yen146.7317) and AU$1.6681 to the Pound (30 June 2016: AU$1.9547; 31 December 2016: AU$1.8144).
The condensed consolidated balance sheet as at 30 June 2017 has been prepared using the exchange rates on that day of EUR1.1381 to the Pound (30 June 2016: EUR1.2058; 31 December 2016: EUR1.1722); Yen145.7482 to the Pound (30 June 2016: Yen137.7140; 31 December 2016: Yen144.2890) and AU$1.6914 to the Pound (30 June 2016: AU$1.7991; 31 December 2016: AU$1.7118).
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
4. Segmental information
------------------------------------ ------------------ ---------- ------------
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------ ------------------ ---------- ------------
i) Revenue:
Asia Pacific 185,265 154,862 348,636
UK 278,117 220,621 480,587
Europe 88,368 69,286 146,985
Other International 10,954 6,651 22,327
------------------------------------------- ------------------ ---------- ------------
562,704 451,420 998,535
------------------------------------------- ------------------ ---------- ------------
ii) Gross profit:
Asia Pacific 67,384 54,025 117,591
UK 48,277 40,196 86,675
Europe 37,981 28,242 60,062
Other International 10,887 5,634 14,002
------------------------------------------- ------------------ ---------- ------------
164,529 128,097 278,330
------------------------------------------- ------------------ ---------- ------------
iii) Profit before taxation:
Asia Pacific 7,749 6,350 14,655
UK 4,010 1,846 6,396
Europe 4,397 2,108 4,243
Other International 90 (246) 948
------------------------------------------- ------------------ ---------- ------------
Operating profit 16,246 10,058 26,242
Net finance costs (678) 1,133 1,899
------------------------------------------- ------------------ ---------- ------------
Profit before taxation 15,568 11,191 28,141
------------------------------------------- ------------------ ---------- ------------
iv) Total assets:
Asia Pacific 60,524 63,841 63,621
UK 156,291 136,342 146,599
Europe 44,740 33,429 37,168
Other International 11,199 12,216 8,704
Unallocated corporate assets* 59,244 47,158 72,385
------------------------------------------- ------------------ ---------- ------------
331,998 292,986 328,477
------------------------------------------- ------------------ ---------- ------------
v) Total liabilities:
Asia Pacific (33,963) (28,627) (31,000)
UK (127,251) (105,245) (117,732)
Europe (25,076) (22,670) (27,576)
Other International (6,422) (9,597) (5,086)
Unallocated corporate liabilities* (36,062) (31,688) (45,140)
------------------------------------------- ------------------ ---------- ------------
(228,774) (197,827) (226,534)
------------------------------------------- ------------------ ---------- ------------
*For the purposes of segmental analysis, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
4. Segmental information (continued)
----------------------------------- ---------- ---------- ------------
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------- ---------- ---------- ------------
vi) Revenue by business grouping:
Robert Walters 318,954 276,123 599,356
Resource Solutions 243,750 175,297 399,179
----------------------------------------- ---------- ---------- ------------
562,704 451,420 998,535
----------------------------------------- ---------- ---------- ------------
5. Taxation
-------------------------- ---------------- ---------- ------------
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- ---------------- ---------- ------------
Current tax 4,623 3,411 7,931
Deferred tax (186) 1 313
------------------------------- ---------------- ---------- ------------
Total tax charge for the
period 4,437 3,412 8,244
------------------------------- ---------------- ---------- ------------
The tax charge is based on the expected annual tax rate of 28.5% (2016: 29.3%) on profit before taxation.
6. Dividends
------------------------------------- ---------- ---------- ------------
2017 2016 2016
6 mths 6 mths 12 mths
to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ---------- ---------- ------------
Amounts recognised as distributions
to equity holders in the
period:
Final dividend for 2016
of 6.2p (2015: 5.13p) 4,195 3,966 4,316
Interim dividend for 2016
of 2.3p (2015: 1.95p) - - 1,620
------------------------------------------ ---------- ---------- ------------
4,195 3,966 5,936
------------------------------------------ ---------- ---------- ------------
Proposed interim dividend
for 2017 of 2.75p (2016:
2.30p) 1,877 1,620 n/a
------------------------------------------ ---------- ---------- ------------
The proposed interim dividend was approved by the Board on 25 July 2017 and has not been included as a liability at 30 June 2017.
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
7. Earnings per share
-------------------------------------------------------------------------
The calculation of earnings per ordinary share
is based on the profit for the period attributable
to equity holders of the Parent and the weighted
average number of shares of the Company.
2017 2016 2016
6 mths 12 mths
6 mths to to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period
attributable to equity
holders of the Parent 11,131 7,779 19,897
Number of Number Number
shares of shares of shares
Weighted average number
of shares:
Shares in issue throughout
the period 80,507,284 86,175,371 86,251,859
Shares issued in the
period 92,076 95,145 74,666
Shares cancelled in the
period (1,668,798) - (1,652,089)
Treasury and own shares
held (10,822,054) (13,046,447) (12,799,910)
--------------------------------- ------------- ------------- -------------
For basic earnings per
share 68,108,508 73,224,069 71,874,526
Outstanding share options 7,821,209 6,766,373 6,470,656
--------------------------------- ------------- ------------- -------------
For diluted earnings
per share 75,929,717 79,990,442 78,345,182
--------------------------------- ------------- ------------- -------------
Notes to the cash flow
8. statement
----------------------------------- ---------- ---------- ------------
2017 2016 2016
12 mths
6 mths to 6 mths to to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------- ---------- ---------- ------------
Operating profit for
the period 16,246 10,058 26,242
Adjustments for:
Depreciation and amortisation
charges 2,238 2,037 4,179
Loss on disposal of property,
plant and equipment and
computer software 178 44 666
Charge in respect of
share-based payment transactions 2,607 2,354 4,590
---------------------------------------- ---------- ---------- ------------
Operating cash flows
before movements in working
capital 21,269 14,493 35,677
---------------------------------------- ---------- ---------- ------------
Increase in receivables (14,819) (22,946) (29,634) Increase in payables 11,018 17,494 31,135 ---------------------------------------- ---------- ---------- ------------ Cash generated from operating activities 17,468 9,041 37,178 ---------------------------------------- ---------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
9. Bank loans
In January 2017, the Group renewed and extended to four years its committed financing facility of GBP45.0m, which expires in December 2020. At 30 June 2017, GBP30.3m (2016: GBP25.2m) was drawn down under this facility.
The Group has a short-term facility of Renminbi 25m (GBP2.8m) of which Renminbi 5m (GBP0.6m) was drawn down as at 30 June 2017. The loan is secured against cash deposits in Hong Kong.
10. Related party transactions
During the first six months of the year, there were related party transactions totalling GBP77,000 (2016: GBP26,000) with Tay Associates Limited, a related party through a Director of Robert Walters plc.
There were no outstanding balances as at 30 June 2017.
All transactions were undertaken on an arms-length basis.
11. Registered office
The Company's registered office is located at 11 Slingsby Place, St Martin's Courtyard, London, WC2E 9AB.
RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge:
a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';
b) the Interim Management Report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
c) the Interim Management Report and note 10 includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
By order of the Board,
Alan Bannatyne
Chief Financial Officer
25 July 2017
ROBERT WALTERS PLC
Half-yearly Financial Results 2017
INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income and Expense, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement, the Condensed Consolidated Statement of Changes in Equity, and related notes 1 to 11. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an Independent Review Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this R0eport, or for the conclusions we have formed.
Directors' responsibilities
The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Statutory Auditor
London, United Kingdom
25 July 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSRDRIEFID
(END) Dow Jones Newswires
July 26, 2017 02:00 ET (06:00 GMT)
1 Year Robert Walters Chart |
1 Month Robert Walters Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
