Robert Walters Share Discussion Threads

[hopesprings] 24/10/2024 18:27

Robert Walters, the £266 million recruiter, may fly under the radar of most investors given its relatively small size. But eagle-eyed income seekers may have spotted its 6 per cent dividend yield.
The company, which specialises in hiring for the legal, accountancy and technology sectors, has been struggling with a weak hiring market. Its most recent quarter was rough, with net fee income down 14 per cent year-on-year, and no signs of green shoots of a recovery. Within that, Asia Pacific was down 12 per cent at constant currency, Europe down 13 per cent and the UK — with uncertainty around employment legislation and fiscal changes ahead of the budget next week — performing the worst, down 19 per cent.
The recruiter has hinted it does not expect a revival in hiring until at least next year, mirroring recent comments by its London-listed rivals Hays and Page Group. As such the business has been slimming down, with headcount down to 3,466 from 4,200 a year ago.
For now the balance sheet looks strong enough to get the company through the remainder of the downturn, with £50 million of net cash excluding lease liabilities. Analysts at the broker Panmure Liberum expect it to end the year at around £60 million.
On average City analysts expect the dividend to land at 23.79p per share for the year, up only marginally from 23.5p last year, although investors looking for reliable long-term income should note that this payout is not covered by earnings of free cash flow.
The stock trades at an enterprise value to an expected cash profit ratio of 14.1, largely in line with Hays and Page Group, which trade at multiples of 13.7 and 15.3 respectively. It is certainly the most generous dividend payer, with a forecast yield of 6.7 per cent over the next 12 months, compared with the (still chunky) 4.8 per cent at Page Group and 3.8 per cent at Hays.
But given the high degree of uncertainty around the timing of a recovery in the hiring market, and the lack of earnings cover on cash payouts, the shares look fairly priced.
Advice Hold
Why Uncertainty in hiring market

[hopesprings] 24/10/2024 18:24

Rated a "Hold" in Tempus today.

[hastings] 23/10/2024 19:12

Always good to see a CFO share purchase and a decent commitment too.Happy to continue holding for the inevitable better times ahead and a nice yield along the way.

[gswredland] 23/10/2024 19:04

Thank you guys

[essentialinvestor] 23/10/2024 17:43

It's the first notable recent sector buy.

[gswredland] 23/10/2024 13:16

Sp rising sharply, Anyone any thoughts?

[hastings] 18/10/2024 09:52

Uk accounts for a relatively small proportion of business for RW. Circa 85% of NFI is derived overseas, with the Asia Pacific being easily the biggest contributor followed by Europe. I guess that NI increases for employers or employment rights changes here could possibly impact, but negligible imo and already factored in. The sector is struggling globally at present, but no doubt the tide will turn as will the share price Near term, the US election will more likely impact business hiring.

[grabster] 16/10/2024 11:56

UK Budget is a fortnight away. From the hints being picked up so far, what impact might be expected on RWA/HAS/PAGE? And is any one of them likely to respond any differently from the other two?

[martinmc123] 15/10/2024 10:24

Much in line with the other 2 major UK recruitment firms, Q3 performance was soft as market conditions remain unfavourable with no imminent change in fortunes or turn for the better expected in the remainder of 2024 either. Q3 Group net fee income was down 12%. Headcount was down 4% quarter-on-quarter and down 17% year-on-year to 3,466. Management’s “assumption continues to be that material improvement in client and candidate confidence levels will be gradual and not likely to commence until 2025.” Share price is down today and approaching 3 year lows. The sector as a whole is still under pressure and is more likely to see new lows in the next couple of quarters rather than start turning higher. Still potential for the shorts here until the jobs market turns for the better...

...from WealthOracle

wealthoracle.co.uk/detailed-result-full/RWA/874

[hopesprings] 10/10/2024 11:43

Well, at long last a bit of volume. Looks institutonal which is encouraging.

[pandaball] 27/9/2024 15:01

Amen, brother.
I’ve got my ticket and on the bus, just waiting for engine to get going…

[thaiger] 26/9/2024 16:31

Why no post for several months?This must be good price to buy?!?

[pandaball] 21/5/2024 11:31

I agree! I’ve said this before but it ticks all the boxes for me and I’ve happily taken the opportunities to build an overweight position (2nd largest single stock I own). I think it is just a matter of wider macro timing to help bring back their activity levels. They have the resources to ride it out, and I will too.

[hastings] 21/5/2024 10:26

Hopefully the tide ready to turn here. No doubt difficult conditions prevail, but should see improving conditions moving forward and a handy yield to be going on with.

[disc0dave46] 21/3/2024 10:48

Hi EIHope all is well.Just your view on BRBY, sorry all for off topic.Could be a decent recovery but the debt now is putting me off, thoughts.PS still holding Page, like RWA but don't hold.

[pandaball] 21/3/2024 07:13

Yes, very fair, and I won’t deny I’m excited about this one. It has pulled off such swings during prior rate cut cycles (of course with their own circumstances - history no indicator of future, etc) and, to summarise very generally and from a global perspective as RWA is operating, the rate cut cycle is largely inflation driven while growth and employment continue to have traction (recession avoided). I think they can spring back quicker than analysts are estimating.

[essentialinvestor] 21/3/2024 00:00

£7,00 within 18 months seems a tad optimistic, but never say never, etc

[pandaball] 20/3/2024 22:47

Happily building a holding in this. Great balance sheet, lovely diversified position in recruitment globally, and a cyclical stock that is leading on macro recovery. As they said in their latest results, when companies see improvement ahead and seek to capitalise on it with headcount, they move quickly. And a o too will their results. I think this recovery will come soon, while the central banks are cutting rather than after. Hence I’m happy to build and hold now as it dips below 400. Targeting back above 700 within an 18 month horizon.

[triktrak] 12/1/2024 07:53

Robert Walters shares are cheap, says Liberum

hxxps://citywire.com/investment-trust-insider/news/expert-view-jet2-trustpilot-whitbread-hilton-food-robert-walters/a2433845

[hastings] 11/1/2024 08:31

Better update than I expected after Hays warning. Not really comparable though and with signs of recovery in Asia and Europe RW is very well placed. Net cash remains very strong and the 5% yield is handy too.

[deadly] 22/11/2023 16:30

10% rise towards the close: any news?

[essentialinvestor] 14/6/2023 13:15

Robert Walters was one of the very early employees of Page. From memory he eventually ran their US division.

[essentialinvestor] 14/6/2023 13:08

One of my first jobs was at Yellow Pages, Surbiton in the early 90's and my area manager at the time was the wife of a main Michael Pag (Page Group) main board director. We got on very well even though I worked in a much more junior role and over lunch one day (circa 1992) she mentioned Michael Page at 76 pence, saying..you can put your house on this, the cycle is starting to turn. Within 3-4 years it was Up around 300%.

Recruitment was often an early warning read on wider marco, whether it now works as efficiently..