Robert Walters Share Discussion Threads

[spot1034] 08/10/2020 07:39

Decent update this morning and reinstatement of interim dividend payable in November.

[imastu pidgitaswell] 08/4/2020 16:01

:-)

Went for other shares elsewhere, but should have just gone for this - available at 235-odd just a couple of weeks ago. Volumes tiny the last few days though. There are definitely things to buy out there, I just keep missing them...

[essentialinvestor] 03/4/2020 01:04

A near 50% bounce from the recent intra-day March low.

Not sure that will hold?. Let's see.

[masurenguy] 02/4/2020 07:03

COVID-19, DIVIDEND AND AGM UPDATE

Robert Walters, the leading international recruitment group, today issues an update in light of the evolving COVID-19 pandemic.

Balance sheet strength and mitigating actions

As at 29 February 2020, the Group had a net cash balance of £74m and the Board believes that the business is well placed to cope with future uncertainties . While the impact of COVID-19 continues to evolve, the Group has taken a number of pre-emptive actions to manage costs and help mitigate the financial challenges imposed by the virus. Since the escalation of the crisis in February, the Group has reduced its cost base by more than 15% and is also in the process of applying for a number of government subsidies around the globe.

The Board has also taken the decision to withdraw its intention to propose a final dividend for FY19. The Board believes this is a prudent move, given the current unprecedented period of global lockdown and uncertainty, which will serve to further strengthen the Group's balance sheet and improve liquidity. The Board will reassess the dividend once the economic impact of Covid-19 has become clearer.

[imastu pidgitaswell] 30/3/2020 12:12

Who knows?

The issues are clear, but quantification of amounts and timing are unknown and unknowable.

Probably the biggest factor in terms of influencing the share price is what major players do and want to do. By the time that is known, the price will have doubled (or halved).

Just one to make a decision on at some point. Not yet, for me.

[essentialinvestor] 29/3/2020 12:56

This is on my list for an eventful recovery play. Too early atm?.

We are only just entering this recession.

[imastu pidgitaswell] 25/3/2020 08:52

It won't hurt - but it (the scheme) is UK-only, and only cashflow timing, and they (RWA) have (had...) plenty of cash anyway.

More relevant (perhaps) is the update from Staffline Recruitment, who are in many sectors, although not finance and IT. Basically unless it's food-related temps, business is dead. RWA, operating globally, will be experiencing that, unfortunately. I imagine they will update when they are ready to do so.

[my retirement fund] 25/3/2020 08:41

*Emergency tax deferral and vat scheme

[my retirement fund] 25/3/2020 08:40

They will have a monumental amount of liquidity thanks to the emergence tax deferral. I wonder if that will help?

[imastu pidgitaswell] 23/3/2020 14:45

Down nearly two thirds in a month. Took a while to start falling as well - still 600-odd in late Feb, when CV19 well underway.

48p earnings, following 50p the year before - all for 220p or so. Until tomorrow or later today.

Obvious problem is that no-one is hiring anyone right now on a permanent basis, and the first cost saving will be any temporary staff. So earnings this year are most likely nil, with the an ongoing cost base of inactive recruitment consultants.

But this will be one of the first businesses to get going again, firstly with placing temp staff and later with permanent staff. No idea where the bottom is, so no rush, but the volume on the way down has not been much. Business has net cash (£88m - more than 50% of total market cap of only £164m, albeit it will be reducing as this continues), no debt and an experienced management who went through 2008-9 financial crisis.

One to keep an eye on.

[18bt] 03/3/2020 07:23

OK results - clearly going to be a COVID19 impact - the question is how quickly hiring recovers. Well protected by its cash balances. Tempted to buy any big dips from here especially if China virus containment proceeds as it seems to be.

[18bt] 21/12/2019 13:48

Not obviously any chunky trades going through, but not complaining

[masurenguy] 20/12/2019 18:46

This has now risen by 20% since the trading update just over 4 weeks ago ! :0)

[masurenguy] 17/12/2019 17:21

A 15% rise in the shareprice so far in December. Looking for a final dividend of 12p when the results are announced at the end of February based upon a 12.5% increase on the interim.

[descartes244238] 26/11/2019 15:59

Big jump today with no news I can find

[masurenguy] 19/11/2019 08:33

The shareprice remains subdued since the trading update despite the fact that they are forecasting parallel results with last year. The projected EPS is therefore 50p, which puts them on a PER of just 10 at today's price. After deducting net cash of circa £74m, the EV is only just around 8 ! Despite the uncertainties of Brexit, circa 75% of their revenue and income is from overseas with double digit fee income increases in Asia and continental Europe.

There have been two significant Sells since the trading update was issued on October 8 - a 477.5K Sell on October 15 @470p and a 193.7K Sell on November 1st @527p but other than that share trading volumes have been less than half of the 3 month daily average. Undervalued, and still 30% below the post trading update target price of 740p issued by Liberum last month.

[masurenguy] 14/10/2019 15:37

Nice bounce today on less than half of the average daily trading volume!

[masurenguy] 08/10/2019 12:01

Quite agree Hastings - the fall over the past 24 hours is due to market driven sentiment rather than company specific issues. Liberum issued a new Buy recommendation this morning with a target price of 740p, which represents upside potential of 60% against to today's midprice.

[hastings] 08/10/2019 06:20

Agreed Mas, but clearly the global issues and particularly Brexit are impacting many businesses now.I think RW is better placed than many and I like the strength of the balance sheet. I rather suspect that the recent increase in profit warnings from companies across the board are likely to accelerate in the coming months.

[masurenguy] 08/10/2019 06:08

Although there are references to some "headwinds" there are no nasties in the trading update and full year results are still expected to be in line with the prior year.

-- Group net fee income up 2% (4% actual) against significant political uncertainty in a number of the Group's markets, specifically including:

o Brexit;

o US-China trade tensions; and

o Hong Kong protests.

-- Full year profit before tax now expected to be in line with the prior year.

-- 76% (2018: 72%) of the Group's net fee income now derived from overseas businesses.

-- Asia Pacific net fee income up 3% (9% actual).

o In Asia Pacific, Japan, Malaysia, Vietnam and New Zealand delivered the strongest performances; all increasing net fee income in excess of 13%.

o Australia delivered 4% net fee income growth with activity levels highest in Sydney and Melbourne.

-- Europe net fee income up 9% (10% actual).

o Blend of permanent, contract and interim recruitment revenue streams continues to be a key strength.

o Good performance in France, the region's largest business, increasing net fee income in excess of 10%. The Netherlands, Spain and Switzerland all increased net fee income in excess of 15%.

-- UK net fee income down 11%.

o Client and candidate confidence continued to be generally weak in the UK across both the recruitment and recruitment outsourcing markets.

o Certain sectors have proved resilient, particularly across the IT market nationwide, whilst in the regions, Birmingham and Milton Keynes delivered solid growth.

-- Other International (the Americas, Middle East and South Africa) saw net fee income up 12% (18% actual) with San Francisco, Canada and the Middle East performing strongly. Our new businesses in Mexico and Chile have started well.

-- Selective headcount reduction in those markets most affected by uncertainty resulted in Group headcount decreasing by 2% to 4,258 (30 June 2019: 4,323).

-- Strong balance sheet with net cash of GBP81.6m as at 30 September 2019 (30 September 2018: GBP41.3m).

Robert Walters, Chief Executive, commented: "The Group delivered net fee income growth of 2% (4% actual) during the third quarter as trading conditions softened across a number of markets. The ongoing uncertainty surrounding Brexit, the US-China trade tariff standoff and Hong Kong protests, coupled with the significant impact of the gilets-jaunes protests experienced earlier this year have combined to create a unique set of cumulative headwinds. As a result of these macro uncertainties, the Group now anticipates delivering annual profits in line with the prior year. Whilst visibility is limited, the Group's international footprint and diverse blend of revenue streams covering permanent, contract, interim and recruitment process outsourcing ensures we are well positioned to respond to any market opportunities as and when they arise whilst also having the agility to closely manage our cost base."

[masurenguy] 07/10/2019 23:00

Very peculiar share trading performance today. In the last 20 minutes of the session there were suddenly 47 small trades - almost all Sells - which took the shareprice down by 5% to 484p. The overall trading volume for the day was only half the average trading volume over the past 3 months.

The Q3 trading update is due tomorrow so perhaps there was a leak of some bad news in the pipeline. At the interim's just over 10 weeks ago, the Chairman stated that "Trading remains in line with market expectations for the full year and the Group is well positioned to continue to maximise market opportunities as they arise" so clearly nothing particularly negative was anticipated at that time.