Share Name Share Symbol Market Type Share ISIN Share Description
Robert Walters 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
  +15.50p +2.94% 542.00p 535.00p 542.00p 542.00p 538.00p 539.50p 12,007 16:29:44
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 998.5 28.1 27.7 19.6 403.87

Robert Walters PLC Half-year Report

26/07/2017 7:00am

UK Regulatory (RNS & others)


Robert Walters (LSE:RWA)
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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

 
                                   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

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