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| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 4.00 | 1.03% | 394.00 | 389.00 | 398.00 | 400.00 | 393.00 | 393.00 | 24,473 | 16:29:59 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Employment Agencies | 1.06B | 13.4M | 0.1831 | 21.52 | 288.31M |
From Apr 2019 to Apr 2024
TIDMRWA
RNS Number : 7980V
Robert Walters PLC
26 July 2018
26 July 2018
ROBERT WALTERS PLC
(the "Company", or the "Group")
Half-yearly financial results for the six months ended 30 June 2018
RECORD PROFITS, DIVID UP 45%
Robert Walters plc (LSE: RWA), the leading international recruitment group, today announces its half-yearly financial results for the six months ended 30 June 2018.
Financial and Operational Highlights
Hot Features
Premium
H1 2018 H1 2017 % change % change (constant currency*)
Revenue GBP625.9m GBP562.7m 11% 13%
---------- --------- --------- -----------------------------
Gross profit (net fee income) GBP188.6m GBP164.5m 15% 17%
---------- --------- --------- -----------------------------
Operating profit GBP20.7m GBP16.2m 28% 30%
---------- --------- --------- -----------------------------
Profit before taxation GBP20.6m GBP15.6m 32% 35%
---------- --------- --------- -----------------------------
Basic earnings per share 21.2p 16.3p 30% n/a
---------- --------- --------- -----------------------------
Interim dividend per share 4.0p 2.75p 45% 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 28% (30%*) to GBP20.7m (2017: GBP16.2m) and profit before tax increasing by 32% (35%*) to GBP20.6m (2017: GBP15.6m).
-- 72% of the Group's net fee income derived from our international businesses (2017: 71%).
-- All regions delivered increases in both net fee income and operating profit.
-- Strong activity levels across permanent, contract, interim and recruitment process outsourcing.
-- Asia Pacific net fee income up 8% (15%*) to GBP73.1m (GBP77.3m*) (2017: GBP67.4m) and operating profit up 19% (28%*) to GBP9.2m (GBP9.9m*) (2017: GBP7.7m).
-- Strong performance across both emerging and well-established markets.
-- Japan, the Group's largest business in the region grew operating profit in excess of 25%*, whilst Indonesia and Vietnam more than doubled profits.
-- Good first half in Australia with Victoria, Queensland and South Australia delivering the highest rates of growth.
-- Resource Solutions continued to grow its client portfolio across the region.
-- UK net fee income up 9% to GBP52.6m (2017: GBP48.3m) producing an uplift in operating profit to GBP4.2m (2017: GBP4.0m).
-- Good growth across several locations and disciplines.
-- Activity levels were strongest across the technology, legal and commerce finance disciplines. Financial Services more subdued against tough year-on-year comparatives.
-- New office opened in Leeds to further grow regional UK footprint.
-- Resource Solutions continued to grow net fee income and successfully expanded its service offering across a number of key client accounts.
-- Europe net fee income up 29% (26%*) to GBP48.9m (GBP48.0m*) (2017: GBP38.0m) and operating profit up 62% (57%*) to GBP7.1m (GBP6.9m*) (2017: GBP4.4m).
-- Excellent first half performance across the whole region and permanent, contract and interim recruitment.
-- Record results delivered by seven out of eight of the region's markets with France, Germany, Spain and Switzerland producing the highest rates of growth.
-- New office opened in Hamburg, our third in Germany, to further capitalise on opportunities for growth in this high potential market.
-- Other International (North America, Brazil, the Middle East and South Africa) net fee income up 29% (40%*) to GBP14.0m (GBP15.3m*) (2017: GBP10.9m) producing an operating profit of GBP0.2m (GBP0.1m*) (2017: GBP0.1m).
-- Strong first half performance particularly across North America and the Middle East.
-- Group headcount increased by 14% to 3,996 (30 June 2017: 3,495).
-- Strong balance sheet with net cash of GBP24.8m as at 30 June 2018 (30 June 2017: GBP18.4m).
Robert Walters, Chief Executive, said:
"The Group delivered record first half profits, in line with recently increased market expectations, growing profit before tax by 32% (35%*) year-on-year. Growth was strong and broad-based across all regions and our permanent, contract, interim and recruitment process outsourcing revenue streams.
"We enter the second half of 2018 with confidence and we have increased the interim dividend by 45%. The Group's platform for growth continues to be strong, across both emerging and well-established markets and disciplines, and 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 2018 on 9 October 2018.
Further information
Robert Walters plc
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial
Officer +44 (0) 20 7379 3333
Newgate Communications
Emma Kane
Charlotte Coulson +44 (0) 20 7680 6550
About Robert Walters
Robert Walters is a market-leading international specialist professional recruitment group with over 3,900 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 2018
Half-yearly Management Report
The Group delivered a record first half performance increasing profit before taxation by 32% (35%*) to GBP20.6m. All of the Group's regions delivered increases in both net fee income and operating profit with fifteen countries producing record results. The second quarter was also the Group's first ever GBP100m net fee income quarter.
The Group continued to benefit from the diversity of both our international footprint which includes some of the world's fastest developing and growing recruitment markets and the breadth and depth of recruitment solutions we provide to clients, from permanent, contract and interim recruitment through to recruitment process outsourcing. Our dedicated Innovation team also continues to assess and deploy, where relevant, new tools, processes and technology to maximise consultant efficiency and ensure a focus on building high quality personal relationships with our clients and candidates.
Revenue was up 11% (13%*) to GBP625.9m (GBP637.4m*) (2017: GBP562.7m) and gross profit (net fee income) increased by 15% (17%*) to GBP188.6m (GBP193.2m*) (2017: GBP164.5m). Operating profit increased 28% (30%*) to GBP20.7m (GBP21.1m*) (2017: GBP16.2m). The Group has maintained a strong balance sheet with net cash of GBP24.8m as at 30 June 2018 (30 June 2017: GBP18.4m).
Permanent recruitment currently represents 69% (2017: 69%) of the Group's recruitment net fee income. Group headcount now stands at 3,996 (30 June 2017: 3,495) a 14% increase year-on-year with growth highest in those regions and disciplines showing the strongest potential for long-term growth.
Asia Pacific (39% of net fee income)
Revenue was GBP189.7m (2017: GBP185.3m) and net fee income increased by 8% (15%*) to GBP73.1m (GBP77.3m*) (2017: GBP67.4m) delivering a 19% (28%*) increase in operating profit to GBP9.2m (GBP9.9m*) (2017: GBP7.7m).
In Asia, where the Group has an unrivalled geographic footprint, performance was strong across both emerging and established recruitment markets. In Japan, the Group's most profitable market, we delivered a record performance with operating profit increasing by over 25%* fuelled by continued strong demand for bilingual professionals. Taiwan also grew profits in excess of 25%* whilst Indonesia and Vietnam more than doubled operating profit further highlighting the growth potential of these fast-evolving recruitment markets where professionals are in short supply and we have first mover advantage. Hong Kong delivered record results, Singapore had a more positive first half despite challenging market conditions and Resource Solutions continued to grow its client portfolio across the region.
Both Australia and New Zealand produced strong first half results delivering operating profit growth of more than 35%*. In Australia, growth was strongest across Victoria, Queensland and South Australia whilst our blend of both private and public sector revenue streams continues to provide a strong platform for growth in Auckland and Wellington.
United Kingdom (28% of net fee income)
Revenue in the UK was GBP306.7m (2017: GBP278.1m) and net fee income increased by 9% to GBP52.6m (2017: GBP48.3m) delivering a 5% increase in operating profit to GBP4.2m (2017: GBP4.0m).
In the UK, we have delivered good growth across several different disciplines and locations. We continue to see good activity levels across the UK regions particularly in technology, where we have over the last few years developed a very strong offering, and commerce finance. During the period, we invested in a new office in Leeds to further expand our regional office footprint and grew headcount across the regional business. In London, performance was strongest across legal, commerce finance and technology, however after a strong 2017, the financial services market has been relatively subdued. Resource Solutions continued to grow net fee income and successfully expanded its service offering across a number of key client accounts.
Europe (26% of net fee income)
Revenue was GBP114.1m (2017: GBP88.4m) and net fee income increased by 29% (26%*) to GBP48.9m (GBP48.0m*) (2017: GBP38.0m) delivering a 62% (57%*) increase in operating profit to GBP7.1m (GBP6.9m*) (2017: GBP4.4m).
Our business across Europe continues to go from strength to strength underpinned by the breadth of our service offering across permanent, contract and interim recruitment.
Seven of the region's eight markets delivered record performances with France, the region's largest business, Germany, Spain and Switzerland all delivering operating profit uplifts in excess of 40%*.
During the period, we opened a new office in Hamburg, our third in Germany, to further capitalise on opportunities for growth in this high potential market.
Other International (7% of net fee income)
Other International comprises North America, Brazil, the Middle East and South Africa. Revenue was GBP15.4m (2017: GBP11.0m), net fee income was up 29% (40%*) to GBP14.0m (GBP15.3m*) (2017: GBP10.9m) producing an operating profit of GBP0.2m (GBP0.1m*) (2017: GBP0.1m).
In North America, our businesses in New York and Toronto, in particular, delivered standout first half results and we continue to invest in additional headcount to support growth opportunities. The Middle East and Brazil also delivered good performances increasing net fee income by 31%* and 47%* respectively whilst our business in South Africa was flat year-on-year.
Cash flow
The Group maintained a strong net cash position of GBP24.8m as at 30 June 2018 (30 June 2017: GBP18.4m). Working capital in the period has increased by GBP17.8m, primarily due to an 11% increase in the number of temporary workers, resulting in GBP8.3m cash generated from operating activities. Notable cash outflows included a dividend of GBP6.6m, GBP4.6m of tax payments and capital expenditure of GBP2.8m.
Dividend
The interim dividend will be increased by 45% to 4.0p per share (2017: 2.75p) and will be paid on 19 October 2018 to those shareholders on the Company's register as at 7 September 2018.
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 2017, 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
We enter the second half of the year with confidence that the Group's platform for growth continues to be strong, across both emerging and well-established markets and disciplines, and that we are well positioned to further capitalise on market opportunities as they arise.
Carol Hui Robert Walters Chairman Chief Executive 25 July 2018
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
CONDENSED CONSOLIDATED INCOME STATEMENT
2018 2017 2017
6 mths 6 mths
to to 12 mths to
30 June 30 June 31 December
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
--------------------------------- ------ ---------- ---------- ------------
Continuing operations
Revenue 4 625,866 562,704 1,165,776
Cost of sales (437,307) (398,175) (820,528)
--------------------------------- ------ ---------- ---------- ------------
Gross profit 4 188,559 164,529 345,248
Administrative expenses (167,845) (148,283) (303,350)
--------------------------------- ------ ---------- ---------- ------------
Operating profit 4 20,714 16,246 41,898
Finance income 150 163 531
Finance costs (319) (395) (981)
Gain (loss) on foreign exchange 16 (446) (874)
--------------------------------- ------ ---------- ---------- ------------
Profit before taxation 4 20,561 15,568 40,574
Taxation 5 (5,510) (4,437) (11,239)
--------------------------------- ------ ---------- ---------- ------------
Profit for the period 15,051 11,131 29,335
--------------------------------- ------ ---------- ---------- ------------
Earnings per share (pence): 7
Basic 21.2 16.3 42.9
Diluted 19.2 14.7 38.9
--------------------------------- ------ ---------- ---------- ------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE
2018 2017 2017
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 15,051 11,131 29,335
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
of overseas operations (248) 20 (1,686)
---------------------------------------------- ---------- ---------- ------------
Total comprehensive income for the
period 14,803 11,151 27,649
---------------------------------------------- ---------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
CONDENSED CONSOLIDATED BALANCE SHEET
2018 2017 2017
30 June 30 June 31 December
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ------------------ ------------------ --- ------------
Non-current assets
Intangible assets 11,433 11,809 11,909
Property, plant and equipment 9,636 9,356 9,135
Deferred tax assets 10,247 9,127 10,163
------------------------------- ----- ------------------ ------------------ ----------------
31,316 30,292 31,207
------------------------------- ----- ------------------ ------------------ ----------------
Current assets
Trade and other receivables 250,604 251,589 227,585
Corporation tax receivables 1,556 836 3,016
Cash and cash equivalents 51,344 49,281 61,872
------------------------------- ----- ------------------ ------------------ ----------------
303,504 301,706 292,473
------------------------------- ----- ------------------ ------------------ ----------------
Total assets 334,820 331,998 323,680
------------------------------- ----- ------------------ ------------------ ----------------
Current liabilities
Trade and other payables (166,261) (189,379) (161,270)
Corporation tax liabilities (5,963) (5,139) (6,986)
Bank overdrafts and loans 9 (26,513) (30,923) (30,784)
Provisions (994) (641) (1,198)
------------------------------- ----- ------------------ ------------------ ----------------
(199,731) (226,082) (200,238)
------------------------------- ----- ------------------ ------------------ ----------------
Net current assets 103,773 75,624 92,235
------------------------------- ----- ------------------ ------------------ ----------------
Non-current liabilities
Provisions (1,906) (2,692) (1,634)
------------------------------- ----- ------------------ ------------------ ----------------
(1,906) (2,692) (1,634)
------------------------------- ----- ------------------ ------------------ ----------------
Total liabilities (201,637) (228,774) (201,872)
------------------------------- ----- ------------------ ------------------ ----------------
Net assets 133,183 103,224 121,808
------------------------------- ----- ------------------ ------------------ ----------------
Equity
Share capital 15,923 15,711 15,875
Share premium 21,948 21,935 21,936
Other reserves (71,818) (71,818) (71,818)
Own shares held (13,171) (18,384) (18,193)
Treasury shares held (9,095) (9,095) (9,095)
Foreign exchange reserves 12,104 14,058 12,352
Retained earnings 177,292 150,817 170,751
Total equity 133,183 103,224 121,808
------------------------------- ----- ------------------ ------------------ --- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
2018 2017 2017
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 8,289 17,468 43,025
Income taxes paid (4,578) (3,418) (11,032)
--------------------------------------- ----- ---------- ---------- ------------
Net cash generated from operating
activities 3,711 14,050 31,993
--------------------------------------- ----- ---------- ---------- ------------
Investing activities
Interest received 150 163 531
Purchases of computer software (585) (1,069) (1,912)
Purchases of property, plant
and equipment (2,192) (2,968) (5,079)
Net cash used in investing activities (2,627) (3,874) (6,460)
--------------------------------------- ----- ---------- ---------- ------------
Financing activities
Equity dividends paid (6,607) (4,195) (6,074)
Proceeds from issue of equity 60 114 279
Interest paid (319) (395) (981)
Proceeds from bank loans 572 - -
Repayment of bank loans (4,845) (9,114) (9,188)
Share buy-back and cancellation - (8,033) (8,033)
Purchase of own shares - (1,746) (1,784)
Proceeds from exercise of share
options 13 670 846
Net cash used in financing activities (11,126) (22,699) (24,935)
--------------------------------------- ----- ---------- ---------- ------------
Net (decrease) increase in cash
and cash equivalents (10,042) (12,523) 598
--------------------------------------- ----- ---------- ---------- ------------
Cash and cash equivalents at
beginning of the period 61,872 62,601 62,601
Effect of foreign exchange rate
changes (486) (797) (1,327)
--------------------------------------- ----- ---------- ---------- ------------
Cash and cash equivalents at
end of the period 51,344 49,281 61,872
--------------------------------------- ----- ---------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
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 2017 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 to 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
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Profit for the
period - - - - - - 18,204 18,204
Foreign
currency
translation
differences - - - - - (1,706) - (1,706)
---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
Total
comprehensive
income
and expense
for the period - - - - - (1,706) 18,204 16,498
Dividends paid - - - - - - (1,879) (1,879)
Credit to
equity for
equity-settled
share-based
payments - - - - - - 2,717 2,717
Deferred tax on
share-based
payment
transactions - - - - - - 946 946
Transfer to own
shares held
on exercise of
equity
incentives - - - 54 - - (54) -
New shares
issued and own
shares
purchased 164 1 - 137 - - - 302
---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Balance at 31 December 2017 15,875 21,936 (71,818) (18,193) (9,095) 12,352 170,751 121,808 ---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Profit for the period - - - - - - 15,051 15,051 Foreign currency translation differences - - - - - (248) - (248) ---------------- -------- -------- --------- --------- --------- --------- --------- --------------------------- Total comprehensive income and expense for the period - - - - - (248) 15,051 14,803 Dividends paid - - - - - - (6,607) (6,607) Credit to equity for equity-settled share-based payments - - - - - - 2,842 2,842 Deferred tax on share-based payment transactions - - - - - - 264 264 Transfer of own shares held on exercise of equity incentives - - - 5,009 - - (5,009) - New shares issued and own shares purchased 48 12 - 13 - - - 73 Unaudited balance at 30 June 2018 15,923 21,948 (71,818) (13,171) (9,095) 12,104 177,292 133,183 ---------------- -------- -------- --------- --------- --------- --------- --------- ---------------------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
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 2017.
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were adopted from 1 January 2018. As stated in the Annual Report and Accounts for the year ended 31 December 2017 these have not had a material impact on the financial statements.
The Group was profitable for the period and has considerable financial resources, including GBP24.8m of net cash at 30 June 2018, 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 2018. 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 2017 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 2018 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 2018 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 Condensed Consolidated Income Statement for the period ended 30 June 2018 has been prepared using, among other currencies, the average exchange rate of EUR1.1363 to the Pound (period ended 30 June 2017: EUR1.1625; year ended 31 December 2017: EUR1.1414); Yen149.5392 to the Pound (30 June 2017: Yen141.3893; 31 December 2017: Yen144.4563) and AU$1.7836 to the Pound (30 June 2017: AU$1.6681; 31 December 2017: AU$1.6801).
The Condensed Consolidated Balance Sheet as at 30 June 2018 has been prepared using the exchange rates on that day of EUR1.1298 to the Pound (30 June 2017: EUR1.1381; 31 December 2017: EUR1.1262); Yen146.1260 to the Pound (30 June 2017: Yen145.7482; 31 December 2017: Yen151.9886) and AU$1.7815 to the Pound (30 June 2017: AU$1.6914; 31 December 2017: AU$1.7281).
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
4. Segmental information
------------------------------------ ---------- ---------- ------------
2018 2017 2017
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 189,659 185,265 370,248
UK 306,723 278,117 569,610
Europe 114,105 88,368 189,056
Other International 15,379 10,954 36,862
------------------------------------------- ---------- ---------- ------------
625,866 562,704 1,165,776
------------------------------------------- ---------- ---------- ------------
ii) Gross profit:
Asia Pacific 73,067 67,384 136,641
UK 52,602 48,277 100,881
Europe 48,891 37,981 80,649
Other International 13,999 10,887 27,077
------------------------------------------- ---------- ---------- ------------
188,559 164,529 345,248
------------------------------------------- ---------- ---------- ------------
iii) Profit before taxation:
Asia Pacific 9,205 7,749 17,719
UK 4,193 4,010 11,802
Europe 7,139 4,397 11,279
Other International 177 90 1,098
------------------------------------------- ---------- ---------- ------------
Operating profit 20,714 16,246 41,898
Net finance costs (153) (678) (1,324)
------------------------------------------- ---------- ---------- ------------
Profit before taxation 20,561 15,568 40,574
------------------------------------------- ---------- ---------- ------------
iv) Total assets:
Asia Pacific 66,138 60,524 62,312
UK 141,530 156,291 125,923
Europe 53,394 44,740 49,677
Other International 10,613 11,199 10,717
Unallocated corporate assets* 63,145 59,244 75,051
------------------------------------------- ---------- ---------- ------------
334,820 331,998 323,680
------------------------------------------- ---------- ---------- ------------
v) Total liabilities:
Asia Pacific (36,672) (33,963) (34,407)
UK (98,380) (127,251) (91,996)
Europe (29,063) (25,076) (31,676)
Other International (5,047) (6,422) (6,024)
Unallocated corporate liabilities* (32,475) (36,062) (37,769)
------------------------------------------- ---------- ---------- ------------
(201,637) (228,774) (201,872)
------------------------------------------- ---------- ---------- ------------
*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 2018
4. Segmental information (continued)
----------------------------------- ---------- ---------- ------------
2018 2017 2017
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 338,556 318,954 643,626
Resource Solutions 287,310 243,750 522,150
----------------------------------------- ---------- ---------- ------------
625,866 562,704 1,165,776
----------------------------------------- ---------- ---------- ------------
5. Taxation
--------------------------------- ---------- ---------------- ------------
2018 2017 2017
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 5,271 4,623 11,685
Deferred tax 239 (186) (446)
-------------------------------------- ---------- ---------------- ------------
Total tax charge for the period 5,510 4,437 11,239
-------------------------------------- ---------- ---------------- ------------
The tax charge is based on the expected annual effective tax rate of 26.8% (2017: 28.5%) on profit before taxation. The effective tax rate is higher than the standard UK rate of 19%, primarily as a result of overseas taxation in Japan, Australia and France and the impact of adjustments to accounting profit in the tax calculation and disallowable costs.
6. Dividends
------------------------------------- ---------- ---------- ------------
2018 2017 2017
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 2017 of 9.3p
(2016: 6.2p) 6,607 4,195 6,429
Interim dividend for 2016 of 2.75p
(2016: 2.3p) - - 1,877
------------------------------------------ ---------- ---------- ------------
6,607 4,195 8,306
------------------------------------------ ---------- ---------- ------------
Proposed interim dividend for
2018 of 4.0p (2017: 2.75p) 2,843 1,877 n/a
------------------------------------------ ---------- ---------- ------------
The proposed interim dividend was approved by the Board on 25 July 2018 and has not been included as a liability at 30 June 2018.
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
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.
2018 2017 2017
6 mths
6 mths to to 12 mths 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 15,051 11,131 29,335
Number of Number Number of
shares of shares shares
Weighted average number of shares:
Shares in issue throughout the
period 79,374,520 80,507,284 80,507,284
Shares issued in the period 125,389 92,076 317,504
Shares cancelled in the period - (1,668,798) (1,893,733)
Treasury and own shares held (8,543,036) (10,822,054) (10,558,159)
----------------------------------------- ------------ ------------- -------------
For basic earnings per share 70,956,873 68,108,508 68,372,896
Outstanding share options 7,370,243 7,821,209 7,086,415
----------------------------------------- ------------ ------------- -------------
For diluted earnings per share 78,327,116 75,929,717 75,459,311
----------------------------------------- ------------ ------------- -------------
8. Notes to the cash flow statement
--------------------------------------- ---------- ---------- ------------
2018 2017 2017
6 mths to 6 mths to 12 mths to
30 June 30 June 31 December
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- ------------
Operating profit for the period 20,714 16,246 41,898
Adjustments for:
Depreciation and amortisation
charges 2,480 2,238 4,738
Loss on disposal of property,
plant and equipment and computer
software 85 178 681
Charge in respect of share-based
payment transactions 2,842 2,607 5,324
-------------------------------------------- ---------- ---------- ------------
Operating cash flows before movements
in working capital 26,121 21,269 52,641
-------------------------------------------- ---------- ---------- ------------
(Increase) decrease in receivables (23,021) (14,819) 7,733
Increase (decrease) in payables 5,189 11,018 (17,349)
-------------------------------------------- ---------- ---------- ------------
Cash generated from operating
activities 8,289 17,468 43,025
-------------------------------------------- ---------- ---------- ------------
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
9. Bank loans
The Group has a committed financing facility of GBP45.0m, which expires in December 2020.
At 30 June 2018, GBP25.4m (2017: GBP30.3m) was drawn down under this facility.
The Group also has a non-recourse sales invoice facility of GBP15.0m.
The Group has a short-term facility of Renminbi 25m (GBP2.9m) of which Renminbi 10m (GBP1.1m) was drawn down as at 30 June 2018. 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 GBP45,000 (2017: GBP77,000) with Tay Associates Limited, a related party through a Director of Robert Walters plc.
There were no outstanding balances as at 30 June 2018.
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 2018
ROBERT WALTERS PLC
Half-yearly Financial Results 2018
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 2018 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 Financial Reporting Council. 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 report, 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 Financial Reporting Council 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 2018 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 2018
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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