Having previously signalled worsening market conditions – notably in banking – last month (see Deteriorating market conditions hit Robert Walters), the eponymous CEO of UK-headquartered but Asia-Pacific-led recruitment firm, Robert Walters, described the performance of the UK business (now little over one quarter of gross profit) as ‘respectable’.
UK revenues in H1 (to 30th June) grew by 8% to £93.4m, but gross margins fell almost a point to 25.6%. Indeed group gross margins lost over 3 points, to 33.6%, some of which was recovered in ‘cost management’. Nonetheless, operating margins fell from 3.0% to 1.3%, and EPS worse than halved to 2.6p. Revenues at Resource Solutions, Robert Walters RPO business (recruitment process outsourcing), grew 29% to £46m, though this is likely to be low margin business.
Robert Walters continues to open offices in exotic high-growth locations, such as San Francisco, Rio de Janeiro and Milton Keynes.