Income falls at Robert Walters as challenging hiring market persists
The company said UK activity was particularly lacklustre as clients paused hiring to wait for more clarity from the autumn Budget.
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Recruitment firm Robert Walters has said a challenging hiring market continued to weigh on its income over the latest quarter.
The London-listed firm said UK activity was particularly lacklustre as clients paused hiring to wait for more clarity from the autumn Budget later in October.
Rival PageGroup said earlier this week that its profits were weaker in the face of the challenging global jobs market.
Robert Walters told shareholders on Tuesday that its net fee income dropped by 14% to £79.9 million for the three months to September 30.
As we approach the end of 2024, I am confident that we will close the year a stronger business than when we entered
It means that income is down 17% so far in 2024, as it has also been affected by currency headwinds.
In the latest quarter, UK trade was particularly weak, dropping by 19% to £12.5 million.
Regional activity was especially downbeat, seeing a 29% decline, with “clients generally pausing activity pending clarity on employment legislation and fiscal measures of the new UK government in the late October budget”, according to Robert Walters.
The company said it has yet to see “signs of material improvement” in client and candidate confidence in recent months.
Toby Fowlston, chief executive of the company, said: “Global hiring markets remained challenging during the third quarter, bringing the period of rebasing following the 2022 post-pandemic peak to around two years.
“As set out at our half-year results in August, our assumption continues to be that material improvement in client and candidate confidence levels will be gradual and not likely to commence until 2025.
“Though market conditions mean second half fee income is unlikely to exceed that seen during the first half, the programme of actions under way mean we continue to aim for a profitable full-year outcome.
“As we approach the end of 2024, I am confident that we will close the year a stronger business than when we entered.”
Shares in the company were 2.3% lower in early trading.