Tuesday 9 July 2019 9:23 am

Recruiter Robert Walters boosts profit despite Brexit hit to UK hires

Listed recruiter Robert Walters has upped earnings in the second quarter of the year despite taking an eight per cent profit hit from its UK home market.

Read more: Robert Walters grows profit in robust first quarter

Robert Walters recorded a seven per cent rise in gross profit to £106.4m in the quarter to the end of June, it said today, but saw UK profit drop to £25.2m from £27.3m a year ago.

It blamed a lack of companies hiring new workers due to Brexit-related economic uncertainty.

That follows recruitment industry group REC’s report last week that the number of UK permanent job hires via recruitment agencies fell for a fourth month in a row in June.

KPMG, which produced the report with REC, cited “Brexit stagnation” as a reason for the slowdown.

Still, net fees or profits jumped 13 per cent to £27.7m in Europe, said Robert Walters, which recruits for finance, engineering, legal and marketing roles.

Chief executive Robert Walters hailed his firm’s “solid” performance.

“Our international businesses have continued to perform well and now represent 76 per cent of group net fee income,” he added.

“The UK has been impacted by Brexit-related uncertainty, however the group’s diverse geographic footprint and blend of revenue streams ensures we are well positioned for the future.”

The company derives 76 per cent of its profit from markets outside the UK. Asia Pacific profits rose nine per cent year on year to £44.2m while other international markets collectively soared 23 per cent to £9.2m.

Read more: Labour market confidence hit by Brexit gloom

Walters added that the business remains on track to hit full-year market expectations.

Main image credit: Getty

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