Half-year Report

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, DIVIDEND 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

	H1 2018	H1 2017	% change	% change (constant currency*)
Revenue	£625.9m	£562.7m	11%	13%
Gross profit (net fee income)	£188.6m	£164.5m	15%	17%
Operating profit	£20.7m	£16.2m	28%	30%
Profit before taxation	£20.6m	£15.6m	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 £20.7m (2017: £16.2m) and profit before tax increasing by 32% (35%*) to £20.6m (2017: £15.6m).

§ 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 £73.1m (£77.3m*) (2017: £67.4m) and operating profit up 19% (28%*) to £9.2m (£9.9m*) (2017: £7.7m).

§ 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 £52.6m (2017: £48.3m) producing an uplift in operating profit to £4.2m (2017: £4.0m).

§ 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 £48.9m (£48.0m*) (2017: £38.0m) and operating profit up 62% (57%*) to £7.1m (£6.9m*) (2017: £4.4m).

§ 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 £14.0m (£15.3m*) (2017: £10.9m) producing an operating profit of £0.2m (£0.1m*) (2017: £0.1m).

§ 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 £24.8m as at 30 June 2018 (30 June 2017: £18.4m).

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	[phone]
Newgate Communications Emma Kane Charlotte Coulson	[phone]

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 £20.6m.  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 £100m 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 £625.9m (£637.4m*) (2017: £562.7m) and gross profit (net fee income) increased by 15% (17%*) to £188.6m (£193.2m*) (2017: £164.5m). Operating profit increased 28% (30%*) to £20.7m (£21.1m*) (2017: £16.2m). The Group has maintained a strong balance sheet with net cash of £24.8m as at 30 June 2018 (30 June 2017: £18.4m).

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 £189.7m (2017: £185.3m) and net fee income increased by 8% (15%*) to £73.1m (£77.3m*) (2017: £67.4m) delivering a 19% (28%*) increase in operating profit to £9.2m (£9.9m*) (2017: £7.7m).

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 £306.7m (2017: £278.1m) and net fee income increased by 9% to £52.6m (2017: £48.3m) delivering a 5% increase in operating profit to £4.2m (2017: £4.0m).

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 £114.1m (2017: £88.4m) and net fee income increased by 29% (26%*) to £48.9m (£48.0m*) (2017: £38.0m) delivering a 62% (57%*) increase in operating profit to £7.1m (£6.9m*) (2017: £4.4m).

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 £15.4m (2017: £11.0m), net fee income was up 29% (40%*) to £14.0m (£15.3m*) (2017: £10.9m) producing an operating profit of £0.2m (£0.1m*) (2017: £0.1m).

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 £24.8m as at 30 June 2018 (30 June 2017: £18.4m). Working capital in the period has increased by £17.8m, primarily due to an 11% increase in the number of temporary workers, resulting in £8.3m cash generated from operating activities. Notable cash outflows included a dividend of £6.6m, £4.6m of tax payments and capital expenditure of £2.8m.

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 Chairman 25 July 2018

Robert Walters Chief Executive

ROBERT WALTERS PLC

Half-yearly Financial Results 2018

CONDENSED CONSOLIDATED INCOME STATEMENT

		2018		2017		2017
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Notes	£'000		£'000		£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'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	£'000		£'000			£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'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

	Share capital	Share premium	Other reserves	Own shares held	Treasury shares held	Foreign exchange reserves	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'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 £24.8m 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 €1.1363 to the Pound (period ended 30 June 2017: €1.1625; year ended 31 December 2017: €1.1414); ¥149.5392 to the Pound (30 June 2017: ¥141.3893; 31 December 2017: ¥144.4563) 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 €1.1298 to the Pound (30 June 2017: €1.1381; 31 December 2017: €1.1262); ¥146.1260 to the Pound (30 June 2017: ¥145.7482; 31 December 2017: ¥151.9886) 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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'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 to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Profit for the period attributable to equity holders of the Parent	15,051		11,131		29,335
		Number of shares		Number of shares		Number of 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
		£'000		£'000		£'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 £45.0m, which expires in December 2020.

At 30 June 2018, £25.4m (2017: £30.3m) was drawn down under this facility.

The Group also has a non-recourse sales invoice facility of £15.0m.

The Group has a short-term facility of Renminbi 25m (£2.9m) of which Renminbi 10m (£1.1m) 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 £45,000 (2017: £77,000) 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

 

END

 

 

IR LLFSTDIIEFIT