Half-Yearly Financial Results

RNS Number : 9604N

Robert Walters PLC

01 August 2014

 



1 August 2014

ROBERT WALTERS PLC

(the "Company", or the "Group")

Half-yearly financial results for the six months ended 30 June 2014

PROFIT BEFORE TAX UP 36%

Robert Walters plc (LSE: RWA), the leading international recruitment consultancy, today announces its half-yearly financial results for the six months ended 30 June 2014.

Financial and Operational Highlights

	H1 2014	H1 2013	% change	%  change (constant currency*)
Revenue	£310.0m	£288.8m	+7%	+14%
Gross profit (net fee income)	£101.9m	£97.8m	+4%	+12%
Operating profit	£5.3m	£3.8m	+41%	+57%
Profit before taxation	£5.0m	£3.7m	+36%	+53%
Basic earnings per share	4.5p	3.3p	+36%
Interim dividend per share	1.65p	1.54p	+7%
Net cash	£14.7m	£6.9m	+113%

* Constant currency is calculated by applying prior year exchange rates to local currency results for the current and prior years.

§ Strong first half performance with profit before taxation increasing by 36% (53%*).

§ Good performance from a number of our mature and market-leading businesses such as Japan and the UK.

§ Emerging market growth strategy has begun to bear fruit with Malaysia and Thailand in particular delivering strong profitable growth.

§ Market conditions in Australia and France remain challenging.

§ Healthy balance of permanent (70%) and contract recruitment net fee income (30%) (2013: 70%: 30%).

§ Resource Solutions, the Group's recruitment process outsourcing business continued to deliver significant net fee income growth.

§ Group headcount increased to 2,496 (2013: 2,212).

§ Interim dividend increased 7% to 1.65p per share (2013: 1.54p).

§ Strong balance sheet with net cash of £14.7m as at 30 June 2014 (30 June 2013: £6.9m).

Robert Walters, Chief Executive, said:

"This performance highlights the Group's strength, depth and diversity and is testament to our strategic decision to invest in the business throughout the downturn. This is encouraging, particularly given the challenging market conditions that continued to prevail in France and Australia.

"It is pleasing to see our larger and more mature businesses in markets such as Japan, Hong Kong and the UK performing strongly.  I am also very encouraged that our newer operations in emerging recruitment markets such as Thailand, Malaysia, Vietnam and Taiwan have performed well. Resource Solutions, our recruitment process outsourcing division continued to deliver strong net fee income growth and expand its client base across the UK, Europe and Asia.

"Trading since the half year has been in line with our expectations and the Group remains confident of its prospects for the full year."

The Company will be holding a presentation for analysts at 11am 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 2014 on 7 October 2014.

 Further information

Robert Walters plc Robert Walters, Chief Executive Alan Bannatyne, Chief Financial Officer	[phone]
Newgate Communications Fergus Wylie James Benjamin Madeleine Palmstierna	[phone]

About Robert Walters

Robert Walters is a market-leading international specialist recruitment consultancy with 53 offices spanning 24 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 & support and supply chain & procurement. Our client base ranges from the world's leading blue-chip corporates and financial services organisations through to SMEs and start-ups.

Businesses worldwide rely on us to find the very best specialist professionals to drive their business forward and those same professionals trust us to manage their long-term careers.

www.robertwalters.com 

Robert Walters plc

Half-yearly financial results for the six months ended 30 June 2014

Interim Management Report

The Group delivered a strong performance in the first half, increasing profit before taxation by 36% (53%*) year-on-year. This is particularly encouraging given that tough market conditions continued to prevail in Australia and France, two of the Group's largest markets.

Revenue was up 7% (14%*) to £310.0m (2013: £288.8m) and gross profit (net fee income) increased by 4% (12%*) to £101.9m (2013: £97.8m). Operating profit increased by 41% (57%*) to £5.3m (2013: £3.8m) delivering a profit before taxation increase of 36% (53%*) to £5.0m (2013: £3.7m). The Group maintained a strong balance sheet and improved its net cash position to £14.7m as at 30 June 2014 (30 June 2013: £6.9m). Permanent recruitment represents 70% (2013: 70%) of the Group's recruitment net fee income.

Whilst client and candidate confidence remains some way short of the highs seen prior to the downturn, candidate shortages are beginning to emerge in some markets and disciplines. The Group is already performing strongly, continues to take market share and is well positioned to further leverage our operational gearing as confidence levels improve and candidate shortages become more widespread and acute.

Seven successive quarters of net fee income growth, in constant currency, and a sharp increase in profits clearly highlights the Group's strength, depth and diversity by both geography and discipline and furthermore is testament to our strategic decision to invest in the business throughout the downturn. 

We are already seeing the benefits of this investment, particularly in emerging recruitment markets such as Thailand, Malaysia, Taiwan and Vietnam; across a number of our more mature and market-leading businesses such as Japan, Hong Kong and the UK; and in Resource Solutions our recruitment process outsourcing division.

Group headcount now stands at 2,496 (2013: 2,212). Our global footprint of 53 offices spans 24 countries.

Asia Pacific (42% of net fee income)

Revenue was £113.3m (2013: £133.9m) and net fee income was £43.3m (£49.2m*) (2013: £46.5m) delivering an operating profit of £3.4m (£4.0m*) (2013: £3.3m).

Japan, Hong Kong and Malaysia produced the strongest performances, further cementing our market-leading positions in these markets. Our business in Japan continues to go from strength to strength. With Japanese organisations continuing to internationalise and an acute shortage of bilingual professionals, the opportunity for further growth is significant.

In Australia, market conditions remained challenging particularly in the major metropolitan hubs of Sydney, Melbourne, Brisbane and Perth, however it has been encouraging to see a number of our smaller satellite offices which typically service the corporate and SME markets, return to growth. Our business in New Zealand continues to perform well across both Auckland and Wellington.

Elsewhere across the region, Singapore and China produced solid results and it has been particularly pleasing to see our recent investments in some of the region's emerging recruitment markets begin to bear fruit with our operations in Thailand, Taiwan and Vietnam all delivering excellent net fee income growth. Resource Solutions in Asia continues to win new business and to extend engagements with existing clients.

United Kingdom (32% of net fee income)

Revenue in the UK was £140.3m (2013: £105.1m) and net fee income increased by 21% to £32.2m (2013: £26.7m) delivering an operating profit of £1.3m (2013: £0.4m).

Our UK business has performed well, benefiting from a broad-based recovery in most disciplines with accountancy, finance and legal the standout performers across both London and the regions. We are yet to see a meaningful recovery in the financial services recruitment market; however we retain a strong presence in the sector and will take advantage of any return of confidence.

Resource Solutions delivered an excellent performance during the first half of the year, growing net fee income strongly across both the financial services and corporate sectors.

Europe (22% of net fee income)

Revenue was £51.9m (2013: £46.1m) and net fee income increased by 5% (8%*) to £21.9m (£22.7m*) (2013: £20.9m) delivering an operating profit of £0.5m (£0.6m*) (2013: £0.2m).

In France, the region's largest business, permanent recruitment activity remained subdued but contract grew strongly. Our operations across Benelux continued to perform well, with Belgium in particular delivering strong results across both the permanent and contract markets.

Germany produced a robust performance whilst in Spain, perhaps the Group's toughest market over the last five years, we continued to see a rebound in activity with net fee income doubling year-on-year. This bounce-back of performance is testament to our strategy of not withdrawing from markets in difficult times.

Other International (4% of net fee income)

Revenue was £4.6m (2013: £3.8m), net fee income increased by 22% (37%*) to £4.5m (£5.1m*) (2013: £3.7m) producing a break-even result (2013: operating loss of £0.1m).

Our recently opened offices in San Francisco and Dubai produced encouraging performances, both more than doubling net fee income year-on-year; building on the investment we have made. San Francisco's results combined with those of our New York office, which also saw a pick-up in activity, ensured a strong first half across our US operations.

South Africa delivered another strong performance, whilst in Brazil, market conditions remained very tough.

Cash flow

The Group maintained a strong net cash position of £14.7m as at 30 June 2014 (30 June 2013: £6.9m). Working capital in the period has increased by £6.7m and notable cash outflows included a dividend of £2.9m, £1.1m of tax payments and capital expenditure of £1.7m.

Dividend

The interim dividend will be increased by 7% to 1.65p per share (2013: 1.54p) and will be paid on 17 October 2014 to those shareholders on the Company's register as at 5 September 2014.

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 are Pounds Sterling, the Euro, 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 2013, namely the economic environment, 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

Trading since the half year has been in line with our expectations and the Group remains confident of its prospects for the full year.

Leslie Van de Walle Chairman 31 July 2014

Robert Walters Chief Executive

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

CONDENSED CONSOLIDATED INCOME STATEMENT

		2014		2013		2013
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Continuing operations
Revenue	4	309,988		288,839		597,719
Cost of sales		(208,063)		(191,059)		(398,525)
Gross profit	4	101,925		97,780		199,194
Administrative expenses		(96,577)		(93,984)		(188,360)
Operating profit	4	5,348		3,796		10,834
Finance income		77		37		121
Finance costs		(297)		(365)		(797)
(Loss) profit on foreign exchange		(151)		185		(87)
Profit before taxation		4,977		3,653		10,071
Taxation	5	(1,667)		(1,295)		(3,915)
Profit for the period		3,310		2,358		6,156
Attributable to:
Owners of the Company		3,310		2,358		6,156
Earnings per share (pence):	7
Basic		4.5		3.3		8.4
Diluted		4.0		2.9		7.7

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE

		2014		2013		2012
		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		3,310		2,358		6,156
Item that may subsequently be classified to profit and loss:
Exchange differences on translation of overseas operations		(617)		(606)		(5,164)
Total comprehensive income and expense for the period		2,693		1,752		992
Attributable to:
Owners of the Company		2,693		1,752		992

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

CONDENSED CONSOLIDATED BALANCE SHEET

		2014		2013		2013
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Non-current assets
Intangible assets		9,529		9,715		9,517
Property, plant and equipment		9,019		10,760		9,300
Deferred tax assets		8,572		7,389		8,998
		27,120		27,864		27,815
Current assets
Trade and other receivables		159,298		130,415		153,700
Corporation tax receivables		1,397		3,594		1,949
Cash and cash equivalents		15,216		26,201		30,071
		175,911		160,210		185,720
Total assets		203,031		188,074		213,535
Current liabilities
Trade and other payables		(123,326)		(93,604)		(124,149)
Corporation tax liabilities		(2,076)		(1,018)		(2,314)
Bank overdrafts and loans	9	(476)		(19,279)		(11,496)
Provisions		(260)		(552)		(606)
		(126,138)		(114,453)		(138,565)
Net current assets		49,773		45,757		47,155
Non-current liabilities
Deferred tax liabilities		(29)		(38)		(39)
Provisions		(1,443)		(914)		(1,049)
		(1,472)		(952)		(1,088)
Total liabilities		(127,610)		(115,405)		(139,653)
Net assets		75,421		72,669		73,882
Equity
Share capital		17,192		17,122		17,177
Share premium		21,753		21,321		21,753
Other reserves		(73,410)		(73,410)		(73,410)
Own shares held		(4,787)		(6,121)		(5,876)
Treasury shares held		(19,860)		(19,860)		(19,860)
Foreign exchange reserves		3,368		8,543		3,985
Retained earnings		131,165		125,074		130,113
Total equity		75,421		72,669		73,882

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		2014		2013		2013
		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	2,327		2,033		19,240
Income taxes paid		(1,056)		(1,927)		(2,798)
Net cash generated from operating activities		1,271		106		16,442
Investing activities
Interest received		77		37		121
Purchases of computer software		(447)		(538)		(1,096)
Purchases of property, plant and equipment		(1,292)		(617)		(1,351)
Purchase of non-controlling interest		-		(715)		(715)
Net cash used in investing activities		(1,662)		(1,833)		(3,041)
Financing activities
Equity dividends paid		(2,866)		(2,695)		(3,826)
Proceeds from issue of equity		14		83		567
Interest paid		(297)		(365)		(797)
Proceeds from bank loans		-		4,688		-
Repayment of bank loans		(11,000)		-		(3,061)
Proceeds from exercise of share options		408		-		-
Net cash (used) generated in financing activities		(13,741)		1,711		(7,117)
Net (decrease) increase in cash and cash equivalents		(14,132)		(16)		6,284
Cash and cash equivalents at beginning of the period		30,071		26,022		26,022
Effect of foreign exchange rate changes		(723)		195		(2,235)
Cash and cash equivalents at end of the period		15,216		26,201		30,071

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

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 2013	17,114	21,249	(73,410)	(9,121)	(19,860)	9,149	126,397	71,518
Profit for the period	-	-	-	-	-	-	2,358	2,358
Foreign currency translation differences	-	-	-	-	-	(606)	-	(606)
Total comprehensive income and expense for the period	-	-	-	-	-	(606)	2,358	1,752
Dividends paid	-	-	-	-	-		(2,695)	(2,695)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	1,928	1,928
Deferred tax on share-based payment transactions	-	-	-	-	-	-	86	86
Transfer to own shares held on exercise of equity incentives	-	-	-	3,000	-	-	(3,000)	-
New shares issued	8	72	-	-	-	-	-	80
Unaudited balance at 30 June 2013	17,122	21,321	(73,410)	(6,121)	(19,860)	8,543	125,074	72,669
Profit for the period	-	-	-	-	-	-	3,798	3,798
Foreign currency translation differences	-	-	-	-	-	(4,558)	-	(4,558)
Total comprehensive income and expense for the period	-	-	-	-	-	(4,558)	3,798	(760)
Dividends paid	-	-	-	-	-	-	(1,131)	(1,131)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	1,927	1,927
Deferred tax on share-based payment transactions	-	-	-	-	-	-	690	690
Transfer to own shares held on exercise of equity incentives	-	-	-	245	-	-	(245)	-
New shares issued	55	432	-	-	-	-	-	487
Balance at 31 December 2013	17,177	21,753	(73,410)	(5,876)	(19,860)	3,985	130,113	73,882
Profit for the period	-	-	-	-	-	-	3,310	3,310
Foreign currency translation differences	-	-	-	-	-	(617)	-	(617)
Total comprehensive income and expense for the period	-	-	-	-	-	(617)	3,310	2,693
Dividends paid	-	-	-	-	-	-	(2,866)	(2,866)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	1,744	1,744
Deferred tax on share-based payment transactions	-	-	-	-	-	-	(455)	(455)
Transfer to own shares held on exercise of equity incentives	-	-	-	1,089	-	-	(681)	408
New shares issued	15	-	-	-	-	-	-	15
Unaudited balance at 30 June 2014	17,192	21,753	(73,410)	(4,787)	(19,860)	3,368	131,165	75,421

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

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 with 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 for the year ended 31 December 2013. In the current year, the Group has for the first time adopted the package of five accounting standards on consolidation, joint arrangements, associates and disclosures as issued in May 2011 together with recent amendments. Their adoption has not had any impact on the condensed set of financial statements.

The Group was profitable for the period and has considerable financial resources, including £14.7m of net cash at 30 June 2014, 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. 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 31 July 2014. 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 2013 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 2014 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 2013 is also unaudited.

3.         Currency conversion

The reporting 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 30 June 2014 has been prepared using, among other currencies, the average exchange rate of €1.2125 to the Pound (period ended 30 June 2013: €1.1762; year ended 31 December 2013: €1.1781); ¥171.0413 to the Pound (30 June 2013: ¥147.4530; 31 December 2013: ¥152.6994) and AU$1.8304 to the Pound (30 June 2013: AU$1.5240; 31 December 2013: AU$1.6222).

The condensed consolidated balance sheet as at 30 June 2014 has been prepared using the exchange rates on that day of €1.2492 to the Pound (30 June 2013: €1.1698; 31 December 2013: €1.1979); ¥172.8960 to the Pound (30 June 2013: ¥150.8710; 31 December 2013: ¥173.5340) and AU$1.8099 to the Pound (30 June 2013: AU$1.6661; 31 December 2013: AU$1.8586).

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

4.	Segmental information
		2014		2013		2013
		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	113,266		133,871		260,145
	UK	140,268		105,128		235,734
	Europe	51,902		46,090		93,855
	Other International	4,552		3,750		7,985
		309,988		288,839		597,719
ii)	Gross profit:
	Asia Pacific	43,273		46,462		92,069
	UK	32,225		26,663		57,161
	Europe	21,900		20,934		42,036
	Other International	4,527		3,721		7,928
		101,925		97,780		199,194
iii)	Profit before taxation:
	Asia Pacific	3,431		3,259		7,242
	UK	1,348		390		2,540
	Europe	533		218		1,258
	Other International	36		(71)		(206)
	Operating profit	5,348		3,796		10,834
	Net finance costs	(371)		(143)		(763)
	Profit before taxation	4,977		3,653		10,071
iv)	Total assets:
	Asia Pacific	50,079		50,358		49,077
	UK	96,970		73,134		96,075
	Europe	26,235		22,688		23,883
	Other International	4,563		4,710		3,482
	Unallocated corporate assets*	25,184		37,184		41,018
		203,031		188,074		213,535
v)	Total liabilities:
	Asia Pacific	(22,545)		(21,749)		(22,148)
	UK	(83,425)		(56,154)		(84,766)
	Europe	(15,781)		(13,856)		(15,784)
	Other International	(2,792)		(3,311)		(3,106)
	Unallocated corporate liabilities*	(3,067)		(20,335)		(13,849)
		(127,610)		(115,405)		(139,653)

*For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans, corporation and deferred tax balances.

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

4.	Segmental information (continued)
		2014		2013		2013
		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	215,560		228,366		454,375
	Resource Solutions	94,428		60,473		143,344
		309,988		288,839		597,719

5.	Taxation
		2014		2013		2013
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Current tax	1,786		610		4,486
	Deferred tax	(119)		685		(571)
	Total tax charge for the period	1,667		1,295		3,915

The tax charge is based on the expected annual tax rate of 33.5% (2013: 35.5%) on profit before taxation.

6.	Dividends
		2014		2013		2013
		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 2013 of 3.86p (2012: 3.68p)	2,866		2,695		2,710
	Interim dividend for 2013 of 1.54p (2012: 1.47p)	-		-		1,116
		2,866		2,695		3,826
	Proposed interim dividend for 2014 of 1.65p (2013: 1.54p)	1,227		1,128		n/a

The proposed interim dividend was approved by the Board on 31 July 2014 and has not been included as a liability at 30 June 2014.

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

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.
		2014		2013		2013
		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	3,310		2,358		6,156
		Number of shares		Number of shares		Number of shares
	Weighted average number of shares:
	Shares in issue throughout the period	85,886,614		85,570,741		85,570,741
	Shares issued in the period	38,322		22,241		107,243
	Treasury and own shares held	(11,879,901)		(13,064,261)		(12,682,876)
	For basic earnings per share	74,045,035		72,528,721		72,995,108
	Outstanding share options	8,042,278		8,088,635		7,206,147
	For diluted earnings per share	82,087,313		80,617,356		80,201,255

8.	Notes to the cash flow statement
		2014		2013		2013
		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	5,348		3,796		10,834
	Adjustments for:
	Depreciation and amortisation charges	1,799		2,006		4,024
	Loss on disposal of property, plant and equipment and computer software	125		35		378
	Movement in share scheme balance	1,744		1,927		3,855
	Operating cash flows before movements in working capital	9,016		7,764		19,091
	Increase in receivables	(6,519)		(5,137)		(33,151)
	(Decrease) increase in payables	(170)		(594)		33,300
	Cash generated from operating activities	2,327		2,033		19,240

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

9.           Bank loans                                                                            

In January 2014, the Group renewed and extended its three-year committed financing facility to £35m, which expires in November 2016. At 30 June 2014, there was no draw down under this facility.

10.        Related party transactions

There have been no related party transactions or changes in the related party relationships, described in the latest Annual Report, that have had a material effect on the financial position or performance of the Group in the first six months of the financial year.

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

31 July 2014

ROBERT WALTERS PLC

Half-yearly Financial Results 2014

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 2014 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 Auditing Practices Board. 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 the 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 Auditing Practices Board 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 2014 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

Chartered Accountants and Statutory Auditor

London, United Kingdom

31 July 2014

 

END

 

 

IR GMGFNNMVGDZM