Half Yearly Report

RNS Number : 6575R

Robert Walters PLC

26 August 2010

 



26 AUGUST 2010

ROBERT WALTERS PLC

Half-yearly financial results for the six months ended 30 June 2010

ASIA PACIFIC DRIVES STRONG FIRST HALF PERFORMANCE

FINANCIAL HIGHLIGHTS

·     Net fee income (gross profit) up 45% (39%*) to £72.3m (2009: £50.0m).

·     Operating profit of £5.2m (£4.4m*) (2009: operating loss of £2.3m).

·     Profit before taxation of £5.1m (£4.3m*) (2009: loss before taxation of £2.6m).

·     Basic earnings per share of 4.8p (2009: loss per share of 3.7p).

·     Interim dividend maintained at 1.40p per share (2009: 1.40p).

·     Net cash of £12.9m as at 30 June 2010 (30 June 2009: £22.5m).

·     Purchased £2.0m of own shares through share buy-back programme.

OPERATIONAL HIGHLIGHTS

·     Group is now more internationally diverse than ever before with 70% of net fee income derived from outside the UK.

·     Strong recovery in permanent recruitment activity particularly within the financial services sector. Permanent recruitment now represents 70% of the Group's recruitment net fee income.

·     Outstanding performance in Asia Pacific with net fee income up 81% (64%*) to £34.4m (2009: £19.0m).

·     Trading conditions remained challenging across the UK and Continental Europe.

·     Opened an office in Sao Paulo, the Group's first in the fast developing South American recruitment market and a fourth office in Belgium. The Group now has 39 offices in 18 countries.

·     Significant investment in the business:

o  Group headcount up 22% to 1,539 (2009: 1,260).

o  Further investment in our IT, training and marketing infrastructure to underpin the Group's strategy for growth.

OUTLOOK

·     The diversity of our business means that whilst economic uncertainty currently exists across some of the markets in which we operate, we are very well positioned to take advantage of growth opportunities in the second half of the year.

·     We are continuing to expand in Asia, a region of huge potential in which we are the leading player, with the opening of our first office in South Korea and a third mainland China office in Beijing planned before the end of the year.

Robert Walters, Chief Executive, commented:

"These are very strong results on the back of a very difficult year in 2009. Our strategy of maintaining our global network of offices and minimising headcount reductions has paid off and we are already benefiting from the improved economic environment in many of our key markets.

"Our forward strategy is clear; keep a watchful eye on our cost base given economic conditions remain uncertain, but extend the Robert Walters footprint and brand in obvious growth markets such as Asia and South America. We believe this strategy will generate growth and offset any slowdown in other markets."

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

ENQUIRIES:

Robert Walters plc	[phone]
Robert Walters, Chief Executive
Alan Bannatyne, Group Finance Director
Pelham Bell Pottinger
Archie Berens	[phone]
	[e-mail]
James Henderson	[phone]
	[e-mail]

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Interim Management Report

We are pleased to report that the Group has delivered a strong first half performance. Revenue was up 33% to £188.8m (2009: £141.7m) and gross profit ('net fee income') by 45% (39% in constant currency) to £72.3m (2009: £50.0m), resulting in an operating profit of £5.2m (£4.4m in constant currency)  (2009: operating loss of £2.3m) and a profit before taxation of £5.1m (£4.3m in constant currency) (2009: loss before taxation of £2.6m). The Group has maintained a strong cash position with net cash of £12.9m (30 June 2009: £22.5m).

We have seen a marked improvement in recruitment activity during the first six months of the year, particularly with regards to permanent recruitment as both candidate and employer confidence returned.  Contractor numbers and contract net fee income also increased during the first half, albeit at a more modest rate. Permanent recruitment now represents 70% (2009: 59%) of the Group's recruitment net fee income.

In response to this increased demand, we have invested significantly in the business during the first six months of the year, increasing headcount to 1,539 and further developing our IT, training and marketing infrastructure to underpin the Group's growth.

The Group's strategy of international growth and diversification continues apace - 70% of the Group's net fee income comes from outside of the UK and we are now positioned as the leading specialist recruitment brand in the fast growing Asia market.  The Group opened an office in Sao Paulo during the second quarter, its first in South America, and also a fourth office in Belgium. The Group now has 39 offices in 18 countries.

Asia Pacific (48% of net fee income)

Revenue was £84.5m (2009: £53.9m) and net fee income increased by 81% (64% in constant currency) to £34.4m (2009: £19.0m) producing an operating profit of £5.3m (£4.4m in constant currency) (2009: operating loss of £0.5m).

Our business in Asia delivered an outstanding performance, with Singapore, Hong Kong, Thailand and mainland China all more than doubling net fee income. Our businesses in Japan and Malaysia also produced significant increases in both net fee income and operating profit. We plan to build further on our market-leading position in the region with the opening of our first office in South Korea and a third mainland China office in Beijing during the second half of the year. The Group continues to research other territories and is actively investigating new markets in South East Asia.

Our operation in Australia, the largest in the region, produced strong net fee income and operating profit growth, driven by increased hiring activity across all areas. New Zealand delivered a solid performance in the first half, with demand levels more muted than those experienced in Australia.

United Kingdom (30% of net fee income)

Revenue was £69.5m (2009: £55.7m) and net fee income increased by 29% to £21.6m (2009: £16.7m) producing an operating profit of £0.1m (2009: operating loss of £0.8m).

The UK business experienced increased levels of activity most notably in the financial services sector. City-based recruitment has been particularly active especially across the areas of finance, IT and legal. Outside of financial services conditions remained challenging, with both our London commerce and regional businesses delivering comparatively modest net fee income growth during the first six months of the year.

Resource Solutions, our recruitment process outsourcing business, grew net fee income and won a number of new client engagements during the period.

Europe (20% of net fee income)

Revenue was £33.0m (2009: £31.1m) and net fee income increased by 8% (11% in constant currency) to £14.4m (2009: £13.4m) producing an operating loss of £0.1m (operating loss of £0.1m in constant currency) (2009: operating loss of £0.7m).

Europe delivered a small increase in net fee income against a backdrop of continuing economic uncertainty. Our business in the Netherlands which performed well throughout 2009 has been hit hard during the first half of the year; however, France and Belgium achieved a slight improvement in permanent net fee income and benefited from previous investment in our contract business over the last five years. Whilst market conditions remain challenging in both Ireland and Spain, our small businesses in these countries have shown signs of recovery.

The Americas and South Africa (2% of net fee income)

Revenue was £1.8m (2009: £0.9m) and net fee income increased by 105% (102% in constant currency) to £1.8m (2009: £0.9m) producing an operating loss of £0.1m (operating loss of £0.1m in constant currency) (2009: operating loss of £0.2m).

Our New York operation delivered an improved performance in the first half, with our diversification into sales & marketing and legal showing encouraging signs.  In South Africa, we have continued to grow the net fee income we generate from local organisations to complement our strong multinational client base. We have also invested in additional headcount and successfully retained our BEE accreditation for the second consecutive year. Our fledgling office in Sao Paulo began generating net fee income only a few weeks after opening.

Cash flow

The Group has maintained a strong net cash position of £12.9m as at 30 June 2010 (30 June 2009: £22.5m) despite a significant increase in contractor numbers across the globe. Working capital has increased by £6.8m (2009: decrease of £9.5m). The Company purchased £2.0m of its own shares and paid a dividend of £2.3m in the period. Group capital expenditure was £0.6m.

Dividend

The interim dividend will be maintained at 1.40p per share (2009: 1.40p) and will be paid on 22 October 2010 to those shareholders on the Company's register on 10 September 2010.

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, the main functional currencies of the Group being sterling, the euro, the Australian dollar and the Japanese yen.

The other principal risks and uncertainties affecting the business activities of the Group remain those detailed within the Operating and Financial Review section of the Annual Report and Accounts for the year ended 31 December 2009, namely the strength of the employment market, temporary labour law and staff retention across the Group. The Board does not foresee a material change in respect of these factors for the remainder of the year.

Outlook

Whilst economic uncertainty currently exists across some of the markets in which we operate, the Group is more internationally diverse than at any other period in its history and well positioned to take advantage of growth opportunities particularly in many of the world's fastest growing markets.

Philip Aiken                                                                            Robert Walters

Chairman                                                                                  Chief Executive

25 August 2010

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated income statement

		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Continuing operations
Revenue		188,803		141,685		300,442
Cost of sales		(116,496)		(91,711)		(196,079)
Gross profit		72,307		49,974		104,363
Administrative expenses		(67,062)		(52,269)		(102,785)
Operating profit (loss)		5,245		(2,295)		1,578
Finance income		84		87		241
Finance costs		(122)		(188)		(388)
Loss on foreign exchange		(95)		(239)		(118)
Profit (loss) before taxation		5,112		(2,635)		1,313
Taxation		(1,681)		65		(1,073)
Profit (loss) for the period		3,431		(2,570)		240
Attributable to:
Owners of the Company		3,343		(2,570)		240
Non-controlling interest		88		-		-
		3,431		(2,570)		240
Earnings (loss) per share (pence):
Basic		4.8		(3.7)		0.3
Diluted		4.3		(3.7)		0.3

Condensed consolidated statement of recognised income and expense

		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit (loss) for the period		3,431		(2,570)		240
Exchange differences on translation of overseas operations		(260)		(3,215)		(363)
Total recognised income and expense for the period		3,171		(5,785)		(123)
Attributable to:
Owners of the Company		3,083		(5,785)		(123)
Non-controlling interest		88		-		-
		3,171		(5,785)		(123)

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated balance sheet

		2010		2009		2009
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Non-current assets
Intangible assets		8,618		9,343		8,913
Property, plant and equipment		3,698		5,129		4,271
Deferred tax assets		4,033		3,634		3,930
		16,349		18,106		17,114
Current assets
Trade and other receivables		86,571		51,154		66,744
Corporation tax receivables		705		1,869		2,247
Cash and cash equivalents		21,027		24,205		19,812
		108,303		77,228		88,803
Total assets		124,652		95,334		105,917
Current liabilities
Trade and other payables		(61,457)		(40,255)		(48,592)
Corporation tax liabilities		(922)		(957)		(692)
Bank overdrafts and loans		(7,750)		(884)		(2,100)
		(70,129)		(42,096)		(51,384)
Net current assets		38,174		35,132		37,419
Non-current liabilities
Bank loans		(331)		(796)		(441)
Deferred tax liabilities		(680)		(643)		(758)
		(1,011)		(1,439)		(1,199)
Total liabilities		(71,140)		(43,535)		(52,583)
Net assets		53,512		51,799		53,334
Equity
Share capital		17,058		17,034		17,034
Share premium		20,696		20,586		20,586
Other reserves		(73,410)		(73,410)		(73,410)
Own shares held		(14,419)		(9,529)		(12,763)
Treasury shares held		(18,865)		(18,865)		(18,865)
Foreign exchange reserves		8,295		5,703		8,555
Retained earnings		114,069		110,280		112,197
Equity attributable to owners of the Company		53,424		51,799		53,334
Non-controlling interest		88		-		-
Total equity		53,512		51,799		53,334

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

Condensed consolidated cash flow statement

		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Cash generated from operating activities		748		9,242		7,952
Income taxes refunded (paid)		147		(2,939)		(4,005)
Net cash from operating activities		895		6,303		3,947
Investing activities
Acquisition of subsidiary (net of cash acquired)		(299)		(445)		(445)
Proceeds on disposal of investments		-		-		20
Interest paid		(38)		(101)		(147)
Purchases of computer software		(97)		(333)		(403)
Purchases of property, plant and equipment		(479)		(643)		(874)
Proceeds on disposal of property, plant and equipment		-		5		5
Net cash used in investing activities		(913)		(1,517)		(1,844)
Financing activities
Equity dividends paid		(2,292)		(2,354)		(3,344)
Proceeds from issue of equity		134		-		-
Proceeds from bank loans		5,578		-		925
Repayment of bank loans		(136)		(4,162)		(4,288)
Purchase of own shares (net of proceeds of option exercises)		(1,780)		-		(3,288)
Net cash from (used in) financing activities		1,504		(6,516)		(9,995)
Net increase (decrease) in cash and cash equivalents		1,486		(1,730)		(7,892)
Cash and cash equivalents at beginning of the period		19,812		28,525		28,525
Effect of foreign exchange rate changes		(271)		(2,590)		(821)
Cash and cash equivalents at end of the period		21,027		24,205		19,812

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

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	Non-controlling interest	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2009	17,034	20,586	(73,410)	(9,834)	(18,865)	8,918	115,226	59,655	-	59,655
Loss for the period	-	-	-	-	-	-	(2,570)	(2,570)	-	(2,570)
Foreign currency translation differences	-	-	-	-	-	(3,215)	-	(3,215)	-	(3,215)
Total recognised income and expense for the period	-	-	-	-	-	(3,215)	(2,570)	(5,785)	-	(5,785)
Dividends paid	-	-	-	-	-	-	(2,354)	(2,354)	-	(2,354)
Adjustment in respect of share schemes	-	-	-	305	-	-	(22)	283	-	283
Balance at 30 June 2009	17,034	20,586	(73,410)	(9,529)	(18,865)	5,703	110,280	51,799	-	51,799
Profit for the period	-	-	-	-	-	-	2,810	2,810	-	2,810
Foreign currency translation differences	-	-	-	-	-	2,852	-	2,852	-	2,852
Total recognised income and expense for the period	-	-	-	-	-	2,852	2,810	5,662	-	5,662
Dividends paid	-	-	-	-	-	-	(990)	(990)	-	(990)
Own shares purchased (net of proceeds of option exercises)	-	-	-	(3,542)	-	-	254	(3,288)	-	(3,288)
Adjustment in respect of share schemes	-	-	-	308	-	-	(157)	151	-	151
Balance at 31 December 2009	17,034	20,586	(73,410)	(12,763)	(18,865)	8,555	112,197	53,334	-	53,334
Profit for the period	-	-	-	-	-	-	3,343	3,343	88	3, 431
Foreign currency translation differences	-	-	-	-	-	(260)	-	(260)	-	(260)
Total recognised income and expense for the period	-	-	-	-	-	(260)	3,343	3,083	88	3,171
Dividends paid	-	-	-	-	-	-	(2,292)	(2,292)	-	(2,292)
Own shares purchased (net of proceeds of option exercises)	-	-	-	(2,000)	-	-	220	(1,780)	-	(1,780)
Adjustment in respect of share schemes	-	-	-	344	-	-	601	945	-	945
New shares issued	24	110	-	-	-	-	-	134	-	134
Balance at 30 June 2010	17,058	20,696	(73,410)	(14,419)	(18,865)	8,295	114,069	53,424	88	53,512

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

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 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 set out in detail in the annual report for the year ended 31 December 2009, except for the adoption of IFRS 3 "Business Combinations (revised 2008)" and IAS 27 "Consolidated and Separate Financial Statements (revised 2008)", which do not have a significant impact.

The Group was profitable for the period and has considerable financial resources including £12.9m of net cash at 30 June 2010 together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the continued uncertain economic outlook.

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. 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 August 2010. 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 IFRS for the year ended 31 December 2009 for Robert Walters plc have been delivered to the Registrar of Companies. The auditors' 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 2010 is unaudited but has been reviewed by the Company's auditors. Their report is attached on page 14. The financial information in respect of the period ended 30 June 2009 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 ended 30 June 2010 has been prepared using, among other currencies, average exchange rates of €1.1492 to the pound (period ended 30 June 2009: €1.1188; year ended 31 December 2009: €1.1231); ¥139.635 to the pound (period ended 30 June 2009: ¥142.631; year ended 31 December 2009: ¥146.419) and AUD$1.7095 to the pound (period ended 30 June 2009: AUD$2.1023; year ended 31 December 2009: AUD$1.9944).

The condensed consolidated balance sheet as at 30 June 2010 has been prepared using the exchange rates on that day of €1.2348 to the pound (30 June 2009: €1.1760; 31 December 2009: €1.1113); ¥133.690 to the pound (30 June 2009: ¥157.857; 31 December 2009: ¥146.922) and AUD$1.7599 to the pound (30 June 2009: AUD$2.0533; 31 December 2009: AUD$1.7838).

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

4.	Segmental information
		2010		2009		2009
		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	84,509		53,946		122,495
	UK	69,489		55,727		116,578
	Europe	32,967		31,116		59,407
	The Americas and South Africa	1,838		896		1,962
		188,803		141,685		300,442
ii)	Gross profit:
	Asia Pacific	34,428		19,003		42,988
	UK	21,639		16,720		33,772
	Europe	14,412		13,359		25,651
	The Americas and South Africa	1,828		892		1,952
		72,307		49,974		104,363
iii)	Profit (loss) before taxation:
	Asia Pacific	5,317		(538)		3,292
	UK	136		(825)		(830)
	Europe	(90)		(731)		(697)
	The Americas and South Africa	(118)		(201)		(187)
	Operating profit (loss)	5,245		(2,295)		1,578
	Net finance costs	(133)		(340)		(265)
	Profit (loss) before taxation	5,112		(2,635)		1,313
iv)	Total assets:
	Asia Pacific	36,598		24,894		30,143
	UK	46,189		27,581		35,970
	Europe	23,928		20,042		20,478
	The Americas and South Africa	1,382		355		381
	Elimination of intercompany assets	(9,210)		(7,246)		(7,044)
	Unallocated corporate assets	25,765		29,708		25,989
		124,652		95,334		105,917
v)	Total liabilities:
	Asia Pacific	(17,234)		(11,771)		(12,817)
	UK	(39,618)		(25,827)		(30,868)
	Europe	(11,644)		(9,070)		(10,986)
	The Americas and South Africa	(2,171)		(833)		(965)
	Elimination of intercompany liabilities	9,210		7,246		7,044
	Unallocated corporate liabilities	(9,683)		(3,280)		(3,991)
		(71,140)		(43,535)		(52,583)

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

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

4.	Segmental information (continued)
		2010		2009		2009
		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	165,446		124,743		265,184
	Resource Solutions	23,357		16,942		35,258
		188,803		141,685		300,442

5.	Taxation
		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Current tax	1,604		716		1,389
	Deferred tax	77		(781)		(316)
	Total tax charge (credit) for the period	1,681		(65)		1,073

The tax charge is based on the expected annual tax rate of 32.9% (2009: 2.5%) on profit before taxation.

6.	Dividends
		2010		2009		2009
		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 2009 of 3.35p (2008: 3.35p)	2,292		2,354		2,354
	Interim dividend for 2009 of 1.40p (2008: 1.35p)	-		-		990
		2,292		2,354		3,344
	Proposed interim dividend for 2010 of 1.40p (2009: 1.40p)	959		991		n/a

The proposed interim dividend was approved by the Board on 25 August 2010 and has not been included as a liability at 30 June 2010.

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

7.	Earnings per share
	The calculation of earnings per ordinary share is based on the profit for the period attributable to owners of the Company and the weighted average number of shares of the Company.
		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Profit (loss) for the period attributable to owners of the Company	3,343		(2,570)		240
		Number of shares		Number of shares		Number of shares
	Weighted average number of shares:
	Shares in issue throughout the period	85,168,703		85,168,703		85,168,703
	Shares issued in the period	103,802		-		-
	Treasury and own shares held	(16,346,053)		(14,762,402)		(14,869,591)
	For basic earnings per share	68,926,452		70,406,301		70,299,112
	Outstanding share options (note)	8,820,946		-		6,750,325
	For diluted earnings per share	77,747,398		70,406,301		77,049,437

Note: There were an average of 2,251,622 outstanding share options for the six month period to 30 June 2009, but they are excluded from the calculation of diluted earnings per share as there was a loss for the period.

8.	Notes to the cash flow statement
		2010		2009		2009
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Operating profit (loss) for the period	5,245		(2,295)		1,578
	Adjustments for:
	Depreciation and amortisation charges	1,488		1,726		3,381
	Loss on disposal of property, plant and equipment	10		65		321
	Gain on disposal of investments	-		-		(20)
	Movement in share scheme balance	766		205		(216)
	Operating cash flows before movements in working capital	7,509		(299)		5,044
	(Increase) decrease in receivables	(20,321)		13,862		1,184
	Increase (decrease) in payables	13,560		(4,321)		1,724
	Cash generated from operations	748		9,242		7,952

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

9.        Bank loans                                                      

In August 2009, the Group entered into a committed, three-year, £10m receivables financing agreement. In June 2010, this facility was increased to £20m and will now expire on 31 May 2013.

10.      Related party transactions

There have been no related party transactions or changes in the related party transactions 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 55 Strand, London, WC2N 5WR.

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

Group Finance Director

25 August 2010

ROBERT WALTERS PLC

Half-yearly Financial Results 2010

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 results for the six months ended 30 June 2010 which comprises the condensed consolidated income statement, the condensed consolidated statement of recognised 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 results 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 them 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 results are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial results in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services 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 results 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 results for the six months ended 30 June 2010 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 Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditors

London, United Kingdom

25 August 2010

 

END

 

 

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