Half Yearly Report

RNS Number : 6612K

Robert Walters PLC

01 August 2013

 



ROBERT WALTERS PLC

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

Half-yearly financial results for the six months ended 30 June 2013

Robert Walters, the leading international recruitment consultancy, today announces its half-yearly financial results for the six months ended 30 June 2013.

FINANCIAL HIGHLIGHTS

§ Revenue up 5% to £288.8m (2012: £275.0m).

§ Net fee income (gross profit) up 6% (6%*) to £97.8m (2012: £92.4m).

§ Operating profit up 10% (16%*) to £3.8m (2012: £3.4m).

§ Profit before taxation up 19% to £3.7m (2012: £3.1m).

§ Basic earnings per share of 3.3p (2012: 2.9p).

§ Interim dividend increased by 5% to 1.54p per share (2012: 1.47p).

§ Net cash of £6.9m as at 30 June 2013 (30 June 2012: £4.6m).

OPERATIONAL HIGHLIGHTS

§ Solid performance in line with expectations.

§ Net fee income increased across all regions:

§ Asia Pacific up 1% (3%*) to £46.5m (2012: £45.9m).

§ UK up 12% to £26.7m (2012: £23.9m).

§ Europe up 5% (2%*) to £20.9m (2012: £19.9m).

§ Other International up 40% (44%*) to £3.7m (2012: £2.7m).

§ The Group has opened 17 offices over the last three years and is focused on maximising the return from this investment and increasing productivity from these businesses. No further offices will be opened this year.

§ Healthy balance of permanent and contract recruitment net fee income: 70%:30% (2012: 69%:31%).

§ Group headcount stands at 2,212 (2012: 2,159) with the increase due to another strong performance from our Resource Solutions business.

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

Robert Walters, Chief Executive, said:

"We have delivered a solid first half performance, achieving increased net fee income and market share across all of the Group's regions. The first half results are encouraging and we are focused on generating increased productivity from our existing businesses across the globe whilst continuing to carefully manage the Group's cost base.

"Global market conditions are mixed and visibility is limited, however we are seeing positive signs across some markets. The Group's market-leading international brand, diverse and robust blend of revenue streams and strong balance sheet means that the Group is exceptionally well positioned to benefit from a sustained recovery."

The Company will hold a presentation for analysts at 11.00am on Thursday 1 August at 11 Slingsby Place, St Martin's Courtyard, London WC2E 9AB.

The Company will publish an interim management statement for the third quarter ending 30 September 2013 on 8 October 2013.

 Further information

Robert Walters plc Robert Walters, Chief Executive Alan Bannatyne, Chief Financial Officer	[phone]
Bell Pottinger Olly Scott Charlie Goodwin	[phone]

Robert Walters plc

Half-yearly financial results for the six months ended 30 June 2013

Interim Management Report

The Group has delivered a solid and encouraging performance during the first half of the year with net fee income growing across all of the Group's regions. The Group's long-term strategy of geographic expansion and discipline diversification has created competitive strength and enabled us to grow market share.

Revenue was up 5% to £288.8m (2012: £275.0m) and gross profit (net fee income) increased by 6% (6% in constant currency) to £97.8m (2012: £92.4m). Operating profit increased by 10% (16% in constant currency) to £3.8m (2012: £3.4m) delivering a profit before taxation increase of 19% to £3.7m (2012: £3.1m). The Group maintained a strong balance sheet and improved its net cash position to £6.9m as at 30 June 2013 (30 June 2012: £4.6m).

Two new offices, Dubai and Ghent, were opened during the first quarter. However, as noted within the Group's first quarter interim management statement, no further offices will be opened this year. Having opened 17 offices over the past three years, the Group is focused on maximising the return from this investment and increasing productivity within these new and exciting businesses.

Permanent recruitment now represents 70% (2012: 69%) of the Group's recruitment net fee income. The Group has a strong blend of permanent, contract and interim recruitment income streams and a market-leading recruitment process outsourcing business in Resource Solutions. Clients are increasingly wishing to work with a partner with global recruitment capabilities and the Group's ability to provide an end-to-end solution creates a significant competitive advantage.

Resource Solutions continues to deliver positive returns. Net fee income grew strongly during the first half; underpinned by 11 new client wins across the UK and Asia. 

Group headcount stands at 2,212 (2012: 2,159) with growth of the Resource Solutions business driving the increase.

Asia Pacific (48% of net fee income)

Revenue was £133.9m (2012: £134.7m) and net fee income increased by 1% (3% in constant currency) to £46.5m (£47.3m in constant currency) (2012: £45.9m) delivering an operating profit of £3.3m (£3.5m in constant currency) (2012: £3.3m).

In Australia, despite a slowdown in our Perth and Brisbane offices, we have continued to grow our market share. This is a testament to the quality and strength of our business as a whole and the success of our recent strategy of opening offices outside traditional city centre locations to service the corporate and SME markets.

In Asia, our Japan and Malaysia businesses performed particularly well. It was also pleasing to see a number of our newer and smaller operations in Thailand, Vietnam and Indonesia producing strong net fee income growth. Our Singapore and Hong Kong businesses delivered solid first half performances whilst our recent restructure of our senior management team in China is beginning to show positive results.

Resource Solutions in Asia has started well winning five new client engagements during the period.

United Kingdom (27% of net fee income)

Revenue in the UK business was £105.1m (2012: £93.4m) and net fee income increased by 12% to £26.7m (2012: £23.9m) delivering an operating profit of £0.4m (2012: £nil).

Our UK business has performed well, with our regional offices - Guildford, Milton Keynes, Birmingham and Manchester - delivering a particularly strong performance across Commerce Finance, HR, Legal and IT.

Resource Solutions recorded another strong performance during the first half of the year, securing six new client wins across both the financial services and corporate sectors.

Europe (21% of net fee income)

Revenue was £46.1m (2012: £44.0m) and net fee income increased by 5% (2% in constant currency) to £20.9m (£20.3m in constant currency) (2012: £19.9m) delivering an operating profit of £0.2m (£0.2m in constant currency) (2012: £0.3m).

Our business in France, the Group's largest in the region, has produced a remarkably resilient performance and grown market share despite the well-publicised backdrop of economic and political uncertainty. We continue to closely manage our cost base and absorbed £0.5m redundancy costs during the period.

Germany again delivered strong net fee income growth. Market conditions in the Benelux region have improved and we opened a new Walters People office in Ghent during the first quarter. Our business in Ireland continues to perform well. However, elsewhere across the region, recruitment activity levels remain muted. 

Other International (4% of net fee income)

Revenue was £3.8m (2012: £2.9m) and net fee income increased by 40% (44% in constant currency) to £3.7m (£3.8m in constant currency) (2012: £2.7m) delivering an operating loss of £0.1m (£0.1m operating loss in constant currency) (2012: operating loss of £0.2m).

Improved confidence in the US underpinned a solid performance in our New York office, whilst our new business in San Francisco continued to deliver strong net fee income growth. In Brazil, our operations in Sao Paulo and Rio de Janeiro have returned to growth. South Africa continues to be a success story with net fee income growing strongly. The Group has invested in the Middle East, opening its first office in the region in Dubai.

Cash flow

The Group maintained a strong net cash position of £6.9m as at 30 June 2013 (30 June 2012: £4.6m). Working capital in the period has increased by £5.7m and notable cash outflows included a dividend of £2.7m, £1.9m of tax payments and capital expenditure of £1.2m.

Dividend

The interim dividend will be increased by 5% to 1.54p per share (2012: 1.47p) and will be paid on 18 October 2013 to those shareholders on the Company's register as at 6 September 2013.

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 Operating and Financial Review section of the Annual Report and Accounts for the year ended

31 December 2012, 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

The first half results are encouraging and we are focused on generating increased productivity from our existing businesses across the globe whilst continuing to carefully manage the Group's cost base.

Global market conditions are mixed and visibility is limited, however we are seeing positive signs across some markets. The Group's market-leading international brand, diverse and robust blend of revenue streams and strong balance sheet means that the Group is exceptionally well positioned to benefit from a sustained recovery. 

Leslie Van de Walle Chairman 31 July 2013

Robert Walters Chief Executive

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

CONDENSED CONSOLIDATED INCOME STATEMENT

		2013		2012		2012
		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	288,839		275,006		567,771
Cost of sales		(191,059)		(182,628)		(379,380)
Gross profit	4	97,780		92,378		188,391
Administrative expenses		(93,984)		(88,940)		(179,922)
Operating profit	4	3,796		3,438		8,469
Finance income		37		76		134
Finance costs		(365)		(347)		(788)
Profit (loss) on foreign exchange		185		(100)		(90)
Profit before taxation		3,653		3,067		7,725
Taxation	5	(1,295)		(1,028)		(2,838)
Profit for the period		2,358		2,039		4,887
Attributable to:
Owners of the Company		2,358		2,042		4,860
Non-controlling interest		-		(3)		27
		2,358		2,039		4,887
Earnings per share (pence):	7
Basic		3.3		2.9		6.8
Diluted		2.9		2.6		6.2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

AND EXPENSE

		2013		2012		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		2,358		2,039		4,887
Exchange differences on translation of overseas operations		(606)		(1,187)		(2,497)
Total comprehensive income and expense for the period		1,752		852		2,390
Attributable to:
Owners of the Company		1,752		855		2,363
Non-controlling interest		-		(3)		27
		1,752		852		2,390

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

CONDENSED CONSOLIDATED BALANCE SHEET

		2013		2012		2012
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Non-current assets
Intangible assets		9,715		9,363		9,477
Property, plant and equipment		10,760		12,217		11,896
Deferred tax assets		7,389		6,813		8,033
		27,864		28,393		29,406
Current assets
Trade and other receivables		130,415		121,890		125,703
Corporation tax receivables		3,594		1,711		2,161
Cash and cash equivalents		26,201		22,898		26,022
		160,210		146,499		153,886
Total assets		188,074		174,892		183,292
Current liabilities
Trade and other payables		(93,604)		(83,567)		(94,991)
Corporation tax liabilities		(1,018)		(784)		(947)
Bank overdrafts and loans	9	(19,279)		(18,339)		(14,550)
Provisions		(552)		(727)		(464)
		(114,453)		(103,417)		(110,952)
Net current assets		45,757		43,082		42,934
Non-current liabilities
Deferred tax liabilities		(38)		(67)		(39)
Provisions		(914)		(423)		(783)
		(952)		(490)		(822)
Total liabilities		(115,405)		(103,907)		(111,774)
Net assets		72,669		70,985		71,518
Equity
Share capital		17,122		17,113		17,114
Share premium		21,321		21,247		21,249
Other reserves		(73,410)		(73,410)		(73,410)
Own shares held		(6,121)		(9,121)		(9,121)
Treasury shares held		(19,860)		(19,860)		(19,860)
Foreign exchange reserves		8,543		10,459		9,149
Retained earnings		125,074		124,055		126,397
Equity attributable to owners of the Company		72,669		70,483		71,518
Non-controlling interest		-		502		-
Total equity		72,669		70,985		71,518

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		2013		2012		2012
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Cash generated (used) from operating activities	8	2,033		(3,342)		11,330
Income taxes paid		(1,927)		(2,859)		(6,352)
Net cash generated (used) from operating activities		106		(6,201)		4,978
Investing activities
Interest received		37		76		134
Purchases of computer software		(538)		(506)		(1,060)
Purchases of property, plant and equipment		(617)		(2,330)		(3,931)
Purchases of non-controlling interest		(715)		-		(712)
Net cash used in investing activities		(1,833)		(2,760)		(5,569)
Financing activities
Equity dividends paid		(2,695)		(2,631)		(3,684)
Proceeds from issue of equity		83		-		3
Interest paid		(365)		(347)		(788)
Proceeds from bank loans		4,688		7,150		3,885
Repayment of bank loans		-		(699)		(1,184)
Net cash generated (used) in financing activities		1,711		3,473		(1,768)
Net decrease in cash and cash equivalents		(16)		(5,488)		(2,359)
Cash and cash equivalents at beginning of the period		26,022		28,965		28,965
Effect of foreign exchange rate changes		195		(579)		(584)
Cash and cash equivalents at end of the period		26,201		22,898		26,022

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

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 2012	17,113	21,247	(73,410)	(12,028)	(19,860)	11,646	125,534	70,242	505	70,747
Profit for the period	-	-	-	-	-	-	2,042	2,042	(3)	2,039
Foreign currency translation differences	-	-	-	-	-	(1,187)	-	(1,187)	-	(1,187)
Total comprehensive income and expense for the period	-	-	-	-	-	(1,187)	2,042	855	(3)	852
Dividends paid	-	-	-	-	-	-	(2,631)	(2,631)	-	(2,631)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	2,063	2,063	-	2,063
Deferred tax on share-based payment transactions	-	-	-	-	-	-	(46)	(46)	-	(46)
Transfer to own shares held on exercise of equity incentives	-	-	-	2,907	-	-	(2,907)	-	-	-
New shares issued			-	-	-	-	-	-	-	-
Unaudited balance at 30 June 2012	17,113	21,247	(73,410)	(9,121)	(19,860)	10,459	124,055	70,483	502	70,985
Profit for the period	-	-	-	-	-	-	2,818	2,818	30	2,848
Foreign currency translation differences	-	-	-	-	-	(1,310)	-	(1,310)	-	(1,310)
Total comprehensive income and expense for the period	-	-	-	-	-	(1,310)	2,818	1,508	30	1,538
Dividends paid	-	-	-	-	-	-	(1,053)	(1,053)	-	(1,053)
Acquisition of non-controlling interest	-	-	-	-	-	-	(1,809)	(1,809)	(532)	(2,341)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	2,392	2,392	-	2,392
Deferred tax on share-based payment transactions	-	-	-	-	-	-	(6)	(6)	-	(6)
Transfer to own shares held on exercise of equity incentives	-	-	-	-	-	-	-	-	-	-
New shares issued	1	2	-	-	-	-	-	3	-	3
Balance at 31 December 2012	17,114	21,249	(73,410)	(9,121)	(19,860)	9,149	126,397	71,518	-	71,518
Profit for the period	-	-	-	-	-	-	2,358	2,358	-	2,358
Foreign currency translation differences	-	-	-	-	-	(606)	-	(606)	-	(606)
Total comprehensive income and expense for the period	-	-	-	-	-	(606)	2,358	1,752	-	1,752
Dividends paid	-	-	-	-	-		(2,695)	(2,695)		(2,695)
Credit to equity for equity-settled share-based payments	-	-	-	-	-	-	1,928	1,928	-	1,928
Deferred tax on share-based payment transactions	-	-	-	-	-	-	86	86	-	86
Transfer to own shares held on exercise of equity incentives	-	-	-	3,000	-	-	(3,000)	-	-	-
New shares issued	8	72	-	-	-	-	-	80	-	80
Unaudited balance at 30 June 2013	17,122	21,321	(73,410)	(6,121)	(19,860)	8,543	125,074	72,669	-	72,669

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

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 2012.

The Group was profitable for the period and has considerable financial resources including £6.9m of net cash at 30 June 2013 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 6 to 14 was formally approved by the Board of Directors on 31 July 2013. 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 2012 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 2013 is unaudited but has been reviewed by the Company's auditor. Their report is attached on page 15. The financial information in respect of the period ended 30 June 2012 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 2013 has been prepared using, among other currencies, average exchange rates of € 1.1762 to the Pound (period ended 30 June 2012: €1.2157; year ended 31 December 2012: €1.2331); ¥147.453 to the Pound (30 June 2012: ¥125.750; 31 December 2012: ¥126.524) and AU$1.5240 to the Pound (30 June 2012: AU$1.5285; 31 December 2012: AU$1.5312).

The condensed consolidated balance sheet as at 30 June 2013 has been prepared using the exchange rates on that day of €1.1698 to the Pound (30 June 2012: €1.2418; 31 December 2012: €1.2234); ¥150.871 to the Pound (30 June 2012: ¥124.219; 31 December 2012: ¥138.856) and AU$1.6661 to the Pound (30 June 2012: AU$1.5373; 31 December 2012: AU$1.5590).

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

4.	Segmental information
		2013		2012		2012
		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	133,871		134,695		280,628
	UK	105,128		93,438		193,247
	Europe	46,090		43,982		87,787
	Other International	3,750		2,891		6,109
		288,839		275,006		567,771
ii)	Gross profit:
	Asia Pacific	46,462		45,930		93,353
	UK	26,663		23,883		49,737
	Europe	20,934		19,911		39,557
	Other International	3,721		2,654		5,744
		97,780		92,378		188,391
iii)	Profit before taxation:
	Asia Pacific	3,259		3,266		7,178
	UK	390		29		444
	Europe	218		309		1,213
	Other International	(71)		(166)		(366)
	Operating profit	3,796		3,438		8,469
	Net finance costs	(143)		(371)		(744)
	Profit before taxation	3,653		3,067		7,725
iv)	Total assets:
	Asia Pacific	50,358		54,894		53,521
	UK	73,134		64,398		68,879
	Europe	22,688		21,543		20,941
	Other International	4,710		2,635		3,735
	Unallocated corporate assets*	37,184		31,422		36,216
		188,074		174,892		183,292
v)	Total liabilities:
	Asia Pacific	(21,749)		(20,464)		(23,263)
	UK	(56,154)		(47,998)		(55,871)
	Europe	(13,856)		(13,775)		(14,048)
	Other International	(3,311)		(2,480)		(3,056)
	Unallocated corporate liabilities*	(20,335)		(19,190)		(15,536)
		(115,405)		(103,907)		(111,774)

*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 2013

4.	Segmental information (continued)
		2013		2012		2012
		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	228,366		229,046		467,567
	Resource Solutions	60,473		45,960		100,204
		288,839		275,006		567,771

5.	Taxation
		2013		2012		2012
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Current tax	610		1,016		4,184
	Deferred tax	685		12		(1,346)
	Total tax charge for the period	1,295		1,028		2,838

The tax charge is based on the expected annual tax rate of 35.5% (2012: 33.5%) on profit before taxation.

6.	Dividends
		2013		2012		2012
		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 2012 of 3.68p (2011: 3.68p)	2,695		2,632		2,632
	Interim dividend for 2012 of 1.47p (2011: 1.47p)	-		-		1,052
		2,695		2,632		3,684
	Proposed interim dividend for 2013 of 1.54p (2012: 1.47p)	1,128		1,039		n/a

The proposed interim dividend was approved by the Board on 31 July 2013 and has not been included as a liability at 30 June 2013.

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

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.
		2013		2012		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 attributable to equity holders of the parent	2,358		2,042		4,860
		Number of shares		Number of shares		Number of shares
	Weighted average number of shares:
	Shares in issue throughout the period	85,570,741		85,568,121		85,568,121
	Shares issued in the period	22,241		-		230
	Treasury and own shares held	(13,064,261)		(14,915,606)		(14,357,336)
	For basic earnings per share	72,528,721		70,652,515		71,211,015
	Outstanding share options	8,088,635		7,630,651		7,522,863
	For diluted earnings per share	80,617,356		78,283,166		78,733,878

8.	Notes to the cash flow statement
		2013		2012		2012
		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	3,796		3,438		8,469
	Adjustments for:
	Depreciation and amortisation charges	2,006		1,870		3,811
	Loss on disposal of property, plant and equipment and computer software	35		21		394
	Movement in share scheme balance	1,927		2,062		4,455
	Operating cash flows before movements in working capital	7,764		7,391		17,129
	Increase in receivables	(5,137)		(7,553)		(10,533)
	(Decrease) increase in payables	(594)		(3,180)		4,734
	Cash generated (used) from operating activities	2,033		(3,342)		11,330

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

9.        Bank loans                                                      

In November 2012, the Group extended its three-year committed financing facility, which was increased to £30.0m until November 2015. At 30 June 2013, £18.7m was drawn down under this facility.

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 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 2013

ROBERT WALTERS PLC

Half-yearly Financial Results 2013

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 2013 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 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 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 2013 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 2013

 

END

 

 

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