Robert Walters reported record profits on Friday, driven by the tight labour market and surging wage inflation, as it announced that its long-standing chief executive was stepping down.
The recruiter said revenues in the year 31 December were ahead 13%, or 12% on a constant currency basis, at £1.1bn, while pre-tax profits jumped 11% to £55.6m, an all-time high. Net fee income rose 21% to £428.2m.
Robert Walters said it had benefited from “fierce competition for talent and significant wage inflation across all geographies and specialist disciplines” during the first half.
It also saw growth across all forms of recruitment, including contract, interim and permanent, which represents around 70% of group net fee income.
However, demand had softened in the second half, as the global macro-economic backdrop became more uncertain. “The Ukraine conflict, a high inflation and high interest rate environment, significant cutbacks across the global technology market and Covid-enforced lockdowns in mainland China all had a cumulative effect on market confidence,” the firm noted.
The update came as chief executive and founder Robert Walters, who has led the group for the 38 years, announced he would retire at the annual general meeting in April.
He will be replaced by senior executive Toby Fowlston, who has worked for Robert Walters since 1999 and is currently chief executive of global recruitment brands.
Walters said it had been an “honour and privilege” to have led the group but now was the “right time” to step down.
He added: “The market uncertainty we experienced during the second half of the year has tipped into the early months of 2023. While it’s too early to tell whether this is a short-lived correction or a more prolonged economic slowdown, we have successfully manage the business through numerous economic cycles.”
Walters founded the firm in 1985.
