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Robert Walters PLC  -  RWA   

Half-year Report

Released 07:00 26-Jul-2018

RNS Number : 7980V
Robert Walters PLC
26 July 2018
 

 

 

 

26 July 2018

 

ROBERT WALTERS PLC

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

 

Half-yearly financial results for the six months ended 30 June 2018

 

RECORD PROFITS, DIVIDEND UP 45%

 

Robert Walters plc (LSE: RWA), the leading international recruitment group, today announces its half-yearly financial results for the six months ended 30 June 2018.

 

Financial and Operational Highlights

 


H1 2018

H1 2017

% change

% change (constant currency*)

Revenue

£625.9m

£562.7m

11%

13%

Gross profit (net fee income)

£188.6m

£164.5m

15%

17%

Operating profit

£20.7m

£16.2m

28%

30%

Profit before taxation

£20.6m

£15.6m

32%

35%

Basic earnings per share

21.2p

16.3p

30%

n/a

Interim dividend per share

4.0p

2.75p

45%

n/a

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

 

§ Record first half performance with operating profit increasing by 28% (30%*) to £20.7m (2017: £16.2m) and profit before tax increasing by 32% (35%*) to £20.6m (2017: £15.6m).

§ 72% of the Group's net fee income derived from our international businesses (2017: 71%).

§ All regions delivered increases in both net fee income and operating profit.

§ Strong activity levels across permanent, contract, interim and recruitment process outsourcing.

§ Asia Pacific net fee income up 8% (15%*) to £73.1m (£77.3m*) (2017: £67.4m) and operating profit up 19% (28%*) to £9.2m (£9.9m*) (2017: £7.7m).

§ Strong performance across both emerging and well-established markets.

§ Japan, the Group's largest business in the region grew operating profit in excess of 25%*, whilst Indonesia and Vietnam more than doubled profits.

§ Good first half in Australia with Victoria, Queensland and South Australia delivering the highest rates of growth.

§ Resource Solutions continued to grow its client portfolio across the region.

§ UK net fee income up 9% to £52.6m (2017: £48.3m) producing an uplift in operating profit to £4.2m (2017: £4.0m).

§ Good growth across several locations and disciplines.

§ Activity levels were strongest across the technology, legal and commerce finance disciplines. Financial Services more subdued against tough year-on-year comparatives.

§ New office opened in Leeds to further grow regional UK footprint.

§ Resource Solutions continued to grow net fee income and successfully expanded its service offering across a number of key client accounts.

§ Europe net fee income up 29% (26%*) to £48.9m (£48.0m*) (2017: £38.0m) and operating profit up 62% (57%*) to £7.1m (£6.9m*) (2017: £4.4m).

§ Excellent first half performance across the whole region and permanent, contract and interim recruitment.

§ Record results delivered by seven out of eight of the region's markets with France, Germany, Spain and Switzerland producing the highest rates of growth.

§ New office opened in Hamburg, our third in Germany, to further capitalise on opportunities for growth in this high potential market.

§ Other International (North America, Brazil, the Middle East and South Africa) net fee income up 29% (40%*) to £14.0m (£15.3m*) (2017: £10.9m) producing an operating profit of £0.2m (£0.1m*) (2017: £0.1m).

§ Strong first half performance particularly across North America and the Middle East.

§ Group headcount increased by 14% to 3,996 (30 June 2017: 3,495).

§ Strong balance sheet with net cash of £24.8m as at 30 June 2018 (30 June 2017: £18.4m).

 

Robert Walters, Chief Executive, said:

 

"The Group delivered record first half profits, in line with recently increased market expectations, growing profit before tax by 32% (35%*) year-on-year. Growth was strong and broad-based across all regions and our permanent, contract, interim and recruitment process outsourcing revenue streams. 

 

"We enter the second half of 2018 with confidence and we have increased the interim dividend by 45%. The Group's platform for growth continues to be strong, across both emerging and well-established markets and disciplines, and we are well positioned to further capitalise on market opportunities as they arise."

 

The Company will be holding a presentation for analysts at 10.30am today at Newgate Communications, Sky Light City Tower, 50 Basinghall Street, London EC2V 5DE.

 

The Company will publish an interim management statement for the third quarter ending 30 September 2018 on 9 October 2018.

 

Further information

 

Robert Walters plc

Robert Walters, Chief Executive

Alan Bannatyne, Chief Financial Officer

 

+44 (0) 20 7379 3333

Newgate Communications

Emma Kane

Charlotte Coulson

+44 (0) 20 7680 6550

 

About Robert Walters

 

Robert Walters is a market-leading international specialist professional recruitment group with over 3,900 staff spanning 28 countries. We specialise in the placement of the highest calibre professionals across the disciplines of accountancy and finance, banking, engineering, HR, IT, legal, sales, marketing, secretarial and support and supply chain and procurement. Our client base ranges from the world's leading blue-chip corporates and financial services organisations through to SMEs and start-ups. The Group's outsourcing division, Resource Solutions is a market leader in recruitment process outsourcing and managed services.

 

www.robertwalters.com

 

Forward looking statements

 

This announcement contains certain forward-looking statements.  These statements are made by the directors in good faith based on the information available to them at the time of their approval of this announcement and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

 

 

 

 



 

 

 

 

 

Robert Walters plc

Half-yearly financial results for the six months ended 30 June 2018

 

Half-yearly Management Report

The Group delivered a record first half performance increasing profit before taxation by 32% (35%*) to £20.6m.  All of the Group's regions delivered increases in both net fee income and operating profit with fifteen countries producing record results. The second quarter was also the Group's first ever £100m net fee income quarter.

 

The Group continued to benefit from the diversity of both our international footprint which includes some of the world's fastest developing and growing recruitment markets and the breadth and depth of recruitment solutions we provide to clients, from permanent, contract and interim recruitment through to recruitment process outsourcing. Our dedicated Innovation team also continues to assess and deploy, where relevant, new tools, processes and technology to maximise consultant efficiency and ensure a focus on building high quality personal relationships with our clients and candidates.

 

Revenue was up 11% (13%*) to £625.9m (£637.4m*) (2017: £562.7m) and gross profit (net fee income) increased by 15% (17%*) to £188.6m (£193.2m*) (2017: £164.5m). Operating profit increased 28% (30%*) to £20.7m (£21.1m*) (2017: £16.2m). The Group has maintained a strong balance sheet with net cash of £24.8m as at 30 June 2018 (30 June 2017: £18.4m).

 

Permanent recruitment currently represents 69% (2017: 69%) of the Group's recruitment net fee income. Group headcount now stands at 3,996 (30 June 2017: 3,495) a 14% increase year-on-year with growth highest in those regions and disciplines showing the strongest potential for long-term growth.

 

Asia Pacific (39% of net fee income)

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

 

In Asia, where the Group has an unrivalled geographic footprint, performance was strong across both emerging and established recruitment markets. In Japan, the Group's most profitable market, we delivered a record performance with operating profit increasing by over 25%* fuelled by continued strong demand for bilingual professionals. Taiwan also grew profits in excess of 25%* whilst Indonesia and Vietnam more than doubled operating profit further highlighting the growth potential of these fast-evolving recruitment markets where professionals are in short supply and we have first mover advantage. Hong Kong delivered record results, Singapore had a more positive first half despite challenging market conditions and Resource Solutions continued to grow its client portfolio across the region.

 

Both Australia and New Zealand produced strong first half results delivering operating profit growth of more than 35%*. In Australia, growth was strongest across Victoria, Queensland and South Australia whilst our blend of both private and public sector revenue streams continues to provide a strong platform for growth in Auckland and Wellington.

 

United Kingdom (28% of net fee income)

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

 

In the UK, we have delivered good growth across several different disciplines and locations. We continue to see good activity levels across the UK regions particularly in technology, where we have over the last few years developed a very strong offering, and commerce finance. During the period, we invested in a new office in Leeds to further expand our regional office footprint and grew headcount across the regional business. In London, performance was strongest across legal, commerce finance and technology, however after a strong 2017, the financial services market has been relatively subdued.  Resource Solutions continued to grow net fee income and successfully expanded its service offering across a number of key client accounts.

 

Europe (26% of net fee income)

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

 

Our business across Europe continues to go from strength to strength underpinned by the breadth of our service offering across permanent, contract and interim recruitment.

 

Seven of the region's eight markets delivered record performances with France, the region's largest business, Germany, Spain and Switzerland all delivering operating profit uplifts in excess of 40%*. 

 

During the period, we opened a new office in Hamburg, our third in Germany, to further capitalise on opportunities for growth in this high potential market.

 

Other International (7% of net fee income)

Other International comprises North America, Brazil, the Middle East and South Africa. Revenue was £15.4m (2017: £11.0m), net fee income was up 29% (40%*) to £14.0m (£15.3m*) (2017: £10.9m) producing an operating profit of £0.2m (£0.1m*) (2017: £0.1m).

 

In North America, our businesses in New York and Toronto, in particular, delivered standout first half results and we continue to invest in additional headcount to support growth opportunities. The Middle East and Brazil also delivered good performances increasing net fee income by 31%* and 47%* respectively whilst our business in South Africa was flat year-on-year.

 

Cash flow

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

 

Dividend

The interim dividend will be increased by 45% to 4.0p per share (2017: 2.75p) and will be paid on 19 October 2018 to those shareholders on the Company's register as at 7 September 2018.

 

Treasury management, currency risk and other principal risks and uncertainties affecting the business

The Group does not have material transactional exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations. Overseas currency balances that are surplus to local working capital requirements are converted on a regular basis to Pounds Sterling. The main functional currencies of the Group's operating divisions are Pounds Sterling, the Euro, the Australian Dollar and the Japanese Yen.

 

The other principal risks and uncertainties affecting the Group's business activities remain those detailed within the Principal Risks and Uncertainties section of the Annual Report and Accounts for the year ended 31 December 2017, namely the economic environment, business model, people management, brand and reputation, laws and regulation and technology. The Board does not foresee a material change in respect of these factors for the remainder of the year.

 

Outlook

We enter the second half of the year with confidence that the Group's platform for growth continues to be strong, across both emerging and well-established markets and disciplines, and that we are well positioned to further capitalise on market opportunities as they arise.

 

 

Carol Hui

Chairman

25 July 2018

 

Robert Walters

Chief Executive

 



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

CONDENSED CONSOLIDATED INCOME STATEMENT

 

 



2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited


Notes

£'000


£'000


£'000

Continuing operations







Revenue

4

625,866


562,704


1,165,776

Cost of sales


(437,307)


(398,175)


(820,528)

Gross profit

4

188,559


164,529


345,248

Administrative expenses


(167,845)


(148,283)


(303,350)

Operating profit

4

20,714


16,246


41,898

Finance income


150


163


531

Finance costs


(319)


(395)


(981)

Gain (loss) on foreign exchange


16


(446)


(874)

Profit before taxation

4

20,561


15,568


40,574

Taxation

5

(5,510)


(4,437)


(11,239)

Profit for the period


15,051


11,131


29,335








Earnings per share (pence):

7






Basic


21.2


16.3


42.9

Diluted


19.2


14.7


38.9

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE

 



2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000

Profit for the period


15,051


11,131


29,335

Items that may be reclassified subsequently to profit or loss:







Exchange differences on translation of overseas operations


(248)


20


(1,686)

Total comprehensive income for the period


14,803


11,151


27,649






















 



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

CONDENSED CONSOLIDATED BALANCE SHEET

 


2018

 


2017

 


2017

 


30 June


30 June


31 December


Unaudited


Unaudited


Audited


Note

£'000


£'000


£'000

Non-current assets







Intangible assets

11,433


11,809


11,909

Property, plant and equipment

9,636


9,356


9,135

Deferred tax assets


10,247


9,127


10,163



31,316


30,292


31,207








Current assets






Trade and other receivables

250,604


251,589


227,585

Corporation tax receivables

1,556


836


3,016

Cash and cash equivalents


51,344


49,281


61,872



303,504


301,706


292,473

Total assets


334,820


331,998


323,680








Current liabilities






Trade and other payables

(166,261)


(189,379)


(161,270)

Corporation tax liabilities

(5,963)


(5,139)


(6,986)

Bank overdrafts and loans

(26,513)


(30,923)


(30,784)

Provisions


(994)


(641)


(1,198)



(199,731)


(226,082)


(200,238)

Net current assets


103,773


75,624


92,235








Non-current liabilities






Provisions


(1,906)


(2,692)


(1,634)



(1,906)


(2,692)


(1,634)

Total liabilities


(201,637)


(228,774)


(201,872)

Net assets


133,183


103,224


121,808








Equity






Share capital

15,923


15,711


15,875

Share premium

21,948


21,935


21,936

Other reserves

(71,818)


(71,818)


(71,818)

Own shares held

(13,171)


(18,384)


(18,193)

Treasury shares held

(9,095)


(9,095)


(9,095)

Foreign exchange reserves

12,104


14,058


12,352

Retained earnings

177,292


150,817


170,751

Total equity


133,183


103,224


121,808

 



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

 



2018


2017


2017

 



6 mths to


6 mths to


12 mths to

 



30 June


30 June


31 December

 



Unaudited


Unaudited


Audited

 


Note

£'000


£'000


£'000

 

Cash generated from operating activities

8

8,289


17,468


43,025

 

Income taxes paid


(4,578)

(3,418)


(11,032)

 

Net cash generated from operating activities


3,711


14,050


31,993

 








 

Investing activities







 

Interest received


150


163


531

 

Purchases of computer software


(585)


(1,069)


(1,912)

 

Purchases of property, plant and equipment


(2,192)


(2,968)


(5,079)

 

Net cash used in investing activities


(2,627)


(3,874)


(6,460)

 








 

Financing activities







 

Equity dividends paid


(6,607)


(4,195)


(6,074)

 

Proceeds from issue of equity


60


114


279

 

Interest paid


(319)


(395)


(981)


Proceeds from bank loans


572


-


-

 

Repayment of bank loans


(4,845)


(9,114)


(9,188)

 

Share buy-back and cancellation


-


(8,033)


(8,033)

 

Purchase of own shares


-


(1,746)


(1,784)

 

Proceeds from exercise of share options


13


670


846

 

Net cash used in financing activities


(11,126)


(22,699)


(24,935)

 

Net (decrease) increase in cash and cash equivalents


(10,042)

(12,523)


598









 

Cash and cash equivalents at beginning of the period


61,872


62,601


62,601

 

Effect of foreign exchange rate changes


(486)


(797)


(1,327)

 

Cash and cash equivalents at end of the period


51,344

49,281


61,872

 


ROBERT WALTERS PLC

Half-yearly Financial Results 2018

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 


Share capital

Share premium

Other reserves

Own shares held

Treasury shares held

Foreign exchange reserves

Retained earnings

                    

 

 

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 January 2017

16,101

21,854

(72,241)

(19,906)

(9,095)

14,038

151,192

101,943

Profit for the period

-

-

-

-

-

-

11,131

11,131

Foreign currency translation differences

-

-

-

-

-

20

-

20

Total comprehensive income and expense for the period

-

-

-

-

-

20

11,131

11,151

Dividends paid

-

-

-

-

-

-

(4,195)

(4,195)

Shares repurchased for cancellation

(423)

-

423

-

-

-

(8,033)

(8,033)

Credit to equity for equity-settled share-based payments

-

-

-

-

-

-

2,607

2,607

Deferred tax on share-based payment transactions

-

-

-

-

-

-

713

713

Transfer to own shares held on exercise of equity incentives

-

-

-

2,598

-

-

(2,598)

-

New shares issued and own shares purchased

33

81

-

(1,076)

-

-

-

(962)

Unaudited balance at 30 June 2017

15,711

21,935

(71,818)

(18,384)

(9,095)

14,058

150,817

103,224

Profit for the period

-

-

-

-

-

-

18,204

18,204

Foreign currency translation differences

-

-

-

-

-

(1,706)

 -

(1,706)

Total comprehensive income and expense for the period

-

-

-

-

-

(1,706)

18,204

16,498

Dividends paid

-

-

-

-

-

-

(1,879)

(1,879)

Credit to equity for equity-settled share-based payments

-

-

-

-

-

-

2,717

2,717

Deferred tax on share-based payment transactions

-

-

-

-

-

-

946

946

Transfer to own shares held on exercise of equity incentives

-

-

-

54

-

-

(54)

-

New shares issued and own shares purchased

164

1

-

137

-

-

-

302

Balance at 31 December 2017

15,875

21,936

(71,818)

(18,193)

(9,095)

12,352

170,751

121,808

Profit for the period

-

-

-

-

-

-

15,051

15,051

Foreign currency translation differences

-

-

-

-

-

(248)

-

(248)

Total comprehensive income and expense for the period

-

-

-

-

-

(248)

15,051

14,803

Dividends paid

-

-

-

-

-

-

(6,607)

(6,607)

Credit to equity for equity-settled share-based payments

-

-

-

-

-

-

2,842

2,842

Deferred tax on share-based payment transactions

-

-

-

-

-

-

264

264

Transfer of own shares held on exercise of equity incentives

-

-

-

5,009

-

-

(5,009)

-

New shares issued and own shares purchased

48

12

-

13

-

-

-

73

Unaudited balance at 30 June 2018

15,923

21,948

(71,818)

(13,171)

(9,095)

12,104

177,292

133,183



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS

 

1.         Statement of accounting policies 

 

Basis of preparation

The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

 

The accounting policies applied by the Group are as set out in detail in the Annual Report and Accounts for the year ended 31 December 2017.

 

IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers were adopted from 1 January 2018. As stated in the Annual Report and Accounts for the year ended 31 December 2017 these have not had a material impact on the financial statements.

 

The Group was profitable for the period and has considerable financial resources, including £24.8m of net cash at 30 June 2018, together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe the Group is well placed to manage its business risks successfully.

 

After making enquiries, the Directors have formed a judgement, at the time of approving the Half-yearly Financial results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of this report. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.

 

2.         Financial information

 

The financial information on pages 5 to 13 was formally approved by the Board of Directors on 25 July 2018. The financial information set out in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

Statutory accounts prepared under IFRSs for the year ended 31 December 2017 for Robert Walters plc have been delivered to the Registrar of Companies. The auditor's report on these accounts was not qualified, did not draw attention to any matters by way of emphasis and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

 

The financial information in respect of the period ended 30 June 2018 is unaudited but has been reviewed by the Company's auditor. Their report is attached on page 14. The financial information in respect of the period ended 30 June 2018 is also unaudited.

 

3.         Currency conversion

 

The presentational currency of the Group is Pounds Sterling and the condensed set of financial statements has been prepared on this basis.

 

The Condensed Consolidated Income Statement for the period ended 30 June 2018 has been prepared using, among other currencies, the average exchange rate of €1.1363 to the Pound (period ended 30 June 2017: €1.1625; year ended 31 December 2017: €1.1414); ¥149.5392 to the Pound (30 June 2017: ¥141.3893; 31 December 2017: ¥144.4563) and AU$1.7836 to the Pound (30 June 2017: AU$1.6681; 31 December 2017: AU$1.6801).

 

The Condensed Consolidated Balance Sheet as at 30 June 2018 has been prepared using the exchange rates on that day of €1.1298 to the Pound (30 June 2017: €1.1381; 31 December 2017: €1.1262); ¥146.1260 to the Pound (30 June 2017: ¥145.7482; 31 December 2017: ¥151.9886) and AU$1.7815 to the Pound (30 June 2017: AU$1.6914; 31 December 2017: AU$1.7281).



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

 

4.

Segmental information








2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000

i)

Revenue:







Asia Pacific

189,659


185,265


370,248


UK

306,723


278,117


569,610


Europe

114,105


88,368


189,056


Other International

15,379


10,954


36,862



625,866


562,704


1,165,776








ii)

Gross profit:







Asia Pacific

73,067


67,384


136,641


UK

52,602


48,277


100,881


Europe

48,891


37,981


80,649


Other International

13,999


10,887


27,077



188,559


164,529


345,248








iii)

Profit before taxation:







Asia Pacific

9,205


7,749


17,719


UK

4,193


4,010


11,802


Europe

7,139


4,397


11,279


Other International

177


90


1,098


Operating profit

20,714


16,246


41,898


Net finance costs

(153)


(678)


(1,324)


Profit before taxation

20,561


15,568


40,574








iv)

Total assets:







Asia Pacific

66,138


60,524


62,312


UK

141,530


156,291


125,923


Europe

53,394


44,740


49,677


Other International

10,613


11,199


10,717


Unallocated corporate assets*

63,145


59,244


75,051



334,820


331,998


323,680








v)

Total liabilities:







Asia Pacific

(36,672)


(33,963)


(34,407)


UK

(98,380)


(127,251)


(91,996)


Europe

(29,063)


(25,076)


(31,676)


Other International

(5,047)


(6,422)


(6,024)


Unallocated corporate liabilities*

(32,475)


(36,062)


(37,769)



(201,637)


(228,774)


(201,872)








 

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



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

 

4.

Segmental information (continued)








2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000

vi)

Revenue by business grouping:







Robert Walters

338,556


318,954


643,626


Resource Solutions

287,310


243,750


522,150



625,866


562,704


1,165,776

 

 

5.     

Taxation








2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000


Current tax

5,271


4,623


11,685


Deferred tax

239


           (186)


(446)


Total tax charge for the period

5,510


4,437


11,239

 

The tax charge is based on the expected annual effective tax rate of 26.8% (2017: 28.5%) on profit before taxation. The effective tax rate is higher than the standard UK rate of 19%, primarily as a result of overseas taxation in Japan, Australia and France and the impact of adjustments to accounting profit in the tax calculation and disallowable costs.

 

6.

Dividends








2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000


Amounts recognised as distributions to equity holders in the period:







Final dividend for 2017 of 9.3p (2016: 6.2p)

6,607


4,195


6,429


Interim dividend for 2016 of 2.75p (2016: 2.3p)

-


-


1,877



6,607


4,195


8,306









Proposed interim dividend for 2018 of 4.0p (2017: 2.75p)

2,843


1,877


n/a

 

The proposed interim dividend was approved by the Board on 25 July 2018 and has not been included as a liability at 30 June 2018.


ROBERT WALTERS PLC

Half-yearly Financial Results 2018

 

 

7.

Earnings per share


The calculation of earnings per ordinary share is based on the profit for the period attributable to equity holders of the Parent and the weighted average number of shares of the Company.

 



2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000


Profit for the period attributable to equity holders of the Parent

15,051


11,131


29,335










Number of shares


Number of shares


Number of shares


Weighted average number of shares:







Shares in issue throughout the period

79,374,520


80,507,284


80,507,284


Shares issued in the period

125,389


92,076


317,504


Shares cancelled in the period

-


(1,668,798)


(1,893,733)


Treasury and own shares held

(8,543,036)


(10,822,054)


(10,558,159)


For basic earnings per share

70,956,873


68,108,508


68,372,896


Outstanding share options

7,370,243


7,821,209


7,086,415


For diluted earnings per share

78,327,116


75,929,717


75,459,311

 

 

8.     

Notes to the cash flow statement








2018


2017


2017



6 mths to


6 mths to


12 mths to



30 June


30 June


31 December



Unaudited


Unaudited


Audited



£'000


£'000


£'000


Operating profit for the period

20,714

16,246


41,898


Adjustments for:






Depreciation and amortisation charges

2,480

2,238


4,738


Loss on disposal of property, plant and equipment and computer software

85

178


681


Charge in respect of share-based payment transactions

2,842


2,607


5,324


Operating cash flows before movements in working capital

26,121

21,269


52,641


(Increase) decrease in receivables

(23,021)

(14,819)


7,733


Increase (decrease) in payables

5,189

11,018


(17,349)


Cash generated from operating activities

8,289

17,468


43,025








 



ROBERT WALTERS PLC

Half-yearly Financial Results 2018

 

 

9.           Bank loans                                                                            

The Group has a committed financing facility of £45.0m, which expires in December 2020.

 

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

 

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

 

The Group has a short-term facility of Renminbi 25m (£2.9m) of which Renminbi 10m (£1.1m) was drawn down as at 30 June 2018. The loan is secured against cash deposits in Hong Kong.

 

10.        Related party transactions

During the first six months of the year, there were related party transactions totalling £45,000 (2017: £77,000) with Tay Associates Limited, a related party through a Director of Robert Walters plc.

 

There were no outstanding balances as at 30 June 2018.

 

All transactions were undertaken on an arms-length basis.

 

11.        Registered office

The Company's registered office is located at 11 Slingsby Place, St Martin's Courtyard, London, WC2E 9AB.

 

 

RESPONSIBILITY STATEMENT 

We confirm to the best of our knowledge:

a)      the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b)      the Interim Management Report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c)      the Interim Management Report and note 10 includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board,

 

Alan Bannatyne

Chief Financial Officer

25 July 2018


ROBERT WALTERS PLC

Half-yearly Financial Results 2018

 

INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC

 

 

We have been engaged by the Company to review the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 June 2018 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income and Expense, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement, the Condensed Consolidated Statement of Changes in Equity, and related notes 1 to 11. We have read the other information contained in the Half-Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council.  Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

 

Directors' responsibilities

The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors.  The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union.  The condensed set of financial statements included in this Half-Yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.

 

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review.

 

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 June 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

 

 

Deloitte LLP

Statutory Auditor

London, United Kingdom

25 July 2018

 

 


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