Date: Tuesday 07 Jul 2015
LONDON (ShareCast) - Shares in Robert Walters surged 6% after the recruitment specialist posted an 11% rise in second-quarter net fee income, despite currency headwinds, and sounded a confident note on its full-year outlook.
Net fee income came in at £60m, up from £53.9m in the second quarter of last year. This was a 15% gain at constant currency.
It rose across the company's operations, with net fee income up 19% in the UK and 3% in Europe, although this was 16% at constant currency.
Chief executive Robert Walters said: "We are pleased to report another strong set of quarterly results with net fee income increasing 15% in constant currency. Particularly encouraging is the exceptional growth we are seeing from our newer businesses in emerging markets in Asia.
"This progress, coupled with the strength of our established recruitment businesses and Resource Solutions, provides a solid platform for future growth."
The company, which will publish its half-yearly financial results for the six months ending 30 June 2015 on 30 July, is confident profit for the year will be ahead of current market expectations.
Broker Numis Securities said: "In spite of FX headwinds Robert Walters has continued to deliver earnings upgrades over the past 12 months, and remains our top pick in the staffing sub-sector."
Meanwhile, Panmure Gordon lifted its full-year 2015 pre-tax profit estimate to £22.3m from £21.3m following the update.
"Today's update provides further comfort that Robert Walters will continue to deliver operationally and for investors," it said.
Both Panmure and Numis rate the stock at 'buy'.
385.00p
