LONDON (ShareCast) - (Sharecast News) - Specialist recruitment firm Robert Walters reported a 25% improvement in group net fee income in its second quarter on Wednesday, to £89m, signalling that profit was now expected to be "significantly ahead" of expectations in the full year.
The London-listed company said trading momentum continued to accelerate through the second quarter, with its performance in June "particularly strong".

Profit for the full year was now expected to be "significantly ahead" of the level it signalled in its trading update on 11 June, the board said.

Group net fee income growth in the second quarter was strongest across the Asia-Pacific and Europe geographies, the board said, while all regions returned to net fee income growth.

A total of 80% of the group's net fee income was now derived from international operations, up from 77% a year earlier.

Asia-Pacific, the company's largest geography, now accounted for 46% of group net fee income, up from 41% a year earlier, with net fee income in the region up 39% to £40.9m year-on-year.

Net fee income grew more than 25% across every market in the region, with growth rates strongest in Malaysia and mainland China, and each more than doubling net fee income year-on-year.

In Japan and Australia, the Group's largest and most profitable markets in the region, net fee income grew more than 45% and 35% year-on-year, respectively.

Europe net fee income was up 22% to £23.4m, with broad-based growth across the region.

A "strong bounce-back" continued in two of the region's largest businesses, France and Spain, with net fee income increasing more than 25% and 80% year-on-year, respectively.

UK net fee income was ahead 9% at £18.0m.

Candidate and client confidence continued to improve across the UK market, with recruitment activity levels the highest in London across commerce finance, legal and technology.

Activity levels in the firm's recruitment process outsourcing business, Resource Solutions, were more muted as a result of the lag effect of organisations rebuilding recruitment teams at the beginning of recovery cycles.

Other international geographies, including the Americas, South Africa and the Middle East, saw net fee income growth of 11% to £6.7m.

The large majority of the group's offices were open, however the board warned that remained volatile due to fluctuations in local infection rates and government policies.

Robert Walters' headcount currently stood at 3,230, while the firm reported a "strong" balance sheet, with net cash of £112.8m as at 30 June, compared to £119m a year earlier.

The group also had a £60m committed loan facility, which expires in 2024.

"Candidate and client confidence has continued to improve across all of the group's regions with net fee income growth for the second quarter accelerating to 31% year-on-year, with activity levels strongest across Asia=Pacific and Europe." said chief executive officer Robert Walters.

"Group net fee income for the half year was up 8%.

"To capitalise on this momentum, we will be investing in additional headcount in those geographies and disciplines showing the strongest signs of sustained growth."

Walters said the group was benefitting from operational gearing, and due to a "very strong" close to the quarter, he reiterated that profit for the full year was expected to be "significantly ahead" of current market expectations.

"We enter the second half of the year with cautious optimism and confidence that we are very well-positioned to continue to take advantage of market opportunities as they arise."

At 0845 BST, shares in Robert Walters were up 9.64% at 796p.

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