Robert Walters Plc · LSE:RWA
Robert Walters — H1 2025 Earnings Presentation
28 slides from Robert Walters's earnings presentation, Jul 31, 2025
Slide 1: 2025 half-year results
2025 half-year results Thursday 31 July 2025 Global Talent Solutions Robert Walters plc – 2025 half-year results | 1
Slide 2: Key messages
Key messages 1 2 3 Decisive actions to drive Adapting our business to Positioning the business efficiency and improve changing client needs and for long term growth with performance against an evolving talent continued conviction in challenging H1 backdrop landscape strategic plan Developing a full
Slide 3: Today's agenda
Today’s agenda Trading review - Toby Fowlston Financial review & capital allocation update – David Bower Growth drivers – Toby Fowlston Q&A Robert Walters plc – 2025 half-year results | 3
Slide 4: Trading review
Trading review Robert Walters plc – 2025 half-year results | 4
Slide 5: Macro backdrop remained challenging during H1
Macro backdrop remained challenging during H1 Major hiring market job UK job vacancies (re-based) vacancies (re-based) 3m ending Jan 2020 = 100 Feb 2020 = 100 Source: ONS • External environment 250 Source: Indeed 200 incentivises clients to “wait and 180 200 160 see” 140 150 120 • Slower decision-ma
Slide 6: Trading review: Asia-Pacific & Europe
Trading review: Asia-Pacific & Europe Pockets of growth in Asia-Pacific, whilst conditions remain more challenging in Europe Asia-Pacific SPR1: 40% of Group NFI Europe SPR1: 31% of Group NFI Specialist recruitment: -9%* YoY Specialist recruitment: -22%* YoY Resilience in Japan (-5%*) driven by growt
Slide 7: Trading review: UK & Rest of World
Trading review: UK & Rest of World London showing signs of stabilisation; mixed performance in Rest of World UK SPR1: 8% of Group NFI Rest of World SPR1: 5% of Group NFI Specialist recruitment: -5% YoY Specialist recruitment: -20%* Growth in London more than offset by Regions Middle East (-6%*) resi
Slide 8: Trading review: Recruitment outsourcing & talent advisory
Trading review: Recruitment outsourcing & talent advisory Improved performance versus recent trend in outsourcing; operational momentum in talent advisory Recruitment outsourcing: 17% of Group NFI Talent advisory H1 NFI down 11%* YoY – improvement on recent trends H1 NFI more than doubles YoY off mo
Slide 9: Financial review
Financial review Robert Walters plc – 2025 half-year results | 9
Slide 10: Group financial summary
Group financial summary Challenging conditions drive H1 operating loss % CC • Challenging market conditions £m unless otherwise stated 1H25 1H24 % Chg drives YoY decline in group NFI Chg* Net fee income 140.0 166.1 (16%) (14%) • Almost 70% of year-on-year Operating costs (147.8) (165.9) (11%) (9%) f
Slide 11: Operating costs
Operating costs £18m reduction in cost base, with contribution from prior year structural actions Group operating cost breakdown Group operating cost bridge H1 2025 H1 2024 – H1 2025 £m 100% £18.1m reduction year-on-year • Average group headcount 90% down by 15% YoY, driving 80% reduction in fixed s
Slide 12: Group cashflow
Group cashflow Closing net cash of £30m Group cashflow H1 2025 £m 12.1 0.2 52.5 (0.4) (7.8) (9.0) (1.8) • Working capital inflow and (3.8) reduced cash tax drive lower 30.1 free cash outflow YoY (11.2) (0.7) • £30m closing net cash slightly higher than expected due to £(10.5)m free cash flow (H1 202
Slide 13: Capital allocation
Capital allocation Aligning application of policy to current realities Maintain a strong balance sheet – target year-end net cash of at least £50m H1 cash restructuring cost of £1.6m, with further restructuring activity anticipated in H2 Anticipate 2025 year end net cash will be below H1 closing pos
Slide 14: Margin improvement programme (1)
Margin improvement programme (1) Focused on five areas which bridge to a higher margin business • Strengthened focus on sales funnel • Active management of metrics leases • Tech development to underpin volume • £0.2m annualised productivity continues – Zenith and AI saving delivered in H1 • Growth i
Slide 15: Margin improvement programme (2)
Margin improvement programme (2) A path to delivering medium-term conversion rate target on lower net fees than needed previously ILLUSTRATIVE SCENARIOS c.£400m net fees to deliver 13% CR in 2018 and 2019… Monthly cost £24.5m £23.0m base Robert Walters NFI (£m) and CR% 2018 – 2019 Annual NFI 450 req
Slide 16: Guidance
Guidance Planning assumption remains for no material near term improvement in hiring markets Any further sequential improvement in Asia-Pacific assumed to be offset by softness in Europe Anticipate further progress in H2 on operating cost monthly run rate Underlying (excluding restructuring) monthly
Slide 17: Growth drivers
Growth drivers Robert Walters plc – 2025 half-year results | 17
Slide 18: We continue to be excited by our long-term growth opportunities
We continue to be excited by our long-term growth opportunities Underpinned by continued skills shortages and the complexity of the talent landscape Demographically-driven skills shortages Increasingly complex talent landscape 10m 98% 62% Of CEOs Of CEOs are Projected expecting to make recruiting ke
Slide 19: Underlying structural drivers
Geographic penetration A higher proportion of our portfolio where we are a top three competitor Evolving our footprint in specialist professional recruitment… Fix internal controllables before growing platform Invest to grow platform Spain Taiwan Japan Underlying structural drivers 8 specialist • Fi
Slide 20: Service line diversification (1)
Service line diversification (1) Different stages of development, with each expected to outperform wider group on top and bottom line Interim Workforce Talent management consultancy advisory H1 Group NFI % mix 10%+ c.2% <1% H1 performance Investment v. margin return Exceeding Exceeding hurdle1 phase
Slide 21: Service line diversification (2)
Service line diversification (2) Further developing the opportunity during H1 Interim management Workforce consultancy Talent advisory Continued high appeal to clients – Strong H1 growth delivered from Continuing to drive referrals – almost resilient volumes (-4%) in France, further penetrating exis
Slide 22: Conclusion
Conclusion 1 2 Decisive actions to drive Further positioned the efficiency and improve business for long-term performance against growth with continued challenging H1 backdrop conviction in strategic plan Strengthening our specialist c.70% of fee income impact recruitment geographic offset through l
Slide 23: Appendix
Appendix Robert Walters plc – 2025 half-year results | 23
Slide 24: Group net fee income summary
Group net fee income summary Group net fee income CC* 1H25 1H24 Chg. £m unless otherwise stated Chg. Spec. professional recruitment 116.7 139.6 (16%) (15%) Of which permanent 75.5 91.8 (18%) (17%) Of which temporary 39.1 46.8 (15%) (13%) Perm % mix 65% 66% -1pp n/a Temp % mix 34% 33% +1 pp n/a Recru
Slide 25: Asia-Pacific: H1 2025 summary
Asia-Pacific: H1 2025 summary Specialist recruitment fee income mix £m unless otherwise stated 1H25 1H24 Chg. CC* Chg. H1 2025 Net fee income 60.4 70.0 (14%) (12%) Specialist professional recruitment 56.1 63.3 (11%) (9%) Other Asia- Recruitment outsourcing 4.3 6.7 (36%) (34%) Pacific Spec. professio
Slide 26: Europe: H1 2025 summary
Europe: H1 2025 summary Specialist recruitment fee income mix £m unless otherwise stated 1H25 1H24 Chg. CC* Chg. H1 2025 Net fee income 43.4 56.5 (23%) (22%) Other Europe Specialist professional recruitment 43.0 56.0 (23%) (22%) 7% Germany Recruitment outsourcing 0.4 0.5 (23%) (23%) 8% France Spec.
Slide 27: UK: H1 2025 summary
UK: H1 2025 summary Specialist recruitment fee income mix H1 2025 £m unless otherwise stated 1H25 1H24 Chg. Net fee income 24.7 26.3 (6%) Specialist professional recruitment 10.9 11.4 (5%) Recruitment outsourcing 13.8 14.9 (7%) Regions Spec. professional recruitment Perm % mix 75% 74% +1pp 38% Spec.
Slide 28: Rest of World: H1 2025 summary
Rest of World: H1 2025 summary Specialist recruitment fee income mix H1 2025 £m unless otherwise stated 1H25 2023 Chg. CC* Chg. Other Rest of World Net fee income 11.5 13.3 (13%) (10%) 9% Specialist professional recruitment 6.7 8.9 (24%) (20%) South Africa Recruitment outsourcing 4.8 4.4 8% 11% 13%