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Investing.com -- Robert Walters (LON:RWA) on Tuesday reported a 12% YoY decline in third-quarter net fee income to £69.6 million, showing a slight improvement from the 13% drop seen in the second quarter.
The global recruitment firm saw encouraging signs in Asia Pacific and the UK, while European markets remained challenging.
The company’s specialist professional recruitment segment, which accounts for the majority of revenue, saw net fee income fall 10% to £58.5 million. Permanent recruitment fees, representing 67% of the total, declined 7%, while temporary recruitment fees dropped 16%.
Notably, when excluding Europe, permanent and temporary recruitment performed significantly better, down just 2% and up 1% respectively.
"Our year-on-year fee income performance during the third quarter improved slightly compared to the second, albeit with some divergence across our geographic portfolio," said Toby Fowlston, Chief Executive. "Whilst we are seeing signs of sustained improvement in a select number of hiring markets, overall conditions globally remain fragile."
The company continues to implement cost-cutting measures, with the monthly cost run rate reducing to approximately £24 million during the quarter, down from £24.5 million at the end of the first half. Robert Walters is progressing toward delivering at least £10 million in annualized structural cost savings by 2027.
By region, Asia Pacific (the firm’s largest segment) saw net fee income decline by just 2%, while the UK was down 4%. Europe experienced a steeper 26% drop, with France facing renewed political uncertainty and the Netherlands dealing with legislative changes affecting self-employment.
The company ended the quarter with a net cash position of £26.6 million, slightly down from £30.1 million at the end of June. Management indicated they would review the potential reinstatement of shareholder returns at the full-year results announcement in March 2026.
"Throughout our business we are highly focused on continuing to take the right actions to drive a return to profitability in 2026," Fowlston added.