Robert Walters Shares Plummet Following Fee Income Forecast Decline
Impact of Fee Income Forecast on Robert Walters
Jan 15 (Reuters) - Robert Walters shares fell steeply on Thursday after the recruitment company forecast a drop in its fee income for its 2026 fiscal year, showing how hiring markets remain challenging.
Quarterly Performance Overview
Its shares were down about 8.4% at 125 pence at 0803 GMT, making it one of the biggest losers across UK stocks.
Market Reactions and Analyst Predictions
The company reported a 14% decline in fourth-quarter income from fees.
Geographic Performance Insights
"Whilst our capacity to execute our plans to the levels required is better than it was a year ago, the timing of any overall top line inflection clearly remains somewhat dependent on how recovery develops in global hiring markets," said CEO Toby Fowlston in a statement.
Global recruitment companies continue to face sluggish hiring, as companies delay new appointments and job-seekers hesitate to move amid economic uncertainty.
Brokerage Panmure Liberum raised its full-year loss forecast for Robert Walters, citing a quarterly net fee shortfall and an uncertain outlook.
"While the performance was worse than we expected, it was a similar trend to prior quarters," the brokerage said.
Europe, which accounts for 30% of Robert Walters' fee income, had a 23% decline in net fees in the fourth quarter, as regulatory changes and political uncertainty weighed on demand. This was a bigger drop than the 17% decline for the same period in the prior year.
The company, which employs 3,300 people and has operations in 31 countries, has seen its shares fall about 59% over the past 12 months as of Wednesday’s market close.
Robert Walters is scheduled to report its 2025 results in March.
(Reporting by Ankita Bora and Rishab Shaju in Bengaluru; Editing by Nivedita Bhattacharjee and Jane Merriman)
