Here’s why Robert Walters stock jumped close to 10% on Wednesday morning
- Robert Walters' net fee income climbed by 25% in the second quarter.
- The professional recruitment group raised its guidance for the full year.
- Shares of the company jumped about 10% on market open on Wednesday.
Robert Walters plc (LON: RWA) said on Wednesday its net fee income jumped 25% in the second quarter as governments continued to ease COVID-19 restrictions giving companies confidence to increase hiring. In the prior quarter (Q1), its net fee income had slid 12%.
Robert Walters’ raises guidance for the full year
Robert Walters reported £89 million of net fee income for the quarter that concluded on 30th June. Upbeat performance in Q2 also saw the specialist professional recruitment group raising its guidance for the full year. It now expects £30.4 million of pre-tax profit in fiscal 2021.
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According to the British firm, it now generates 80% of its net fee income from international operations. Growth in the second quarter was particularly promising in Europe and the Asia Pacific, with a 22% and a 39% increase in net fee income, respectively.
In the United Kingdom, Robert Walters’ net fee income jumped 9% in Q2, while its other international geographies noted an 11% growth. Group net fee income for H1 as a whole was up 8%.
The London-listed company highlighted on Wednesday that the majority of its offices remained open in the recent quarter. Fluctuating government policies and local infection rates, however, could change that in the future.
In separate news from the United Kingdom, oil giant Royal Dutch Shell said it would increase total shareholder distributions to up to 30% of cash flow from operations.
Robert Walters has £112.8 million of net cash
Robert Walters concluded the quarter with £112.8 million of net cash versus the year-ago figure of £119 million. Commenting on the financial update on Wednesday, CEO Robert Walters said:
“We enter the second half of the year with cautious optimism and confidence that we’re well-positioned to continue to take advantage of market opportunities as they arise. To capitalise on the Q2 momentum, we will be investing in additional headcount in those geographies and disciplines showing the strongest signs of sustained growth.”
Shares of the company jumped close to 10% on market open on Wednesday.