Stock Markets July 14, 2026 03:10 AM

Robert Walters says H1 performance met expectations as June net fees return to growth

Recruiter reports stabilising hiring trends, outsourcing recovery and ongoing cost reductions as it enters H2 with momentum

By Maya Rios
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Robert Walters reported first-half trading in line with board expectations as hiring activity stabilised across several markets. Group net fee income showed improvement in Q2 versus the prior year, with June returning to year-on-year growth and recruitment outsourcing delivering a second straight quarter of expansion. The firm continued to cut costs and reduce headcount while maintaining net cash in line with guidance ahead of its full half-year results.

Robert Walters says H1 performance met expectations as June net fees return to growth
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Key Points

  • First-half trading was in line with the Board's expectations with June returning to year-on-year net fee growth.
  • Recruitment outsourcing posted a second consecutive quarter of growth while about half of specialist recruitment units recorded year-on-year growth in H1 versus 20% in H2 2025.
  • The firm reduced costs and headcount, lowering its underlying monthly cost run rate to around 3 million and cutting total headcount to 2,782; net cash stood at 7.2 million at end-June.

Robert Walters said first-half trading met the Board's expectations, pointing to signs that hiring activity is stabilising across a number of the recruitment group's key markets. The company said June moved back into year-on-year growth even as employers continued to act cautiously.

While hiring conditions remain uneven from region to region, Robert Walters highlighted broader improvements in its specialist recruitment operations. Around half of the specialist recruitment business recorded year-on-year growth during the first half compared with just 20% in the second half of 2025, the company said. Recruitment outsourcing also continued to recover, posting a second consecutive quarter of growth.

Chief Executive Toby Fowlston said first-half trading was "in-line with the Board's expectations" despite "heightened geopolitical uncertainty." He added that the business had entered the second half with "good trading momentum in a number of our markets" and that management remained focused on improving productivity and cutting costs. Fowlston described the post-pandemic downturn in hiring as "largely cyclical," and said the group's broader talent solutions offering was helping it win market share as customer demand evolves.

On a constant-currency basis, group net fee income in the second quarter fell 4% to 69.4 million, down from 2.7 million a year earlier. The result represented a sequential improvement from the 14% decline recorded for the full year 2025.

Net fees rose 1% year-on-year in June. Within the business mix, recruitment outsourcing fees increased 9%, which helped offset a 7% decline in specialist recruitment fees across the period.

Regional performance varied. The UK was the strongest of the major markets, with net fees up 6% on a constant-currency basis. Asia-Pacific net fees were down 3%, while Europe fell 16% on a constant-currency basis. The company said Japan, Spain and New Zealand delivered growth during the quarter, while northern Europe and mainland China remained weaker. Consultancy services and existing permanent volume hiring contracts were cited as supporting demand for outsourcing during the quarter.

Operationally, the group continued to reduce costs. Management lowered its underlying monthly cost run rate to around 3 million from below 3.5 million in the first quarter.

Total headcount fell 11% from a year earlier to 2,782. Net cash at the end of June was 7.2 million, in line with the board's expectations. The company is scheduled to publish its full half-year results on July 30.


Additional note: InvestingPro advertising materials included a reference that its model identified prior winners such as Siemens Energy and Sandisk, but that material is promotional and separate from Robert Walters' trading update.

Risks

  • Ongoing caution among employers could continue to weigh on specialist recruitment fees, affecting sectors dependent on hiring activity such as professional services and corporate hiring.
  • Regional variability in performance - with Europe and parts of Asia-Pacific weaker - creates uncertainty for revenue streams in markets like northern Europe and mainland China.
  • Heightened geopolitical uncertainty cited by management could constrain client hiring decisions and slow recovery in demand across affected markets.

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