Robert Walters encouraged despite Australia challenges

8th Jan 2014 12:09

Recruiter Robert Walters issued a promising update showing a solid net fee income growth across most regions in the fourth quarter. Group net fee income, or gross profit, rose 9% in constant currencies to £49.7m in the period, with UK delivery strongest growth.However, its largest division, Asia Pacific, saw fee income fall in local currencies, despite an excellent performance in Japan, as Australian market conditions remain challenging and the strength of sterling relative to the Australian dollar significantly weighed on results. Eponymous Chief Executive Robert Walters said: "The group continued to trade in line with expectations with net fee income for the year of £199.2m, an increase of 8% in constant currency despite the mixed nature of global market conditions which have prevailed this year. "With our continued focus on cost control and productivity, we are confident that our business is well positioned to benefit from a sustained recovery."The UK business continued to perform strongly increasing net fee income by 18%.Broker Investec nudged its earnings estimates up slightly for 2014 and 2015 and said: "Whilst there are some signs that market conditions are beginning to improve, given the continued uncertainty in some of its end markets and low forward visibility, we believe that our upgrades are conservatively set."Shares in the company were up 2.4% to 337p at 11:30 on Wednesday. OH