Robert Walters PLC on Thursday said net fee income was up marginally, as the company reported a ‘slower’ start to the year amid continued economic uncertainty.

The London-based recruitment company reported net fee income in the first quarter of 2023 was £102.4 million, increasing 4.1% from £98.4 million the year prior. The company noted that net fee income remained was at constant currency, due to the impact of global uncertainty conditions.

Asia Pacific net fee income fell 1.1% to £43.4 million, from £43.9 million in 2022, with a 44% decline in China as Covid disruption continued to dent market conditions. Meanwhile, UK net income dropped 8.9% to £16.3 million from £17.9 million.

In Europe, net fee income was up 16% at £34.3 million, from £29.5 million, boosted by strong performances in seven of the company’s nine markets, including a record results in Belgium and Germany, rising 10% and 25% respectively.

Other international net fee income increased to £8.4 million, up 18% from £7.1 million the year prior. In South America, Brazil income rose by 58% and Chile by 22%, while the Middle East’s net fee income was up by 24%.

Chief Executive Officer Robert Walters said: ‘As reported with our recent year-end results, the market uncertainty we experienced in the latter stages of last year has tipped over into the first quarter of 2023. Our businesses in Europe, the Middle East and South America held up relatively well whilst Asia Pacific and the UK experienced single digit dips in net fee income albeit against tough and record prior year comparatives.

‘It is worth noting that recruitment market fundamentals such as vacancy levels and salary inflation remain relatively robust, which coupled with a systemic global shortage of qualified professionals gives cause for optimism that activity levels will bounce back when global market conditions become more benign. A return of confidence to the Chinese economy, a stabilisation of the technology sector and a continued decline in inflation should have a positive effect on the global outlook.’

Robert Walters shares fell 1.4% to 432.00 pence each in London on Thursday morning.

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