Shares in recruitment firm Robert Walters (RWA) climbed 6% to 374p on greater than average volume after the board announced it would re-commence dividend payments next month with an interim payment of 4.5p per share for the current year.
Despite tough trading conditions, the firm ended the quarter to September with a net cash pile of £138.9 million compared with £81.6 million a year ago, giving it plenty of leeway to invest in the business or resume payments to shareholders.
Net fee income in the third quarter was down 30% on the previous year as global hiring activity remained subdued, and while the firm pointed to ‘pockets of strong demand’ such as technology, fintech, cyber-security and healthcare it admitted that market conditions remained ‘challenging’.
Fortunately, the company reacted quickly at the onset of the pandemic with targeted cost control measures which it maintained through the quarter. Meanwhile, its pre-Covid investment in technology continues to give it an edge by enabling most of its staff to work remotely.
Recruitment indicators in Asia-Pacific, which was the first region to enter the crisis and generates the biggest fees for the firm, ‘have stabilised or shown early signs of improvement’, allowing Robert Walters to end its voluntary reduced working hours scheme.
Chief executive Robert Walters admitted that visibility is ‘limited’ due to the volatile nature of the pandemic but reassured investors that current trading was ‘in line with the market consensus for the full year’.
