Jan 15 (Reuters) - British recruiter Robert Walters on Thursday said it expects fiscal year 2026 net fee income to dip slightly below last year, driven by weak global hiring and subdued activity in
Robert Walters Shares Plummet Following Fee Income Forecast Decline
Impact of Fee Income Forecast on Robert Walters
Jan 15 (Reuters) - Robert Walters shares fell steeply on Thursday after the recruitment company forecast a drop in its fee income for its 2026 fiscal year, showing how hiring markets remain challenging.
Quarterly Performance Overview
Its shares were down about 8.4% at 125 pence at 0803 GMT, making it one of the biggest losers across UK stocks.
Market Reactions and Analyst Predictions
The company reported a 14% decline in fourth-quarter income from fees.
Geographic Performance Insights
"Whilst our capacity to execute our plans to the levels required is better than it was a year ago, the timing of any overall top line inflection clearly remains somewhat dependent on how recovery develops in global hiring markets," said CEO Toby Fowlston in a statement.
Global recruitment companies continue to face sluggish hiring, as companies delay new appointments and job-seekers hesitate to move amid economic uncertainty.
Brokerage Panmure Liberum raised its full-year loss forecast for Robert Walters, citing a quarterly net fee shortfall and an uncertain outlook.
"While the performance was worse than we expected, it was a similar trend to prior quarters," the brokerage said.
Europe, which accounts for 30% of Robert Walters' fee income, had a 23% decline in net fees in the fourth quarter, as regulatory changes and political uncertainty weighed on demand. This was a bigger drop than the 17% decline for the same period in the prior year.
The company, which employs 3,300 people and has operations in 31 countries, has seen its shares fall about 59% over the past 12 months as of Wednesday’s market close.
Robert Walters is scheduled to report its 2025 results in March.
(Reporting by Ankita Bora and Rishab Shaju in Bengaluru; Editing by Nivedita Bhattacharjee and Jane Merriman)
