Recruitment firm Robert Walters has reported a significant rise in net fees across its UK operations, following substantial workforce reductions aimed at counteracting challenging trading conditions.
Net fees across the company's UK market climbed 10% year-on-year to £13.2 million in the quarter ending 30 September.
The London-listed firm's specialist recruitment division — encompassing permanent and temporary recruitment, executive search and interim management — posted a 14% increase across its UK business.
Growth drivers and market performance
The group attributed the growth to a "good performance" in permanent hiring. Elsewhere, recruitment outsourcing surged by 19% across UK operations.
Shares in the company leapt more than 6% on Wednesday following the trading update.
Chief executive Toby Fowlston said: "We are seeing continued evidence that the changes we are making within the business are having a positive impact, from strengthening leadership in key markets to improving net fee productivity."
Cost-cutting measures
The firm reduced its global headcount by approximately 15% last year as part of a cost-cutting drive to offset difficult trading conditions, with the UK bearing the brunt of the cuts as fee-earning roles were reduced by a quarter.
Earlier this year, the company announced plans to press ahead with further savings in 2026, raising its target to at least £12 million annually by 2027, up from the previous £10 million goal.
The firm is now looking to recover after posting a £19.6 million loss in 2025. In Wednesday's trading update, the firm disclosed that its global net fees climbed 1% in constant currency during the quarter ending June 30, reaching approximately £69.7 million.
Regional results and outlook
Net fees from European operations dropped 7% year-on-year to £17.7 million in the quarter to June 30, while they edged down slightly to £32.8 million across the Asia Pacific region.
Mr Fowlston said: "We delivered a good trading performance in the third quarter – made possible by great contributions from all our people."
"Among our largest specialist recruitment markets, the UK delivered another strong performance, while Japan, Spain and New Zealand were also up on the prior year."
"Over half of our specialist recruitment portfolio grew on the prior year and recruitment outsourcing also delivered another very good quarter."
He added: "Whilst global macroeconomic and geopolitical conditions remain volatile, we remain focused on delivering our growth, cost and cash actions.
"There is more to do, but our momentum means we expect the financial result for the full year to be at least in line with current market expectations."
According to Wednesday's update, the company is forecast to report an operating loss of £8.3 million for the current year.
Founded in 1985, Robert Walters operates across 29 countries with a workforce of approximately 2,800 employees.
