International recruitment specialist Robert Walters announced that profits after taxation were £12.2m for the 12 months ending 31 December 2008 compared with £17.4m in 2007.

Revenue rose by 5% to £337.3m compared with £319.8m in 2007.

Revenue from the group’s UK business fell to £133.2m from £148.7m in 2007 as the downturn in permanent banking recruitment spread to other disciplines during the second half of the year.

The company says banking recruitment was “severely impacted” by the global financial crisis. As a consequence, headcount in its permanent banking recruitment division was  reduced by 22% during the year.

Revenue in the group’s Asia Pacific region increased to £137.1m (2007: £124.1m).

More than two thirds of the group’s net fee income (67%) is now generated from outside the UK (2007: 62%).

Total headcount across the group fell by 7% from 1,687 at the half year to 1,571 at year end.

Commenting on the results, Robert Walters, chief executive, says: “During the year, we successfully completed a programme of investment in our contract businesses particularly in Europe and Asia Pacific, while accelerating headcount reductions in the business areas most affected by the economic downturn.

“The prevailing economic conditions show little sign of improving and in some markets are becoming noticeably more difficult, with net fee income down 21% in the first two months of this year. The group will continue to react quickly to market conditions by adjusting our cost base as necessary and maintaining tight controls over cash management.

“Our strategy is clear: to manage the current downturn as effectively as possible, while maintaining the breadth of disciplines and geographic coverage, to ensure we are able to take advantage of the inevitable market recovery.

“The best placed recruitment businesses will be the ones whose brands and balance sheets are strong. The group entered this downturn as a diverse and global operation with a strong cash position and a highly experienced management team. We believe this leaves us well equipped to meet the challenges ahead.”