FINANCIALS: Robert Walters cites candidate churn and confidence as UK growth factors
8 April 2015
International recruiter Robert Walters has attributed net fee income growth (NFI) of 22% in the UK to a return of candidate churn and renewed confidence across UK professional services.
Wed, 8 Apr 2015International recruiter Robert Walters has attributed net fee income growth (NFI) of 22% in the UK to a return of candidate churn and renewed confidence across UK professional services.
The group’s results for the first quarter 2015, published today (8 April), reveal UK NFI rose 22% in the period to £18.6m from £15.3m in Q1 2014.
Across the group, NFI rose 12% year-on-year to £53.9m in Q1 2015 from £48.1m in Q1 2014. NFI rose in the group’s international operations from £2m to £3.1m quarterly year-on-year. In Europe growth was more muted, up to £11.1m in the quarter from £11m in Q1 2014.
Speaking to Recruiter this morning, Robert Walters’ chief operating officer Giles Daubeney attributed UK NFI growth to improved confidence among candidates to move, and improved employer hiring intentions across all of the group’s professional services business verticals. These include accounting, banking, engineering, HR, IT, legal and sales & marketing.
And chief financial officer Alan Bannatyne told Recruiter skill shortages are only likely to increase as the group has seen the first signs of wage inflation among clients.
“We have just seen in the recent pay round the beginnings of some professional salary candidate inflation.
“What we’ll likely see over the next 12 to 18 months is the return to real skill shortages in the UK, particularly in the professional space,” Bannatyne added.
“I would be surprised if we don’t see high rates of wage inflation coming through in the next 12 months or so.
“As businesses are more desperate to get hold of skilled candidates I think businesses will be prepared to pay more money and they will be more aggressive to try and take staff from other companies. And we are seeing some [candidate] buybacks.”
The group’s results for the first quarter 2015, published today (8 April), reveal UK NFI rose 22% in the period to £18.6m from £15.3m in Q1 2014.
Across the group, NFI rose 12% year-on-year to £53.9m in Q1 2015 from £48.1m in Q1 2014. NFI rose in the group’s international operations from £2m to £3.1m quarterly year-on-year. In Europe growth was more muted, up to £11.1m in the quarter from £11m in Q1 2014.
Speaking to Recruiter this morning, Robert Walters’ chief operating officer Giles Daubeney attributed UK NFI growth to improved confidence among candidates to move, and improved employer hiring intentions across all of the group’s professional services business verticals. These include accounting, banking, engineering, HR, IT, legal and sales & marketing.
And chief financial officer Alan Bannatyne told Recruiter skill shortages are only likely to increase as the group has seen the first signs of wage inflation among clients.
“We have just seen in the recent pay round the beginnings of some professional salary candidate inflation.
“What we’ll likely see over the next 12 to 18 months is the return to real skill shortages in the UK, particularly in the professional space,” Bannatyne added.
“I would be surprised if we don’t see high rates of wage inflation coming through in the next 12 months or so.
“As businesses are more desperate to get hold of skilled candidates I think businesses will be prepared to pay more money and they will be more aggressive to try and take staff from other companies. And we are seeing some [candidate] buybacks.”
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