Robert Walters says tough macro conditions lasting longer than expected

Recruitment company Robert Walters saw a continued decline in net fee income in it second quarter as it continues to battle with "muted" client and candidate confidence, saying that challenging market conditions are lasting longer than initially expected.

Net fee income for the three months to 30 June was 12% lower than last year in constant currency at £84.8m, with sharp declines across all major regions.

Net fee income in Asia Pacific declined 9% to £37.1m, fell 13% in Europe to £27.8m, dropped 18% in the UK to £13.2m, and slipped 12% across the Rest of World region to £6.7m.

For the first half as a whole, net fee income was down 14% at £166.1m.

"This period of market adjustment is now longer in duration than previously expected, with macroeconomic turbulence and political uncertainty restraining client and candidate confidence in certain geographies," said chief executive Toby Fowlston.

"Our near-term planning now assumes that any material improvement in confidence levels will be gradual, and likely not occur before 2025."

Group headcount was down 5% on the first quarter and 15% lower than last year at 3,625, as the group continues to "appropriately tailor headcount to current demand conditions".