Half Yearly Report

RNS Number : 1109J

Robert Walters PLC

02 August 2012

 



2 AUGUST 2012

ROBERT WALTERS PLC

Half-yearly financial results for the six months ended 30 June 2012

FINANCIAL HIGHLIGHTS

·      Revenue of £275.0m (2011: £241.6m).

·      Net fee income (gross profit) of £92.4m (2011: £89.1m).

·      Operating profit of £3.4m (2011: £7.2m).

·      Profit before taxation of £3.1m (2011: £7.1m).

·      Basic earnings per share of 2.9p (2011: 6.5p).

·      Interim dividend maintained at 1.47p per share (2011: 1.47p).

·      Net cash of £4.6m as at 30 June 2012 (30 June 2011: £10.7m).

OPERATIONAL HIGHLIGHTS

·      Resilient performance with Group net fee income up 4% against a backdrop of deteriorating market conditions, particularly during the second quarter.

·      Continued investment in the Group's long-term growth:

o  New offices opened in San Francisco, Rio de Janeiro, Milton Keynes and Parramatta. The Group now has 51 offices in 23 countries (2011: 44 offices in 21 countries).

o  Group headcount of 2,159 (2011: 1,932).

o  Average headcount increased by 15%.

·      Net fee income increased across all of the Group's regions.

·      Asia Pacific increased net fee income by 3% (0%*) to £45.9m (2011: £44.5m).

o  Region impacted by banking sector slowdown.

o  Tough year-on-year comparatives, particularly in the second quarter.

o  Continued diversification into other specialist disciplines expected to deliver growth in the second half.

·      UK net fee income grew by 5% to £23.9m (2011: £22.9m).

o  Respectable performance despite difficult market conditions.

o  Strong growth from Resource Solutions, the Group's recruitment process outsourcing business.

·      Europe net fee income up by 3% (8%*) to £19.9m (2011: £19.4m).

o  Strong performance in France and Germany, the region's largest and newest business respectively.

·      Americas and South Africa net fee income up by 11% (16%*) to £2.7m (2011: £2.4m).

·      Good balance of permanent (69%) and contract (31%) recruitment net fee income (2011: 71%:29%).

Robert Walters, Chief Executive, commented:

"Current trading remains difficult necessitating close management of the Group's cost base, particularly in those locations where market conditions are most challenging. We will continue to selectively invest in the long-term geographic growth and diversification of the Group and are confident that this strategy, combined with our strong balance sheet, market-leading global brand and experienced management team, will ensure that the Group is well positioned for the future."

* Constant currency is calculated by applying prior year exchange rates to local currency results for the current and prior years.

ENQUIRIES:

Robert Walters plc	[phone]
Robert Walters, Chief Executive
Alan Bannatyne, Chief Financial Officer
Pelham Bell Pottinger
James Henderson	[phone]
	[e-mail]
Archie Berens	[phone]
	[e-mail]

Robert Walters plc

Half-yearly financial results for the six months ended 30 June 2012

The Group produced a resilient performance during the first half of the year, delivering net fee income growth across all regions against a backdrop of deteriorating market conditions and challenging year-on-year comparatives. Revenue was up 14% to £275.0m (2011: £241.6m) and gross profit ('net fee income') by 4% (3% in constant currency) to £92.4m (2011: £89.1m), resulting in an operating profit of £3.4m (£3.4m in constant currency) (2011: £7.2m) and a profit before taxation of £3.1m (£3.1m in constant currency) (2011: £7.1m). The Group has a strong balance sheet and maintained a healthy cash position with net cash of £4.6m as at 30 June 2012 (30 June 2011: £10.7m).

Market conditions and client and candidate confidence levels remained fragile during the first half, with permanent recruitment within the banking sector most severely affected.  Our long-term strategy of geographic and discipline diversification is providing the Group with resilience, competitive strength and opportunities for growth.The Group has in place the right blend of permanent, contract and interim income streams, supported further by the growth of our market-leading recruitment outsourcing business, Resource Solutions.

In line with our strategy for growth, we opened four new offices during the first half; San Francisco, Rio de Janeiro, Milton Keynes and Parramatta bringing the Group's global footprint to 51 offices in 23 countries. Headcount increased to 2,159 (2011: 1,932) however, the rate of headcount growth slowed during the second quarter in response to market conditions in some of our more challenging locations. 

Contract recruitment now represents 31% (2011: 29%) of the Group's recruitment net fee income. The balance of contract and permanent recruitment provides greater resilience when market conditions are challenging and also positions us well to grow quickly and benefit from operational gearing when confidence returns.

Resource Solutions performed strongly and we have invested significantly in strengthening the offering across Asia Pacific and Europe. With clients increasingly looking to work with global recruitment partners that are able to provide an end-to-end recruitment solution, we believe that Resource Solutions provides the Group with a significant competitive advantage.

Asia Pacific (50% of net fee income)

Revenue was £134.7m (2011: £109.9m) and net fee income increased by 3% (0% in constant currency) to £45.9m (2011: £44.5m) delivering an operating profit of £3.3m (£3.1m in constant currency) (2011: £5.8m).

Australia, our largest business in the region, continued to perform well benefitting not only from high activity levels in the resources industry but our general strength in the commerce sector. The Asia region was impacted by the slowdown in the banking sector but opportunities for strong growth exist as evidenced by excellent performances from our newer businesses in Malaysia and Thailand. In China, we have continued to invest and restructured the management team to optimise long-term performance.

We continue to successfully diversify our businesses across the region into other recruitment disciplines and expect to achieve improved growth rates during the second half.

United Kingdom (26% of net fee income)

Revenue was £93.4m (2011: £86.2m) and net fee income increased by 5% to £23.9m (2011: £22.9m) delivering an operating profit of £0.0m (2011: £0.3m).

The UK business delivered a respectable increase in net fee income despite challenging market conditions.  Permanent recruitment levels in the banking sector remained weak however, our London commerce business and our regional offices have performed relatively well. We opened a new office in Milton Keynes to further strengthen our regional presence.

Resource Solutions performed strongly during the first half of the year. We have been successful across a number of competitive tenders, securing new client engagements across both the commercial and banking sectors and extending a number of contracts at existing client sites.

Europe (22% of net fee income)

Revenue was £44.0m (2011: £42.9m) and net fee income increased by 3% (8% in constant currency) to £19.9m (2011: £19.4m) delivering an operating profit of £0.3m (£0.4m in constant currency) (2011: £1.0m).

France, our largest business in the region continued to perform well whilst our newest business in Germany produced strong net fee income growth. In the Netherlands, market conditions remained tough and net fee income declined marginally year-on-year. Elsewhere across the region, recruitment activity levels were also muted as a result of the ripple effect of the Eurozone's ongoing economic and political uncertainty.

The Americas and South Africa (2% of net fee income)

Revenue was £2.9m (2011: £2.5m) and net fee income increased by 11% (16% in constant currency) to £2.7m (2011: £2.4m) delivering an operating loss of £0.2m (£0.2m operating loss in constant currency) (2011: operating profit of £0.1m).

We invested heavily in the region during the first half, increasing our offices from three to five. South Africa produced strong net fee income growth; in the USA our New York business was impacted by the banking sector slowdown whilst our new office in San Francisco has started well. Activity levels in Brazil slowed during the second quarter however, we believe South America is a strategically important long-term growth market for the Group and we therefore opened a second office in Rio de Janeiro.

Cash flow

The Group maintained a strong net cash position of £4.6m as at 30 June 2012 (30 June 2011: £10.7m) despite a significant increase in contractor numbers. Working capital in the period has increased by £10.7m and notable cash outflows included a dividend of £2.6m, £2.9m of tax payments and capital expenditure of £2.8m.

Dividend

The interim dividend will be maintained at 1.47p per share (2011: 1.47p) and will be paid on 19 October 2012 to those shareholders on the Company's register as at 7 September 2012.

Treasury management, currency risk and other principal risks and uncertainties affecting the business

The Group does not have material transactional exposures although is exposed to translation differences on the profits and cash flows generated in its overseas operations. Overseas currency balances that are surplus to local working capital requirements are converted on a regular basis to pounds sterling and there is a particular emphasis on minimising holdings in euros given the current uncertainty over the potential break-up of the Eurozone. The main functional currencies of the Group are pounds sterling, the euro, the Australian dollar and the Japanese yen.

The other principal risks and uncertainties affecting the business activities of the Group remain those detailed within the Operating and Financial Review section of the Annual Report & Accounts for the year ended 31 December 2011, namely the economic environment, people management, brand and reputation, laws and regulation and technology. The Board does not foresee a material change in respect of these factors for the remainder of the year.

Outlook

Current trading remains difficult necessitating close management of the Group's cost base, particularly in those locations where market conditions are most challenging. We will continue to selectively invest in the long-term geographic growth and diversification of the Group and are confident that this strategy, combined with our strong balance sheet, market-leading global brand and experienced management team, will ensure that the Group is well positioned for the future.

Philip Aiken                                                                                          Robert Walters

Chairman                                                                                            Chief Executive

1 August 2012

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

CONDENSED CONSOLIDATED INCOME STATEMENT

		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Notes	£'000		£'000		£'000
Continuing operations
Revenue	4	275,006		241,618		528,114
Cost of sales		(182,628)		(152,489)		(344,671)
Gross profit	4	92,378		89,129		183,443
Administrative expenses		(88,940)		(81,910)		(167,810)
Operating profit	4	3,438		7,219		15,633
Finance income		76		24		368
Finance costs		(347)		(172)		(730)
(Loss) profit on foreign exchange		(100)		17		(189)
Profit before taxation		3,067		7,088		15,082
Taxation	5	(1,028)		(2,304)		(4,909)
Profit for the period		2,039		4,784		10,173
Attributable to:
Owners of the Company		2,042		4,543		9,866
Non-controlling interest		(3)		241		307
		2,039		4,784		10,173
Earnings per share (pence):	7
Basic		2.9		6.5		14.1
Diluted		2.6		5.8		12.7

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

AND EXPENSE

		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit for the period		2,039		4,784		10,173
Exchange differences on translation of overseas operations		(1,187)		452		397
Total comprehensive income and expense for the period		852		5,236		10,570
Attributable to:
Owners of the Company		855		4,995		10,263
Non-controlling interest		(3)		241		307
		852		5,236		10,570

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

CONDENSED CONSOLIDATED BALANCE SHEET

		2012		2011		2011
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Non-current assets
Intangible assets		9,363		8,968		9,292
Property, plant and equipment		12,217		7,147		11,564
Deferred tax assets		6,813		7,844		6,942
		28,393		23,959		27,798
Current assets
Trade and other receivables		121,890		112,729		115,680
Corporation tax receivables		1,711		101		327
Cash and cash equivalents		22,898		22,355		28,965
		146,499		135,185		144,972
Total assets		174,892		159,144		172,770
Current liabilities
Trade and other payables		(83,567)		(79,688)		(87,059)
Corporation tax liabilities		(784)		(1,621)		(1,295)
Bank overdrafts and loans	9	(18,339)		(11,701)		(11,904)
Provisions		(727)		(975)		(1,318)
		(103,417)		(93,985)		(101,576)
Net current assets		43,082		41,200		43,396
Non-current liabilities
Deferred tax liabilities		(67)		(844)		(65)
Provisions		(423)		(347)		(382)
		(490)		(1,191)		(447)
Total liabilities		(103,907)		(95,176)		(102,023)
Net assets		70,985		63,968		70,747
Equity
Share capital		17,113		17,113		17,113
Share premium		21,247		21,247		21,247
Other reserves		(73,410)		(73,410)		(73,410)
Own shares held		(9,121)		(13,982)		(12,028)
Treasury shares held		(19,860)		(19,860)		(19,860)
Foreign exchange reserves		10,459		11,701		11,646
Retained earnings		124,055		120,720		125,534
Equity attributable to owners of the Company		70,483		63,529		70,242
Non-controlling interest		502		439		505
Total equity		70,985		63,968		70,747

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
	Note	£'000		£'000		£'000
Cash (used) generated by operating activities	8	(3,342)		(2,214)		16,983
Income taxes paid		(2,859)		(5,890)		(10,004)
Net cash (used) generated by operating activities		(6,201)		(8,104)		6,979
Investing activities
Net interest paid		(271)		(149)		(362)
Purchases of computer software		(506)		(643)		(1,291)
Purchases of property, plant and equipment		(2,330)		(3,234)		(9,350)
Net cash used by investing activities		(3,107)		(4,026)		(11,003)
Financing activities
Equity dividends paid		(2,631)		(2,457)		(3,484)
Proceeds from issue of equity		-		228		228
Proceeds from bank loans		7,150		4,818		5,070
Repayment of bank loans		(699)		(132)		(270)
Release (purchase) of own shares (net of proceeds of option exercises)		-		211		(528)
Net cash generated by financing activities		3,820		2,668		1,016
Net decrease in cash and cash equivalents		(5,488)		(9,462)		(3,008)
Cash and cash equivalents at beginning of the period		28,965		31,906		31,906
Effect of foreign exchange rate changes		(579)		(89)		67
Cash and cash equivalents at end of the period		22,898		22,355		28,965

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Other reserves	Own shares held	Treasury shares held	Foreign exchange reserves	Retained earnings	Total	Non-controlling interest	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2011	17,092	21,040	(73,410)	(14,115)	(19,860)	11,249	120,017	62,013	198	62,211
Profit for the period	-	-	-	-	-	-	4,543	4,543	241	4,784
Foreign currency translation differences	-	-	-	-	-	452	-	452	-	452
Total comprehensive income and expense for the period	-	-	-	-	-	452	4,543	4,995	241	5,236
Dividends paid	-	-	-	-	-	-	(2,457)	(2,457)	-	(2,457)
Own shares purchased	-	-	-	(211)	-	-	-	(211)	-	(211)
Adjustment in respect of share schemes	-	-	-	344	-	-	(1,383)	(1,039)	-	(1,039)
New shares issued	21	207	-	-	-	-	-	228	-	228
Unaudited balance at 30 June 2011	17,113	21,247	(73,410)	(13,982)	(19,860)	11,701	120,720	63,529	439	63,968
Profit for the period	-	-	-	-	-	-	5,323	5,323	66	5,389
Foreign currency translation differences	-	-	-	-	-	(55)	-	(55)	-	(55)
Total comprehensive income and expense for the period	-	-	-	-	-	(55)	5,323	5,268	66	5,334
Dividends paid	-	-	-	-	-	-	(1,027)	(1,027)	-	(1,027)
Own shares purchased	-	-	-	(749)	-	-	-	(749)	-	(749)
Adjustment in respect of share schemes	-	-	-	2,703	-	-	518	3,221	-	3,221
Balance at 31 December 2011	17,113	21,247	(73,410)	(12,028)	(19,860)	11,646	125,534	70,242	505	70,747
Profit for the period	-	-	-	-	-	-	2,042	2,042	(3)	2,039
Foreign currency translation differences	-	-	-	-	-	(1,187)	-	(1,187)	-	(1,187)
Total comprehensive income and expense for the period	-	-	-	-	-	(1,187)	2,042	855	(3)	852
Dividends paid	-	-	-	-	-	-	(2,631)	(2,631)	-	(2,631)
Adjustment in respect of share schemes	-	-	-	2,907	-	-	(890)	2,017	-	2,017
Unaudited balance at 30 June 2012	17,113	21,247	(73,410)	(9,121)	(19,860)	10,459	124,055	70,483	502	70,985

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS

1.      Statement of accounting policies

Basis of preparation

The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union. The condensed set of financial statements has been prepared in accordance with the International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

The accounting policies applied by the Group are as set out in detail in the Annual Report for the year ended 31 December 2011.

The Group was profitable for the period and has considerable financial resources including £4.6m of net cash at 30 June 2012 together with a diverse range of clients and suppliers across different geographic locations and sectors. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully.

After making enquiries, the Directors have formed a judgement, at the time of approving the half-yearly financial results, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months. For this reason the Directors continue to adopt the going concern basis in preparing the condensed set of financial statements.

2.      Financial information

The financial information on pages 4 to 11 was formally approved by the Board of Directors on 1 August 2012. The financial information set out in this document does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.  Statutory accounts prepared under IFRS for the year ended 31 December 2011 for Robert Walters plc have been delivered to the Registrar of Companies. The auditor's report on these accounts was not qualified, did not draw attention to any matters by way of emphasis and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The financial information in respect of the period ended 30 June 2012 is unaudited but has been reviewed by the Company's auditor. Their report is attached on page 12. The financial information in respect of the period ended 30 June 2011 is also unaudited.

3.      Currency conversion

The reporting currency of the Group is pounds sterling and the condensed set of financial statements has been prepared on this basis.

The condensed consolidated income statement for the period ended 30 June 2012 has been prepared using, among other currencies, average exchange rates of €1.2157 to the pound (period ended 30 June 2011: €1.1492; year ended 31 December 2011: €1.1512); ¥125.750 to the pound (period ended 30 June 2011: ¥132.460; year ended 31 December 2011: ¥127.990) and AUD$1.5285 to the pound (period ended 30 June 2011: AUD$1.5648; year ended 31 December 2011: AUD$1.5544).

The condensed consolidated balance sheet as at 30 June 2012 has been prepared using the exchange rates on that day of €1.2418 to the pound (30 June 2011: €1.1133; 31 December 2011: €1.1936); ¥124.219 to the pound (30 June 2011: ¥129.748; 31 December 2011: ¥119.645) and AUD$1.5373 to the pound (30 June 2011: AUD$1.5121; 31 December 2011: AUD$1.5191).

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

4.	Segmental information
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
i)	Revenue:
	Asia Pacific	134,695		109,926		246,613
	UK	93,438		86,241		188,958
	Europe	43,982		42,912		87,449
	The Americas and South Africa	2,891		2,539		5,094
		275,006		241,618		528,114
ii)	Gross profit:
	Asia Pacific	45,930		44,505		92,721
	UK	23,883		22,851		46,952
	Europe	19,911		19,380		39,130
	The Americas and South Africa	2,654		2,393		4,640
		92,378		89,129		183,443
iii)	Profit before taxation:
	Asia Pacific	3,266		5,819		12,327
	UK	29		306		488
	Europe	309		1,032		2,786
	The Americas and South Africa	(166)		62		32
	Operating profit	3,438		7,219		15,633
	Net finance costs	(371)		(131)		(551)
	Profit before taxation	3,067		7,088		15,082
iv)	Total assets:
	Asia Pacific	54,894		47,475		51,966
	UK	64,398		55,962		59,905
	Europe	21,543		23,185		22,556
	The Americas and South Africa	2,635		2,222		2,109
	Unallocated corporate assets*	31,422		30,300		36,234
		174,892		159,144		172,770
v)	Total liabilities:
	Asia Pacific	(20,464)		(16,709)		(24,387)
	UK	(47,998)		(48,754)		(48,119)
	Europe	(13,775)		(14,122)		(14,381)
	The Americas and South Africa	(2,480)		(1,425)		(1,872)
	Unallocated corporate liabilities*	(19,190)		(14,166)		(13,264)
		(103,907)		(95,176)		(102,023)

*For the purposes of segmental information, unallocated corporate assets and liabilities include cash, bank loans and corporate and deferred tax balances.

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

4.	Segmental information (continued)
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
vi)	Revenue by business grouping:
	Robert Walters	229,046		206,126		446,169
	Resource Solutions	45,960		35,492		81,945
		275,006		241,618		528,114

5.	Taxation
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Current tax	1,016		2,059		5,603
	Deferred tax	12		245		(694)
	Total tax charge for the period	1,028		2,304		4,909

The tax charge is based on the expected annual tax rate of 33.5% (2011: 32.5%) on profit before taxation.

6.	Dividends
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2011 of 3.68p (2010: 3.5p)	2,632		2,457		2,457
	Interim dividend for 2011 of 1.47p (2010: 1.47p)	-		-		1,027
		2,632		2,457		3,484
	Proposed interim dividend for 2012 of 1.47p (2011: 1.47p)	1,039		1,031		n/a

The proposed interim dividend was approved by the Board on 1 August 2012 and has not been included as a liability at 30 June 2012.

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

7.	Earnings per share
	The calculation of earnings per ordinary share is based on the profit for the period attributable to owners of the Company and the weighted average number of shares of the Company.
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Profit for the period attributable to owners of the Company	2,042		4,543		9,866
		Number of shares		Number of shares		Number of shares
	Weighted average number of shares:
	Shares in issue throughout the period	85,568,121		85,463,121		85,463,121
	Shares issued in the period	-		52,680		79,054
	Treasury and own shares held	(14,915,606)		(16,107,233)		(15,810,840)
	For basic earnings per share	70,652,515		69,408,568		69,731,335
	Outstanding share options	7,630,651		7,835,802		7,841,200
	For diluted earnings per share	78,283,166		77,244,370		77,572,535

8.	Notes to the cash flow statement
		2012		2011		2011
		6 mths to		6 mths to		12 mths to
		30 June		30 June		31 December
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
	Operating profit for the period	3,438		7,219		15,633
	Adjustments for:
	Depreciation and amortisation charges	1,870		1,323		3,216
	Loss on disposal of property, plant and equipment and computer software	21		83		173
	Movement in share scheme balance	2,062		1,541		3,377
	Operating cash flows before movements in working capital	7,391		10,166		22,399
	Increase in receivables	(7,553)		(11,359)		(15,202)
	(Decrease) increase in payables	(3,180)		(1,021)		9,786
	Cash (used) generated by operating activties	(3,342)		(2,214)		16,983

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

9.        Bank loans                                                      

In June 2010 the Group entered into a committed, three-year, £20.0m receivables financing agreement. In February 2012 this facility was increased to a committed £25.0m receivables financing agreement and the term extended until February 2014. At 30 June 2012, £17.3m was drawn down under this facility.

10.      Related party transactions

There have been no related party transactions or changes in the related party transactions described in the latest Annual Report that have had a material effect on the financial position or performance of the Group in the first six months of the financial year.

11.      Registered office

The Company's registered office is located at 11 Slingsby Place, St Martin's Courtyard, London, WC2E 9AB.

RESPONSIBILITY STATEMENT

We confirm to the best of our knowledge:

a)      the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b)      the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c)      the interim management report and note 10 includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board,

Alan Bannatyne

Chief Financial Officer

1 August 2012

ROBERT WALTERS PLC

Half-yearly Financial Results 2012

INDEPENDENT REVIEW REPORT TO ROBERT WALTERS PLC

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income and expense, the condensed consolidated balance sheet, the condensed consolidated cash flow statement, the condensed consolidated statement of changes in equity, and related notes 1 to 11. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union.  The condensed set of financial statements included in the half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP

Chartered Accountants and Statutory Auditor

London, United Kingdom

1 August 2012

 

END

 

 

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