• Net fees fell 12% at constant currency for the three months ended 30 June
• The firm also revealed that gross profit was down 18% to £166.1m

Robert Walters has revealed a drop in quarterly net fees, as the recruitment firm continues to suffer a ‘rebasing in market conditions relative to the post-pandemic peak’.

The London-listed firm posted a 12 per cent fall in net fees on a constant currency basis to £84.8million for the three months ended 30 June, with revenues down 18 per cent in June alone as new job flow proved ‘weaker than expected’.

Robert Walters warned tough employment market conditions have continued longer than first expected, while its boss does not expect any immediate improvement.  

The group, which specialises in hiring for the legal, accountancy and technology sectors, said gross profit was down 18 per cent to £166.1million over the quarter.  

Following a pandemic-induced surge in hiring, tech firms have undertaken massive redundancies over the past two years as interest rates have climbed. 

Recruiters globally have been struggling for consistency in an uncertain economic climate leading to a downturn in clients hiring and candidates reluctant to change jobs. 

Markets have been further impacted in some countries due to elections.

Toby Fowlston, chief executive, said: ‘Fee income for the first half of 2024 continued to reflect the rebasing in market conditions relative to the post-pandemic peak. 

‘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.

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

In April, the firm decreased its headcount by 4 per cent to 3,812, meaning it has almost 600 fewer employees than at the end of March 2023. 

Following the update, Robert Walters shares were down 3.14 per cent to 370p on Monday morning trading.