Robert Walters has returned to quarterly net fee growth for the first time in more than three years, with improving UK recruitment activity and increased demand for outsourcing services helping to offset weaker European markets.
The international recruitment group reported £69.7m in net fee income for the three months ended 30 September 2026, compared with £69.6m a year earlier. That represented growth of 1% at constant exchange rates, ending 13 consecutive quarters of decline.
The UK delivered the strongest performance among its major regional divisions. Net fees increased 10% in reported sterling to £13.2m, while specialist recruitment recorded 14% growth in local currency.
Recruitment outsourcing fees in the UK increased 19%, reflecting continued demand for external support with employers’ recruitment operations.
Across the group, outsourcing fees also rose 19%, while specialist recruitment declined 2%. Permanent recruitment fees fell 5%, and temporary recruitment was broadly unchanged.
The figures suggest recruitment demand is stabilising in parts of the market, although employers remain selective about permanent hiring and conditions differ considerably between countries.
In Asia-Pacific, net fees increased 1% at constant currency. Japan recorded 5% growth, while New Zealand increased 13%, supported by temporary recruitment activity. Australia declined 8% and Greater China fell 5%.
Continental Europe remained challenging, with net fees declining 6% at constant currency. France and the Netherlands recorded weaker activity, while Spain achieved 10% growth.
The group’s restructuring programme has continued alongside its efforts to rebuild revenue. Its monthly underlying operating cost base fell to approximately £22m during the third quarter, compared with £23m during the preceding three months.
Headcount stood at 2,772 at the end of September, down 8% year on year. The company reported approximately £13m in net cash, alongside new financing arrangements intended to strengthen financial flexibility.
Management expects full-year performance to be at least in line with market expectations, although recovery remains dependent on customer demand and continued cost discipline.
Recruitment recovery remains uneven
The update follows contrasting figures from rival Hays, which reported a 3% decline in quarterly group net fees, including a 5% reduction in the UK and a 6% fall in Germany.
Both businesses have faced an extended downturn as employers delayed recruitment decisions in response to economic uncertainty, higher employment costs, and changing workforce requirements.
The differences between their latest results illustrate how recruitment activity varies across professional specialisms and operating models. Employers may reduce direct permanent appointments while continuing to use recruitment outsourcing, temporary staffing, or specialist services.
Robert Walters’ results show particularly strong momentum in outsourcing, which accounts for approximately 19% of group net fees. Its specialist recruitment operation remains considerably larger, meaning a sustained recovery will also require greater confidence in permanent hiring.
At the half-year stage, the business reported an operating loss of £4.5m, compared with £7.8m a year earlier. Its restructuring programme has focused on reducing costs, improving consultant productivity, and concentrating resources in markets where it has stronger competitive positions.
The company has also been reviewing parts of its international network and strengthening its financial forecasting and cash management processes.
These measures provide an opportunity to improve profitability as recruitment demand recovers, but a smaller cost base does not eliminate the risk of further weakness in customer activity.
The improvement in UK fees provides an encouraging signal for professional hiring. Nevertheless, the continuing declines in permanent recruitment and several European markets suggest the wider recovery remains incomplete.
Robert Walters enters the final quarter with group fees stabilising, a lower operating cost base, and improving performance in selected markets, while recruitment demand across its international network remains uneven.
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