Annual Report & Accounts 2020
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Strategic Report Directors’ Report Financial Statements Annual Report and Accounts 2020 Robert Walters Group 1 Strategic Report Introduction Powering people and organisations to fulfil their unique potential. The Robert Walters Group is a We match highly skilled professionals to Our commitment to teamwork, market-leading international specialist permanent, contract and interim roles integrity, passion, innovation, quality professional recruitment group. across the disciplines of accountancy and inclusion means that we are and finance, banking, engineering, HR, always striving to set the standard With over 3,100 staff spanning IT, legal, sales, marketing, secretarial for the industry. We deliver engaging 31 countries, we deliver specialist and support and supply chain, logistics candidate experiences and power recruitment consultancy, staffing, and procurement. Our client base rewarding careers, giving talented recruitment process outsourcing and ranges from the world’s leading blue- individuals the freedom to choose managed services across the globe. chip corporates and financial services and the opportunity to grow. organisations through to SMEs and start-ups. Contents Strategic Report Directors’ Report 3 2020 Highlights 64 Corporate Governance Statement 4 Robert Walters Group at a Glance 71 Report of the Audit and Risk 6 Chairman’s Statement Committee 8 Chief Executive’s Statement 74 Directors’ Remuneration Report 12 Market Opportunities and Key Trends 94 Directors’ Responsibility Statement 16 Strategy in Action 95 Directors’ Report 26 People and Culture 98 Directors and Advisers 34 Diversity and Inclusion 38 Technology and Innovation Financial Statements 44 Corporate Social Responsibility 100 Independent Auditor’s Report 54 Financial Review 108 Consolidated Income Statement 56 Key Performance Indicators 108 Consolidated Statement of 58 Principal Risks and Uncertainties Comprehensive Income 63 Section 172 Statement 109 Consolidated Balance Sheet 110 Consolidated Cash Flow Statement 111 Consolidated Statement of Changes in Equity 112 Statement of Accounting Policies 118 Notes to the Group Accounts 135 Company Balance Sheet View our Annual Report online: 136 Company Statement of Changes in Equity robertwaltersgroup.com/investors 137 Notes to the Company Accounts 2 Robert Walters Group Annual Report and Accounts 2020 Strategic Report Directors’ Report Financial Statements 2020 Robert Walters Chairman’s Highlights Group at a Glance Statement P3 P4 P6 “I would like to extend the Board’s sincere and Chief Executive’s heartfelt thanks to all our Statement people across the globe for their enthusiasm, creativity “The Group’s strong and hard work.” and experienced senior management team has successfully steered Market Opportunities the business through and Key Trends a number of previous international crises. This experience was critical in ensuring swift and decisive action.” P8 P12 Strategy People Technology in Action and Culture and Innovation P16 P26 P38 Annual Report and Accounts 2020 Robert Walters Group 1 Strategic Report What we do In an increasingly complex global recruitment market, the Group builds strong and long-term relationships with clients and candidates, and offers an end-to-end recruitment service on a local, regional and global basis. Our mission We’re always striving to be the best. That means being the world’s leading specialist professional recruitment group with a clear differentiation on the quality of service delivered to our clients and candidates. Teamwork In n n io o s v a u l t i c o n n I Our core principles P y t a i s r s g i e o t n In Quality Our services across the world Specialist Professional Recruitment Specialist Staffing Recruitment Process Outsourcing Robert Walters recruits specialists Walters People is the staffing specialist Resource Solutions is a market leader for permanent, contract and interim for tomorrow’s working world matching in recruitment process outsourcing roles across our core disciplines people to permanent and contract (RPO) and managed services. Resource of accountancy & finance, banking, finance and business support jobs. Solutions designs and deploys tailored engineering, HR, IT, legal, sales, marketing, recruitment outsourcing solutions for secretarial and support and supply chain, clients across the world. logistics and procurement. 2 Robert Walters Group Annual Report and Accounts 2020 Strategic Report Directors’ Report Financial Statements 2020 Highlights 23% 75% £938.4m £12.1m Profit Before Taxation Revenue 2019: £47.4m 2019: £1.22bn 25% 83% £302.4m 8.0p Net Fee Income (Gross Profit) Basic Earnings Per Share 2019: £405.5m 2019: 48.4p 71% £14.8m Operating Profit 2019: £51.2m Annual Report and Accounts 2020 Robert Walters Group 3 Strategic Report Robert Walters Group at a Glance Market-leading UK UK global brand Norma Gillespie Our locations 22% Group NFI “If you look at our purpose, it’s the power of the people in our business that is the most important thing — that’s how we make things happen.” Read Norma's Interview P32 Singapore Indy Lachhar “We partnered with over 100 members of Other International The Americas, South Africa, our management team, Middle East providing them with tailored coaching to help them lead effectively 9% through the pandemic.” Read Indy's Interview P29 Group NFI 4 Robert Walters Group Annual Report and Accounts 2020 Strategic Report Directors’ Report Financial Statements Employees Netherlands Europe Huib-Jan Verhoef 3,147 28% Countries 31 Group NFI Net fee income from international businesses 78% “At every stage of my career with Walters People, I have felt empowered to drive the business forward and that there are no limits Malaysia to future growth.” Kimberlyn Lu Read Huib-Jan's Interview P30 “I have always felt supported by my leaders. Their trust has encouraged me to take bold steps and push my boundaries.” Read Kimberlyn's Interview P31 Asia Pacific Permanent/Contract net fee income 41% Group NFI 62% Permanent 38% Contract Annual Report and Accounts 2020 Robert Walters Group 5 Strategic Report Chairman’s Statement I would like to start this statement, my first as the new Chairman of the Robert Walters Group, by saying just how privileged I am to have joined the Board of one of the world’s leading specialist professional recruitment businesses. I would also like to extend the Board’s sincere and heartfelt thanks to all our people across the globe for the enthusiasm, creativity and hard work they have demonstrated, to ensure we continued to support our colleagues, clients and candidates through the difficult circumstances of the global pandemic. The Group has a proven track record Revenue was down 23% (23%*) to of adopting sensible and targeted cost £938.4m (2019: £1.22bn) and net fee reduction and control measures in income decreased by 25% (26%*) to difficult times without damaging the £302.4m (2019: £405.5m). Operating long-term ability to quickly benefit profit decreased by 71% (71%*) to from operational gearing when market £14.8m (2019: £51.2m) and profit before conditions become more favourable. taxation decreased by 75% (75%*) The swift action taken on costs at the to £12.1m (2019: £47.4m). Earnings onset of the pandemic, our pre-Covid per share decreased by 83% to 8.0p investment in technology which enabled per share (2019: 48.4p per share). all staff to seamlessly and productively The Group has further strengthened transition to remote working and the its balance sheet with net cash of durability and commitment of our people £155.5m as at 31 December 2020 (31 across the globe has enabled the December 2019: £85.8m). Group to deliver full-year profits ahead of market expectations, albeit at levels significantly below the prior year. * Constant currency is calculated by applying prior year exchange rates to local currency results for the current and prior years. 6 Robert Walters Group Annual Report and Accounts 2020 Strategic Report Directors’ Report Financial Statements I would like to extend the Board’s sincere and heartfelt thanks to all our people across the globe for their enthusiasm, creativity and hard work.” Ron Mobed Chairman Our operations in Asia Pacific and The Group’s strategy for growth The Board is authorised to re-purchase Europe delivered particularly robust is centred on expansion into new up to 10% of the Group’s issued share performances and 78% (2019: 76%) of the international markets and disciplines, capital but, given the level of market Group’s net fee income is now derived but through downturns and periods uncertainty and volatility experienced from our international businesses. of crisis we have also benefited from during the last year, did not exercise this a commitment to maintaining our authority. The Board will, however, be The Group has always focused on geographic footprint. We took the seeking approval for the renewal of this building and maintaining a healthy blend decision to maintain our presence in each authority at the Group’s Annual General of revenue streams and our end-to-end of the 31 countries we operate in and Meeting on 12 May 2021. offering of permanent, contract, interim we are confident that this investment and recruitment process outsourcing will pay back as markets recover. Whilst Finally, on behalf of the Board, I would has continued to provide a competitive every effort was made to preserve the like to thank my predecessor, Carol Hui, advantage and enabled us to respond Group’s headcount, difficult decisions who stepped down from her role as to the varying needs of our clients and did have to be made with headcount Chairman after completing her nine-year candidates across the globe. Whilst all decreasing by 22% to 3,147 (2019: 4,027). tenure on 31 December 2020. The Group forms of recruitment were negatively Reductions were a blend of natural benefited greatly from her stewardship, impacted by the pandemic, permanent attrition, performance management expertise and governance and we wish activity levels were most markedly and right-sizing, and focused in those her well for the future.