Recruiter Robert Walters has warned today that the coronavirus outbreak could hit profits as “unprecedented” global turbulence took its toll on growth.
The company said the virus was likely to “negatively impact” its full-year profit for 2020, adding another layer of uncertainty to an unpredictable recruitment market. Robert Walters has exposure to Asian markets, with the Japanese recruitment arm proving its most profitable.
The comments came as pre-tax profits edged 3% lower to £47.4 million for the year to December. Revenues fell 1% to £1.2 billion over the period.
Investors took flight at the profit warning, sending shares down more than 8% to 484p
The company said it was performance was resilient despite the market being hit by the US-China trade war, Brexit uncertainty and protests in Hong Kong and Paris.
On coronavirus, chief executive Robert Walters said it was ready to tackle the disruption as it had recently invested in technology that let staff work from home.
He added: “Whenever there has been a pause in recruitment activity, you tend to get a pent-up demand that is satisfied when things return to a stable basis.
“I see no reason why this shouldn’t be the same.”
