| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The Oak Bloke presents a compelling turnaround investment case for Robert Walters (RWA), a UK recruitment consultancy trading at a significant discount to net asset value. At £60m market cap versus £116m NAV, investors are essentially paying £20m for a business historically capable of £40m annual profits. The 1Q26 results show sequential improvement with Net Fee Income stabilizing after double-digit 2025 declines. Key positive indicators include 9% fee earner productivity gains, 6% increase in permanent placements per fee earner, and Japan's return to 13% growth. Four of RWA's top eight markets are now growing. Management has successfully reduced monthly overhead costs to below £23.5m while maintaining £20.1m net cash. The company demonstrates operational leverage with headcount down 10% year-on-year but productivity rising, positioning it for significant profit expansion when hiring volumes recover. March's 5% year-over-year growth suggests the business may already be operationally profitable. Geographic diversification across Asia Pacific, UK, Europe and Rest of World provides multiple recovery vectors, with Japan and UK leading the turnaround.
Robert Walters represents exceptional value trading at £60m market cap versus £116m NAV, essentially paying £20m for a business capable of generating £40m annual profit in good years, with sequential improvement evident and operational leverage positioned for profit surge when hiring volumes recover.
Manager expects RWA is likely operating profit profitable now in April given March exit rate of +5% growth and reduced overhead run rate below £23.5m. Believes the worst is over with green shoots of recovery evident.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 15 2026 | 2026 Q1 | RWA.L | Japan, small caps, Staffing, United Kingdom, value | RWA.L | Robert Walters trades at £60m market cap versus £116m NAV, offering £20m downside protection for a business capable of £40m annual profits. Sequential improvement evident with Japan returning to 13% growth, UK stabilizing, and operational leverage from 10% headcount reduction while productivity rises 9%. March's 5% growth suggests profitability inflection point reached. |
| Jan 2 2026 | 2025 Q4 | ANIC.L, AUGM.L, BSRT.L, CGEO.L, DEC.L, DGI9.L, FAIR.L, IPO.L, KZG.L, PINE.L, POW.L, PTAL.L, TCAP.L, TMT.L | Biotechnology, Discounts, energy, Fintech, Mining, small caps, United Kingdom, value |
CGEO LN ANIC LN FAIR LN DEC LN PTAL CN IPO LN POW LN TMT LN AUGM LN KZG LN |
UK small cap value investor achieved 13% total return on 2024 picks despite mixed individual performance. Portfolio spans mining, energy, biotech, and fintech companies trading at significant NAV discounts. Georgia Capital delivered 159% gains while Digital 9 Infrastructure fell 69%. Manager maintains conviction in all holdings for 2026, expecting value realization through buybacks, IPOs, and operational improvements. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
StaffingRobert Walters recruitment consultancy showing sequential improvement with Net Fee Income stabilizing after double-digit declines in 2025. Fee earner productivity rose 9% and perm placements per fee earner increased 6%. Four of RWA's top markets are now growing including Japan which returned to 13% growth. |
Recruitment Productivity Japan Recovery |
| 2025 Q4 |
MiningMultiple mining holdings performed well in 2025, with Baker Steel Resources Trust up 38.4% despite some headwinds from metallurgical coal prices. Holdings include copper developers, gold royalties, tungsten, silver, and tin projects benefiting from strong commodity prices. |
Copper Gold Silver Tungsten Tin |
EnergyDiversified Energy Company down 20.4% despite manager's continued positive outlook for US natural gas and LNG growth. Manager expects data center energy needs and LNG exports to position the company well for 2026. |
Natural Gas LNG Energy | |
BiotechnologyAgronomics up 60% in 2025 despite trading at 50% discount to NAV. Focus on alternative protein companies including BlueNalu for Blue Fin Tuna production and Liberation Bioindustries opening first commercial factory in 2026. |
Alternative Protein Biotechnology | |
Private EquityGeorgia Capital up 160% in 2025, described as a triple bagger since inclusion. Remains at 24.5% discount to NAV despite strong performance, with private businesses valued at only 7.1X to 9.9X earnings. |
Private Equity Georgia | |
BuybacksMultiple portfolio companies engaged in share buybacks including Georgia Capital, Digital 9 Infrastructure planning significant capital returns, and Diversified Energy buying back shares. Manager views buybacks as value-enhancing given discount valuations. |
Share Buybacks Capital Returns |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 15, 2026 | Fund Letters | The Oak Bloke | RWA.L | Robert Walters | Staffing & Employment Services | Human Resource & Employment Services | Bull | New York Stock Exchange | Asia-Pacific, Automation, cost-cutting, Cyclical, Europe, Geographic Diversification, Human Resources, Japan, Operational Leverage, productivity, professional services, Recruitment, turnaround, UK, Value | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | KZG LN | Kazera Global plc | Materials | Precious Metals & Minerals | Bull | New York Stock Exchange | Diamonds, Lithium, Mining, Optionality, turnaround | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | PTAL CN | PetroTal Corp | Energy | Oil & Gas | Bull | New York Stock Exchange | leverage, Navdiscount, oil, Operations, turnaround | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | IPO LN | IP Group plc | Financials | Capital Markets | Bull | New York Stock Exchange | Biotech, buybacks, Greentech, NAV, Venture | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | CGEO LN | Georgia Capital PLC | Financials | Diversified Financials | Bull | New York Stock Exchange | buybacks, discount, growth, NAV, valuation | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | FAIR LN | Fair Oaks Income Limited | Financials | Asset Management | Bull | New York Stock Exchange | buybacks, Clo, Credit, Income, yield | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | POW LN | Power Metal Resources plc | Materials | Diversified Metals & Mining | Bull | New York Stock Exchange | Copper, Optionality, rerating, royalties, uranium | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | AUGM LN | Augmentum Fintech plc | Financials | Venture Capital | Bull | New York Stock Exchange | banking, Fintech, growth, Navdiscount, Venture | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | DEC LN | Diversified Energy Company PLC | Energy | Oil & Gas | Bull | New York Stock Exchange | buybacks, cashflow, energy, LNG, Naturalgas | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | TMT LN | TT Investments Ltd | Financials | Asset Management | Bull | New York Stock Exchange | IPO, mobility, Navdiscount, Optionality, Privateequity | Login |
| Jan 2, 2026 | Fund Letters | The Oak Bloke | ANIC LN | Agronomics Limited | Financials | Closed End Funds | Bull | New York Stock Exchange | Alternativeprotein, Biotech, Navdiscount, Optionality, Regulation | Login |
| TICKER | COMMENTARY |
|---|---|
| RWA.L | Recruitment Consultancy Robert Walters (RWA) sank to a £50 million market cap during March. I couldn't help myself. Having declared Turnaround, Turnaround in January I had my eye on this bowl. £116m NAV for £50m so YOU'RE GETTING PAID £30m cash/debtors net of creditors for a business that can generate £40m net profit in a good year. Today's update and rise still leaves RWA at a miserly £60m. So you only get paid £20m to buy RWA based on net current assets. The headline figure of a 2% decline in net fees might seem negative, the underlying data reveals a significant sequential improvement to Net Fee Income (NFI) compared to the double-digit declines seen in 2025. Of particular note was the contrast of Jan/Feb vs March. The quarter was down -2% and March was up 5%. Group net fees in March were up 5% year-on-year. Fee earner productivity rose 9%, and perm placements per fee earner increased by 6%. The monthly overhead cost run rate has been reduced to below £23.5m (from £24m at the end of 2025), showing disciplined operational control. Net cash of £20.1m is healthy, especially considering Q1 is a seasonally high-outflow period due to annual bonus payments. The fact that fee earners were ADDED is a further bullish signal. RWA are adding presumably from its competitors (who are also bleeding red). Japan (+13%) has returned to growth following actions taken late 2025 to improve performance; a vital sign for the Group's largest market. RWA reported the market is stabilising; RWA is outperforming many smaller domestic rivals. With headcount down 10% year-on-year but productivity up, RWA is coiled for a profit surge when hiring volumes improve, even slightly. Japan is RWA's jewel in the crown. Its return to growth alongside the UK, Spain and New Zealand - half the top 8 markets is a significant leading indicator for recovery. RWA has provided further evidence how scything, whipping and grafting delivers results and green shoots of recovery. The business has stabilised, costs are down, and the most profitable regions (Japan, UK) are showing green shoots. But given the March exit rate of +5% growth, the 1Q26 results mask today's performance and perhaps 2026's outlook. RWA is likely operating profit profitable now in April. |
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