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UK — ReThink profit down to 5.5 million Pounds

16 September 2009

The ReThink Group plc (RTG:LSE), the permanent and contract staffing firm have today published their interim results for the six months ended 30 June 2009.

Gross Profit was down to 5.5 million Pounds compared to 6.7 million Pounds for the same period in 2008. Gross revenues were up by 18% to 24.6 million Pounds compared to 20.9 million Pounds in 2008.


Contractor revenues were up by 28% to 21.2 million Pounds compared to 16.6 million Pounds in 2008. Permanent recruitment revenues fell to 1.4 million Pounds as opposed to 2.5 million Pounds in 2008. Profit before tax fell to 12,000 Pounds compared 80,000 Pounds in 2008.

Commenting on the results, Jon Butterfield, Chief Executive said, "The Group has achieved a creditable first half result during a period of continued difficult trading. Our ability to protect and enhance our core operating infrastructure ensures the Group is very well positioned to outperform when the upturn arrives."

"We are very encouraged that, unlike many in our sector, we have continued to grow contractor numbers during the period and believe that this validates the customer relationship model that we have pursued since the business began."

"We are focusing hard on recovering the reduction in permanent revenues which has affected the performance in the first half. Aiimi, our Consulting Division, has continued to expand its footprint and progress in this area and is in line with our expectations. At the same time we have reduced the headcount in a number of unproductive business units and we will not expand these until the market conditions improve."

In a further statement the group says, "the Board remains committed to the organic growth of its UK regional presence but will continue to consider acquisitions both within the UK and overseas as opportunities arise that we consider will benefit shareholders."

"The integration of Proveya MEA FZCO (now renamed ReThink MEA FZCO) is now complete and the Board has been encouraged by the progress it is making. ReThink MEA has successfully renewed supplier agreements with Proveya clients in Dubai and secured a number of new projects with new clients in Bahrain, Abu Dhabi and Qatar. The division continues to develop opportunities across the Middle East and Africa region and early successes have been achieved in India."

ReThink operates in two segments: recruitment and consultancy. The Company's recruitment businesses include ReThink Recruitment Solutions Ltd, KeyPower Consultants Limited, ReBuild Recruitment Services Ltd and Integritas Ltd. Its business and consulting division includes Aiimi Limited, previously known as ReThink Professional Services Limited.

In early trading ReThink shares were unchanged at 9.50 Pence.

 

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