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UK recruiter the Rethink Group (AIM: RTG) saw annual revenue rise +15.6% to £91.2 million in 2012, the firm reported Thursday. Net fee income, or gross profit, rose +11% to £20.1 million amid challenging market conditions.
Interim CEO, Steve Wright, said the firm had achieved operational progress last year to improve profitability. “A revised strategy is being implemented to develop and expand the Managed Service offerings to reflect a rapidly growing market opportunity and better position the Group to optimise medium to long term growth. Rethink is trading profitably in the new financial year, with results from the first quarter in line with management expectations.”
But in 2012, the firm reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of £0.2 million, down from £2.3 million in 2011. The firm said this reflected increased personnel costs and a goodwill impairment of £0.4 million. Loss from operations amounted to £0.5 million, against a profit of £2.1 million in the prior year.
The company has now agreed a new £20 million banking facility with Bank Leumi in 2013 to replace existing arrangements.
In early trading, the company’s share price jumped by nearly +7% to 6 pence, a -44% drop from a year ago. Based on its stock price, Rethink has a market value of £6.42 million.
Rethink Group provides business services through three divisions, including recruitment, talent management and technology. The firm operates from the UK, Ireland, Singapore, the US and the Middle East.