The ReThink Group plc Publishes Interim Results
The ReThink Group plc Publishes Unaudited Condensed Consolidated Interim Results for the Six Months ended 30 June 2010
Strategy delivers improved performance: Inaugural dividend to be paid
The Board of The ReThink Group plc, announces its unaudited interim results for the six months ended 30 June 2010.
Net fee income (gross profit) increased to 5.9m (2009: 5.3m), a 12%. increase.
9 per cent. rise in gross revenues to 27.0m (2009: 24.6m).
Strong growth in contractor revenues, up 7%. to 23.8m (2009: 22.2m).
Permanent recruitment revenues growth to 2.1m (2009: 1.5m) reflecting increased customers' confidence and the Group's strategy of supporting our permanent recruitment division during late 2008 and 2009.
Revenue from Business and IT Consultancy division (Aiimi) up to 1.03m (2009: 0.99m), a 4% increase.
Profit before taxation of 211,000 (2009: 12,000).
Inaugural interim dividend of 0.054p per share declared.
Growth in IT contractor numbers to 536 at 30 June 2010 (458 at 30 June 2009), an increase of 17%.
Continued expansion of the Business and IT Consultancy client base.
Acquisition in March 2010 of TrustTech Limited ("TrustTech"), providing increased depth in our Enterprise Content Management practice in Aiimi.
A major three year Recruitment Process Outsourcing contract with Mr Ted Limited to support the development of our Recruitment Process Outsourcing and Managed Service contracts. This partnership provides us with a leading edge technology platform that we can deploy to support contracts of this type.
Investment in our first international office in Dubai is developing well and we are seeing increased demand for our services from this area.
Commenting on the results, Jon Butterfield, Chief Executive, said:
We have seen that with continued hard work across the Group, half year gross revenues are 9%. ahead of 2009 and gross profit is ahead by 0.6m. Cost control measures, put in place during 2009, have continued and have ensured profit from operations has risen from 2%. of gross profit (2009) to 6%. Our strategy of not cutting our permanent recruitment teams in 2009 is proving to be the correct one, as demand has increased across the UK and our long-term customers have begun to hire again, these teams have delivered a 0.6m increase in gross profit. We must now continue to build and protect margin on contract recruitment and drive growth in contractor numbers towards 600 on billing by the end of 2010.
Our Business and IT Consultancy division, Aiimi, has been enhanced by the acquisition of TrustTech which has added additional capabilities within our Enterprise Contact Management (ECM) practice and whilst revenues dipped after the end of a major contract in 2009, the focus of the team on growing the customer base and spreading risk is now starting to deliver the growth that the Board expects.
It is particularly pleasing to be able to declare the Company's inaugural interim dividend of 0.054p per share.