RNS Announcements
First Day Dealing Final
Placing and Admission to AIM
ReThink Group (AIM: RTG), the UK based specialist recruitment, consultancy and managed services group, announces that trading in its shares commences today on AIM.
The Company has raised £804,000 (before expenses) to cover, inter alia, the costs of admission through the placing of 8,040,000 new ordinary shares of 0.1p per share ("Ordinary Shares") at an issue price of 10p per share. The expected market capitalisation at the Placing Price is £9.1 million.
The Company
- Permanent and temporary/contract IT recruitment through ReThink Recruitment Solutions, KPC and Integritas Recruitment and "white collar" construction staff recruitment through ReBuild Recruitment Services
- Provision of business and technology solutions through Aiimi, including the delivery and management of an employee incentive programme for a leading UK commercial bank
- Four regional hubs in Manchester, London, Bristol and Birmingham employing over 140 employees
- In the year ended 31 December 2007, turnover of £28.14 million, gross profit of £7.92 million and profit before tax of £1.06 million
The Market Opportunity
The founding Directors have previous experience having developed Best International Group plc into an international recruitment agency generating £85.6m turnover and £12.8m gross profit before selling it to Spring Group plc in June 2003.
The Directors believe that the IT and construction markets that ReThink Group plc serves remain relatively firm, with strong demand for staff on both a contract and permanent basis.
The Directors intend to pursue both organic growth and acquisition opportunities and are interested in expanding the scope of the Company's operations into other high value recruitment niche areas such as the legal, healthcare and pharmaceutical sectors.
Commenting, Jon Butterfield, Managing Director said:
"We have an extremely experienced management team who are well placed across the UK to manage the business on a day to day basis. This team has worked through a variety of market conditions over the past 20 years. The sectors in which we are operating continue to see healthy levels of business. IT is critical to business as technology can still improve efficiencies in organisations.
"We are also heavily involved in the implementation and development of incentive management software and business consultancy which in tougher times improves the performance of large organisations. The partnership with Callidus Software Inc, a world-leading provider of incentive management software, and our involvement with their largest European implementation has given us valuable intellectual property to roll out with other clients who adopt this technology. There are some very clear synergies between the recruitment businesses and the business and technology consultancy within the group.
"The development of our construction recruitment business, which provides professional grade staff utilises the same technology platform as our IT recruitment business so again synergies in terms of systems and management are leveraged. Demand for the professional grade construction staff is still good."
Placing Statistics:
Placing Price - 10 pence
Gross proceeds of the Placing - £804,000
Anticipated Market Cap at the Placing Price - £9.1 million
Directors' holdings:
Jonathan Butterfield - 13.31%
Michael Bennett - 13.31%
Iain Blair - 13.31%
Andrew Lord - 13.31%
John O'Sullivan - 6.91%
John Sadiq * - 6.71%
Simon Church - 2.27%
Robert O'Callaghan - 2.20%
Stephen Salvin - 2.20%
Patrick Dundon - 0.77%
* Interest includes 6,000,000 Ordinary Shares owned by Starwood Strategic Investments Limited, of which John Sadiq is a director and which is owned or controlled by members of his immediate family.
Smith and Williamson Corporate Finance is Nominated Adviser and Broker to the Company.
Further information on the Company, including information required pursuant to Rule 26 of the AIM Rules for Companies, can be found on the Company's website, www.therethink-group.com
Contacts:
Jon Butterfield, Managing Director - 07831 593646
The ReThink Group plc
Nicola Horton, David Abbott - 020 7131 4000
Smith & Williamson Corporate Finance
Trevor Phillips, David Bick - 020 7929 5599
Square1 Consulting
17 June 2008
