News
AGM Statement - Trading Update
The ReThink Group plc (“ReThink” or the “Company”)
AGM Statement
Trading update
At the Annual General Meeting held today, the Chairman, John Sadiq, made the following statement:
“In our first results as a Stock Exchange traded company, we announced on 29 April 2009 a 54% year-on-year increase in revenues for the year to 31 December 2008, gross profit of £12.1m and pre-tax profits of £0.19m.
Trading Update 2009
“Net fee income from contract recruitment was nearly 17% higher than in the first quarter of 2008 and represented 56% of our total net fee income for the quarter. We currently have 476 contractors on billing and in June 2008 we had 348 on billing, an increase of 37.3%.
“Net fee income from permanent recruitment was 40.6% lower on the same comparable basis, reflecting the difficult economic conditions we are operating in. Progress in Aiimi our IT & Business Consulting Division is encouraging with a good increase in clients and partners such as IBM, Cognos, Microsoft and Oracle.
“The Company renewed its main banking facilities in March and cash resources and headroom remain sufficient for the foreseeable future.
“Visibility for the medium term remains poor, but we are beginning to see signs that the market is nearing a floor. Further, we have achieved some significant contract wins with Marks & Spencer, RR Donnelley and the NHS. ReThink has been awarded an exclusive contract to supply up to 40 people to a department of the Department of Health for a period of 11 months and is delivering this programme from July this year. We have also secured an important Public Sector framework agreement which is in place to 2011, all of which will be accretive to earnings in the second half of the financial year and beyond.
“Although the Company anticipates the half year results to be behind those for the same period in 2008, it expects this shortfall to be recovered in the second half of the year and to deliver full year pre-tax profits ahead of those for 2008.
“We remain highly focused on the growth of the business and investment in our core areas of expertise with the dedication of the best staff in the business. We took the decision at the start of 2009 to support all our staff who in normalised markets, over the past four years, have evidenced a positive contribution to the Company’s earnings. The board would like to thank everyone in the group for their commitment and hard work in these challenging markets.”
End.
Enquiries:
| Jon Butterfield, Managing Director | 07831 593646 |
The ReThink Group plc | |
David Abbott, | 020 7131 4000 |
| Smith & Williamson Corporate Finance Ltd | |
David Bick, Mark Longson | 020 7929 5599 |
| Square1 Consulting Limited |
16 June 2009
