ReThink Group declares maiden interim dividend
StockMarketWire.com
Recruitment group ReThink reported a 12% rise in net fee income to 5.9m from 5.3m for the six months to June 30.

Profit before tax was 0.21m, against the previous 12k.

The group declared a maiden interim dividend of 0.054p per share.

ReThink said its strategy of not cutting its permanent recruitment teams in 2009 was proving correct as demand had increased across the UK and long-term customers had begun to hire again.

The Business and IT Consultancy division, Aiimi, had been enhanced by the acquisition of TrustTech, with revenue up 4% to 1.03m.

The group saw a 9% rise in total gross revenue to 27.0m from 24.6m.

Contractor revenue was up 7% to 23.8m. Permanent recruitment revenue grew to 2.1m from 1.5m.


THIS IS LOOKING GOOD AND WORTH A PUNT (IMHO),,there's a target of 20p out on this one...Igot in at 5p a few months ago...onwards andupwards!

This is still looking good! long may it continue! staying in for more gains!

THIS IS LOOKING GOOD AND WORTH A PUNT (IMHO),,there's a target of 20p out on this one...I got in at 5p a few months ago...onwards andupwards!

This is still looking good! long may it continue! staying in for more gains!

Nice tick up today...heading in the right direction

bit of a re-rating going on? it's looking good for 2011 (imho)

sp continuing to climb...onwards and upwards!

Some positive movement today following good trading update.Pity about the spread.

The ReThink Group* - Trading Update: 2010 in line with expectations. Positive start to 2011. Reiterate buy stance at 8.5p with a target price of 14.8p


Key Data

EPIC
RTG
Share Price
8.5p

NMS
5,000

Spread
7.5p - 9.5p

Total no of Shares
93.22 million

Market Cap
GBP7.92 million
12 Month Range
4.5p - 9.125p

Market
AIM

Website
www.therethink-group.com

Sector
Support Services

Contact
Jon Butterfield, CEO Tel: 07831 593646




The ReThink Group, (ReThink) the IT recruitment and IT consulting business has issued a post year end trading update indicating that for the year ending 31st December 2010, revenues will be marginally ahead of market expectations and the profit before tax to be in line with market expectations at GBP0.9 million. While it is very early in the year, the company reports that current trading has started well with contractor numbers continuing to grow, permanent revenues ahead of management's expectation and a positive start from the IT & Business Consulting division, Aiimi Limited.

The continued development of the Group's Recruitment Process Outsourcing ("RPO") offering is adding long term contract agreements to the company the Board is pleased with the development of Boots and M&S in this area. ReThink expects to report on a further RPO win in the near future. The group states that it is also pleased with the development of the business in the Middle East and expects to open a new office in Asia during H1 of 2011.

Given the tone of the statement, the expectation of new contract wins and the forthcoming branch opening in Asia we have further comfort and visibility on our 2011 forecasts. We have continuing concerns about the UK economy but so far the company and other recruiters in the sector have continued to see strong demand. We believe that given the cut backs companies have made over the last two years, many now have no further room to reduce staffing numbers, which should help sustain demand for both permanent and contracted IT staff. We applaud the company's efforts to diversify its activities and geographical base.

At this stage we leave our 2011 forecasts unchanged and retain our target price of 14.8p which equates to a current year PE ratio just shy of 13 times. Unless there is a significant deterioration in the UK economy we think it more than likely that our cautious 2011 estimates will be increased again as the year goes on. At 8.5p the stance is buy.

good news indeed! looking good!

Anyone else in!?

Nice sp rise today and spread is closing too! nice little re-rating going on here. I'm now 75% up and will hold for a while longer

ReThink still doing good...nice rise today ,,now 100% up on my initial outly...results out Thursday morning...reported to be excellent! (imho)

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