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Real-Time news about Rethink Grp (London Stock Exchange): 0 recent articles
|value viper: i had thought a new thread MIGHT mark a new trend for the share price !|
|this_is_me: The share price is far too low; it is priced to go bust, which is very unlikely given that it is making money and the long term talent management business is making steady progress.|
|tiredandweary: Rethink is dog with fleas
They need to sack their CEO and let someone else have a go
Whoever heard of a dynamic recruitment company ever doing well under the stewardship of their ex FD? How is he going to be an inspirational leader and grow the business organically
I guess he talks a good game with the lawyers, bankers and accountants
Most UK recruiters have doubled their share price over the last year
Rethink's has gone down|
|this_is_me: It looks like things are going well at present. Any reasonable level of profit is going to make the share price soar from its current priced to go bust level.|
|glasshalfull: O/T post for Paleje - I'd be interested on your take in relation to Work Group (WORK) if you get the opportunity.
Happy for you to post on relevant thread or via email
At 12.75p mid WORK has a market cap of £3.56m. Finals to 31 Dec 2011 show a net-cash balance of £1.34m so it is currently on an EV of approx £2.22m.
Two businesses; Armstrong Craven that is probably worth north of entire market cap and Work Communications now turned around (accounts for exceptionals) with recent start ups in Hong Kong and New York now profitable.
They have been restructuring for a couple of years but H2 2011 showed a much improved performance with a pre-exceptional PBT of £588k for the six months. A few years ago this company generated large profits and traded at six times the current share price.
Current year broker forecasts of £1.1m PBT equating to an EBITDA of approx £1.22m. That's an EV / EBITDA of 1.82 which is cheap IMO for a company with real growth potential.
So prospective PER of 3 with net cash on balance sheet.
|tsmith2: 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
7.5p - 9.5p
Total no of Shares
12 Month Range
4.5p - 9.125p
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.|
|carterdl: Well done Faza. The dividend is welcome and a real show of confidence from the board. TS is right though, we need volume to get the share price moving. But it could be a while yet before Rethink is on investors radar sufficient to move the price much. There's a lot of cheap small caps vying for attention.|
|standtall: 16th September 2010
Analyst: Derren Nathan
Email: [email protected]o.uk
Tel: 0207 562 3371
Rethink Group* - Interim results show growth in all divisions. Declaration of inaugural dividend - BUY at 5.5p maintaining target price of 20.5p.
Total no of Shares
GBP 5.13 million
12 Month Range
Jon Butterfield, CEO Tel: 07831 593646
The Rethink Group (ReThink), the IT recruitment and IT consulting business today delivered a robust set of interim results for the six months to 30 June. Gross revenues were up by 9% to £ 27 million and net fee income increased by 12% to £ 5.9m. This growth was magnified at the bottom line with pre-tax profit growing from £ 12,000 to £ 0.21 million. The company has declared an inaugural interim dividend of 0.054p per share.
The increase in gross profit has been largely driven by an increase in permanent revenues. Contract margin increased by £ 84,000 to £ 3.1 million and permanent margin jumped by £ 627,000 to £ 2.1 million. ReThink's strategy of not cutting permanent recruitment teams in 2009 is proving to be the correct one, as demand has increased across the UK and long-term customers have begun to hire again. Year on year permanent placements increased from 277 to 364. The company has had some exposure to certain public sector clients and this has led to some pressure on revenues in this division, as a result of Government led public spending decisions. In particular, ReThink lost a major client with 70 onsite contractors. However, elsewhere in the business there have been higher margin contract wins to compensate for this. The company's Southend division is being relocated to London which should enable some measure of cos t savings.
The Business and IT Consultancy division is also performing well with revenues up 4% to £ 211,000. Aiimi has increased its head count by 20 per cent and seen utilisation levels increase by 51 per cent. As anticipated the investment in staff and business development has resulted in a loss in this division in the first half, however the Board anticipates a return to profitability in the second half. The division has added new customers across several sectors.
Whilst this is an upbeat set of results, we share the company's ongoing concerns about the UK economy, and have trimmed our 2010 forecasts. Our pre-tax profit forecast now stands at £ 0.9 million ( £ 1.2million). We have also trimmed our 2011 forecasts but given the strong trends in trading shown in today's results, have reduced our pre-tax profit forecast by just £ 0.1 million to £ 1.6 million.
The announcement of an inaugural interim dividend underlies the management's cautious optimism about future trading. The continued focus on securing longer term contracts in the Recruitment Process Outsourcing and Managed Service area has resulted in the signing of another three year contract with Boots UK Limited. Further deals of this type will strengthen earnings visibility and recurring fee income. Going into 2011 the investment in Aiimi will start to reap returns. Our target price of 20.5p puts the company on a price to earnings multiple of 12.8 times forecast 2011 earnings which we regard as fair given the growth projected and the increased confidence we have in our revised estimates. The stance remains buy|
|smyth: Can anyone please give any info about this company & what your thoughts are about the increase in share price I bought at 58p. the price seems to rise with the slightest volumes of trades any thoghts or advice please......|
Rethink Group share price data is direct from the London Stock Exchange