Rethink Group Share Discussion Threads

[shammytime] 09/2/2011 10:00

Looks like a big order is being worked through...

Could be numerous upgrades/regrades on the horizon this week.

[shammytime] 09/2/2011 09:53

Breakout - could be a good move here...

[rcktmn] 08/2/2011 20:44

good news indeed! looking good!

[tsmith2] 08/2/2011 16:53

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: [phone]




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.

[standish11] 08/2/2011 16:11

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

[masco3] 27/1/2011 09:39

If you are interested in quizzing management, the company is exhibiting at this show in April: www.masterinvestor.co.uk. They have a few free tickets available for shareholders and other interested parties if you email the organisers at [e-mail] quoting 'Rethink shareholder'.

[rcktmn] 31/12/2010 11:37

SP continuing to climb ! nice re-tating going on.

[rcktmn] 31/12/2010 10:25

Nice share price rise... it's looking good at long last! onwards and upwards!

[carterdl] 17/9/2010 09:43

Not many shares have a one year range as wide in percentage terms as RTG. A real rollercoaster ride ... and we're currently in a dip, for no good reason really. But there must be a fair chance of touching 11 - 12p within the next 12 months and with much more to potentially come in coming years.
TW has in mind £100m revenues, giving 4-5p earnings by around 2015, followed by a sale at a double digit multiple. So I'm in for the long haul, as if he's even half right RTG will give a great return, without even considering the dividends.

[faza3] 16/9/2010 17:47

angm and avi do not pay dividend

[faza3] 16/9/2010 17:42

i think this is beter then saving account i think i am wrong but divident is divident

[tsmith2] 16/9/2010 17:23

how many could triple and still look cheap?

ANGM & AVI would.

[carterdl] 16/9/2010 17:08

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.

[faza3] 16/9/2010 16:53

i just have 21000 before close tommorow I am buying more very nice i like this company nice divident

[tsmith2] 16/9/2010 15:10

good find..

we need volume!

[standtall] 16/9/2010 13:17

16th September 2010

Analyst: Derren Nathan
Email: [e-mail]
Tel: [phone]

Rethink Group* - Interim results show growth in all divisions. Declaration of inaugural dividend - BUY at 5.5p maintaining target price of 20.5p.

Key Data

EPIC

RTG
Share Price

5.5p

NMS

5,000

Spread

5p-6p

Total no of Shares

93.22 million

Market Cap

GBP 5.13 million
12 Month Range

4.5p-10.5p

Market

AIM

Website

www.therethink-group.com

Sector

Support Services

Contact

Jon Butterfield, CEO Tel: [phone]


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

[orado] 16/9/2010 08:43

Good steady results - just what is needed, for long term growth.

[tsmith2] 16/9/2010 07:47

great results!

[masco3] 22/6/2010 16:29

Thanks johnstonp. Here is a link to the article:

[orado] 22/6/2010 15:46

TW is rubbish

[johnstonp] 22/6/2010 15:45

tipped today by TW at 3.20pm on GECR with a target price of 20.5p

[uggly buggly] 21/6/2010 14:08

Have to be very careful buying on these tips, vast majority are pump and dump

[carterdl] 17/6/2010 12:20

The rating will improve significantly as and when estimates are met. The AGM statement shows that things are on track so far this year. Patience will be needed here, but should be rewarded handsomely over time. I'm holding for that.

[tsmith2] 15/6/2010 07:21

penned in to do 1p eps this year and 1.8p in 2011

10 times prospective earnings = 18p for starters - deserves a higher rating given growth