![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Rethink Grp | LSE:RTG | London | Ordinary Share | GB00B39QB067 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.875 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMRTG
RNS Number : 9211S
ReThink Group (The) PLC
30 September 2014
30 September 2014
The Rethink Group plc
("Rethink" or the "Group")
Interim Results
The Rethink Group plc (AIM: RTG), a leading Talent Management and Recruitment Services company, is pleased to announce its interim results for the six month period ended 30 June 2014.
H1 2014 Financial Highlights
-- Group revenue from continuing operations increased 4.5% to GBP56.5m (H1 2013: GBP54.0m)
-- Net Fee Income* ("NFI") from continuing operations increased 4.5% to GBP10.0m (H1 2013: GBP9.6m) with Talent Management NFI increasing 32.7% to GBP2.4m (H1 2013: GBP1.8m).
-- Operating profit from continuing operations increased 18.4% to GBP0.81m (H1 2013: GBP0.68m)
-- Net borrowings** decreased to GBP9.3m (2013 year end: GBP11.7m).
-- Cash generated by operations GBP2.8m (H1 2013: cash absorbed GBP1.1m)
-- Basic earnings per share 0.479 pence (H1 2013: 0.374 pence)
* Net Fee Income (NFI) represents gross revenue less direct cost of sales
** Net borrowings consist of cash at bank less bank borrowings under the Group's revolving invoice discounting facility.
Operational Highlights
-- Won a new three year Talent Management contract with a UK listed multichannel marketing and communications business.
-- Secured a Talent Management contract renewal for a further three years with M&S plc.
-- Increased investment in experienced business development executives within the Talent Management division.
-- Restructured PLC Board and a new Executive Board created.
Steve Wright, Chief Executive Officer of Rethink, commented:
"I am satisfied with the performance of the Group in the first half of the year as we continue to implement our strategy. Our Talent Management division is growing in line with our expectations, winning new clients and repeat business from existing clients. We will continue to invest in this division building long term sustainable revenues for the Group.
For further information please contact:
The Rethink Group plc Steve Wright, CEO / Ben Felton, CFO 0207 367 4444 Shore Capital (Nominated Adviser and Broker) Bidhi Bhoma/Edward Mansfield 0207 408 4090 Newgate Threadneedle John Coles/Fiona Conroy 020 7653 9850
About The Rethink Group plc
Rethink Group (AIM: RTG) provides business transformation services through Talent Management and Recruitment Services. These mutually supported activities work in synergy and support our growing customer base.
The Group supports clients across the UK, Europe, US, Middle East and Asia Pacific.
For more information please visit our website: www.rethinkgroupplc.com
Chairman and CEO's Statement
In the six month period to 30 June 2014, the Group steadily grew revenues and net fee income ("NFI") from continuing operations by 4.5% and generated a profit from operations of GBP0.81m, 18.4% ahead of the same period in 2013. The growth in NFI continues to be driven by our Talent Management division which reported a 32.7% increase in NFI to GBP2.4m in the period (2013: GBP1.8m).
The Group continues to build strong, long term relationships with major UK and overseas corporates across both the Talent Management and Recruitment divisions. During the period Rethink secured a Talent Management contract renewal with M&S plc for a further three years and also signed a new three year agreement with a large UK listed multi-channel marketing and communications business.
Not only do these new contracts provide the Group with sustainable future revenues, they also highlight the excellent work of all our staff and the continued trust our clients have in Rethink.
Financial Review
The Group grew both permanent and contract revenues in the six month period to 30 June 2014, to a total of GBP56.5m (2013: GBP54.0m). NFI from permanent recruitment increased 11.5% to GBP4.3m (2013: GBP3.9m), reflecting growing business confidence in the UK and Irish markets as clients invest in their permanent workforce.
Group EBITDA (before separately identifiable items) decreased by 18.4% to GBP0.91m (H1 2013: GBP1.11m) as a result of investment in the Talent Management Division and the cost of the recent move to a new head office in London; a combined investment of GBP0.4m in the period. Operating profit from continuing operations (after separately identifiable items) increased 18.4% to GBP0.81m (H1 2013: GBP0.68m) and profit before tax increased by 15.8% to GBP0.61m (2013: GBP0.53m).
The Group reported basic earnings per share for the period of 0.479 pence (H1 2013: 0.374 pence).
Working Capital and Invoice Discounting
The Group continued to focus on its working capital management resulting in net cash generated from operation of GBP2.8m in the period (H1 2013: outflow of GBP1.1m).
Net borrowings, which represents cash and cash equivalents less the Group's revolving invoice discounting facility, reduced to GBP9.3m from GBP11.7m at 31 December 2013 as the Group took advantage of surplus cash generated from operations to pay down its borrowings.
Operational Review
Rethink's ongoing structure is aligned to two interconnected business units of Talent Management, where our involvement with a client is deeper and is typically underpinned by longer term managed service agreements, and Open-Market Recruitment, characterised by transactional client relationships. The Group provides its services to clients in two primary vertical markets - Business and Technology and Pharmaceuticals and Life Sciences, and operates through offices in the UK and overseas.
Talent Management Division
NFI for our Talent Management Division increased 32.7% to GBP2.4m (H1 2013: GBP1.8m) and contribution from operations of the division, after accounting for direct investment costs of GBP0.3m, grew slightly to GBP1.3m (H1 2013: GBP1.2m).
In line with our stated strategy the Group has focused significant investment in the Talent Management division during the period, through engaging more experienced business development executives, building a new dedicated website and increased marketing. This investment has started to bear fruit with the recent contract win, announced in July 2014, and contract renewal with M&S plc after the period end. We will continue to invest significantly in this area of the business as we develop a portfolio of products that will deepen and broaden our service offerings to clients.
Recruitment Division
Our Open-Market Recruitment business experienced a modest decline in NFI of 2.2% to GBP7.6m (H1 2013 GBP7.7m), impacting the contribution from this division which reduced slightly to GBP1.2m from GBP1.3m in the same period of 2013. The division continues to deliver excellent repeat business across its blue chip client base and importantly also provides a steady flow of introductions to the Talent Management division.
Board Changes
As disclosed in April 2014, the Group restructured its board of directors ("PLC Board") and established a new operational board ("Executive Board"). The Executive Board continues to focus on executing the Group's three year growth strategy, through the development and delivery of Talent Management and Recruitment services. Its central responsibility is on business development across all Group brands.
The PLC Board, which has been streamlined to five members, concentrates on supporting the Executive Board in the formulation and review and execution of Group strategy, investor relations and maintaining strong standards of corporate governance.
Outlook
The Group is steadily building momentum in its Talent Management division with new contract wins and repeat business from major blue chip clients. Encouragingly, the majority of our Talent Management income originates from long term client relationships which were nurtured and developed in the core Open-Market Recruitment division. The investment in new Talent Management business development executives and marketing collateral in the period is expected to augment this revenue stream by generating incremental business from both new and existing clients.
Despite the cost of investment in the period, the Group still expects to report an increase in EBITDA for the full year to 31 December 2014, however, this is expected to be marginally below current market expectations.
While we expect revenues and NFI to grow in the long term, it is in the very nature of long term client relationships built on trust that investment costs will take longer than traditional recruitment investment to yield returns. However, it is our firm belief that the returns will not only be greater but also more sustainable over time, and hence expected to create greater shareholder value due to the improved quality of earnings.
John O'Sullivan Stephen Wright
Chairman Chief Executive Officer
30 September 2014
INTERIM CONSOLIDATED INCOME STATEMENT 2014 Unaudited Unaudited Audited ======================================= Six months Six months Year ended ended ended ======================================= 30-Jun-14 30-Jun-13 31-Dec-13 Note GBP'000 GBP'000 GBP'000 ======================================= ===== =========== =========== =========== REVENUE 56,464 54,027 111,693 Cost of sales (46,444) (44,437) (92,133) GROSS PROFIT 10,020 9,590 19,560 Administrative expenses (9,211) (8,907) (18,153) OPERATING PROFIT FROM CONTINUING OPERATIONS 5 809 683 1,407 Analysed as: Earnings before interest, tax, depreciation, amortisation and non-recurring items 910 1,113 2,225 Amortisation and depreciation (101) (130) (176) OPERATING PROFIT FROM CONTINUING OPERATIONS BEFORE NON-RECURRING ITEMS 809 983 2,049 Separately identifiable items 3 - (300) (642) OPERATING PROFIT FROM CONTINUING OPERATIONS 809 683 1,407 --------------------------------------- ----- ----------- ----------- ----------- Finance costs (199) (158) (579) Finance income - - 2 PROFIT BEFORE TAXATION 610 525 830 Tax expense (52) (95) (172) PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 558 430 658 Profit on discontinued operations - 2 198 PROFIT FOR THE PERIOD 558 432 856 ======================================= ===== =========== =========== =========== Other comprehensive income Foreign currency exchange differences on translation of foreign operations (204) 131 112 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 354 563 968 ======================================= ===== =========== =========== =========== Earnings per share: ----------- ----------- ----------- - Basic 2 0.479p 0.374p 0.742p ----------- ----------- ----------- - Diluted 2 0.479p 0.374p 0.738p ----------- ----------- ----------- INTERIM CONSOLIDATD BALANCE SHEET 2014 Unaudited Unaudited Audited ============================ ============== 30-Jun-14 30-Jun-13 31-Dec-13 ============================ Note GBP'000 GBP'000 GBP'000 ============================ ============== ---------- ---------- ---------- ASSETS NON-CURRENT ASSETS Goodwill 4 3,919 4,121 4,050 Investment 12 5 12 Property, plant and equipment 619 515 381 Intangible assets 77 74 54 Deferred tax asset 63 56 62 ---------- ---------- TOTAL NON-CURRENT ASSETS 4,690 4,771 4,559 ---------- ---------- ---------- CURRENT ASSETS Trade and other receivables 25,328 29,017 22,270 Cash and cash equivalents 1,473 449 1,600 Corporation tax asset - 11 - ---------- ---------- TOTAL CURRENT ASSETS 26,801 29,477 26,870 ---------- ---------- ---------- TOTAL ASSETS 31,491 34,248 31,429 ---------- ---------- ---------- LIABILITIES CURRENT LIABILITIES Trade and other payables (13,861) (14,561) (11,860) Advances on invoice discounting facility (10,667) (13,756) (13,304) Finance leases (107) - (35) Corporation tax liability (250) - (105) ---------- ---------- ---------- TOTAL CURRENT LIABILITIES (24,885) (28,317) (25,304) ---------- ---------- ---------- NET CURRENT ASSETS 1,916 1,160 1,566 ---------- ---------- ---------- NON-CURRENT LIABILITIES Finance leases (134) - (7) Deferred tax liability (50) (43) (50) ---------- ---------- ---------- TOTAL NON-CURRENT LIABILITIES (184) (43) (57) ---------- ---------- ---------- NET ASSETS 6,422 5,888 6,068 ---------- ---------- ---------- EQUITY Share capital 117 117 117 Share premium account 3,238 3,238 3,238 Merger reserve 218 218 218 Translation reserve (448) (225) (244) Retained earnings 3,297 2,540 2,739 ---------- ---------- ---------- TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT 6,422 5,888 6,068 ========== ========== ========== INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2014 Share Retained Share Merger Translation Total capital earnings premium reserve reserve equity ------------------------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------------- ---------- --------- --------- ------------ -------- At 1 January 2013 114 2,108 3,145 218 (356) 5,229 Changes in equity for the six months ended 30 June 2013 Profit for the year - 432 - - - 432 Other comprehensive income - - - - 131 131 --------- ---------- --------- --------- ------------ -------- Total comprehensive income in the year - 432 - - 131 563 Share options exercised 3 - 93 - - 96 --------- ---------- --------- --------- ------------ -------- At 30 June 2013 117 2,540 3,238 218 (225) 5,888 Changes in equity for the six months ended 31 December 2013 Profit for the period - 424 - - - 424 Other comprehensive income - - - - (19) (19) --------- ---------- --------- --------- ------------ -------- Total comprehensive income in the year - 424 - - (19) 405 Recognition of share based payment expense - 5 - - - 5 Own shares held - (230) - - - (230) --------- ---------- --------- --------- ------------ -------- At 31 December 2013 117 2,739 3,238 218 (244) 6,068 Changes in equity for the six months ended 30 June 2014 Profit for the period - 558 558 Other comprehensive income - - - - (204) (204) --------- ---------- --------- --------- ------------ -------- Total comprehensive income in the year - 558 - - (204) 354 --------- ---------- --------- --------- ------------ -------- At 30 June 2014 117 3,297 3,238 218 (448) 6,422 ========= ========== ========= ========= ============ ======== INTERIM CASHFLOW STATEMENT 2014 Unaudited Unaudited Six months Six months Audited ended ended Year ended 30-Jun-14 30-Jun-13 31-Dec-13 GBP'000 GBP'000 GBP'000 Profit before tax 610 525 830 Adjustments for: Share based payment charge - - 5 Depreciation charges 85 95 153 Amortisation 16 35 22 Disposal of property, plant and equipment - - 150 Disposal of intangible assets - - 35 Finance costs 199 158 579 Finance income - - (2) ------------ ------------ ------------ 910 813 1,772 Increase in trade and other receivables (58) (6,158) (2,411) Increase in trade and other payables 1,927 4,241 1,417 ------------ ------------ ------------ Cash generated/(absorbed) by operations 2,779 (1,104) 776 Corporation tax refunded/(paid) 92 - (46) ------------ ------------ ------------ Net cash generated from/(absorbed by) operating activities 2,871 (1,104) 732 ------------ ------------ ------------ Cash flows from investing activities Purchase of property, plant & equipment (322) (80) (153) Purchase of intangible assets (40) (29) (32) Disposal of subsidiary undertaking net of cash disposed - 2 220 Finance income - - 2 ------------ ------------ ------------ Net cash (absorbed by)/generated from investing activities (362) (107) 37 ------------ ------------ ------------ Cash flows from financing activities Finance costs paid (199) (158) (579) Net change in advances on invoice discounting facility (2,637) 1,319 868 Payment for redemption of preference shares - (628) (628) Purchase/(repayment) of finance leases 199 (89) (47) Proceeds from issue of share capital - 95 96 ------------ ------------ ------------ Net cash (absorbed by)/ generated from financing activities (2,637) 539 (290) ------------ ------------ ------------ Net (decrease)/increase in cash and cash equivalents (127) (672) 479 Cash and cash equivalents at the beginning of the period 1,600 1,121 1,121 ------------ ------------ ------------ Cash and cash equivalents at the end of the period 1,473 449 1,600 ============ ============ ============
Notes to the unaudited financial information
For the six months ended 30 June 2013
1. Basis of Preparation
The financial information presented in this document has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations that are expected to be applicable for the year ending 31 December 2014. The principle accounting policies used in preparing these Interim Results are unchanged from those adopted and disclosed in the audited financial statements for the year ended 31 December 2013
The financial information in this statement relating to the six months ended 30 June 2014 and the six months ended 30 June 2013 has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the period ended 31 December 2013 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2013 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2013 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
2. Earnings per share
Basic earnings per share of 0.479 pence (2013 H1: 0.374 pence) are calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares in issue.
Fully diluted earnings per share of 0.479 pence (2013 H1: 0.374 pence) is calculated by adjusting the weighted average number of ordinary shares by existing share options, share incentive plans and the contingent share consideration on business combinations, assuming dilution through conversion of all existing options and shares held in share plans that are not underwater.
Unaudited Unaudited Audited 30-Jun 30-Jun 31-Dec 2014 2013 2013 GBP'000 GBP'000 GBP'000 ------------------------------------------ ---------- ---------- -------- Numerator Profit for the period - used in basic and diluted EPS 558 432 856 Denominator Weighted average number of shares used in basic EPS 116,518 115,385 115,385 Effects of: Employee share options 5 - 571 ---------- ---------- -------- Weighted average number of shares used in diluted EPS 116,523 115,385 115,956 ========== ========== ========
3. Separately identifiable items
Included within separately identifiable Unaudited Unaudited Audited items are:- 30-Jun 30-Jun 31-Dec 2014 2013 2013 GBP'000 GBP'000 GBP'000 ----------------------------------------- ----------- ---------- -------- Banking exit fee - 40 40 Company reorganisation costs - 260 602 ----------- ---------- -------- Total - 300 642 =========== ========== ========
During 2013 the Group incurred certain restructuring and reorganisation costs. These costs include compromise agreements associated with a Board restructure, bank exit fees, office closure costs and termination costs relating to a software project.
4. Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is tested for impairment in each financial period and carried at cost less accumulated impairment losses. The movement in the carrying value of goodwill in each of the reporting periods covered in this interim statement solely reflects the impact of revaluation of goodwill on overseas subsidiaries due to movements in foreign exchange.
5. Segment Information
Reportable Segments
Factors that management use to identify the Group's reportable segments
The Group's three reportable segments during the reported periods, being Recruitment, Talent Management and Technology Services (discontinued in 2013), are sectors that offer different products and services. They are managed separately having a dedicated Director, and separate reporting within the internal information provided to the management team including the Directors.
Measurement of operating segment profit
Talent Management, Recruitment and Technology Services are evaluated for performance on the basis of contribution.
Recruitment is represented by the subsidiaries, Rethink Recruitment Solutions Limited, ReBuild Recruitment Services Limited, Integritas Recruitment Limited, Rethink Recruitment (Southend) Limited, Rethink MEA FZCO, Berkley Recruitment (Group) Limited and Berkley Recruitment Group (Asia) Pte. Limited with all subsidiaries involved in both Permanent and Contract Recruitment.
Permanent recruitment involves the placing of candidates in permanent employment roles. Contract recruitment involves the placing of candidates in fixed term roles.
Talent Management is currently represented by Rethink Professional Services Limited and involves certain elements of recruitment as set out above.
Technology Services was represented by Aiimi Limited and TrustTech Limited. The segment was involved in providing technical advice, support and project management. This business service was discontinued in 2013.
Segmental view 2014 H1 -------------------------------- -------------------------------------------------------------- Talent Management Recruitment Unallocated Total GBP'000 GBP'000 GBP'000 GBP'000 -------------------------------- ---- ------------------ ------------ ------------ -------- Revenue Contract revenue 22,355 29,791 - 52,146 Permanent revenue 493 3,825 - 4,318 ------------------ ------------ ------------ -------- Total revenue 22,848 33,616 - 56,464 ================== ============ ============ ======== Gross profit 2,445 7,575 - 10,020 Administrative expenses (1,162) (6,359) - (7,521) ------------------ ------------ ------------ -------- Contribution from operations 1,283 1,216 - 2,499 Central administrative expenses - - (1,690) (1,690) ------------------ ------------ ------------ -------- Operating profit from continuing operations 1,283 1,216 (1,690) 809 -------------------------------------- ------------------ ------------ ------------ -------- Analysed as: EBITDA 910 Amortisation and depreciation (101) Operating profit from continuing operations 809 -------------------------------- ---- ------------------ ------------ ------------ -------- Segmental view 2013 H1 -------------------------------- --------------------------------------------------------------------- Technology Services Talent Management Recruitment Unallocated Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------------- ----------- ------------------ ------------ ------------ -------- Revenue Contract revenue - 17,086 33,068 - 50,154 Permanent revenue - 362 3,511 - 3,873 Business Transformation and Technology Services 2,156 - - - 2,156 ----------- ------------------ ------------ ------------ -------- Total revenue 2,156 17,448 36,579 - 56,183 ----------- ------------------ ------------ ------------ -------- Discontinued operations (2,156) - - - (2,156) Revenue per consolidated statement of comprehensive income - 17,448 36,579 - 54,027 =========== ================== ============ ============ ======== Gross profit from continuing operations - 1,843 7,747 - 9,590 Gross profit from discontinued operations 879 - - - 879 ----------- ------------------ ------------ ------------ -------- Total gross profit 879 1,843 7,747 - 10,469 Administrative expenses (877) (604) (6,491) - (7,973) ----------- ------------------ ------------ ------------ -------- Contribution from continuing operations - 1,239 1,256 - 2,495 Contribution from discontinued operations 2 - - - 2 Central administrative expenses - - - (1,812) (1,812) ----------- ------------------ ------------ ------------ -------- Operating profit from continuing operations - 1,239 1,256 (1,812) 683 -------------------------------- ----------- ------------------ ------------ ------------ -------- Analysed as: EBITDA before non-recurring items Amortisation and depreciation 1,113 Non-recurring items (130) (300) Operating profit from continuing operations 683 -------------------------------- ----------- ------------------ ------------ ------------ -------- Segmental view 2013 FY -------------------------------- ---------------------------------------------------------------------- Technology Services Talent Management Recruitment Unallocated Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------------- ----------- ------------------ ------------ ------------ --------- Revenue Contract revenue - 44,768 58,872 - 103,640 Permanent revenue - 1,208 6,845 - 8,053 Business Transformation and Technology Services 3,113 - - - 3,113 ----------- ------------------ ------------ ------------ --------- Total revenue 45,976 65,717 - 114,806 ----------- ------------------ ------------ ------------ --------- Discontinued operations (3,113) - - - (3,113) Revenue per consolidated statement of comprehensive income - 45,976 65,717 - 111,693 =========== ================== ============ ============ ========= Gross profit from continuing operations - 5,256 14,304 - 19,560 Gross profit from discontinued operations 1.442 - - - 1,442 ----------- ------------------ ------------ ------------ --------- Total gross profit 1,442 5,256 14,304 - 21,002 Administrative expenses (1,574) (1,365) (12,262) - (15,201) ----------- ------------------ ------------ ------------ --------- Contribution from ongoing operations - 3,891 2,042 - 5,933 Discontinued operations (132) - - - (132) Central administrative expenses - - - (4,526) (4,526) ----------- ------------------ ------------ ------------ --------- Operating profit from continuing operations - 3,891 2,042 (4,526) 1,407 -------------------------------- ----------- ------------------ ------------ ------------ --------- Analysed as: EBITDA before non-recurring items 2,225 Amortisation and depreciation (176) Non-recurring items (642) Operating profit from continuing operations 1,407 -------------------------------- ----------- ------------------ ------------ ------------ ---------
Segment reportable administrative expenses consist primarily of staff, office, general expenses and depreciation.
Geographical information
The Group's operations are located in the UK, Ireland, Singapore and the Middle East.
5. Distribution of the Interim Report
Copies of this announcement may be obtained from the Company Secretary at the registered office: The Crane Building, 22 Lavington Street, London SE1 0NZ. In addition, an electronic version will be available on the Group's website - www.rethinkgroupplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKCDNABKDNCB
1 Year Rethink Group Chart |
1 Month Rethink Group Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions