ReThink Group (The) PLC Trading Update and Contract Win (9030M)
July 22 2014 - 2:00AM
UK Regulatory
TIDMRTG
RNS Number : 9030M
ReThink Group (The) PLC
22 July 2014
22 July 2014
The Rethink Group plc
("Rethink" or the "Group")
Trading Update and Contract Win
The Rethink Group plc (AIM: RTG), one of the UK's leading talent
management and recruitment services companies, is pleased to
announce a trading update for the six month period ended 30 June
2014 ("period") and to confirm that the Group is trading in line
with expectations.
Following a turn-around year in 2013 when the Group returned to
profitability, Rethink continues to build on this platform with
earnings to 30 June 2014 expected to be in line with expectations.
Net Fee Income ("NFI") from continuing operations increased by 4%
and Group PBT is expected to be ahead of the same period in
2013.
The Group continues to invest in its growing Talent Management
division and a number of experienced sales and management
executives joined the team during the period. Personnel
investments, together with the cost of the recent move into a new
flagship head office in London, are estimated to amount to GBP0.4m
in H1 2014. As anticipated, underlying EBITDA from continuing
operations is marginally lower than the same period in 2013
(excluding 2013 exceptional items), due to the combined
investments.
In July Rethink was delighted to secure a three year talent
management contract renewal with M&S. More recently the Group
also signed a new three year contract with a UK listed
multi-channel marketing and communications business.
Net debt as at 30 June 2014 is expected to reduce by 20% to
GBP9.3m (GBP11.7m at 31 December 2013). The Group's debt is wholly
attributable to its revolving invoice discounting facility.
Steve Wright, CEO of Rethink, commented: "We are pleased to
report that progress continues to be made with the implementation
of our stated strategy to reposition Rethink as a Talent Management
led service group, with a strong core recruitment division.
Securing new and renewed Talent Management contracts from major
blue chip clients such as M&S underlines our value proposition
as a trusted partner, and endorses the Group's strategy as we build
further investment in this division. To achieve this, whilst
maintaining NFI growth and earnings in line with expectations, is
encouraging. We look forward to providing a further update at the
time of the Group's interim results in September."
For further information please contact:
Rethink Group plc
Steve Wright, CEO 07836 226902
Shore Capital
Bidhi Bhoma/Edward Mansfield 0207 408 4090
Newgate Threadneedle
John Coles/Fiona Conroy 020 7653 9850
About Rethink
Rethink Group (AIM: RTG) provides business transformation
services through its talent management and recruitment divisions.
These services work in synergy and support our growing client base
across the UK, Europe, US, Middle East and Asia Pacific.
For more information please visit our website:
www.rethinkgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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