Rethink Group swings back into profit
24 September 2013
After recording a loss before tax of £755k in 2012, recruitment, talent management and technology services firm The Rethink Group swung back into profit in the first six months of 2013.
Tue, 24 Sep 2013After recording a loss before tax of £755k in 2012, recruitment, talent management and technology services firm The Rethink Group swung back into profit in the first six months of 2013.
Profits before tax increased to £527k in the six months to 30 June 2013 from £297k in H1 of 2012 as revenue rose by 27.4% to £56.2m.
Gross profit (net fee income [NFI]) was virtually unchanged at £10.5m (H1 2012: £10.4m).
NFI at the group’s recruitment division increased by 6% to £7.7m as its mix of business changed towards the contract side.
NFI in the group’s talent management division fell by 10% to £1.8m (H1 2012: £2.0m) reflecting a one-off permanent project in 2012. Technology services also saw a fall in NFI from £1.1m to £0.88m.
During the 12 months ending 30 June 2013, the group reduced headcount from 260 to 210.
Since the beginning of the 2013 calendar year, there have also been major changes in the group’s senior management. In January, Jon Butterfield stepped down as chief executive officer and was replaced by Steve Wright with Andy Lord appointed chief operating officer.
In July, after the period end, John Sadiq stepped down as non-executive chairman to be replaced on an interim basis by John O'Sullivan while a permanent successor is still being sought.
Commenting on the results, CEO Wright says: “After the challenges experienced by the group during the second half of 2012, I am delighted to report that Rethink has moved back into profit. This rise in profitability is attributable to an increase in net fee income alongside the managed reduction in operating costs.”
Profits before tax increased to £527k in the six months to 30 June 2013 from £297k in H1 of 2012 as revenue rose by 27.4% to £56.2m.
Gross profit (net fee income [NFI]) was virtually unchanged at £10.5m (H1 2012: £10.4m).
NFI at the group’s recruitment division increased by 6% to £7.7m as its mix of business changed towards the contract side.
NFI in the group’s talent management division fell by 10% to £1.8m (H1 2012: £2.0m) reflecting a one-off permanent project in 2012. Technology services also saw a fall in NFI from £1.1m to £0.88m.
During the 12 months ending 30 June 2013, the group reduced headcount from 260 to 210.
Since the beginning of the 2013 calendar year, there have also been major changes in the group’s senior management. In January, Jon Butterfield stepped down as chief executive officer and was replaced by Steve Wright with Andy Lord appointed chief operating officer.
In July, after the period end, John Sadiq stepped down as non-executive chairman to be replaced on an interim basis by John O'Sullivan while a permanent successor is still being sought.
Commenting on the results, CEO Wright says: “After the challenges experienced by the group during the second half of 2012, I am delighted to report that Rethink has moved back into profit. This rise in profitability is attributable to an increase in net fee income alongside the managed reduction in operating costs.”
