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ReThink Group

  • BY: Andrew Hore |
  • POSTED: 19/09/2011 |

Recruitment services provider ReThink Group doubled its profit in the first half of 2011 but it remains lowly rated.

Net fee income increased 32% to £7.8m in the six months to June 2011 with all parts of the business contributing to the growth. ReThink is doing even better than its competitors. Contractor numbers rose by 17% to 629 during the period and they have moved above 800 since then. Pre-tax profit jumped from £211,000 to £423,000.

The purchase of pharma-focused recruitment business Berkley was too late to impact the first half but it will be a major contributor in the second half. Berkley takes ReThink into a new sector and it will also aid international growth.

The recruitment process outsourcing division will benefit from the new contract with Boots. The shares are trading on around eight times prospective 2011 earnings.

Net cash was £185,000 at the end of June 2011 and there is also potential deferred consideration of £1.98m. The interim dividend has been increased from 0.054p a share to 0.0986p a share.

At 10p a share, ReThink is valued at £10.1m. 

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