£3m contract win boosts ReThink’s bottom line
A £3m contract win and the recovery of the permanent recruitment market will put ReThink’s half year profits ahead of last year, the company has said.
The Manchester based recruitment specialist said overall net fee income for the first four months of 2010 was more than 15% higher than the comparable period in 2009, ahead of its annual general meeting today.
It added that the recovery of permanent recruitment income had been particularly encouraging with a 44% increase compared to the corresponding period.
The company has recently been taken on by a “major UK retail client” to outsource all its contract recruitment needs; and expects the contract to generate more than £3m in annual revenues.
“This contract win, together with existing contracts, is expected to increase the number of contracts ‘on billing’ to over 600 in the third quarter of 2010,” it said, adding that ‘on billing’ contractors are currently at the highest level since the Company’s formation in 2005.
ReThink expects half year pre-tax profits to the end of June to be ahead of the same period in 2009, with full year result in line with market expectations.
In May the company reported increased revenues for 2009, despite a tough year, and said growing demand for permanent recruitment will boost business in 2010.
The company saw turnover increase 15% to £49.7m for the year to the end of 2009, from £43.4m. Gross profit fell to £10.9m (2008: 12.1m) but pre-tax profits, largely generated in the second half of the year, increased to £300,000 from £190,000 a year earlier.
