Rethink pays first interim dividend
MANCHESTER-based recruitment company Rethink Group increased its revenues by 9 per cent in the first half of 2010 to £27m, which has allowed it to significantly improve its margins – pre-tax profits were up to £211,000, from just £12,000 for the first half of last year.
As a result, the company, which employs permanent and temporary contractors in the IT, engineering and construction sectors, said that it would pay its first interim dividend of 0.054p to shareholders.
The group said that revenues in its permanent recruitment division had improved considerably, up to £2.1m in the period, compared with £1.5m a year earlier.
“Our strategy of not cutting our permanent recruitment teams in 2009 is proving to be the correct one, as demand has increased across the UK and our long-term customers have begun to hire again,” said the company’s chief executive Jon Butterfield.
“We must now continue to build and protect margin on contract recruitment and drive growth in contractor numbers.”
Its contractor numbers increased to 536 (2009: 458), but Butterfield has set a target of reaching 600 contractors on its books by the end of the year.
To help with this, the firm recently opened its first office in Dubai which it said is “developing well”, although it has also decided to close an office at Southend in Essex and integrate its staff into its London operations.
“The economic environment remains uncertain and the board remains cautious about market conditions, but nevertheless we are seeing increases in both contract and permanent revenues and a strengthening of the pipeline in the Business and IT consultancy division,” said the group’s chairman, John Sadiq.
