Rethink expects full year loss

Recruitment and technology services firm Rethink said it now expects to post a full year loss after a decline in permanent recruitment revenues persisted into the final quarter.

In September it confirmed that there been an unexpected decline in permanent revenues at its recruitment division during July and August and as a result, full year earnings were expected to be substantially below market forecasts.

While activity temporarily returned to more normal levels in the first half of September, activity levels within permanent recruitment remained subdued and significantly below management expectations during the fourth quarter of 2012, the group explained.

Net fee income for the year ended December 31st 2012 increased by 11.3%.

However, Rethink said, due to increased investment in the business at the outset of 2012, management now expects the group to report a loss for the year.

"Having taken action throughout the second half of 2012, the board is confident that the cost base of the company is now at an appropriate level."

It added that trading in 2013 has started strongly and the board are cautiously optimistic for the year ahead.

CJ