No rethink at Rethink as profits surge

Recruitment and technology services firm Rethink says revenues beat analysts' expectations for 2011 as both permanent and contractor placements increased.

Revenue for the year grew by 40% on 2010 to hit £78.9m, better than the market consensus of £73.5m.

Profit before tax amounted to £2.5m (2010: £0.9m), well ahead of forecasts around the £1.9m mark.

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Earning per share were 1.422p against expectations of 1.3p, while the dividend also beat the forecast of 0.3p, coming in at 0.331p per share.

Rethink's own headcount grew from 135 to 173 by the end of 2011.

During the year the group placed 837 contractors, versus 560 in 2010, while winning Boots's 'Key Supplier of the Year' award, backing up the stated strategy of deepening "partnerships" with key clients.

Since the year's end Rethink has brought in a new Chief Financial Officer, Stephen Wright, who joined the board in March.

Jon Butterfield, Chief Executive Officer of Rethink, commented: "These are excellent results as we continue to outperform the majority of our competitors. We have expanded our international coverage and achieved considerable growth in contractor numbers, up to a record at the year end."

Rethink shares have gained 23.5% so far this year.

BS