The signals were pretty clear in September’s half-time results that the recently reimagined ‘Talent Management-led services business’ ReThink Group (see ReThink rethinks meaning of life) would throw in the towel on its enterprise content management/business intelligence consultancy Aiimi. And so it has come to pass. Aiimi will be sold to its founder, ReThink executive director Steve Salvin, for £220k cash, £200k in loan notes, and Salvin’s 3.6m RTG shares (3.09% of the stock), currently worth c. £227k. Salvin has of course stepped down from the Board.
None of this will come as any surprise to regular UKHotViews readers. ReThink was yet another case of a recruitment firm trying to use its cash flow to incubate a ‘hot theme’ consultancy (see ReThink aiming high with Aiimi), a proposition for which I find it hard to think of an example that has been for the greater good of either party. Aiimi was shrinking (half-time revenues of £2.16m and essentially no profit) while the core recruitment business was struggling; management really did not need any further distractions.
The lesson, should we need to repeat it, is clear. It’s usually best to stick to the knitting!