Publicly-quoted recruitment group CPL Resources has said it is favouring an organic - rather than acquisition-led - growth strategy despite seeing a near 66% increase in its net cash balance in its latest financial year.
CPL closed the year to the end of June in a net cash position of €40.1m, up from €24.2m 12 months previously. The company said yearly revenues grew by 8% to just under €565m and pre-tax profit jumped 33% to €24.6m.
The company said the cash requirements of its flexible talent unit - which covers managed solutions, temporary and contract recruitment - are increasing, but that while the group remains cash generative it is prioritising organic expansion and will remain selective in acquisition strategy.
"We prioritise organic expansion and are selective in our acquisition activity, making acquisitions only where we perceive a strong fit with our existing business or to drive innovation in our organisation," chairman John Hennessy said.
CPL said trading in the current financial year has started well, but that it is mindful of the macro-economic challenges posed by Brexit uncertainty.
"As long as the terms of the UK's planned departure from the EU remain unclear Brexit will continue to give rise to uncertainty for businesses in all sectors, including our own," Mr Hennessy said.
"Aside from the risks posed by Brexit uncertainty, economic indicators in our most important markets are broadly positive, and we expect to achieve further profitable growth in the months ahead," he said.