Newcourt shares down despite double profit

NEWCOURT, the property services and recruitment group, doubled its profits in the first six months of the year.

Pre-tax profits increased to €5.2 million from €2.5m, a rise of 108% year-on-year.

Revenues rose by 45% to €65.7m, mainly as a result of organic growth with the two acquisitions made during the six months — CCM Recruitment and Aldborough Developments — chipping in just €330,000 of the overall revenue rise and only €40,000 to profits.

Newcourt chairman James Osborne said the company was pleased with the performance of the two acquisitions so far and with the first-half results.

“I am optimistic that this performance will continue for the remainder of the year,” he added.

The company’s support service and accommodation division increased its turnover to €48.2m from €32.9m and its operating profits rose from €2.4m to €5.76m.

Newcourt’s recruitment division recorded a €5.1m rise in turnover to €17.5m with profits increasing from €1.25m to €1.8m.

Shares in Newcourt were one of the few fallers on the Dublin market yesterday, losing 1.4% despite the higher profits.

Commenting on Newcourt’s results NCB Stockbrokers said: “Overall, the results highlight a better than expected performance from the Support Services and Student Accommodation division offset by a weaker than expected performance from Recruitment and aviation outsourcing. The statement contains little detail on the performance of the individual divisions.”

Goodbody Stockbrokers said: “Given these strong results, we have no hesitation in reaffirming our Buy recommendation and €2.10 price target.”