Profits fall at job services company

RECRUITMENT Group CPL Resources has suffered a massive reversal of fortunes with profits before tax for the year plunging from €20.7m to €1.7m, reflecting the huge fall in demand for workers in the stricken economy.

CPL Resources is the country’s leading employment services group and, despite the setback, has announced it will pay afinal dividend of 1.5 cent a share making a total payment of 3 cent for the year against 5 cent the previous year.

Chairman John Hennessy said the year to June 30, 2009, was “unprecedented” in many ways.

“I am pleased to report that, notwithstanding these challenging circumstances, CPL has been able to respond in a decisive and disciplined way that has allowed us to remain profitable,” he said.

During the period, the group cut costs without compromising service levels and acquired some businesses. It alsodeveloped new products in response to changing market conditions, he said.

“We expect that the environment in which we operate will continue to be difficult over the coming months.

“Accordingly, the level of uncertainty remains such that it is not possible to predict our future performance with any accuracy,” he said.

Chief executive Anne Heraty said: “Our results are better than might have been expected considering the difficult economic and employment conditions in the markets in which we operate.”

During the year, sales declined by 18% to €212.4m from €257.6m in 2008 reflecting the current economic and labour market conditions.

Fees from its permanent placement business fell by 50% to €12.2m and it generated a gross profit of €22.3m from its temporary business, down 20%. The group placed 13,500 people in jobs.