Recruitment specialist celebrates improvements but wary of ‘challenges’

LEADING Irish recruitment specialist CPL Resources has said that it has seen improvement across most aspects of its business in the latter half of its latest financial year and that its profits are on track to meet expectations.

The Dublin-headquartered agency yesterday published a generally upbeat trading update, in which it said improvement was noted across the group, while its overseas operations are “performing well”. Outside of Ireland — where it is experiencing some challenges — CPL has operations in Germany, Hungary, Poland, Slovakia, the Czech Republic and Bulgaria.

CPL recently posted a strong set of first half figures, showing a 33% rise in pre-tax profits to €3.9m and a 22% year-on-year rise in revenue to €112m. In yesterday’s update, it said that its performance during the second half of its year (which runs to the end of June) was “satisfactory”, adding that it expects its profits for the year to be “broadly in line with market expectations”. It added that its balance sheet remains strong.

“The marketplace for our services remains challenging, with continuing pressure on margins, particularly in Ireland. However, we are experiencing some signs of improvement across our various businesses, and our operations overseas are performing well. We expect a further gradual improvement in market conditions in the coming months,” yesterday’s statement added.

Analysts remained slightly cautious on yesterday’s update; Goodbody Stockbrokers’ Clodagh McCarthy saying: “While the commentary is slightly positive, uncertainty still remains — due to the macro environment in the domestic marketplace. Currently, we’re forecasting full-year 2011 sales of €226m and EBITDA of €7m, with these figures broadly in line with the market average.”

CPL expanded its services in Ireland during its last financial year; acquiring Runway Personnel and PHC Care Management.