CPL to return €20m to shareholders

RECRUITMENT firm CPL Resources plans to return as much as €20 million to shareholders in the form of a tender offer.

The company yesterday reported a 54% increase in its pre-tax profits to €8.1 million for the year ending June 30. It said revenues for the year were up 24% to €235m, while operating profit jumped 81% to €7.2m.

CPL chairman John Hennessy said the company had concentrated its efforts on meeting the “changing needs of companies and candidates, while managing its own cost base”.

He said these efforts have resulted in a 46% increase in fees from permanent placements and a 22% increase in net fees from the placement of temporary employees.

Earnings per share increased by 57% to 19.2c, while the dividend paid to shareholders was up from 4.0c to 5.0c.

“I am very pleased to report that in the year ended 30 June 2011 the CPL Group delivered a strong operating performance and recorded significant increases in revenues and profit,” said Mr Hennessy.

“The group is cash generative and, despite increased working capital requirements in the period, generated operating cash flow of €5.6m. CPL has a strong balance sheet, with an increased year-end net cash balance of €46.3m,” he added.

NCB said CPL has shown its resilience to the “challenging market conditions” and despite its cautious outlook for the year ahead, the group remains well positioned to capitalise on further acquisition opportunities as they arise.

“Overall, a solid performance in the context of a difficult operating environment and one which will be well received by the market,” NCB said.