Recruitment firm’s profit up 39%

Revenues at recruitment company CPL increased by nearly a quarter to €290m for its most recent financial year.

The company — the largest employer of people on temporary contract in the country — saw its operating profit increase by 39% to €10m for the year to the end of Jun 30.

Chief executive of CPL Anne Heraty said the last year had seen record returns for the company in the face of difficult trading conditions.

“2012 was a year of significant progress for CPL. Our revenue was the highest in the company’s 22-year history and we have again demonstrated resilience in difficult market conditions.

“Our focus will continue to be on looking for opportunities in those sectors and geographies that are doing well, while continuing to monitor carefully our cost base,” she said.

The recruitment company was keen to point out that while there is an oversupply of available workers, the whole world is faced with a skills mismatch.

The knock-on effect of this has been that recruitment companies who can seek out the skills that are required are earning more money. CPL delivered an 18.8% increase in gross profit from permanent placements.

There is an increase in demand for a flexible workforce and just-in-time hiring, due to the economic downturn.

CPL has seen a 17% increase in gross profit from the placement of temporary employees.

However, new EU legislation on the protection of temporary agency workers is posing an operational challenge to the company. Ms Heraty said the new legislation would give CPL an opportunity to deliver innovative workforce solutions.

The group engaged in a share buyback tender offer during the year which was fully subscribed to. CPL purchased 6,666,666 shares at €3 per share. All shares acquired were cancelled, and this has contributed to boosting CPL’s earnings per share by 33% to 25.6%.

The company had a cash balance on Jun 30 of €28m after returning €20m to their shareholders by way of the tender offer and an additional €1.8m by way of dividends.