CPL expects to meet financial targets

Recruitment specialist CPL Resources has reported an encouraging start to its current financial year, adding it expects to meet its first half financial targets.

In a trading update — covering the period since the end of June — CPL chairman John Hennessy said that fees from permanent placements continue to show “modest growth” and the signs of tentative economic recovery “remain evident in Ireland and other markets in which we operate”.

“Visibility remains difficult, but we expect to be in a position to meet expectations for the six-month period to Dec 31,” he added.

At CPL’s annual general meeting in Dublin, earlier this week, shareholders passed all resolutions put to them which included approving a final dividend of 4.5c per share, which brought the total dividend for the year to the end of June to 8.5c, 31% higher than the previous year’s payout.

In a research note on the firm, Davy Stockbrokers said it was encouraged by CPL’s latest statement, adding that it remains “comfortable” with its forecasts (Davy is expecting CPL to post pre-tax profits of around €6.8m for its current first half) and continues to rate the recruiter as an “outperform”.

“CPL continues to look cheap compared to its peers,” noted Davy analyst, Joshua Goldman.

Last month, CPL reported strong double digit percentage growth in its full-year profits and revenue on the back of increasing demand in each of its divisions and geographical markets.

Revenues for the 12 months to the end of June amounted to €330.8m; 14% up on the previous year; with operating profit up by 17% to €11.7m and pre-tax profits ahead by 26% to €12.3m. Earnings per share of 35.6c represented a 37% year-on-year jump.

At the time of the publication of those results, Goodbody Stockbrokers — noting the positive trends for permanent job placements in the second half of CPL’s most recent financial year — forecast a 14% increase in CPL’s earnings per share for the 12 months to Jun 2014.