CPL reports €7m pre-tax profit

Leading Irish recruitment firm CPL Resources is anticipating further profitable growth in the remainder of its current financial year after seeing double-digit percentage growth in first-half profits and revenue.

CPL yesterday reported a strong operating performance for the six months to the end of December. Group revenue was up 14% year-on-year to €184.3m, operating profit jumped 18% to €6.9m and there was a 17% rise in pre-tax profits to €7m.

“This performance reflects strong growth across all metrics, increasing demand for our services and the continued hard work, dedication, talent and efficiency of our team,” chairman, John Hennessy commented.

Yesterday’s interim results also showed an annualised increase of 17% in earnings per share, to 19.8c, with the half-year dividend for shareholders upped by 19% on the comparable period last year, to 4.75c per share. The latter increase was made possible by CPL’s strong balance sheet — the company having a cash balance at period end of €22.1m.

“Recent months have seen some indicators in our principal markets move tentatively into positive territory. We see opportunities for growth, but we still face challenges in many markets arising from economic uncertainty and competitive pressures. Our strong financial position provides us with the resources to capitalise on growth opportunities as they arise. We expect further profitable growth in the second half of our financial year.”

CPL’s second quarter, in particular, saw strong permanent job placement activity. The growth potential mentioned is most likely through organic growth in Ireland, and the chance to open new offices in existing territories in mainland Europe, including Poland. It is unlikely to consider any acquisitions at present.

While many companies are opting for temporary employment (CPL’s first-half revenue from such work rising by 13%, year-on-year to €174.2m), revenue from permanent placements grew by 34% to €10m. As much as 40% of the permanent placement fees were generated outside of Ireland.

“CPL’s performance in its first half reinforces our view that the company is a lean operator that has positioned itself well through the downturn for growth in the upswing,” Davy Stockbrokers’ analyst, Ross Harvey said.