Profits grow at recruitment firm

An increase in the number of companies hiring permanent staff helped to boost profits at CPL Resources by nearly 20% in its latest financial year.

The Dublin-based recruitment group — which is active in Ireland and eight other countries — yesterday reported a pre-tax profit of €14.4 million for the 12 months to the end of June; representing a 17% year-on-year increase.

Operating profit was up by 21% to €14.2m; basic earnings per share rose by 16% to 40.7c and group revenues increased by 12% to €369.3m.

The company upped its total dividend per share from 8.5c to 9.75c.

“Our results reflect growth across all our major areas and locations. Economic conditions and employment trends are improving, although recovery in many of the markets in which we operate is fragile, and our industry remains highly competitive.

“We expect to continue to deliver growth in profits over the coming year,” said chairman John Hennessy.

Those employment trends included more confidence, on behalf of firms, to hire people on a permanent basis; and resulted in CPL’s permanent placement fee revenues increasing by nearly 32% in the year, to €20.8m, a figure ahead of market forecasts. Permanent placement was particularly strong in its international business.

“We had a successful year in our international divisions [CPL is active in the UK, Canada, Spain, Poland, Hungary, Slovakia and the Czech Republic],” said chief executive Anne Heraty.

“We continue to expand our client base and service offerings. We have made some good client wins in the year and will continue to expand outside of Ireland.

“While it is too early to say that a recovery in Europe is under way, we believe our overseas businesses are well-positioned to benefit as economies and labour markets in Europe strengthen,” she added.

Revenues generated from temporary assignments grew by 10.6%, last year, to €348.5m.

Management said that it expects to perform in line with market expectations in its current year, having delivered on its goals for revenue and profit growth and cash generation in its last year.

“While noting the relative lack of visibility regarding future conditions, the company expects economic recovery to gather some momentum in principal markets over the medium-term. This should allow for growth in profits over the coming year, and there will likely be incremental costs in the international business to facilitate further growth,” said Ross Harvey of Davy Stockbrokers.