CPL sees positive start to new fiscal year

Recruitment firm CPL Resources has expressed confidence in meeting market estimates for its new financial year, after noting increased business for the first quarter up to the end of September.

In a trading update, published yesterday following its AGM on Monday, the group said that it has seen a positive start to its new financial year with net fees continuing to show growth across the business.

“Economic indicators are positive and we expect to perform in line with market expectations in the months ahead,” said chairman John Hennessy.

Analyst reaction to yesterday’s update was positive.

“While brief, CPL’s statement is reassuring,” said Davy Stockbrokers’ Ross Harvey.

“It confirms a positive start to the new year and that the company expects to perform in line with market expectations.”

Davy is forecasting €14.7m in pre-tax profits for CPL’s current financial year, which runs to the end of next June.

“Our 2016 forecasts include net fees of €65.2m, up 11% year-on-year, of which €3.6m relates to the newly-acquired British company Clinical Professionals, and profit before tax of €14.7m, of which €400,000 relates to the acquisitions,” Mr Harvey said.

Last month, CPL reported operating profits of €14m and a 7% rise in revenue, to almost €394m for the 12 months to the end of June.

It also announced the acquisition of Clinical Professionals for a maximum consideration of €8m.

Goodbody Stockbrokers said it expects to see CPL’s strong performance continue.