CPL RESOURCES – the Dublin-headquartered international recruitment agency – has maintained profitability in the year, against what it has called “a difficult operational backdrop” and expects full-year profits to meet expectations.
The company, which made a pre-tax profit of €2.4 million for the half year to the end of last December, has previously stated that it was confident of generating pre-tax profits of between €4.5m and €5m for the full year.
Goodbody Stockbrokers recently forecast a 2010 pre-tax profit of €4.3m for CPL – for the 12 months to the end of June, while NCB Stockbrokers has forecast €5m. Either of these outcomes would be comfortably up on the €680,000 post-goodwill impairment figure generated in the previous year, but still well below the highs of 2008 when the company recorded profits of nearly €21m.
In a trading update released yesterday, CPL said that its balance sheet remains very strong and profit for the year to the end of June should come in “broadly in line with market expectations”.
However, the statement added that the employment environment in Ireland is still declining and sequential employment growth isn’t likely to resume until at least the second quarter of next year.
“The immediate future, therefore, remains uncertain but we are cautiously optimistic that a slow recovery has begun in the markets relevant to our business,” the company added.
“We intend to continue to manage our business prudently and to invest in our people and technology so that we will be well- placed to benefit from any upturn in the economic cycle,” it went on to say.
The company’s chief executive, Anne Heraty, added that while the employment outlook in relevant overseas markets (CPL has a presence in Britain and Eastern Europe) is currently better than in Ireland, the Irish market is showing signs of recovery.
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