Recruitment firm reports 49% rise in profits

RECRUITMENT firm CPL Resources yesterday reported a 49% rise in full-year pre-tax profits.

The company which is run by Anne Heraty, the only female chief executive of a listed Irish firm said that results were buoyed by acquisitions and an improvements in the employment outlook.

Profits were ahead by 49% to 2.6 million and turnover up 41% at €73.9 million. Fully diluted earnings per share were 5.9 cent, up 55% from 3.8 cent in 2003.

Ms Heraty said in a statement: "We continued to diversify the group's operations across a number of key business sectors in order to avoid over dependence on any one sector.

"We have balanced our net fee income between temporary and permanent recruitment 51% permanent and 49% temporary and we have balanced our operations between specialist and generalist recruitment 73% specialist and 27% generalist."

She said that the acquisition of Medical Personnel Limited in March 2004 has strengthened the firm's presence in the contract nurse recruitment market, where it expects demand to continue to grow due to the shortage of qualified healthcare personnel.

CPL said that during the year it worked with over 1,500 clients, ranging from large multinationals, to mid-sized and small companies and all of its divisions experienced significant growth. It had placed over 1,750 people in permanent employment.

The company is proposing a final dividend of 0.6 cents per share, bringing the total payout to 1 cent for the year. Shareholders have seen the company's share price surge this year from 55 cents to close at €1.18 last night.

Ms Heraty and her husband are currently the largest shareholders in the company.

"We had a strong second half to June 2004 and that momentum has continued into the current year. We have made investments in people, infrastructure and back office technology. As a result we believe we are well positioned to take advantage of the improved economic conditions," she added.