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CPL RESOURCES plc Full Year Results for the Year Ended 30th June 2006
Record Results for Cpl; Profit before Tax up 83%; EPS up 81%
CPL Resources plc, Ireland’s leading employment services group, today announced full year results for the year ended 30th June 2006.
Financial Highlights
Commenting on the group’s performance and outlook, Cpl Chief Executive, Anne Heraty, said:
“We are delighted with the performance of the Group. Our growth in sales of 41% which is almost entirely organic follows a similar increase in sales in the previous year. These results reflect the core strength of Cpl – our ability to understand and respond to the changing needs of our clients.
In the year to June 2006, we continued to invest in expanding each specialist brand and on growing our teams of recruitment consultants. Recruiter numbers increased from 163 in June 2005 to 188 in June 2006. As a result of our investment in training, in hiring new people and in developing innovative and effective services for our clients, we believe we are well prepared to take advantages of changes in the marketplace and to deliver exceptional solutions to our clients
John Hennessy Chairman of the Group said
“The Group’s increased revenue and gross profit reflect substantial increases in profitable activity across all sectors and markets, and a strong performance in each of our principal business areas, being the placement of contract, temporary and permanent employees with clients.
The fact that a 41% increase in revenue resulted in an almost doubling of pre-tax profits year on year demonstrates the Group’s ability to grow our business aggressively while maintaining rigorous cost control.
Cpl is a much larger, more diverse and more robust business than it was a few years ago. Our management and staff face and overcome daily challenges in continuing to deliver profitable growth. We remain confident in our ability to take advantage of favourable economic conditions and to identify and pursue opportunities for further growth, whether organically or by acquisition.”
About Cpl Resources plc Cpl is a specialist provider of recruitment and employment services, operating through distinct specialist brands in a wide range of business sectors, including technology, accounting and finance, healthcare, pharmaceutical, sales, engineering, light industrial, and office administration.
Chairman’s Statement The year to 30 June 2006 was a very good one for Cpl. The Group has delivered its best results to date, producing very substantial growth in turnover, net fee income and profits.
The key highlights for the period include:
n Earnings per share of 25.1 cent, compared with 13.9 cent for the year to June 2005 n Revenue of €148 million, representing growth of 41% year on year n Gross profit of €28.2 million, up 40% from €20.1 million in the year to June 2005 n Profit before tax of €10.6 million, an increase of 83% over the prior year n Cash balances of €21.3 million at 30 June 2006 (€11.7 million at 30 June 2005)
The Group’s increased revenue and gross profit reflect substantial increases in profitable activity across all sectors and markets, and a strong performance in each of our principal business areas, being the placement of contract, temporary and permanent employees with clients.
Net fee income in our permanent placement business increased by 39% over the prior year, with all divisions performing well. This performance has been helped by increased demand for IT, Telecoms and Finance professionals. Our contractor and temporary fees have increased by 42%, reflecting growth in the demand for non-permanent staff in all areas, including office management and administration, customer service, engineering, healthcare and manufacturing operations, and for temporary staff in the pharmaceutical, biotechnology, clinical research and medical device industries. Newer areas of our business also performed well in the period. These included Cpl Managed Services, which manages selected business processes (including call centres, administrative services and recruitment solutions) on behalf of clients.
The Group had cash balances of €21.3 million at 30 June 2006. Notwithstanding the working capital demands associated with strong growth in business activity, this figure is €9.6 million higher than the corresponding balance at 30 June 2005. Our excellent business development team is supported by strong back office personnel who have ensured that the 41% growth in revenue has resulted in only a 6% increase in trade debtors.
As we noted in our 2005 annual report, the Group’s ability to generate growth and profits is linked closely to the performance of the Irish economy, and we have benefited from growth in most of the sectors in which we operate. The fact that a 41% increase in revenue resulted in an almost doubling of pre-tax profits year on year demonstrates the Group’s ability to grow our business aggressively while maintaining rigorous cost control.
One of Cpl’s central tenets is our commitment to quality people. We believe that in order to source and place the best people and to provide the best service to our clients we must recruit, train and retain the very best people in our own business. Over the years we have invested significantly in people whose efforts and abilities align with those of the Group itself. As Cpl continues to deliver growth we will maintain our focus on investment in people.
Cpl is a much larger, more diverse and more robust business than it was a few years ago. Our management and staff face and overcome daily challenges in continuing to deliver profitable growth. We remain confident in our ability to take advantage of favourable economic conditions and to identify and pursue opportunities for further growth, whether organically or by acquisition.
Cpl’s success is the result of having the best people in the business and we are very grateful for their dedication, skill and sustained commitment to the Group. Their continuing efforts to deliver top class service to all our clients and customers have made us Ireland’s leading provider of employment services. I would also like to extend the appreciation of the Board to our customers for their continued loyalty and support.
The Board is recommending a final dividend of 1.5 cent per share. The dividend will be payable on 5 October 2006 to shareholders on the company’s register at the close of business on the record date of 15 September 2006. The final dividend together with the interim dividend of 1.4 cent per share, amounts to a total dividend of 2.9 cent per share.
JOHN HENNESSY Chairman
7th September 2006
Group income statement for the year ended 30 June 2006
Group balance sheet at 30 June 2006
Group cash flow statement for the year ended 30 June 2006
For Further Information: Anne Heraty, CPL Resources, 01 614 6000 Josephine Tierney, Finance Director, 01 6146000
7th September 2006 END |