Profit at recruitment firm CPL rises 26%
Company is seeing strong demand for flexible, temporary and permanent appointments
Chief executive Anne Heraty described the results as “solid progress” for the company. Photograph: Frank Miller/The Irish Times
Pretax profit at employment services group CPL rose 26 per cent in the year to June 30th as the company saw growth across all its major business areas despite highly competitive markets.
The company said fees from its permanent placement business rose by more than 16 per cent and it expanded its international business, along with the establishment of new training business CPL Learning and Development.
Profits for the year were €12.3 million, with revenue up 14 per cent to €330.8 million. Earnings per share were 35 cent, up from 25.6 cent a year earlier.
Demand grew for flexible roles, temporary solutions and for permanent appointments, with gross profits from temporary placements up 10.6 per cent compared with a year earlier. Although the growth in permanent fees was supported by offices outside Ireland, the company also highlighted an increase in demand in the second half of the year from indigenous companies.
“If this trend continues, it would be a positive for CPL,” Davy Stockbrokers’ Joshua Goldman said in a note. “The company has increased staff numbers by 64 to take advantage of any upturn in the recruitment market.”
Chief executive Anne Heraty described the results as “solid progress” for the company, with demand for its services in technology, healthcare and finance improving during the year.
Chairman John Hennessy said the performance of the company reflected increasing demand for the company’s services.
“Our results for the year reflect growth across all our major business areas and locations, and this has been achieved in challenging and highly competitive markets and in the face of continuing economic uncertainty,” he said.
“There are some signs of economic recovery in certain markets in which we operate. It is too early to predict whether these signs indicate a sustained recovery. However, we do expect to achieve further profitable growth in the months ahead.”
That optimistic tone was echoed by Davy’s Goldman, who said he predicted continued growth for the firm.