Recruitment group CPL Resources said yesterday that it expected its full-year financial performance to be "somewhat ahead" of current forecasts, citing ongoing strong demand for its services.
The IEX-listed company, which released a trading update yesterday ahead of its results for the year to the end of June on September 10th, also announced two acquisitions, Northside Recruitment Services and Allied Nurses Agency, both aimed at expanding the business.
Commenting on the financial performance, CPL's chairman, John Hennessy, said that although the outlook for the Irish economy was less certain in the medium term, the 3.2 per cent forecast for employment growth this year suggested that the operating environment would remain positive for CPL.
Davy upgraded its earnings forecasts on the back of the comments, adding 7.5 per cent to this fiscal year's earnings per share (eps) target and 9 per cent for the year to the end of June 2008.
The broker is forecasting eps of 43 cent this year and 49 cent the year after.
Shares in CPL yesterday slipped 1.8 per cent, or 13 cent, to close at €7.27 in what was overall a relatively weak market.
Chief executive Anne Heraty welcomed the acquisitions, saying that they formed part of the ongoing development of CPL.
Northside Recruitment specialises in temporary recruitment in the light industrial and commercial sectors and, according to Ms Heraty, it was an "ideal fit" with CPL's overall strategy for growth and diversification.
She particularly welcomed the fact that the acquisition had given CPL an office in Finglas, north Dublin.
Allied Nurses provides locum nurses and healthcare assistants to clients throughout Ireland.
No prices were given for either purchase. However, Ms Heraty said that they were earnings-enhancing.
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