CPL Resources plans to return €25m to shareholders
Recruitment company records 3% rise in profit to €15.7m despite challenging market
Anne Heraty, chief executive of CPL Resources, said the company had the resources to invest in the growth and expansion of the business. Photograph: Conor McCabe
Recruitment company CPL Resources plans to return €25 million in capital to shareholders by way of a tender offer.
The announcement came as the company reported full-year results with pre-tax profit increasing by 3 per cent to €15.7 million. The company said a return of surplus capital “is in the best interests of shareholders”.
In the 12 months to the end of June, revenue at CPL grew by 5 per cent to €455.2 million as the demand for temporary staff grew at a stronger rate than that for permanent employees. The company’s net cash balance for the period was €33.6 million following the investment of €10 million in the RIG Healthcare Group.
Changes in regulation in the healthcare sector and Brexit concerns slowed recruitment decisions by certain employers, the company said. Despite those concerns, the company expects to deliver “further growth” in the business in the year to June 2018.
Shares jumped on the news, eventually closing more than 9 per cent higher in Dublin at €6.40.
In her note to investors, Anne Heraty, the company’s chief executive, said that indicators suggest a tightening in the labour market and a widening skills gap in a certain number of specialist areas. This, she believes, provides growth opportunities for CPL in sectors where the skills gap is most prominent.
“We will continue to invest wisely to capture opportunities for growth. CPL has a strong balance sheet with net assets of €103.7 million generated over the 27 years of continuous profitability. We believe our balance sheet and strong cash flows give us the resources to invest in the growth and expansion of our business while also returning capital to shareholders,” said Ms Heraty.
Ms Heraty also noted the group’s expansion into the locum, or temporary, doctor market this year with the acquisition of RIG Healthcare. “[This] enhances the Company’s operating presence in the UK, following the acquisition of Clinical Professionals in September 2015,” she said.
On the back of the company’s results the board has recommended a final dividend of 5.75 cent per share bringing the total dividend for the year to 11.5 cent per share.