First half profits up 11% at employment group Cpl Resources
Company says it is confident about outlook for the rest of the year
Employment services Cpl Resources said profit continued to grow in the six months to December 31st, with pretax profit up 11 per cent to €9 million.
The company said revenue was up 12 per cent to €256.7 million for the period, with net fee income up 12 per cent to €40.5 million. Earnings per share rose 15 per cent to 26.4 cent. CPL said it would increase the interim dividend by 10 per cent to 6.35 cent per share.
The figures include contributions from its recent UK acquisition RIG Healthcare Group.
The company said it had invested significantly in its technology platform, with one of the first artificial intelligence tools in the recruitment sector.
During the six-month period, CPL said it returned €25 million of surplus cash to its shareholders through a fixed price tender offer, which was fully subscribed. Under the offer, CPL cut its issued share capital by approximately 12 per cent.
The company had a net cash balance of €12.4 million as at the end of December, compared with €35.2 million in 2016. It generated €9.8 million in cash flow from operating activities before tax and changes in working capital over the six months Excluding the impact of the Tender Offer, CPL recorded a net cash inflow of €3.9 million in the period, up from €2.2 million in the same period of 2016.
CPL chairman John Hennessy said the group remained confident in its outlook and ability to deliver profit growth in the remainder of the financial year.
“We remain conscious of the impact of political, regulatory and economic events globally on our business,” he said. “Positive momentum in the Irish and eurozone labour markets should position the Group well for further growth across its key business sectors.”