Revenues up but pre-tax profits decline at CPL Resources

Recruitment firm CPL Resources has reported a 5 per cent increase in revenues for the six months to the end of December but said that pre-tax profits were down 13 per cent.

The Dublin and London listed company announced revenues of €193.2 million for the half year as against €184.3 million for the same period a year earlier.

Pre-tax profits declined by €0.9 million to €€6.1 million as the company invested in its operations.

CPL said gross profits were up 5 per cent to €28.2 million from €27 million over the six months. Gross profit generated from permanent placements was €11.2 million, an increase of 11 per cent. Permanent fees generated outside of Ireland represented 42 per cent of total permanent fees in the period.

The group delivered earnings per share of 17.2 cent for the six months under review.

"We have made significant investment in our people, operations, infrastructure and facilities, and much of the associated cost has been charged against profits. As a consequence, our conversion rate of gross profit to operating profit has fallen to 21.1 per cent, from 25.4 per cent in the same period last year," said CPL chairman John Hennessy.

He said the group is experiencing gradual improvements in market conditions, although significant pricing challenges and economic headwinds are being experienced in a number of sectors and locations.

CPL had a cash balance of €24.2 million at the end of 2014. The group said that in the second half, €6.3 million was generated in cash flow from operating activities before changes in working capital.