CPL sees dip in pre-tax profits but revenues rise 6.6%

Pre-tax profits at recruitment firm CPL Resources dipped in the year ending June 30th but revenues remained higher, the company said on Thursday.

The company also announced the acquisition of the UK-based Clinical Professionals recruitment firm for €8m.

CPL, which is headed by Anne Heraty, reported a profit before tax of €14.1 million, down 2.1 per cent compared to the €14.4 million recorded a year earlier.

Revenues rose 6.6 per cent from €369.2 million to €393.6 million over the year. Gross profit increased 7.3 per cent or €4 million to €58.7 million from €54.6 million in 2014.

The company reported an operating profit of €14 million, down from €14.2 million the previous year. Operating profit in the second six months was up 34 per cent.

Operating expenses totalled €44.7 million, 11 per cent higher than last year.

The company said during the year demand for people in both permanent and temporary roles grew across most sectors.

"Our fees from permanent placements grew by 16 per cent year-on-year. In our temporary business we succeeded in reducing downward pressure on margins while delivering growth in both revenues and gross profit," said chairman John Hennessy.

“The group’s results for the year to June 30th 2015 reflects growth across most of the business sectors and locations in which we operate. We have taken the opportunity presented by this growth to invest in strengthening our team and our systems. Although this investment has reduced our profits for the year we are well positioned to respond to further recovery and growth in our principal markets and sectors,” he added.

Earnings per share increased 1 per cent from 40.7 cent to 40.2 cent in the year. The board is recommending a final dividend of 5 cent per share. This will bring the total dividend for the year to 9.75 cent per share, unchanged versus last year.

“We maintain a focus on the management of costs in our business, with operating profit ratio of 24 per cent in the financial year. The group continues to have a strong balance sheet, with net assets in excess of €81 million at June 30th 2015 up from €72 million in the prior year. We ended the year with net cash of more than €30 million at the year end, despite the continued working capital investment needed to fund the growth in our temporary business,” said Mr Hennessy.

This year marks the 25th anniversary of CPL. The company now operates from 36 offices in nine countries.

“Our business is affected by several key variables, including employment and economic trends in our key markets. Current indicators suggest that modest economic growth will continue in these markets, and we expect that these factors, together with the efforts of our people, will allow us to achieve further growth in our business during the financial year to June 30th 2016,” added Mr Hennessy.

CPL also announced the acquisition of the UK-based Clinical Professionals recruitment firm on Thursdsay for €8m.

The company recruits for pharma roles across Europe.

CPL has acquired 89.8 per cent of the business with 63.5 per cent - or €5.1 million - of the consideration paid at completion and the balance contingent on certain targets being achieved.