Irish recruiter Cpl Resources delivered a resilient full-year performance. Operating profits grew 39 per cent year-on-year to €10m (£7.9m) and €20m was also returned to shareholders through a tender offer in November. The shares trade at a discount to those of is peers and the cash pile represents nearly a third of the group's market value - leaving the shares looking too cheap.
Much of the success has come from Cpl's close relationship with its clients - while there's a general over-supply of staff, there's an under-supply in certain skills, notably in digital services and technology. So Cpl managed to place over 5,500 people in permanent jobs and commission income rose 18.8 per cent to €13.6m. Over 20,000 people were placed in temporary employment, lifting fees by 23.6 per cent to €276.7m - although the cost of hiring more staff and improving its IT systems boosted operating costs by 12.3 per cent to €33.5m. Even so, the group operating margin improved from 3.1 per cent to 3.4 per cent.
Broker NCB Stockbrokers expects 2013 adjusted EPS of 32¢ (2012: 25¢).
| CPL RESOURCES (CPS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 235p | MARKET VALUE: | £72m | |
| TOUCH: | 230-240p | 12-MONTH HIGH: | 248p | LOW: 212p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 180¢* | NET CASH: | €28m | |
| Year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 258 | 20.7 | 48.3 | 5.00 |
| 2009 | 212 | 1.68 | 1.70 | 3.00 |
| 2010 | 190 | 5.29 | 12.2 | 4.00 |
| 2011 | 235 | 8.13 | 19.2 | 5.00 |
| 2012 | 290 | 9.75 | 25.6 | 6.50 |
| % change | +23 | +20 | +33 | +30 |
Ex-div: 10 Oct Payment: 5 Nov *Includes intangible assets of €12.8m, or 42¢ a share £1=E1.26 | ||||
