Irish recruiter CPL Resources describes its markets as competitive and highly challenging - these full-year results, then, suggest the company is bucking that trend. CPL says that, despite the uncertain economic backdrop, skill shortages still remain in the technology, healthcare and finance sectors where the company operates. Helping its clients plug these gaps is generating good business for the recruiter - strong revenue growth helped operating profit rise 17 per cent year on year to €11.7m (£9.9m).
Management also reckons there are now signs of economic recovery in Ireland, with annual employment growth having hit its highest level since the fourth quarter of 2007. The company cautions that it is not yet clear whether this will lead to a sustained rebound. Nevertheless, chairman John Hennessy says: "We do expect to achieve further profitable growth in the months ahead." The company's financial position remains solid, too, with a decent net cash pile that's little changed from a year ago.
While the Irish jobs market remains CPL's primary market, the recruiter is expanding its horizons and has entered the Tunisian and Canadian markets during the year, meaning it now has a presence in nine countries.
Prior to these figures, broker Davy was expecting pre-tax profit of €13.6m for 2014, giving EPS of 39.1¢.
CPL RESOURCES (CPS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 508p | MARKET VALUE: | £155m | |
| TOUCH: | 485-530p | 12-MONTH HIGH: | 508p | LOW: 225p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 207¢* | NET CASH: | €28m | |
| Year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 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 |
| 2013 | 331 | 12.3 | 35.0 | 8.50 |
| % change | +14 | +26 | +37 | +31 |
Ex-div: 9 Oct Payment: 4 Nov *Includes intangible assets of €11.7m or 38¢ a share £1=€1.18 | ||||
