RNS Number:5123M
CPL Resources PLC
25 January 2008
Cpl RESOURCES plc
Results for the Half Year Ended 31 December 2007
Continued growth for Cpl; Profit before Tax up 46.8%; EPS up 45%
Cpl Resources plc, Ireland's leading employment services group, today announced
results for the half year ended 31st December 2007.
Financial results
* Revenue of Euro132 million for the six months, up 40%
* Gross profit of Euro27.8 million, up 40%
* Profit before tax of Euro11.7 million, up 45%
* Earnings per share of 27.4 cent, an increase of 45%
* Interim dividend of 2.5 cent
* Cash balances of Euro29.6 million
* Conversion ratio of 42.8%, up from 40.6%
I am pleased to announce a strong set of results for the Cpl group in the six
months to December 2007. Profit before tax increased by 45% to Euro11.7 million.
Net fee income (Gross profit) of Euro27.8 million is 40% higher than last year.
Revenues from our permanent placement business in the period increased by 32%
over the six months to December 2006. This performance has been helped by
increased demand for IT, telecoms and finance professionals. Our contractor and
temporary fees have increased by 50% over the same period last year, reflecting
growth in demand for non-permanent staff across all sectors. In particular,
light industrial and healthcare have been strong growth areas for the Group. Cpl
paid over 5,000 temps and contractors in December 2007. Our regional offices
have also performed very well, benefiting from the new offices added to the
Group towards the end of last year.
A key performance measure for the Group is the conversion ratio of gross profit
to profit before tax and amortisation. This was 42.8% in the six months to
December 2007, compared to 44.7% for the year to June 2007. This reflects the
ongoing investment by Cpl in our international and local businesses. Cpl now has
offices in Prague, Bratislava and Warsaw.
Cpl has integrated the recently acquired businesses of Kate Cowhig International
Limited., the Richmond Recruitment Group and Northside Recruitment Limited. We
are very pleased with the performance of these companies in the six months to
December 2007. In July Cpl acquired Allied Nurses Agency Limited. The company
provides locum nurses and health care assistants to clients throughout Ireland.
With its extensive operations in the nursing sector Allied Nurses Agency
Limited has proven to be an excellent fit with Cpl's existing healthcare
businesses, which comprised Medical Recruitment Specialists, Kate Cowhig
International Recruitment Limited and Nursefinders UK Limited. Together these
businesses have firmly established Cpl's healthcare division as a major national
player in the healthcare sector.
On the international front, the group now has offices in Prague, Bratislava and
Warsaw. Our intention is to grow a dynamic recruitment company in the Central
European region and to continue to investigate and avail of opportunities to
expand our operations abroad.
The Group had cash balances of Euro29.6 million at 31 December 2007. Development
momentum continued in the six months to December 2007 and our net expenditure on
acquisitions for the six months amounted to Euro4 million. Cpl's strategy has been
to develop robust and diversified revenue streams, and to enhance these through
the addition of carefully selected acquisitions, which we work hard to integrate
into the Group. There was an increase in working capital associated with the
strong growth in revenue.
Cpl operates in a highly competitive environment. We focus on the changing needs
of our clients. We offer flexible products that help us build strong client
relationships. We believe in our candidates and continue to be committed to
delivering a high level of service to our clients.
I wish to take this opportunity to welcome all the staff who have joined our
team by way of our acquisitions. The Group's success is attributable to the
quality of our entire team. We now have 279 consultants compared with 237 in
June 2007, and 26 of these are located in Central and Eastern Europe. On behalf
of the Board I wish to express my gratitude to all members of our team for the
continued commitment and dedication to the business.
We have recently welcomed two new non-executive directors, Breffni Byrne and
Oliver Tattan, to our Board. Breffni and Oliver both have considerable business
experience at senior executive level and as directors, and they bring extensive
and complementary skills and expertise to the Board. The continuing directors
are very much looking forward to working closely with Oliver and Breffni for the
benefit of the group and our shareholders.
Outlook
Our results for the six months to 31 December 2007 reflect continuing profitable
growth in our business across all business sectors. Although the Irish economic
environment is somewhat less favourable than it has been in recent years,
nevertheless we expect our business to continue to perform well over the coming
months.
The Board is recommending an interim dividend of 2.5 cent per share. The
dividend will be payable on 29 February 2008 to shareholders on the company's
register at the close of business on the record date of 1 February 2008.
Group income statement
for the half year ended 31 December 2007 Half Year ended Half Year ended Year ended
31-Dec-07 31-Dec-06 30-Jun-07
Euro'000 Euro'000 Euro'000
(Unaudited) (Unaudited) Audited
Revenue 132,421 94,181 195,540
Cost of sales (104,617) (74,322) (152,530)
Gross profit 27,804 19,859 43,010
Distribution expenses (1,171) (1,174) (2,007)
Administrative expenses (15,202) (10,959) (22,456)
Operating profit 11,431 7,726 18,547
Financial income 302 342 736
Financial expenses (1) (9) (10)
Profit before tax 11,732 8,059 19,273
Income tax expense (1,525) (1,048) (2,475)
Profit for the Financial Year 10,207 7,011 16,798
Attributable to:
Equity Shareholders 10,190 7,011 16,786
Minority interest 17 12
-
10,207 7,011 16,798
Basic earnings per share 27.4 cent 18.9 cent 45.1 cent
Diluted earnings per share 27.4 cent 18.9 cent 45.0 cent
Consolidated Balance Sheet
At 31 December 2007
31/12/2007 31/12/2006 30/06/2007
(Unaudited) (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 1,469 1,435 1,273
Goodwill and Intangible assets 17,846 6,659 15,105
Deferred tax asset 13 42 13
Total non-current assets 19,328 8,136 16,391
Current assets
Trade and other receivables 33,234 21,563 23,201
Cash and cash equivalents 29,636 26,247 29,653
Corporation tax refundable 120
- -
Total current assets 62,870 47,810 52,974
Total assets 82,198 55,946 69,365
Equity
Issued capital 3,719 3,719 3,719
Share premium 1,701 1,698 1,701
Merger reserve (3,300) (3,300) (3,300)
Retained earnings 51,453 32,976 42,183
53,573 35,093 44,303
Minority Interest 29 12
Total equity 53,602 35,093 44,315
Liabilities
Non-current liabilities
Financial liabilities 317 296
-
Provisions 967 177 967
Total non-current liabilities 967 494 1,263
Current liabilities
Financial liabilities 67 35 71
Trade and other payables 23,537 19,085 20,604
Corporation tax payable 1,415 1,020
-
Provisions 2,610 219 3,112
Total current liabilities 27,629 20,359 23,787
Total liabilities 28,596 20,853 25,050
Total equity and liabilities 82,198 55,946 69,365
Group Cash Flow Statement Half Year ended Half Year ended Year ended
for the half year ended 31 December 2007 31/12/2007 31/12/2006 30/06/2007
Euro'000 Euro'000 Euro'000
(Unaudited) (Unaudited) (Audited)
Cash flows from operating activities
Profit for the financial year 10,207 7,011 16,798
Adjustments for:
Depreciation on property, plant and equipment 196 135 209
Amortisation of intangible assets 96 25 106
Financial income (302) (342) (734)
Financial expense 1 9 10
Income tax expense 1,525 1,048 2,475
Operating profit before changes in working
capital and provisions 11,723 7,886 18,864
(Increase)/decrease in trade and
other receivables (7,287) (4,538) (5,186)
Increase in trade and other payables and 643 2,397 3,251
provisions
Cash generated from operations 5,079 5,745 16,929
Interest paid (1) (9) (10)
Income tax refund / (paid) 53 (2,411)
-
Interest received 302 342 734
Net cash from operating activities 5,380 6,131 15,242
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired (2,639) (166) (4,888)
Deferred consideration paid (1,313) (151)
-
Purchase of property, plant and equipment (308) (426) (319)
Purchase of intangible assets (306)
- -
Net cash from investing activities (4,260) (592) (5,664)
Cash flows from financing activities
Repayment of borrowings (271) (27) (41)
Dividends paid (837) (557) (1,208)
Proceeds from issue of share capital 17 20
-
Net cash from financing activities (1,108) (567) (1,229)
Net increase in cash and cash equivalents 12 4,972 8,349
Cash and cash equivalents at beginning of year 29,624 21,275 21,275
Cash and cash equivalents end of year 29,636 26,247 29,624
Notes supporting interim financial statements
1. Basis of preparation
The consolidated financial information of the Group has been prepared in
accordance with the recognition and measurement principles of International
Financial Reporting Standards (IFRS), including interpretations issued by the
International Accounting Standards Board ("IASB") and its committees and
endorsed by the European Commission.
The figures for the half year ended 31 December 2007 are unaudited. The
comparative figures for the half year ended 31 December 2006 are also unaudited.
The amounts for the year ended 30 June 2007 represent an abbreviated version
of the Group's full financial statements for the year on which the auditors
issued an unqualified audit report.
The preparation of financial information in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources.
2. Dividends paid
Half Year ended Half Year ended Year ended
31 December 2007 31 December 2006 30 June 2007
Euro'000 Euro'000 Euro'000
Ordinary dividends:
Interim dividend paid - - 651
Final dividend paid 837 557 557
877 557 1,208
3. Earnings per ordinary share
The earnings per ordinary share is calculated on the basis that the weighted
average number of shares in issue for the half year ended 31 December 2007 is
37,199,825 (period ended 31 December 2006 - 37,165,715; year ended 30 June 2007
- 37,191,606). It has been calculated based on the profit for the financial
period ended 31 December 2007 of Euro10,207,000 (period ended 31 December 2006 -
EuroEuro7,011,000; year ended 30 June 2007 - Euro16,786,000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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