Cpl Resources plc Results for the Half Year Ended 31 December 2011

Cpl Resources plc Results for the Half Year Ended 31 December 2011

Cpl Resources plc, Ireland's leading employment services group, today announced results for the half year ended 31st December 2011.

Company statement

I am pleased to report that in the six months to 31 December 2011 the Cpl Group ('Cpl' or the 'Group') delivered a strong operating performance and recorded increases in revenues and profits.

Highlights

28% increase in revenues to €143 million

27% increase in operating profit to €4.2 million

The economic uncertainty in Ireland and in other markets in which we operate has not abated in the six months to December 2011. As with many businesses this uncertainty and its effects on employment and on business confidence generally have given rise to very challenging trading conditions.

Against this background the Group's performance in the six months to 31 December 2011 has been strong. We have concentrated our efforts on meeting the changing needs of companies and candidates while managing our own cost base carefully. We have recorded an increase in our fees from permanent placements by 16.3% over the same period last year, while we have continued to experience significant pressure on prices and margins we are pleased to report a 24.2% increase in net fees from the placement of temporary employees. I am also pleased to report the continued profitable growth in our businesses outside Ireland. 

The achievement of strong results and the maintenance of positive momentum in such uncertain times reflect outstanding commitment to the provision of excellent service across the whole Group. On behalf of the Board I would like to thank the management and staff of Cpl, in Ireland and overseas, for all of their continuing efforts. I would also like to extend the appreciation of the Board to our customers for their continued loyalty and support.

Tender Offer

During the six months to 31 December 2011 we announced a Tender Offer to return up to €20 million in surplus capital to shareholders by acquiring some of their shares in Cpl. The Board was pleased to note that the Tender Offer was fully taken up. The Group purchased 6,666,666 shares at €3 per share. All shares acquired have been cancelled, and this has given rise to a positive effect on the Group's earnings per share.

Earnings per Share

Our reported basic EPS of 10.9 cent per share was based on a weighted average number of shares in issue over the course of the six months of 36.10 million shares. The Group had 37.211 million shares in issues prior to the Tender Offer. The number of issued shares at 31 December 2011 is 30.545 million shares.

Dividend & Dividend Policy

As previously indicated, the Group's dividend policy is unaffected by the return of capital to shareholders. The Board is declaring an interim dividend of 3 cent per share. The dividend will be payable on 12 March 2012 to shareholders on the company's register at the close of business on the record date of 10 February 2012. The Group has a progressive dividend policy which reflects underlying earnings growth and the continued strength of the Group's balance sheet.

Outlook

Notwithstanding the Group's strong performance in the six months to 31 December 2011, very significant uncertainties remain in our principal markets. Although we expect to maintain our position in those markets, we do not anticipate that those markets themselves will grow significantly in the near future. As a consequence, it's not possible to forecast future performance with any certainty. We will, however, continue to focus on the delivery of excellent service to clients and candidates and to position ourselves to take advantage of any opportunities for growth that may arise.