Cpl RESOURCES plc Boosts PBT
Cpl RESOURCES plc Boosts PBT
Results for the Half Year Ended 31 December 2009
Cpl Resources plc, Ireland's leading employment services group, today announced results for the half year ended 31st December 2009. Revenues of 91.3 million were down from 118.9 million and gross profits were 12.9 million. Profits before tax improved from 1.5m a year ago to 2.3 in this period.
The markets in which we operate remain difficult and employment trends continue to present challenges. Nevertheless, the Group is pleased to report profits before tax of 2.37 million for the six months ended 31 December 2009.
In the six months to 31 December 2009 Group Gross Profit fell by 37% when measured against the same period last year. This change reflects the continuing weakness of the Irish economy. The Group's net fee income for the six months to December 2009 is 10% lower than the six months to June 2009.
Net fee income from our permanent placement business decreased by 58% when compared to the corresponding period last year. However, permanent fees generated in the six months to December 2009 were only 15% lower than the six months to June 2009. Net fee income in our temporary placement business has been more resilient to date across most of the Group. Unfortunately the pricing environment in the temporary placement business has become more challenging. This has resulted in a 26% decline in gross profit from this sector of our business compared with the same period last year. We are however beginning to see an increase in demand for temporary staff, and net fee income in our temporary business in the six months to December 2009 was similar to that generated in the six months to June 2009.
The Group had cash balances of 42 million at 31 December 2009. The business generated 1.7 million from operating activities in the six months to December 2009, while 1.3 million was spent on acquisitions in the same period. We continue to manage our debtor book actively and carefully, and we have not experienced any significant increase in bad debts.
In line with our stated strategy to increase the range of services we offer to our customers, we acquired three businesses in the six months to December 2009. Loss Control Services Limited (trading as Nifast) is one of Ireland's leading providers of training and consultancy in all aspects of Health & Safety. Established 22 years ago, Nifast assists companies in reducing the risks of accidents in the workplace and in managing their compliance with their statutory duties as employers. Ecom Interaction Services Limited is a business process outsourcing company for customer contact management, outsourced insurance administration and back-office processes. It has a blue chip customer base in the finance, technology and commercial sectors. Techstaff International Limited is a construction contractor business. Cpl continues to look for suitable acquisition opportunities which will enhance our service offering to customers and improve the breadth and geographic balance of our business.
Our goal is to consistently remain profitable regardless of the economic circumstances. Our team has demonstrated their commitment to delivering a value based strategy. For this I thank them. Our sales force and delivery teams remain committed to providing our customers with innovative and flexible solutions to meet their business needs in a constantly changing environment. We value our customers and I would also like to thank them for their continued support.
The markets in which Cpl operates remain challenging, and the economic outlook remains uncertain in Ireland and in our other locations. In these conditions we are continuing to manage our cost base carefully, to provide excellent service to our clients and to pursue opportunities to add to our business as they arise. We do not anticipate any significant expansion or retraction in demand for our services in the short term. We note, however, that some commentators are forecasting a return to economic growth in Ireland towards the end of 2010, and we remain well positioned to take advantage of any upturn in the market as and when it occurs.
The Board is recommending an interim dividend of 1.5 cent per share. The dividend will be payable on 5th March 2010 to shareholders on the company's register at the close of business on the record date of 5th February 2010.