Cpl Resources plc Financial Success Continues
Cpl Resources plc, Ireland's leading employment services group, has announced its results for the half year ended 31st December 2013.
During the six months to 31 December 2013 the Group continued the delivery of strong growth across the business, resulting in record revenues of &euro184.3 million for the half year. The Group's operating profit of &euro6.9 million for the six months to 31 December 2013 is 18% higher than the same period last year. Profit before tax increased by &euro1.0 million to &euro7.0 million.
§ Strong operating performance
§ 14% increase in revenue to &euro184.3 million
§ 18% increase in operating profit to &euro6.9 million
§ 17% increase in profit before tax to &euro7.0 million
§ 17% increase in earnings per share to 19.8 cent
§ 19% increase in interim dividend per share to 4.75 cent
Half Year Highlights
Half Year Ended
Half Year Ended
Profit before tax
Earnings per share
Dividend per share
Profit before tax
Permanent gross profit
Temporary gross profit
Permanent gross profit as % of the total gross profit
Temporary gross profit as % of the total gross profit
* as % of gross profit.
During the six months to 31 December 2013 the Group continued the delivery of strong growth across the business, resulting in record revenues of &euro184.3 million for the half year. The Group's operating profit of &euro6.9 million for the six months to 31 December 2013 is 18% higher than the same period last year. Profit before tax increased by &euro1.0 million to &euro7.0 million. Earnings per share of 19.8 cent for the six months to 31 December 2013, represents a 17% increase when compared to 16.9 cent for the half year to 31 December 2012.
We have continued our policy of controlling costs tightly and improving productivity across the Group in order to maximise profitability. This has delivered an improvement in the Group's conversion ratio of gross profit to operating profit to 25.4% up from 24.5% in the same period last year.
We continue to experience a degree of positive momentum in our principal markets, although significant economic challenges remain in many of those markets. There is a general oversupply of people available for work, but at the same time there is a shortage of specific skills that are in demand. The Cpl team has continued to work closely with our clients to understand their specific requirements, and with our candidates in order to match their skills to those client requirements. As a result our gross profit generated from permanent placements in the six months to December 2013 was &euro10.0 million, an increase of 34%. I am particularly pleased to report strong growth in our international business, reflected by the fact that 40% of our permanent fees were generated outside of Ireland in the six months to 31 December 2013
We continue to see many companies opting for temporary employment offering that enables them to recruit personnel based on the variable demands of their businesses. In the six months to 31 December 2013 the Group has continued to develop our competence in the provision of fully outsourced services, which require specific technical skills and multiple European languages. Revenue generated from temporary assignments was &euro174.2 million, representing 13% growth over same period last year. The corresponding gross profit was &euro17.0 million, 5% higher than the six months to 31 December 2012. 9% of temporary gross profit was generated outside of Ireland.
Margin pressure continues across the temporary staffing market and this market segment remains highly competitive. We are very pleased to have increased the average number of people placed with our clients to in excess of 9,150 for the period ended 31 December 2013.
We continue to enjoy the benefits of having highly talented and energetic people within the Group. On behalf of the Board I wish to express my gratitude for the continuing hard work and dedication of our people and for their commitment to our core values - customer focus, accountability, respect, effective communication and empowerment.
The Group has a cash balance of &euro22.1 million as at 31 December 2013. In the six months to 31 December 2013 &euro7.1 million was generated in cash flow from operating activities before changes in working capital and provisions. Strong organic growth in our temporary business requires significant investments in working capital, and this has given rise to a net cash outflow from operations of &euro3.2 million in the period.
The Board has decided that the Company will pay an interim dividend of 4.75 cent per share, an increase of 19% on the corresponding period last year. The dividend will be payable on 7th March 2014 to shareholders on the company's register at the close of business on the record date of 7th February 2014. The Group has a progressive dividend policy which reflects underlying earnings growth and the continued strength of the Group's balance sheet.
Recent months have seen some indicators in our principal markets move tentatively into positive territory. We see opportunities for growth but we still face challenges in many markets arising from economic uncertainty and competitive pressures. Our strong financial position provides use with the resources to capitalise on growth opportunities as they arise. We expect further profitable growth in the second half of our financial year.