Cpl Resources announce revenue up by 12%
Full Year Highlights
- Revenue increase to &euro369.3 million, up 12% on last year
- 21% increase in Operating Profit to &euro14.2 million
- Profit Before Tax up 17% to &euro14.4 million
- Basic earnings per share increase by 16% to 40.7 cent from 35.0 cent
- Total dividend per share of 9.75 cent (2013: 8.5 cent)
Anne Heraty CEO added, "Cpl achieved record revenues and gross profit, with gross profit increasing by 12% to &euro54.7 million in the year. The labour market continues to recover with total employment on the rise in both the international and domestic sectors of the economy. Companies are gaining the confidence to invest in hiring people on a permanent basis."
I am pleased to report that the 12 months ended 30 June 2014 has been another successful year for CPL.
Financial highlights of the Group's performance include:
· Increase in revenue, up 12% to &euro369.3 million
· 21% increase in operating profit to &euro14.2 million
· Earnings per share of 40.7 cent (2013: 35.0 cent)
· Total dividend per share of 9.75 cent (2013: 8.5 cent)
Full Year Highlights
Profit before tax
Earnings per share
Dividend per share
Profit before tax
** as % of gross profit
The Group's results for the year to 30 June 2014 reflect growth across all our major areas and locations. While economic conditions are improving, recovery in many of the markets in which we operate is fragile, and our industry remains highly competitive.
During the year we experienced growth in demand for people to fill permanent and temporary positions across the many sectors in which we operate. Fees from permanent placements grew by 31% year on year. Downward pressure on margins in our temporary business continues to pose challenges, particularly given the significant investment in working capital that this part of our business requires. Nevertheless, we have continued to achieve growth in both revenues and gross profit in our temporary business.
We maintain a constant focus on the management of costs in our business, and this is reflected in an improved operating profit ratio of 26% (24% in the prior year). The Group continues to have a strong balance sheet, with net assets in excess of &euro72 million at 30 June 2014 and net cash of more than &euro30 million at that date.
Chairman's statement (continued)
We operate in what is in many respects the ultimate 'people business'. We work with our clients to find the right solutions to their needs for skills, and we find the right people to meet those needs. We also work to develop and enhance the skills of candidates and client personnel.
All of this is done by our own people, a growing and dedicated group with a wide array of talents, qualities and abilities. We continue to recruit and train outstanding women and men who apply our core values to the delivery of exceptional service to our clients and candidates. I thank them all for their hard work and commitment to the success of the Group. I am also grateful to our clients for their continued support.
Earnings per Share, Dividend & Dividend Policy
CPL has delivered a 16% increase in earnings per share in the twelve months to June 2014, to 40.7 cent. The Board's current priorities for our free cash flow are to maintain the strength of our balance sheet, to allow the Group to optimise opportunities to drive organic growth and fund development through appropriate acquisitions, and to support a sustainable dividend policy. The Group has a progressive dividend policy, which reflects underlying earnings growth and the continued strength of the Group's balance sheet.
The Board is recommending a final dividend of 5.0 cent per share. This will bring the total dividend for the year to 9.75 cent per share. The dividend, if approved by the shareholders, will be payable on 3 November 2014 to shareholders on the Company's register at the close of business on the record date of 10 October 2014.
It is always difficult in our industry to arrive at a reliable view of what might lie ahead. However, we expect economic recovery to gather some momentum in our principal markets over the medium term. This, combined with the ongoing efforts of our team, should allow us to continue to deliver growth in profits over the coming year.