Gross profit up 16% at year-end 2018 for Cpl
Cpl has released its results for the year ended 30th June 2018.
The Group's results for the year ended 30th June 2018 show double-digit growth across all key metrics, reflecting strong growth across its business sectors and markets.
Cpl’s revenue grew by €67.5m in the financial year, up 15% on the prior year. Group gross profit grew by 16% to €83.2m (2017: €71.8m) and profit before tax grew by 18% to €18.5m in the year. The global demand for flexible labour solutions continues to build, with its flexible talent fee income growing by 24.5% during the year.
The impact of changes in regulation in the UK healthcare sector continue to be felt, contributing to modest permanent fee growth to €26.3m (2017: €26.1m). Cpl’s operating profit margin is in line with the previous financial year at 3.4%, which, given the shifting mix of business from permanent recruitment to flexible talent solutions, is a positive performance. Adjusted for non-cash charges relating to the Group’s Long-Term Incentive Plan (LTIP) and currency translation, the operating margin increased by 30 basis points to 3.8% in the financial year.
At year end, the Group had a strong balance sheet, with net assets in excess of €92m, down from €103.7m in the prior year. Cpl ended the year with net cash in excess of €24m, after returning €25.0m to its shareholders and funding the working capital demands of its growing flexible talent business. Cpl is a profitable, cash generative business and the continued strength of the Group's balance sheet, its access to external financing and its capabilities in working capital management positions the Company well for future growth.
John Hennessy, chairman, commented, “The Group's results for the year ended 30 June 2018 show double-digit growth across all key metrics, reflecting strong growth across our business sectors and markets. This performance reflects the clear focus by our team on continuing to grow our business, evolving our product offering to meet shifting workforce preferences and concentrating on managing our cost base and improving margins.
“Our success is driven by the talent, expertise and commitment of our people and their dedication to delivering service excellence to our candidates and clients. We are fortunate to have the calibre of people we have in Cpl, who believe deeply in what we do and are committed to delivering service standards to the highest level.
“Current market conditions are favourable with high demand for talent and low unemployment rates in our key markets. We expect that these factors, together with the efforts of our people, will allow us to deliver further growth in our business during the financial year to 30 June 2019.”
Anne Heraty, CEO, added, “In the financial year to June 2018 revenue increased by 15% to €522.7 million, gross profit increased by 16% to €83.2 million and profit before tax increased by 18% to €18.5 million. After returning €25 million to shareholders by way of fixed price tender offer, we closed the year with a net cash balance of €24.2 million demonstrating the strong cash generating characteristics of the business.
“Our vision as we grow is to be the world’s best at transforming our clients through total talent solutions and experiences. As the world of work evolves and employee and employer expectations change, the demand for flexibility has strengthened. As a result, we grew our flexible talent net fee income by 24.5% to €56.9 million during the year (2017: €45.7 million). We finished the year with 12,296 skilled people working on behalf of Cpl on client engagements.”
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