Irish recruitment group CPL Resources reports record revenues

Irish recruitment group CPL Resources reported record revenues in the first half of its financial year as sales rose by 14 per cent to €184.3 million on the back of strong growth in permanent job placements.

Pre-tax profits jumped 17 per cent, up to €7 million, in the six months to December 31st, 2013, while operating profits grew by 18 per cent to €6.9 million. The group is forecasting “further profitable growth” in the second half of the year.

Group chairman John Hennessy said the group continued to see a degree of positive momentum in its main 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.”

Gross profit from permanent job placements advanced 34 per cent, up to €10 million, and now accounts for 37 per cent of the group’s gross profit, up from 32 per cent for the same period in 2012. This reflects a shift in profit streams away from temporary placements. Indeed while profits from temporary job placements grew 5 per cent, up to €17 million, its share of overall profits fell from 68 per cent in 2012 to 63 per cent.

The group’s international business also enjoyed a strong first half, with 40 per cent of CPL’s permanent fees generated outside of Ireland, up from 38 per cent in 2012. Temporary fees generated internationally held steady at 9 per cent.

CPL has retained a strong balance sheet, reporting a cash balance of €22.1 million at December 31st, 2013. In the six months to December 31st 2013, the group generated €7.1 million in cash flow from operating activities before changes in working capital and provisions.

The group declared an interim dividend per share of 4.75 per cent, an increase of 19 per cent. It will be paid on March 7th this year.