CPL sees pretax profits rise 75%to €8m

Recruitment group CPL Resources plc has announced a 75 per cent increase in pretax profits to €8 million in the six months ending December 2006.

The group said the vibrancy of the economy is creating demand for skills that exceed supply. The growth recorded by the group in the period was entirely organic.

CPL also announced the acquisition of 75 per cent of a Czech recruitment business, Key 6 Business Solutions, which has offices in Prague and the Slovak capital, Bratislava.

The CPL share price on the Dublin market finished the day at €6.78, an increase of more than 5 per cent.

The interim results for the second half of 2006 show that the group's gross profit (€19.8 million) increased by 51 per cent when compared with the same period in 2005, but its profit before tax rose by 75 per cent. "The group continued to focus on cost control," it said in a statement.

The group announced record earnings per share of 18.9 cent, an increase of 78 per cent. An interim dividend of 1.75 cent is to be paid to shareholders on March 2nd. Revenue for the six months to end December was €94 million, an increase of 42 per cent on the same period last year.

The group said it expected to continue to grow its business while being "alive to growth opportunities presented by potential acquisition targets in Ireland and elsewhere".

Permanent placement business increased by 46 per cent. "This performance has been helped by increased demand for IT, telecoms and finance professionals."

Contractor and temporary fees increased by 57 per cent, "reflecting growth in the demand for non-permanent staff in all areas".

The group had cash balances of €26.2 million at the end of the period. It did not give a figure for the acquisition of Key 6 Business Solutions.

CPL was founded by Anne Heraty, chief executive of the group, in 1989.

Ms Heraty was voted overall winner of the Ernst & Young Entrepreneur of the Year awards last year. The group operates in Ireland, the UK and Poland.

Yesterday, Ms Heraty said the group "wishes to expand and develop its business in central Europe".