CPL Resources report record revenues on improved jobs market

Tuesday 02 September 2014 17.50
Anne Heraty, CEO of CPL Resources, said the labour market continues to recover
Anne Heraty, CEO of CPL Resources, said the labour market continues to recover

Recruitment firm CPL Resources has reported a 12% rise in annual revenues to €369.3m and said it expected to perform in line with market expectations in the coming months.

Operating profit for the year to the end of June was up 21% to €14.2m. Earnings per share rose by 16% to 40.7 cent from 35 cent previously while pre-tax profits rose by 17% to 14.4m.

Total dividend per share came in at 9.75 cent, up from 8.5 cent last year.

The company said the results for the year reflect growth across all its major areas and locations.

It said that while economic conditions are improving, recovery in many of the markets in which it operates is fragile, and the recruitment industry remains highly competitive.

CPL now have 36 offices in nine countries.

"CPL achieved record revenues and gross profit, with gross profit increasing by 12% to €54.7m in the year," Anne Heraty, the company's CEO said. 

"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," she added.

CPL said that growth in its revenues and gross profit was broad based, driven by strong demand for skilled talent in sectors and occupations such as ICT, healthcare, pharmaceutical and professional services.

Ms Heraty noted that since the start of 2012, the Republic of Ireland has created approximately 4,000 new jobs a month and Northern Ireland 1,750 a month.

"It is encouraging that 70% of new jobs created in the Republic of Ireland were full time, although this still leaves full time jobs 17% below peak and 6% below peak in Northern Ireland," she added.

In the year to June, CPL said that permanent fees revenue increased by 31.7% to €20.8m from €15.8m the previous year. Permanent placement was strong in its international business, it noted.

Revenues generated from temporary assignments in the year to June rose by 10.6% to €348.5m from €315m as demand for temporary staff remained strong. CPL said it finished the year with 9,572 people working on behalf of client projects, an increase of 1,349 on the previous year.

"In the past year, we have delivered on our goals, growing our revenue, profitability and cash generation. The economy and employer confidence is improving and as a result we are investing in people, infrastructure and in new service lines such as the sourcing hub in Krakow, our training business and new offices," the company's CEO said in today's results statement.

"Our management team and recruiting professionals are deeply committed to delivering innovative and flexible staffing solutions to our clients. We are encouraged by our results and expect to perform in line with market expectations," she added.