ISEQ listed computer placement company CPL saw its profits drop by 75% in the last financial year, as the recruitment industry was hit by job cuts in computer and software firms.
Earlier this year CPL bought some of the businesses of bankrupt placement firm Marlborough, and in the final year accounts the firm is shown to have contributed €4.4m to group turnover.
CPL itself today reported pre-tax profits of €1.3m in the 12 months to June, down from €5.1m the previous year. Its sales fell by 22% to 427.3m.
The recruitment business took off in the 1990s as large US companies set up Irish operations, creating thousands of jobs.
CPL chief executive Anne Heraty said, 'The year to June 2002 was the most challenging faced by the group since its formation. The major impact was on our IT division, which until recently was our primary source of growth.'
Heraty said the company has adapted by reducing its dependence on the IT industry and now offers services to the financial, accounting, pharmaceutical and engineering sectors.
Chairman John Hennessy said, 'The group continues to trade profitably and remains very well positioned to continue to expand and diversify effectively.' He also said there were no signs of a market recovery, but that the group is well positioned to adapt to the current conditions.
In Dublin CPL shares were unchanged this afternoon at 50 cent.
