CPL MANAGES TO EKE OUT PROFIT IN DECLINING MARKET - Recruitment company CPL has reported annual results for the year ending June this morning. While the figures are not pretty, they still show that the company managed to make a profit. CPL's profit before tax fell by 92% to €1.7m and its revenues declined by 18% to €212.4m from €257.6m in 2008. This is against a backdrop of official EU figures yesterday which showed unemployment in euro zone countries hit a ten year high in July. In the 16 nations of the euro zone, 15.09 million people were unemployed two months ago - giving a rate of 9.5%. Unemployment has not been this high since May 1999.
CPL's chief executive Anne Heraty says that considering today's economic environment, the results are strong. She states that before an impairment charge of €8m, the company's pre-tax profits amounted to 9.7m while 9m was added to CPL's cash reserves. She says some of this was achieved through cost-cutting, while the company also invested in other business lines. Looking ahead, Ms Heraty says that unemployment will take a while to recover, and adds that it often lags an improvement in the economy. However, she adds that employment companies will continue to do well with a lot of CPL's customers interested in its flexible staffing models.
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O'BRIEN ENDS INM 'TRUCE' - Denis O'Brien has called for an Extraordinary General Meeting of Independent News and Media shareholders. He proposes a number of resolutions, including that the directors are allowed to dispose of or close the operations in London of The Independent and The Independent on Sunday. He also wants the group to stop the process of selling its INM Outdoor division, the South African operation that generates revenue. On his shopping list is the details of all of the directors' expenses since 2000 and he also wants to see Brian Hillary removed from his office of chairman of the firm and a new independent director be appointed to the group. Mr O'Brien wants INM to stop paying Tony O'Reilly €300,000 a year in his role as President Emeritus.
Michael Foley of DIT says today's move from Denis O'Brien is hardly a surprise. He said there was always a feeling that the London Independent was a bit of a 'vanity purchase' for the O'Reillys, bought to lift what may have been perceived in international circles as a second division media moguls to a first division by owning a 'Fleet Street newspaper'. He says there is some logic to O'Brien's idea to get rid of a loss-making asset. He says the paper will be difficult to sell, however because of the major downturn in the newspaper market.
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MORNING BRIEFS - Norbrook, the Northern Ireland based veterinary pharmaceuticals group founded by Edward Haughey, has unveiled a treatment for parasites that will help it tap into a billion dollar a year market. The drug is Closamectin, and Norbrook says its set to revolutionise cattle farming, as it allows for the treatment of liver fluke, worms and other external parasites at the same time.
*** On the currency markets the euro is trading at $1.4216 cents and 87.96 pence sterling.
