CPL RESOURCES REMAIN CAUTIOUS ABOUT SHORT TERM OUTLOOK - Recruitment company CPL Resources says its profits before tax for the last year amounted to €5.3m, up from €1.7m to June 2009. But revenues fell by 11% to €189.9m from €212.4m. The company says it is experiencing a gradual, but noticeable, improvement in its markets. It says that it is cautious about the short term outlook, but optimistic about its longer term opportunities.
CPL Resources' chief executive Anne Heraty says that the interesting part of today's results is that the second half of the year is much stronger that the first half - indicating that an improvement is underway. CPL placed over 2,500 people in permanent jobs during the year, but Ms Heraty says this is well down from the 7,000 to 7,5000 people that would have been placed during the boom period. However, the number of temporary assignments rose marginally to 10,500 in the 12 month period.
Anne Heraty says there are very few areas of net job creation at the moment but some of the areas faring better than others include technology, finance and accounting and the healthcare business. She says that while social networking sites do have a role to play in recruitment, they are not really a threat to recruitment firms and the long term trends for the industry are very good. She says her job is to find the right people for the right roles.
***
MORNING BRIEFS - Economic growth in the euro zone is likely to fade in the second half of the year in line with other parts of the globe, according to European Central Bank Executive Board member Juergen Stark. He said euro zone growth would moderate in the second half of the year after a stellar April, May and June.
*** Tensions between Elan, its shareholders and some directors have seen the drug company's putting up an unusual defence to against a shareholder revolt. Fighting allegations of mismanagement and misconduct the group's chief executive Kelly Martin confirmed connections that he and other directors have with external companies, some of which have done business with Elan, saying they did not act against shareholders' interests. In a letter to shareholders, Kelly Martin also said an independent investigation into its corporate governance practices is being carried out, and will be presented to Elan's board at its next meeting on September 15. But today shareholder Ib Sonderby, who has been running a campaign to expose what he and numerous other shareholders consider serious breaches of corporate governance, is to push for the removal of at least three directors.
*** It is expected that Ryanair boss Michael O'Leary will announce the airline is further reducing its services at Shannon airport. Ryanair blames a recent decision to raise airport charges there, in addition to the €10 Government travel tax. One Ryanair plane and 40 people at Shannon look after 11 routes there.
*** The euro has dropped to its lowest level in a month against the dollar and near a five year low against the yen this morning. It is trading at $1.2711 cents and 82.66 pence sterling.
