CPL reports positive beginning to new financial year

Recruitment firm CPL Resources has reported a positive start to its 2020 financial year and says it expects to perform in line with market expectations.

However, the company says it is conscious of the uncertainty that Brexit and the proposed departure from the EU are creating.

"Like many other businesses in Ireland, we will continue to monitor developments closely and we are prepared should conditions change," said Chairman, John Hennessy, in a statement to shareholders at the company's annual general meeting.

Also at the AGM shareholders approved the payment of a final dividend of 11 cents per share for 2019.

The move brings the total dividend for the year to a record 19 cents, up 41% on the previous 12 months.

In a trading update, Mr Hennessy said the 2020 financial year had begun well. 

"Our Flexible Talent division continues to perform well as we meet our clients' growing desire for more flexible workforce solutions," he told shareholders.

"Covalen, our managed solutions brand, was launched in Ireland on 2 October 2019 and will be launched in key European countries later in the financial year."

Mr Hennessy also said the firm would continue to pursue organic growth and look at potential strategic partnerships and acquisitions in order to grow profitability and continue to provide a return to shareholders.

Ahead of today's meeting, one shareholder advisory firm raised questions about the group's awarding of a pay increase of over a quarter to chief executive, Anne Heraty.

Institutional Shareholder Services claimed that CPL had not provided enough of a justification for the hike.

However, the matter was not included in any AGM motions as CPL is listed on the AIM market in London and therefore does not have to get shareholder approval for executive remuneration.

All AGM motions put to shareholders today were passed.

Last month, CPL reported record revenues of €564m for the year ending June 30 2019. 

The firm ended the year with €110m in assets and a cash balance of €40m.

CPL provides services to thousands of firms from 48 offices in 11 countries around the world and employs 13,000 staff.

Facebook, RCSI and Pfizer are among its clients.