CPL predicts a good year as the economy picks up
Published 12/07/2014 | 02:30
CPL, the only recruitment company on the Dublin stock exchange, said it expects pre-tax profit for the 12 months to June to be in line with market expectations of €14m.
The recruiter, which is something of a bell-weather for the broader economy, said in a trading statement that business continues to perform well and the balance sheet remains strong.
The company added that the net cash balances will be higher than most analysts expected.
"Our balance sheet remains strong with cash balances in excess of €30m at 30 June 2014," CPL added ahead of the September 2 publication of the results.
Shares extended recent gains in Dublin as analysts greeted the statement.
"The company has benefited from continued investment through the downturn which leaves it well placed to capitalise on improving labour market dynamics," said Davy Stockbrokers Ross Harvey.
CPL said last September that full-year revenue increased 14pc and predicted further growth in the months ahead.
The shares almost doubled last year as the economy picked up and companies struggled to find staff in many areas such as technology, sales and languages.
"It is very encouraging to see unemployment coming down," CPL chief executive Anne Heraty, pictured below , said then. "We are seeing domestic businesses more willing to employ people. There is a little recovery. It is more positive than it has been. Permanent placements grew very well."
CPL is benefiting as industries as diverse at the hotel sector and even the construction sector struggle to find talented staff.
The Irish Hotels Federation complained recently that there are more than 3,000 unfilled vacancies in the sector, while the Society of Chartered Surveyors warned construction firms are also set to struggle.
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