CPL profitable but warns of uncertainty ahead as it adjusts to difficult conditions
Thursday July 09 2009
CPL Resources, Ireland's only listed recruitment firm, has warned in a trading statement that the outlook for the group for the remainder of 2009 remains uncertain.
"It is impossible to predict with any accuracy whether the markets in which the group operates will experience any significant improvement in the foreseeable future," the company said yesterday.
Shares in CPL finished down over 2pc at €1.35 yesterday.
The company added that the slump in the Irish economy has had a significant adverse effect on employment figures, the availability of jobs and the demand for recruitment and related services.
The company has been cutting costs and adjusting its business model to respond to new market conditions. And despite the difficult circumstances, the group has remained profitable for the year ended June last.
"After taking account of impairment charges we expect that the group's profit for the year will be in line with market expectations, and our balance sheet remains strong," the statement added.
Assets
CPL Resources has agreed to buy the business and assets of Kenny Whelan & Associates from the receiver of Newcourt, David Carson of Deloitte.
In a statement, CPL said it believed the deal would secure the position of employees and contractors of Kenny Whelan.
Cork-based Kenny Whelan was acquired by Newcourt in 2006 in a deal which was at the time worth up to €10m but CPL is understood to have agreed to pay significantly less for the company this time around.
- Ailish O'Hora
