'Positive momentum' for CPL in principal markets
Recruitment firm CPL Resources said it has experienced "positive momentum" in its principal markets but warned that challenges remain due to economic uncertainty and competitive pressures.
The Dublin-based company reported an operating profit of €6.9m in the first half of its financial year, 18pc up on the corresponding period in 2012. It generated record revenue of €184.3m in the six months to the end of December, 14pc higher year-on-year.
Chairman John Hennessy said that there was a general "oversupply" of people available to work, but that there remained a shortage of specific skills that are in demand.
CPL, whose chief executive is Anne Heraty, generates the biggest share of its revenue from fulfilling temporary placements.
"We continue to see many companies opting for temporary employment offerings that enable them to recruit personnel based on the variable demands of their businesses," said Mr Hennessy.
Revenue generated by CPL during its first half for temporary assignments totalled €174.2m, up 13pc year-on-year.
"Margin pressure continues across the temporary staffing market and this market segment remains highly competitive," added Mr Hennessy.
CPL said that the gross profit generated from permanent placements in the latest period was €10m, a 34pc rise year-on-year. The company said 40pc of its permanent fees were generated outside Ireland in the six months to the end of December.
The revenue generated by CPL in the first half was ahead of analyst expectations.
Davy Stockbrokers said it was 6.7pc ahead of its estimates. The broker said that CPL's performance in the first half reinforces its view that the company is a "lean operator" that has positioned itself well through the downturn for growth in the upswing.
Shares in CPL closed down 2pc yesterday. They've risen 66pc in the past year.