Positive start to financial year for CPL Resources
Irish employment services firm CPL Resources issued a brief trading update yesterday, announcing it has had a positive start to the financial year with net fees continuing to show growth.
In an update to the market, chairman John Hennessey also revealed that shareholders agreed on a dividend of 5 cent per share.
"On 3 September 2015 we announced our results for the year ended 30 June 2015. The group reported operating profits of €14m, revenue growth of 7pc to €393.6m and an earnings per share of 40.2c.
"The group has a strong balance sheet, with more than €30m in net cash at the year end," Mr Hennessey said.
"At our AGM the shareholders approved a final dividend of 5.0 cent per share, bringing the total dividend for the year to 9.75 cent per share.
"The group has had a positive start to the new financial year with net fees continuing to show growth across our business, economic indicators are positive and we expect to perform in line with market expectations in the months ahead," he said.
Earlier in the year CPL took a 90pc stake in UK recruiter Clinical Professionals, in a deal worth €8m, €5.1m of which was paid up front with the remainder relying on targets being met.
Analyst with Davy Stockbrokers, Ross Harvey, says that the short statement is a positive sign for CPL, whose ceo is Anne Heraty.
"While brief, CPL's statement is reassuring. It confirms a positive start to the new year and that the company expects to perform in line with market expectations.
"In our view, CPL's valuation provides material upside, and continued growth across the business, as suggested in the statement, should catalyse an improved rating," Mr Harvey said.