Business Irish

Sunday 18 March 2018

Profit up 11pc at CPL Resources as 'gig economy' pays dividend for the company

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Ellie Donnelly

Ellie Donnelly

Irish-listed CPL Resources has recorded double-digit growth in revenue in the six months to 31 December 2017.

Profit before tax was €9m in the six month period, an increase of 11pc on the same period last year.

Revenue at the company was €256.7m during the six month period, an increase of 12pc year-on-year, the company said in a statement to the Stock Exchange.

The company’s recent acquisition of UK-based RIG Healthcare Group contributed to the increase in revenue, CPL said.

In addition, CPL said that the proportion of its income that is made up of temporary fees had increased to 68pc from 63pc in the same period last year, driven primarily by RIG's revenue mix but also by organic growth across the company’s sectors.

“This shift in our business model is reflective of a global move toward the "gig economy" and greater flexibility for client and candidate alike,” John Hennessy, chairman of CPL, said.

The company also said that it had improved the margin in its temporary work business to 11.3pc from 10.6pc.

As part of its results announcement, CPL said that it had invested significantly in its technology platform over the past few years and was “delighted” to be pioneering one of the first artificial intelligence tools in the recruitment sector.

During the six month period, the group returned €25m of surplus cash to its shareholders by way of a fixed price tender offer.

The tender offer was fully subscribed, with the company repurchasing and cancelling 3,703,703 shares at a price of €6.75 per share, reducing the issued share capital by approximately 12pc.

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