Thursday 12 December 2019

Rise in employments leads CPL profits to sales record

CEO Anne Heraty explains CPL achieved record revenues and gross profit as
CEO Anne Heraty explains CPL achieved record revenues and gross profit as "companies are gaining the confidence to invest in hiring people on a permanent basis"

Patrick Edwards

Recruitment firm CPL Resources, a bellwether for the domestic economy, said sales soared 12pc to €369.3m as the company benefited from rising demand from companies for job recruitment here and overseas.

Operating profits at the Dublin-based company jumped 21pc in the 12 months to the end of June to reach €14.2m, while pre-tax profits rose by 17pc to €14.4m.

The gains reflect growth across all its major areas and locations, CPL said, but it warned that the pick-up remains fragile and the recruitment industry remains highly competitive.

CPL, which was the first company on the stock exchange to be led by a woman, operates in nine countries and has 36 offices. It recently opened offices in Spain, Poland and the UK.

"CPL achieved record revenues and gross profit," said founder and chief executive Anne Heraty. "Companies are gaining the confidence to invest in hiring people on a permanent basis."

Demand for employees was particularly strong in information technology, healthcare, pharmaceutical and professional services, CPL said. It added a new oil and gas division.

CPL is profiting from the rise in employment on the island of Ireland. The Republic has created around 4,000 new jobs a month since 2012, while Northern Ireland has created 1,750 a month.

"Seventy percent of new jobs created in the Republic of Ireland were full-time, although this still leaves full-time jobs 17pc below peak and 6pc below peak in Northern Ireland," Ms Heraty added.

CPL is investing in a so-called sourcing hub in the Polish city of Krakow to bring staff into Ireland.

"Our management team and recruiting professionals are deeply committed to delivering innovative and flexible staffing solutions to our clients. We are encouraged by our results and expect to perform in line with market expectations," she added.

Dublin and London-listed CPL reported a 16pc increase in earnings per share to 40.7 cent.

The balance sheet had net assets in excess of €72m at the end of June and net cash of more than €30m.

Temporary recruitment remains the biggest driver of revenue as businesses maintain a higher percentage of temporary staff.

Gross profit from permanent recruitment increased by 33pc to €20.8m and was the biggest contributor to the increase in profitability, CPL added.

Irish Independent

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