Monday 15 July 2019

'Strong growth' in financial and tech divisions sees profit jump at CPL Resources

CPL CEO Anne Heraty and chairman John Hennessy
CPL CEO Anne Heraty and chairman John Hennessy
Ellie Donnelly

Ellie Donnelly

Irish recruitment group CPL Resources has seen its gross profit rise 15pc year-on-year to €46.4m in the six months to 31 December.

Profit before tax was up 23pc to €11m, according to a trading update from the company.

CPL’s conversion rate of gross profit to operating profit (excluding non-cash foreign currency translations and LTIP charges) was 25pc in the period, comparable to 23pc in 2017.

Revenue for the six months increased by 9pc to €278.6m, as the Dublin and London listed company benefited from strong growth in its finance and technology divisions.

Permanent recruitment performed well in the period.

Meanwhile the company said it experienced “strong growth” in its flexible talent division. This business segment now counts for 70pc of CPL’s total net fee income, up from 68pc in 2017.

The company intends to pay an interim dividend of 8.00 cent per share, an increase of 26pc on last year's interim dividend, which it said reflected its performance during the period.

Looking forward, CPL said it was “closely monitoring” activity levels in its key markets.

“We remain conscious of the impact of political, regulatory and economic events globally on our business, in particular Brexit,” John Hennessy, chairman of CPL, said.

However, he added that current market conditions are “favourable” with high demand for talent and low unemployment rates in the company’s key markets.

“We remain confident in the outlook for the business and expect to deliver continued profitable growth for the remainder of the financial year”.

Online Editors

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