LONDON (Alliance News) - CPL Resources PLC said Tuesday that pretax profit and revenue grew in its full-year, buoyed by growth across its major areas and locations, as well as improving economic conditions and employment trends, leading the company to up its total dividend.
In its full-year results for the year to June 30, 2014 the Irish employment services company said pretax profit rose 17% to EUR14.3 million from EUR12.3 million last year as revenue came in 12% higher at EUR369.3 million from EUR330.8 million last year.
The company also said operating profit for the full-year improved, up 21% to EUR14.2 million from EUR11.7 million last year. Its operating profit ratio improved to 26% for the period, up from the 24% comparative.
Encouraged by the results, CPL Resources increased its full-year dividend by 15% to EUR9.75 cents per share from the EUR8.5 cents paid the year before.
CPL said its balance sheet remains strong, holding net cash of EUR30.5 million at the period-end, compared to EUR27.9 million the previous year.
"Our results reflect growth across all our major areas and locations. Economic conditions and employment trends are improving, although recovery in many of the markets in which we operate is fragile, and our industry remains highly competitive. We expect to continue to deliver growth in profits over the coming year," said Chairman John Hennessy.
During the year CPL Resources said it saw growth in demand for people to fill permanent and temporary positions across the sectors in which it operates with fees from permanent placements up 31% year-on-year.
Chief Executive Anne Heraty said that the labour market continues to recover with total employment on the rise in both the international and domestic sectors of the economy, "Companies are gaining the confidence to invest in hiring people on a permanent basis."
However, downward pressure on margins in its temporary business continues to pose challenges, said the company, particularly given the significant investment in working capital that this part of the business requires. "Nevertheless, we have continued to achieve growth in both revenues and gross profit in our temporary business," said the company in a statement.
Looking ahead Hennessy said that the company expects the economic recovery to gather some momentum in CPL's principal markets over the medium term. "This, combined with the ongoing efforts of our team, should allow us to continue to deliver growth in profits over the coming year," said the Chairman.
Shares in CPL Resources were Tuesday morning trading
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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