Cpl Resources to return €20m to shareholders

Shares in Irish recruitment group Cpl Resources jumped 8% after it posted a strong rise in full year profits and said it would return €20m to shareholders.Profit before tax for the year to the end of June came in at €8.1m, up 54% on 2010.The board is recommending a final dividend of 2.5c per share, bringing the total dividend for the year to 5 cent per share - a 25% rise on the year before.Cpl said it was a profitable, cash generative group and not a capital intensive business. "The board believes that a return of capital represents the most effective use of those excess funds, and that the continued strength of Cpl's balance sheet, and its cashflow generation, are more than sufficient to allow the group to achieve its objectives over the foreseeable future," it said."Consequently, subject to shareholder approval, we intend to return up to €20 million of surplus capital, in the form of a tender offer, to shareholders."The firm said shareholders who did not wish to participate could retain their full existing investment in the company. "As all shares bought back by the group will be cancelled, the tender offer is expected to have a positive effect on our earnings per share and dividend per share measures," Cpl said. Despite a poor economic environment Cpl saw a 46% increase in fees from permanent placements, and a 22% increase in net fees from the placement of temporary employees.Chairman John Hennessey said the group would see some further profitable growth in the second half of 2011. "The continued uncertainty in the economy generally, however, makes it impossible to make any useful forecast of trading conditions and performance beyond that date," he said.