23 Oct 2017 17:45
23 October 2017
Cpl Resources plc
Update on Trading and Capital Returns
Cpl Resources plc ('Cpl' or the 'Group'), Ireland's leading employment services group, held its Annual General Meeting ('AGM') today in Dublin. The AGM was followed by an Extraordinary General Meeting ('EGM') to consider the resolutions necessary to implement a capital return of €25 million by way of a tender offer (the "Tender Offer").
As announced separately, Cpl shareholders approved all resolutions proposed at the AGM and EGM.
Trading Update
At the AGM, the Chairman Mr John Hennessy made the following statement:
"On 7 September 2017 we announced our results for the year ended 30 June 2017. The Group reported record revenues of €455 million and a 3% increase in both Gross Profit and Profit Before Tax. The Group has a strong balance sheet with net assets in excess of €103 million and net cash of over €33 million at the year end.
The Group has had a solid start to the new financial year. The UK healthcare segment continues to be challenging. Economic indicators today remain positive and we expect to perform in line with market expectations in the months ahead.
We continue to grow organically and explore potential strategic partnerships and acquisitions in our key sectors and markets.
The effects of Brexit still remain unclear and our position remains that there will be both challenges and opportunities for Cpl".
Capital Returns
At the AGM, Cpl shareholders approved a final dividend of 5.75 cent per share, bringing the total dividend for the year to 11.5 cent per share, an increase of 5%.
At the EGM, shareholders also approved the proposed Tender Offer for a capital return of €25 million to Cpl shareholders.
At the EGM, Chairman Mr John Hennessy made the following statement:
"In recent months, the Board has considered a range of strategic and financial options to enhance shareholder value, particularly taking account of the continued generation of positive cash flows by the Group. We believe that a return of capital represents the an effective use of shareholder funds and that the continued strength of the Group's balance sheet, and its cashflow generation after the return of those funds, will be sufficient to pursue the Company's stated growth objectives."
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For Further Information:
Anne Heraty, CEO, CPL Resources Plc: +353 1 614 6000
Mark Buckley, Deputy CEO & COO, CPL Resources Plc: +353 1 614 6000
Ivan Murphy/ Daragh O'Reilly, Davy Corporate Finance: +353 1 679 6363
Melanie Farrell/Jonathan Neilan, FTI Consulting: +353 1 765 0883