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Cpl Resources Plc Results for Year Ended 30 June 2020

Resilient business model driving excellent earnings growth

Dublin, 8 September 2020: Cpl Resources Plc ('Cpl', the 'Group' or the 'Company'), Ireland's leading talent and workforce solutions group, today announces results for the year ended 30 June 2020.

Financial Highlights

· 10% increase in adjusted profit before tax to €27.9m

· 10% increase in adjusted basic earnings per share to 88.8 cent

· 4% increase in gross profit (net fee income) to €100.3m

· Gross profit margin up 58 basis points to 17.6%

· Strong cash generation with net cash position of €68.1m, up from €40.1m a year ago

Operational & Strategic Highlights

· Demonstrated resilience of operating model during challenging market conditions presented by Covid-19 pandemic

· Strategic and decisive actions taken to manage costs and preserve cash in response to Covid-19

· Continued growth in recurring revenues with Flexible Talent (including Covalen, our managed solutions division) now representing almost 73% of gross profit

· Operational efficiencies, proactive cost actions and a growing contribution from Covalen delivered a 44 basis point increase in adjusted operating margin to 5.0%

· New organisation structure established around core service pillars - Recruitment, Managed Solutions and Healthcare

· Investment in both internal and external innovative technology solutions

· Investment in Cpl brand refresh, rolling out across financial year 2021

Other Highlights

· Swift and effective reaction to Covid-19 pandemic, putting the safety of our people at the centre of our response

· Successful mobilisation of workforce to a remote working environment and associated investment in support structures for the health and wellbeing of our people

· Continued focus on diversity and inclusiveness in the workforce and the ongoing support of charities and community engagement

· Publication of inaugural Responsible Business Policy Report detailing environmental, social and governance activities and targets

· The process of Board refreshment continues with the retirement of Breffni Byrne from the Board at Cpl's AGM on 23 November

John Hennessy, Chairman, commented: "The Cpl team has delivered an outstanding performance and excellent earnings growth for the year to June 2020. The performance delivered is particularly impressive given the impact of Covid-19 on our business since March 2020. Although the ongoing pandemic has impacted our Permanent fees, we have delivered profitable growth, demonstrating the resilience of the Group's business model, particularly in Flexible Talent.

Our business delivers value by responding to the essential needs of businesses and candidates by matching the right people with the right opportunities, and by providing workforce solutions that support our clients' business objectives. Our success is driven by the quality of our people, who operate to the highest standards across a rich and diverse client portfolio. The quality and commitment of all of our people is evident in the strength of our full year performance, and particularly against the backdrop of Covid-19 in the second half of the year.

During the year we also strengthened our focus on, and commitment to, ESG issues, which we believe will play an increasingly important role in the long-term success of our business. We are committed to ensuring that our ESG profile aligns with the expectations of our shareholders and other stakeholders.

Whilst early in the financial year we are pleased with the trading performance to date which is in line with our expectations."

Anne Heraty, CEO, added: "Cpl has delivered another year of strong earnings growth and excellent cash conversion, while increasing our net fee income by 4%, gross margin by almost 0.6% and our adjusted profit before tax by 10%.

The Group's strong performance in the year to June 2020 is a testament to the success of our strategy to increase the contribution of recurring revenues across high growth sectors. This provides a strong degree of resilience in the face of unprecedented, economic shocks such as the Covid-19 pandemic. Our managed solutions division, Covalen, continues to experience strong, consistent growth and is well positioned for future growth both domestically and internationally.

Since year-end, we have seen an encouraging improvement in Permanent fees driven mainly by our technology and finance divisions. I would like to thank our team, our clients and all of our stakeholders whose support and commitment ultimately define our success."

For further information, please contact:

Cpl Resources Plc + 353 1 614 6000

Anne Heraty, CEO

Lorna Conn, CFO

David Marshall, Head of Corporate Development

Davy Corporate Finance (Nomad and Euronext Growth Advisor)

Ivan Murphy/ Daragh O'Reilly: +353 1 679 6363

Shore Capital (Joint Corporate Broker) +44 (0)20 7408 4090

Stephane Auton/ Daniel Bush (Corporate Advisory)

Malachy McEntyre/ Fiona Conroy (Corporate Broking)

FTI Consulting (Media Relations)

Melanie Farrell/ Jonathan Neilan: +353 1 765 0888

About Cpl Resources Plc

Cpl Resources Plc is a global provider of talent and workforce solutions, with almost 13,000 employees across 45 offices worldwide. We operate through distinct specialist brands in a wide range of sectors including technology, finance and legal, healthcare, pharmaceutical, life sciences, sales, engineering, HR, light industrial and office administration. We have a diverse range of clients from market leading multinationals to small and medium sized enterprises and we operate across the full talent spectrum from permanent, contract and temporary recruitment to the provision of managed solutions and strategic talent advisory services.

Forward-Looking Statements

This announcement contains forward-looking statements, which are subject to risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

Cpl Resources Plc

Chairman's Statement

In recent years Cpl has developed a strong and diverse business model, combining revenues generated by our Permanent business with the recurring fee income associated with our growing business in Flexible Talent.

In the face of the Covid-19 pandemic, our strategy has been to drive the growth of our Flexible Talent division, which includes our managed solutions brand Covalen, while maintaining a strong proposition in Permanent recruitment. The Cpl team has continued to deliver against this strategic objective, which has increased the proportion of recurring net fee income and provides a strong degree of resilience in the face of unprecedented economic shocks such as the ongoing pandemic. The benefits of this strategy and of the Group's business model are reflected in the strong full year results to 30 June 2020.

* Adjusted Operating profit, adjusted Profit before tax and adjusted Basic Earnings per share exclude non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP) of €895k (2019: €895k), currency translation of €16k (2019: €13k) and goodwill impairment of €2.5m (2019: €Nil).

** As a % of gross profit.

Revenue grew by €4.4 million to €569.3 million, up 1% on the prior year. Group gross profit grew by 4% and adjusted profit before tax grew by 10% in the year. The growth in the year was driven mainly by the performance in the first nine months of the financial year until March 2020, when the Group started to experience the adverse impact of the Covid-19 pandemic. The global demand for flexible workforce solutions continues and our Flexible Talent net fee income grew by 7% during the year.

Adjusted operating profit margin was 5.0% (2019: 4.6%) which, given the shifting mix of business from Permanent recruitment to Flexible Talent, is testament to our commitment to improving margins.

At year end, the Group had a strong balance sheet, with net assets of €126.4 million, up from €110.4 million in the prior year. We ended the year with net cash of €68.1 million, up €28.0 million from the prior year, after funding the working capital demands of our growing Flexible Talent division and implementing strong cash conservation policies across the Group in response to Covid-19.

Cpl is a profitable, cash generative business and the continued strength of the Group's balance sheet, its access to external financing and its capabilities in working capital management positions the Company well to pursue growth opportunities.

Culture and Values 

Cpl's culture is one of openness, respect and clear communication. As an organisation, we are entrepreneurial in spirit and are passionate about the work we do. We believe that this culture enables us to deliver consistently outstanding service to our clients and candidates, and that it has contributed significantly to the strong performance across the business in the past year. Like many other businesses, the rapid onset of the Covid-19 pandemic and the associated economic slowdown have posed significant challenges for our organisation. However, it is in such testing times that the strength of culture comes to the fore. Our people-centred values, innovative outlook and client focus have helped us to successfully mobilise our entire workforce to a remote working environment. This is testament to the culture we have created in Cpl over thirty years - one of absolute dedication to our clients and of open, clear communication with our people.

People

The success of Cpl is built on the quality, commitment and work ethic of our people. The commitment and flexibility shown by our staff to adapt and react to changing work-practices due to the Covid-19 pandemic have been truly impressive. On behalf of the Board, I would like to thank all of our people for their positive attitude and hard work during the year. I would also like to thank our clients and candidates for their continuing support and loyalty to Cpl and for their partnership-led approach throughout this crisis.

Stakeholder Engagement

As a Board, we are conscious of the importance of stakeholder engagement in both assessing our culture and ensuring we maintain high standards of corporate governance. We have developed strong relationships and partnerships with customers, suppliers and communities. We actively engage with our workforce in the development of strategy as well as in identifying risks and promoting new opportunities.

Environmental, Social & Governance

We are committed to becoming a more sustainable business, ensuring inclusive opportunities for all and minimising our environmental impact. We believe that environmental, social and governance, or 'ESG', issues will play an increasingly important role in the long-term success all businesses. We are committed to operating a business that has a positive impact on all stakeholders and we are determined that our ESG activities and targets will fulfil that ambition.

Historically, Cpl has invested in a range of initiatives in the sustainability area, which have been targeted at benefitting all our stakeholders as well as mitigating risk and driving efficiencies. In February 2020, we published our Responsible Business Policy Report which formalises the objectives, policies and targets of our ESG activities. It outlines the key strategic initiatives enabling the development of deeper, better and more meaningful relationships with our clients (both candidates and customers), our colleagues, our collaborators and the communities in which we work.

Board Developments

On 23 November 2020, Breffni Byrne will retire from the Board having been a Non-Executive Director of the Group since 2007. Breffni had indicated that he would step down during the financial year but agreed to stay on the Board until the AGM, given the challenges posed by Covid-19. On behalf of my fellow Directors and our people, I would like to thank Breffni for the outstanding contribution he made to Cpl's success during his tenure.

Cash & Capital Allocation

Cpl is a profitable, cash generative business and is highly effective at managing its working capital. Measures taken to maximise available cash flow and strengthen the Group's balance sheet in the wake of Covid-19, have resulted in record cash generation at year-end. In the twelve months to 30 June 2020, €31.4 million was generated in cash flow from operating activities before tax and changes in working capital (2019: €27.1 million), and the Group closed the financial year with a net cash balance of €68.1 million (2019: €40.1 million).

The Board regularly reviews its allocation of capital. We prioritise organic expansion and are selective in our acquisition activity, acquiring only where we perceive a strong fit with our existing business or where we can drive further innovation in our organisation and for our clients. A strong balance sheet will enable us to consider acquisition opportunities that may emerge from the current crisis, to drive growth and to create additional shareholder value.

EPS & Dividend Policy

Cpl delivered full year adjusted basic earnings per share of 88.8 cent, a 10% increase on the prior year, reflecting the growth in profitability in the year. This was driven primarily by the performance in the first nine months of the financial year, until March 2020 when the Group started to experience the adverse impact of the Covid-19 pandemic.

Considering the interests of all stakeholders along with the uncertainty surrounding the Covid-19 pandemic, the Board has deemed it necessary to prioritise a strong balance sheet. As a result, the Board is not recommending payment of a final dividend in respect of the financial year ended 30 June 2020. While the Board recognises the importance of dividend income to shareholders and is confident in the medium-term prospects of the business, it is prudent to conserve cash and maintain a strong balance sheet in the current business environment. The Board will keep capital allocation and shareholder returns under continuous review and intends to reinstate the Group's dividend policy as and when appropriate. 

Outlook

We operate in a cyclical industry which is sensitive to changes in economic activity within our core markets. While we have strategically re-positioned our business model over the years to include more secure revenue streams, the visibility of a proportion of our net fee income, particularly within the Permanent division, remains short term. The Covid-19 pandemic has further reduced this visibility as uncertainty around the global economic outlook has increased. Additionally, Brexit continues to give rise to uncertainty for businesses in all sectors, including our own.

Key economic indicators in our most important markets are generally improving from the low points experienced in the second quarter of calendar year 2020. As demonstrated by the resilience of our business model in recent months, we believe we are well positioned to respond to current challenges, to take advantage of business opportunities as they arise, and to benefit from economic recovery in our markets.

John HennessyChairman

8 September 2020Chief Executive's Review

In the financial year to 30 June 2020, Cpl delivered record adjusted EPS and strong cash conversion. Delivering this strong performance, against the backdrop of the Covid-19 pandemic, reflects the resilience of the Cpl business model, our ability to respond quickly to the changing market environment and the commitment of our people.

The Group's strategy over the past number of years has been to diversify our revenue streams and increase the contribution of recurring revenues across high growth sectors (technology, pharmaceutical, life science and financial services). Our success in implementing this strategy has contributed to our strong full year performance and the delivery of profitability and cashflow in challenging conditions.

The commitment of our staff is outstanding. At the onset of the pandemic, our people rapidly adapted to the changed work-practices required to mobilise from an office-based to a remote working environment and ensured business continuity by working closely with employees, candidates and clients. Our pre-Covid investment in technology ensured our teams remained productive throughout this challenging period. A key priority for Cpl has been protecting the health of all of its employees, including those on-site with clients, while ensuring the implementation of all health and safety measures recommended by the relevant authorities.

I want to thank Cpl's employees for the commitment shown across the year and in particular since March 2020 in dealing with the changes required in work practices due to the pandemic. Breffni Byrne will retire from the board at our AGM on 23 November 2020. Breffni has made a significant contribution to the success of the Group over the years, both as a Board member and Senior Independent Director. We will miss his insightful contributions and wise counsel. I would like to personally express my sincere thanks and wish him well for the future.

Financial Highlights

Group revenue increased by €4.4 million to €569.3 million in the year to 30 June 2020 (2019: €564.9 million). Gross profit grew by 4% to €100.3 million (2019: €96.3 million) and gross margin increased by 0.6% to 17.6% (2019: 17.0%). We delivered a 10% increase in adjusted profit before tax to €27.9 million (2019: €25.5 million) and our adjusted basic earnings per share is up 10% to 88.8 cent (2019: 80.6 cent). The improvement in the adjusted operating margin to 5% (2019: 4.6%) demonstrates management's focus on operational leverage and a growing contribution from Covalen, our managed solutions division.

The Group reported double-digit growth in profits and earnings per share in the six months to 31 December 2019. This momentum continued into the second half of the financial year until March 2020, at which time the Group started to experience the adverse impact of the Covid-19 pandemic. The Group has implemented a series of cost saving and cash conservation initiatives to help mitigate the impact of the pandemic on the long-term prospects of the Group.

We recognised a €2.5 million impairment charge against the carrying value of goodwill at year-end relating to the RIG Healthcare Group ("RIG"). RIG is a UK specialist recruiter of locum doctors and allied health professionals in which we acquired a 91% shareholding in June 2017. Changes in regulation and continuing Brexit uncertainty have proven challenging for this business but the management team responded well to evolving market conditions. The demand case remains for healthcare professionals and we are committed to the UK healthcare market in the longer term.

Our balance sheet is robust with net assets of €126.4 million at 30 June 2020 (2019: €110.4 million). Cash flow in the year was exceptional with a closing net cash balance of €68.1 million, up from €40.1 million in the prior year. Cash generation was driven by a range of operational measures taken to maximise available cash flow and strengthen our balance sheet, together with highly effective working capital management.

The Board announced an interim dividend of 10.0 cent per share in January representing an increase of 25% on the prior year and reflecting the Group's strong first half performance. Considering the interests of all stakeholders along with the uncertainty in the global economic outlook created by the Covid-19 pandemic, maintaining a strong balance sheet is a key priority for the Group. Following careful consideration, and given the payment of the interim dividend to shareholders in February, the Board is not recommending a final dividend in respect of the 2020 financial year.

Operations Review

Cpl's capability spans the full talent spectrum and we deliver a range of services through two operating segments - flexible workforce solutions ('Flexible Talent') and permanent recruitment ('Permanent').

Gross margin in the year to 30 June 2020 was 17.6%, an increase of 58 basis points from the prior year. This was driven by our Flexible Talent division through a combination of volume and pricing improvements.

Our Permanent placement business represented 27% of total gross profit compared to 29% in the prior year. Despite the developments in our business mix, our adjusted operating profit conversion ratio from gross profit was 28.3%, up 1.6% on last year when adjusted for non-cash charges.

* Adjusted Operating margin excludes non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP) of €895k (2019: €895k), currency translation of €16k (2019: €13k) and goodwill impairment of €2.5m (2019: €Nil).

** As % of gross profit.

Flexible Talent

Service Overview

Flexible Talent incorporates managed solutions, temporary and contract recruitment, training and strategic talent advisory services. We support multiple clients including leading multinational organisations in the financial services, technology, healthcare and pharmaceutical sectors. Cpl is typically engaged on multi-year contracts, becoming trusted strategic partners to our clients and adding significant value to their businesses.

Flexible Talent services are provided across four distinct areas:

· Managed Solutions (Covalen) assumes accountability for business processes on behalf of our clients, becoming trusted strategic partners and creating measurable improvements and cost savings.

· Enterprise Solutions (temporary and contract recruitment services), which offer clients flexibility through managed services and recruitment outsourcing solutions, including high-volume contingency recruitment and seasonal ramp-ups.

· Healthcare Solutions (temporary and contract recruitment services for public and private healthcare services and hospitals including homecare provision), which offer clients flexibility through managed services and recruitment outsourcing solutions, including high-volume contingency recruitment and seasonal needs.

· The Future of Work Institute, which provides strategic talent advisory services catering for the broader supports required by our clients to further evolve and transform their businesses.

Performance

Flexible Talent net fee income increased by 7% to €73.0 million during the year (2019: €68.5 million). Gross margin in the year to 30 June 2020 was 13.5% (2019: 12.8%) and we had an average of almost 12,000 skilled people working on client engagements on behalf of Cpl. Since March 2020 trading has been resilient and continued to perform well with solid demand across the pharmaceutical, life science and technology sectors. Covalen, in particular, continued to experience good growth across its client base.

The increased demand for outsourced talent and business process solutions is part of a secular trend which is expected to continue as employers seek greater flexibility in their global workforces. We believe a consequence of the Covid-19 pandemic is likely to be an acceleration in the demand for both remote working practices and outsourced workforce solutions. The breadth of our service lines in this space positions us well for further growth.

Permanent

Service Overview

The majority of our Permanent placement work is undertaken on a contingent basis, which means we only generate revenue when the candidate successfully starts in a role. We operate in a competitive environment where the speed and quality of delivery is a differentiator. We will continue to invest in Artificial Intelligence (AI) to optimise the placement cycle. Cpl combines the power of AI and analytics to support our skilled recruitment professionals who bring a personal touch to the process, focusing on the qualities of the candidate and culture fit to recommend the right recruitment decision for our clients.

Performance

Permanent net fee income decreased by 2% during the year to €27.3 million (2019: €27.8 million). The Group's Permanent division traded strongly until March 2020 at which point trading was negatively impacted as hiring activity was reduced across many sectors.

In both the UK and Ireland, we supported national and local campaigns for the frontline delivery effort in respect of the healthcare service response to Covid-19. International nurse recruitment in the UK performed well in the first half of the year, following a relaxation of the regulatory environment, until the Covid-19 pandemic began to impact. While there was still strong demand for nurses, the ban on international flights from several countries impacted on the arrival and start dates of candidates. We expect these demand levels to continue given the on-going pressures on healthcare services across the UK and Ireland.

Divisions such as technology, pharma and financial services performed well during the year, where demand for skilled talent is at a premium. In today's digitally driven marketplace, companies are becoming increasingly dependent on technology to deliver for their customers and drive efficiency. This combined with increased regulation, compliance and the growing risks of cyber security suggests that the demand for technology and finance professionals will continue.

Strategy

Our strategy is to be world class at supporting our clients through transformational talent solutions and experiences. Over the past 30 years, we have established a deep portfolio of customer relationships and talent services. We have evolved our business from a traditional recruitment company to one which operates across the entire talent spectrum with a comprehensive managed solutions offering, supported by strategic talent and advisory services.

We continue to execute our strategy based on our core themes of 'Future Ready', 'Client First' and 'Total Solutions' - to deliver value for clients and growth for our shareholders. The Group's strong performance in the year to June 2020 is a testament to the success of our strategy for growth. Various initiatives have been undertaken as part of these themes to further the development of our approach to engaging and adding value to our clients including: the establishment of an enterprise solutions team to support the delivery of talent solutions programs; the bolstering of our technology capability; and the further evolution of the Future of Work Institute to ensure we are at the leading edge of the world of work.

As part of our core strategy, during the year we rolled out a three-pillar structure within the organisation focused on the core service offerings in the business - Recruitment, Managed Solutions and Healthcare. This reorganisation creates better ownership and focus over our core service offerings, supported by an executive governance group that is driving strong cross and upselling opportunities in a more focused way.

During the year, we also started the process of evolving the Cpl brand to better reflect our evolution as a provider of talent and workforce solutions across the entire talent spectrum. This process involved interactions with our clients and colleagues and the development of a new brand look, feel and language for the Cpl organisation. During the 2021 financial year, the brand will be further integrated into the business and activated across core channels. 

Our investment over recent years in the Future of Work Institute and our managed solutions division Covalen, are helping us to ensure that Cpl is well positioned to deepen our client relationships further, both domestically and internationally. The growth of Covalen, is a key area of focus for us as we prioritise our acquisition activity in the short to medium term.

Technology

Technological change is accelerating exponentially and is revolutionising the way workplace, workforce and work tasks are managed. We continue to explore and pilot leading edge technology solutions that enhance the employee and client experience. Our focus is two-fold - firstly, the continuing integration of technology solutions into our value propositions; and, secondly to fully utilise technology in delivering operational excellence in our service delivery.

Alongside significant ongoing investment in our core systems, we actively seek out and evaluate early-stage technology propositions. We have made two investments during the period - the first in a UK based employment platform which is in scale-up, and the second in 'MyCpl', our mobile based rostering app for healthcare where we have acquired the right to use the underlying technology platform in the UK and Ireland. MyCpl has been successfully deployed to over 80% of our flexible healthcare workers in Ireland. It has facilitated 92% of work shifts, now filled within 30 minutes of being released to the app by the client and is being developed for further rollout across our healthcare businesses in Ireland and the UK.

People and Culture

Over the past 30 years, we have developed a strong culture across the Cpl Group. Our people are passionate about helping others and are driven to provide the best talent solutions possible for our clients and candidates. Our teams, in Ireland and internationally, collaborate daily to transform lives and they are central to the success of the Cpl Group.

This year, Cpl was recognised as one of the best large workplaces in Ireland by The Great Place to Work programme for the sixth consecutive year, achieving our highest ranking to date. We have also been recognised as one of the best workplaces for women in Ireland for the first time, highlighting our inclusive nature. I would like to thank everyone across the Group for their continued commitment and resilience, and for making Cpl a truly great place to work.

Environmental, Social & Governance

Across the Cpl Group, there is a collective passion for helping others and giving back and it's heartening to see this ethos come to the fore across the business community in Ireland and internationally. We are passionate about becoming a more sustainable business and with almost 13,000 people and 45 offices across the Group, we are confident we can continue to make a real difference, particularly within the areas of ensuring inclusive opportunities for all and minimising our environmental impact.

Our recently published Responsible Business Policy Report outlines our commitment to improving the objectives, policies and governance of our ESG activities. In terms of sustainability, we have increased our use of renewable energy by 50% in the financial year, with all electricity supplies across 22 sites now coming from renewable sources. We also recently implemented a supplier code of conduct committing to work only with companies who share our corporate values. We are proud to have been named one of the best workplaces for women in Ireland, continue to support a range of charities selected by our people and encourage all employees to avail of two fully paid volunteering days each year.

Summary & Outlook

Current market conditions and trading continue to be impacted by the economic slowdown associated with Covid-19. We are very pleased with the resilience demonstrated by our Flexible Talent division to date and anticipate the impact of the slowdown will principally be on our Permanent division, which comprises 27% of Cpl's net fee income. That said, we are not complacent about the potential impact on our business as a whole and remain focused on continuing to deliver for our clients; while adopting a range of efficiency and cost saving measures to protect the business and our client relationships. As an organisation, we are prepared for the potential macro-economic challenges driven by the Covid-19 pandemic and Brexit.

Cpl has a strong balance sheet with net assets in excess of €126.4 million, generated over 30 years of continuous profitability. We believe our balance sheet and strong cash flow generation provide the resources to withstand current challenges, and also to continue to invest in the growth and expansion of our business while providing an attractive return to shareholders.

Anne Heraty

Chief Executive Officer

8 September 2020

Cpl Resources Plc

Group Statement of Comprehensive Income

for the year ended 30 June 2020

* Exceptional item relates to goodwill impairment of €2.5m (2019: €Nil).

** Excludes non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP) of €895k (2019: €895k), currency translation of €16k (2019: €13k) and goodwill impairment of €2.5m (2019: €Nil).

Cpl Resources Plc

Group Statement of Changes in Equity

for the year ended 30 June 2020

Cpl Resources Plc

Group Statement of Changes in Equity (continued)

for the year ended 30 June 2020

Cpl Resources Plc

Company Statement of Changes in Equity

for the year ended 30 June 2020

Cpl Resources Plc

Group and Company Balance Sheets

as at 30 June 2020

Cpl Resources Plc

Group and Company Balance Sheets (continued)

as at 30 June 2020

Cpl Resources Plc

Group and Company Cash Flow Statements

for the year ended 30 June 2020

Cpl Resources Plc

Group and Company Cash Flow Statements (continued)

for the year ended 30 June 2020

Cpl Resources Plc

Notes 

1 Financial income and expenses

2 Income tax expense

Cpl Resources Plc

Notes (continued)

3 Dividends to equity shareholders

Interim dividends to equity shareholders in Cpl Resources plc are recognised when the interim dividend is paid by the Company. The final dividend in respect of each financial year is recognised when the dividend has been approved by the Company's shareholders. During the financial year, the following dividends were recognised:

4 Earnings per share

* Excludes non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP) of €895k (2019: €895k), currency translation of €16k (2019: €13k) and goodwill impairment of €2.5m (2019: €Nil).

Cpl Resources Plc

Notes (continued)

5 Trade and other receivables

Amounts from subsidiary undertakings are interest free, unsecured and repayable on demand.

6 Net funds

Cpl Resources Plc

Notes (continued)

7 Share capital, share premium, and other reserves