CPS.L Regulatory News (CPS)

15 Sep 2005 07:00

CPL Resources PLC15 September 2005 CPL RESOURCES PLC Record Results for Cpl; Profit before Tax up 112%; EPS up 117% CPL Resources plc, Ireland's leading employment services group, today announcedfull year results for the year ended 30th June 2005. In his report to shareholders John Hennessy, Chairman said: "The year to 30 June 2005 has been the best in the history of CPL. It is aprivilege to be able to report to you on a year in which the business hasperformed beyond expectations on all fronts and delivered an outstandingGroup-wide performance." Financial Highlights • Sales €105 million up 42% (2004 : €73.9million)• Net Fee Income €20 million up 51% (2004 : €73.9million)• Profit before tax €5.4m up 112% (2004 : €2.6 million) • Earning per share 13 cent up 117% (2004 : 6 cent)• Dividend 1.8 cent per share up 80% (2004 : 1 cent)• Net Funds €11.3m up 113% (2004 : €5.3 million) Operational Highlights • Growth in sales and net fees across all business sectors• Launch of BroadReach International, Executive Search & Selection• Strong performance from offices in Limerick, Cork and Galway• Midlands office opened in Mullingar• Investment in recruitment consultants - up 20% to 160• Over 12,000 people worked through Cpl on client site in the year to June 05 Commenting on the group's performance and outlook, Cpl Chief Executive, AnneHeraty, said: "Demand for staff amongst our client companies is at record levels in allsectors and all our specialist companies have delivered strong year on yeargrowth. We have continued to invest in our infrastructure and business processes andthis has helped us to gain efficiencies in our business support functions andenhance the service we give to our clients. As a result we have the capacity tomaintain strong growth. Employment growth last year in Ireland was strong and this trend looks set tocontinue. The current year has started well and our pipeline of new clients issolid. Our cash reserves put us in a strong position to target both organicgrowth in 2006 and explore potential acquisition opportunities in Ireland andfurther a field." About Cpl Resources plc Cpl is a specialist provider of recruitment and employment services, operatingthrough distinct specialist brands in a wide range of business sectors,including technology, accounting and finance, healthcare, pharmaceutical, sales,engineering, light industrial, and office administration. Chairman's statement The year to 30 June 2005 has been the best in the history of Cpl. It is aprivilege to be able to report to you on a year in which the business hasperformed beyond expectation on all fronts and delivered an outstandinggroup-wide performance. Record profits of €5.4 million have resulted in earnings per share of 12.8 cent,more than double the figure (5.9 cent) achieved in the previous year. Thisstrong profit performance was driven off a 43% increase in turnover which tookthe group past the €100 million figure for the first time. Gross profit, whichis our net fee income, also surpassed a milestone, exceeding €20 million for thefirst time. Notwithstanding this very strong growth we have managed our balance sheettightly, resulting in net cash balances of €11.3 million at 30 June 2005. Cpl is a more diverse and robust business than it was a few short years ago. Wenow operate in a variety of sectors and deliver an increasing range of productsand services to the market. We have grown significantly the area of our businessthat involves the provision of temporary and contract employees to customers. Weare delivering newly developed Managed Services to blue-chip clients. We havealso seen a substantial growth in demand for the placement of permanentemployees across a broad range of market segments. The growth in our business has inevitably placed increasing demands on our backoffice resources and controls and we continued to strengthen this area of ourbusiness during the year. A particular focus on the management of workingcapital has allowed us to increase volumes aggressively while protecting andincreasing our cash resources. This in turn will enable us to continue ourstrategy of expansion through organic growth, and selective acquisitions if andwhen appropriate opportunities are identified, whether in Ireland or elsewhere. The group faces the new financial year in excellent financial and operationalshape. We have experienced good trading conditions during the year in all of ourbusiness sectors and we are very well positioned to take advantage of continuedgrowth in the economy. The new financial year has started strongly and, althoughnew business challenges always present themselves as each year progresses, weare optimistic that the foreseeable future will give us continued opportunitiesfor growth. The group's ability to generate growth and profits is linked closely to theperformance of the Irish economy, and we have benefited from growth in most ofthe sectors in which we operate. However, economic growth merely presentsopportunities - it takes skill, dedication and a lot of hard work to make themost of those opportunities. Our success in doing so is a testament to theexcellent leadership skills of our management team and the tremendous commitmentof all of our people. Their continuing efforts to deliver top class service toall our clients and customers have made us Ireland's leading provider ofemployment services. I am very proud of their achievements and very grateful tothem for their outstanding contributions, individually and collectively, to thesuccess of our business. I would also like to extend my appreciation to ourcustomers for their continued loyalty and support. The Board is recommending for approval by shareholders a final dividend of 1cent per share, bringing the total dividend for the year to 1.8 cent per share. Consolidated profit and loss account for the year ended 30 June 2005 2005 2004 •'000 •'000 Turnover- Continuing operations 105,265 70,748- Acquisitions 3,111 105,265 73,859 Cost of sales (85,193) (60,601)Gross Profit 20,072 13,258Administrative expenses (13,183) (9,715)Distribution expenses (1,528) (1,050) Operating Profit- Continuing operations 5,361 2,477- Acquisitions - 16 5,361 2,493Interest receivable and similar income 108 83Interest payable and similar charges (25) (12) Profit on ordinary activities before 5,444 2,564taxation Taxation on profit on ordinary activities (666) (384) Profit on ordinary activities after 4,778 2,180taxationDividends paid and proposed Note 1 (663) (368) Retained Profit for the Financial Period 4,115 1,812 Profit and loss account, start of year 13,230 11,418 Profit and loss account, end of year 17,345 13,230Earnings per ordinary share 13.0 cent 6 centFully diluted earnings per ordinary share 12.8 cent 5.9 cent Consolidated balance sheet at 30 June 2005 2005 2004 •'000 •'000 Fixed AssetsTangible Assets 978 970Goodwill 5,284 5,527 6,262 6,497Current AssetsDebtors 13,372 11,789Cash at bank and in hand 11,661 6,689 25,033 18,478Creditors: amounts falling due within one year (11,480) (9,153)Net current assets 13,553 9,325 Total assets less current liabilities 19,815 15,822 Creditors: amounts falling due after more than (411) (559)one yearNet Assets 19,404 15,263 Capital and ReservesCalled up share capital 3,688 3,677Capital conversion reserve fund 57 57Share premium 1,671 1,656Merger reserve (3,357) (3,357)Profit and loss account 17,345 13,230 Shareholders' Funds - all Equity 19,404 15,263 Consolidated cash flow statement for the year ended 30 June 2005 2005 2004 •'000 •'000 Net cash inflow from operating activities Note 2 (a) 7,671 183 Returns on investments and servicing of finance 83 71Taxation (736) (396)Capital expenditure and financial investment (333) (204)Acquisitions (179) (433)Equity Dividends paid (516) (293) Net cash outflow/(outflow) before financing 5,990 (1,072) Financing (80) 14Increase/ (decrease) in cash 5,910 (1,058) Reconciliation of net cash flow to movement in net funds for the year ended 30 June 2005 2005 2004 •'000 •'000 Increase/ (Decrease) in cash 5,910 (1,058)Cash outflow from decrease in debt and lease 106 14financing Movement in Net Funds in the Period 6,016 (1,044) Net Funds, beginning of year 5,329 6,373 Net Funds, end of year Note 2 (b) 11,345 5,329 Notes 1. Dividends paid and proposed 2005 2004 •'000 •'000Dividend paid of 0.8 cent (2004: 0.4 cent)per ordinary share 295 147 Dividend proposed of 1 cent (2004: 0.6 cent)per ordinary share 368 221 663 368 2 Notes to the consolidated cash flow statement (a) Reconciliation of operating profit to net cash flows from operatingactivities 2005 2004 •'000 •'000 Operating profit 5,361 2,493Depreciation 275 242Amortisation of Goodwill 338 325Movement in debtors (1,583) (3,442)Movement in creditors 3,280 565Net Cash Inflowsfrom Operating Activities 7,671 183 (b) Analysis of net funds 01-Jul-04 Cash flow 30-Jun-05 •'000 •'000 •'000 Cash at bank and in hand 6,689 4,972 11,661Bank overdrafts (938) 938 - 5,751 5,910 11,661Loans (422) 106 (316) At 30 June 2005 5,329 6,016 11,345 For Further Information: Anne Heraty, CPL Resources, 353 1 614 6000 Josephine Tierney, Finance Director, 353 1 6146000 Ends This information is provided by RNS The company news service from the London Stock Exchange