CPS.L Regulatory News (CPS)

7 Sep 2006 07:02

CPL Resources PLC07 September 2006 CPL RESOURCES plc Full Year Results for the Year Ended 30th June 2006 Record Results for Cpl; Profit before Tax up 83%; EPS up 81% CPL Resources plc, Ireland's leading employment services group, today announcedfull year results for the year ended 30th June 2006. Financial Highlights • Sales €148 m up 41% (2005: €105 m)• Net Fee Income €28.2m up 40% (2005: €20.1 m)• Profit before tax €10.6m up 83% (2005: €5.8 m)• Earning per share 25.1 cent up 81% (2005: 13.9 cent)• Conversion ratio 37.5% (2005: 29%)• Cash €21.3m (2005: €11.7 million)• Dividend 2.9 cent per share (2005: 1.8 cent) Commenting on the group's performance and outlook, Cpl Chief Executive, AnneHeraty, said: "We are delighted with the performance of the Group. Our growth in sales of 41%which is almost entirely organic follows a similar increase in sales in theprevious year. These results reflect the core strength of Cpl - our ability tounderstand and respond to the changing needs of our clients. In the year to June 2006, we continued to invest in expanding each specialistbrand and on growing our teams of recruitment consultants. Recruiter numbersincreased from 163 in June 2005 to 188 in June 2006. As a result of ourinvestment in training, in hiring new people and in developing innovative andeffective services for our clients, we believe we are well prepared to takeadvantages of changes in the marketplace and to deliver exceptional solutions toour clients John Hennessy Chairman of the Group said "The Group's increased revenue and gross profit reflect substantial increases inprofitable activity across all sectors and markets, and a strong performance ineach of our principal business areas, being the placement of contract, temporaryand permanent employees with clients. The fact that a 41% increase in revenue resulted in an almost doubling ofpre-tax profits year on year demonstrates the Group's ability to grow ourbusiness aggressively while maintaining rigorous cost control. Cpl is a much larger, more diverse and more robust business than it was a fewyears ago. Our management and staff face and overcome daily challenges incontinuing to deliver profitable growth. We remain confident in our ability totake advantage of favourable economic conditions and to identify and pursueopportunities for further growth, whether organically or by acquisition." 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 2006 was a very good one for Cpl. The Group has deliveredits best results to date, producing very substantial growth in turnover, net feeincome and profits. The key highlights for the period include: • Earnings per share of 25.1 cent, compared with 13.9 cent for the year to June 2005 • Revenue of €148 million, representing growth of 41% year on year • Gross profit of €28.2 million, up 40% from €20.1 million in the year to June 2005 • Profit before tax of €10.6 million, an increase of 83% over the prior year • Cash balances of €21.3 million at 30 June 2006 (€11.7 million at 30 June 2005) The Group's increased revenue and gross profit reflect substantial increases inprofitable activity across all sectors and markets, and a strong performance ineach of our principal business areas, being the placement of contract, temporaryand permanent employees with clients. Net fee income in our permanent placement business increased by 39% over theprior year, with all divisions performing well. This performance has beenhelped by increased demand for IT, Telecoms and Finance professionals. Ourcontractor and temporary fees have increased by 42%, reflecting growth in thedemand for non-permanent staff in all areas, including office management andadministration, customer service, engineering, healthcare and manufacturingoperations, and for temporary staff in the pharmaceutical, biotechnology,clinical research and medical device industries. Newer areas of our businessalso performed well in the period. These included Cpl Managed Services, whichmanages selected business processes (including call centres, administrativeservices and recruitment solutions) on behalf of clients. The Group had cash balances of €21.3 million at 30 June 2006. Notwithstandingthe working capital demands associated with strong growth in business activity,this figure is €9.6 million higher than the corresponding balance at 30 June2005. Our excellent business development team is supported by strong backoffice personnel who have ensured that the 41% growth in revenue has resulted inonly a 6% increase in trade debtors. As we noted in our 2005 annual report, the Group's ability to generate growthand profits is linked closely to the performance of the Irish economy, and wehave benefited from growth in most of the sectors in which we operate. The factthat a 41% increase in revenue resulted in an almost doubling of pre-tax profitsyear on year demonstrates the Group's ability to grow our business aggressivelywhile maintaining rigorous cost control. One of Cpl's central tenets is our commitment to quality people. We believethat in order to source and place the best people and to provide the bestservice to our clients we must recruit, train and retain the very best people inour own business. Over the years we have invested significantly in people whoseefforts and abilities align with those of the Group itself. As Cpl continues todeliver growth we will maintain our focus on investment in people. Cpl is a much larger, more diverse and more robust business than it was a fewyears ago. Our management and staff face and overcome daily challenges incontinuing to deliver profitable growth. We remain confident in our ability totake advantage of favourable economic conditions and to identify and pursueopportunities for further growth, whether organically or by acquisition. Cpl's success is the result of having the best people in the business and we arevery grateful for their dedication, skill and sustained commitment to the Group.Their continuing efforts to deliver top class service to all our clients andcustomers have made us Ireland's leading provider of employment services. Iwould also like to extend the appreciation of the Board to our customers fortheir continued loyalty and support. The Board is recommending a final dividend of 1.5 cent per share. The dividendwill be payable on 5 October 2006 to shareholders on the company's register atthe close of business on the record date of 15 September 2006. The finaldividend together with the interim dividend of 1.4 cent per share, amounts to atotal dividend of 2.9 cent per share. JOHN HENNESSYChairman 7th September 2006 Group income statement for the year ended 30 June 2006 2006 2005 •'000 •'000Revenue 148,065 105,265Cost of sales (119,898) (85,193) Gross profit 28,167 20,072Distribution expenses (1,725) (1,528)Administrative expenses (16,111) (12,845) Operating profit 10,331 5,699Financial income 255 108Financial expenses (20) (25) Profit before tax 10,566 5,782Income tax expense (1,278) (666)Profit for the financial year 9,288 5,116 Basic earnings per share 25.1 cent 13.9 cent Diluted earnings per share 24.9 cent 13.8 cent Group balance sheet at 30 June 2006 2006 2005Assets •'000 •'000Non-current assetsProperty, plant and equipment 1,144 811Goodwill and intangible assets 6,518 5,789Deferred tax asset 42 -Total non-current assets 7,704 6,600Current assetsTrade and other receivables 17,025 13,372Cash and cash equivalents 21,292 11,661Corporation tax refundable 81 -Total current assets 38,398 25,033Total assets 46,102 31,633EquityIssued share capital 3,714 3,688Share premium 1,686 1,671Other reserves (3,300) (3,300)Retained earnings 26,522 18,051Total equity 28,622 20,110LiabilitiesNon-current liabilitiesProvisions 177 111Financial liabilities 317 300Total non-current liabilities 494 411Current liabilitiesTrade and other payables 16,688 10,892Corporation tax payable - 85Provisions 219 119Financial liabilities 79 16Total current liabilities 16,986 11,112Total liabilities 17,480 11,523 Total equity and liabilities 46,102 31,633 Group cash flow statement for the year ended 30 June 2006 2006 2005 •'000 •'000Cash flows from operating activitiesProfit for the financial year 9,288 5,116Adjustments for:Depreciation on property, plant and equipment 223 226Amortisation of intangible assets 54 49Financial income (255) (108)Financial expense 20 25Income tax expense 1,278 666Operating profit before changes inworking capital and provisions 10,608 5,974(Increase) in trade and other receivables (3,620) (1,583)Increase in trade and other payables 5,715 3,280Cash generated from operations 12,703 7,671Interest paid (20) (25)Income tax paid (1,493) (736)Interest received 255 108Net cash from operating activities 11,445 7,018Cash flows from investing activitiesAcquisition of subsidiary, net of cash acquired (194) -Deferred consideration paid (234) (179)Purchase of property, plant and equipment (550) (178)Purchase of intangible assets (140) (155)Net cash from investing activities (1,118) (512)Cash flows from financing activitiesRepayment of borrowings (30) (106)Proceeds from new loan 93 -Dividends paid (817) (516)Proceeds from issue of share capital 41 26Net cash from financing activities (713) (596)Net increase in cash and cash equivalents 9,614 5,910Cash and cash equivalents at beginning of year 11,661 5,751Cash and cash equivalents at end of year 21,275 11,661 For Further Information: Anne Heraty, CPL Resources, 01 614 6000Josephine Tierney, Finance Director, 01 6146000 7th September 2006 This information is provided by RNS The company news service from the London Stock Exchange