CPS.L Regulatory News (CPS)

25 Jan 2007 07:00

CPL Resources PLC25 January 2007 CPL RESOURCES PLC Interim Statement for the Six Month Period to 31 December 2006 CPL resources plc today (Thursday 25 January December 2007) released its interimstatement for the six month period to 31 December 2006. Key highlights include: Profitability and shareholder value • Profit before tax of €8 million, up 75%• Record earnings per share of 18.9 cent, an increase of 78%• Interim dividend proposed of 1.75 cent Operational performance • Revenue of €94 million for the 6 months, representing growth of 42% year on year• Gross profit of €19.9 million, up 51% from €13 million in the period to December 2005• Cash balances of €26.2 million at 30 December 2006 (€21.3 million at 30 June 2006)• Improved conversion ratio of 40.6% It is a pleasure to report record interim results for Cpl Resources plc in theperiod to 31 December 2006. CPL achieved another period of excellent growthacross all its businesses, increasing total revenues by 42% to €94 million. Withincome outpacing costs, pre-tax profits rose by 75% to more than €8 million. Ourgrowth, which was entirely organic in the period, is particularly pleasing as itfollows a 86% increase in profit before tax in the previous year. Our clients are operating in a vibrant economy where, in many sectors, demandfor skills continues to exceed supply. As the leading provider of employmentservices to the Irish market we are confident that we can continue to grow ourbusiness by anticipating and meeting the changing needs of employers and skilledpeople across the spectrum of business areas in which we operate. We are alsoalive to growth opportunities presented by potential acquisition targets inIreland and elsewhere. Results Overview Six months to Six months to % change 31 December 2006 31 December 2005 €000's €000's Revenue 94,181 66,333 42% Gross profit 19,859 13,127 51% Profit before tax 8,059 4,605 75% EPS 18.9 cent 10.6 cent 78% Net fee income in our permanent placement business increased by 46% 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 57%, 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 continued to focus on cost control and efficiencies during the period.A 51% increase in gross profit was translated to a 75% increase in profit beforetax demonstrating the Group's operating leverage. The conversion ratio of grossprofit to net profit before tax was 40.6% in the six months to December 2006compared with 35% in the same period last year. The Group had cash balances of €26.2 million at 31 December 2006.Notwithstanding the working capital demands associated with strong growth inbusiness activity, this figure is €5 million higher than the correspondingbalance at 30 June 2006. The Board is recommending an interim dividend of 1.75 cent per share. Thedividend will be payable on 2 March 2007 to shareholders on the company'sregister at the close of business on the record date of 2 February 2007. Group income statementfor the half year ended 31 December 2006 Half Year ended Half Year ended Year ended 31-Dec-2006 31-Dec-2005 30-Jun-2006 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited) Revenue 94,181 66,333 148,065Cost of sales (74,322) (53,206) (119,898) Gross profit 19,859 13,127 28,167Distribution expenses (1,174) (818) (1,725)Administrative expenses (10,959) (7,774) (16,111) Operating profit 7,726 4,535 10,331Financial income 342 77 255Financial expenses (9) (7) (20) Profit before tax 8,059 4,605 10,566Income tax expense (1,048) (691) (1,278) Profit for the financial period 7,011 3,914 9,288 Basic earnings per share 18.9 cent 10.6 cent 25.1 cent Fully diluted earnings per share 18.9 cent 10.4 cent 24.9 cent Group Balance SheetAt 31 December 2006 31-Dec-2006 31-Dec-2005 30-Jun-2006 •'000 •'000 •'000 (Unaudited) (Unaudited) (Audited)AssetsNon-current assetsProperty, plant and equipment 1,435 973 1,144Goodwill 6,431 5,622 6,265Intangible assets 228 189 253Deferred tax asset 42 42 -Total non-current assets 8,136 6,784 7,704 Current assetsTrade and other receivables 21,563 18,673 17,025Cash and cash equivalents 26,247 11,185 21,292Corporation tax refundable - - 81Total current assets 47,810 29,858 38,398 Total assets 55,946 36,642 46,102 EquityIssued capital 3,731 3,688 3,714Share premium 1,686 1,671 1,686Other reserves (3,300) (3,300) (3,300)Retained earnings 32,976 21,597 26,522Total equity 35,093 23,656 28,622 LiabilitiesNon-current liabilitiesFinancial liabilities 317 367 317Provisions 177 - 177Total non-current liabilities 494 367 494 Current liabilitiesFinancial liabilities 35 16 79Trade and other payables 19,085 11,863 16,688Corporation tax payable 1,020 589 -Provisions 219 151 219Total current liabilities 20,359 12,619 16,986 Total liabilities 20,853 12,986 17,480 Total equity and liabilities 55,946 36,642 46,102 Group statement of cash flow Half Year ended Half Year ended Year endedfor the period ended 31 December 2006 31-Dec-2006 31-Dec-2005 30-Jun-2006 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited)Cash flows from operating activitiesProfit for the financial period 7,011 3,914 9,288Adjustments for:Depreciation on property, plant and equipment 135 140 223Amortisation of intangible assets 25 20 54Financial income (342) (77) (255)Financial expense 9 7 20Income tax expense 1,048 691 1,278Operating profit before changes in workingcapital and provisions 7,886 4,695 10,608 Movement in trade and other receivables (4,538) (5,301) (3,620)Movement in trade and other payables and 2,397 971 5,715provisionsCash generated from operations 5,745 365 12,703 (9) (7) (20) Interest paidIncome tax refund / ( paid) 53 (187) (1,493)Interest received 342 77 255Net cash from operating activities 6,131 248 11,445 Cash flows from investing activitiesAcquisition of subsidiary, net of cash (166) (194)acquired -Deferred consideration paid (234) - (79) Purchase of property, plant and equipment (426) (322) (550)Purchase of intangible assets (22) (140) - Net cash (outflow) from investing activities (592) (423) (1,118) Cash flows from financing activitiesRepayment of borrowings (27) (23) (30)Proceeds from new loan - 90 93 Dividends paid (557) (368) (817)Proceeds from issue of share capital 17 41 -Net cash (outflow) from investing activities (567) (301) (713) 4,972 (476) 9,614 Change in cash and cash equivalentsCash and cash equivalents at beginning of 21,275 11,661 11,661periodCash and cash equivalents at end of period 26,247 11,185 21,275 Notes supporting interim financial statements 1. Basis of preparation The consolidated financial information of the Group has been prepared inaccordance with the recognition and measurement principles of InternationalFinancial Reporting Standards (IFRS), including interpretations issued by theInternational Accounting Standards Board ("IASB") and its committees andendorsed by the European Commission. The Group's first consolidated financialstatements prepared in accordance with IFRS were for the year ended 30 June2006.. The Group's IFRS accounting policies are also set out in these financialstatements. The figures for the half year ended 31 December 2006 are unaudited. Thecomparative figures for the half year ended 31 December 2005 are also unaudited. The amounts for the year ended 30 June 2006 represent an abbreviated versionof the Group's full financial statements for the year on which the auditorsissued an unqualified audit report. The preparation of financial information in conformity with IFRSs requiresmanagement to make judgements, estimates and assumptions that affect theapplication of policies and reported amounts of assets and liabilities, incomeand expenses. The estimates and associated assumptions are based on historicalexperience and various other factors that are believed to be reasonable underthe circumstances, the results of which form the basis of making judgementsabout carrying values of assets and liabilities that are not readily apparentfrom other sources. 2. Dividends paid Half Year ended Half Year ended Year ended 31 December 2006 31 December 2005 30 June 2006 •'000 •'000 •'000 Ordinary dividendsInterim dividend paid - - 449Final dividend paid 557 368 368 557 368 817 3. Earnings per ordinary share The earnings per ordinary share is calculated on the basis that the weightedaverage number of shares in issue for the half year ended 31 December 2006 is37,165,715 (period ended 31 December 2005 - 36,880,825; year ended 30 June 2006- 36,934,080). It has been calculated based on the profit for the financialperiod ended 31 December 2006 of €7,011,000 (period ended 31 December 2005 -€3,914,000; year ended 30 June 2006 - €9,288,000). 4. Analysis of net funds Cash at bank Bank Bank Loan Net and in hand Overdraft •'000 •'000 •'000 •'000 At 30 June 2006 21,292 (17) (379) 20,896Cash flow 4,955 17 27 4,999At 31st December 2006 26,247 - (352) 25,895 25 January 2007 This information is provided by RNS The company news service from the London Stock Exchange