CPS.L Regulatory News (CPS)

25 Jan 2008 07:00

CPL Resources PLC25 January 2008 Cpl RESOURCES plc Results for the Half Year Ended 31 December 2007 Continued growth for Cpl; Profit before Tax up 46.8%; EPS up 45% Cpl Resources plc, Ireland's leading employment services group, today announcedresults for the half year ended 31st December 2007. Financial results • Revenue of €132 million for the six months, up 40% • Gross profit of €27.8 million, up 40% • Profit before tax of €11.7 million, up 45% • Earnings per share of 27.4 cent, an increase of 45% • Interim dividend of 2.5 cent • Cash balances of €29.6 million • Conversion ratio of 42.8%, up from 40.6% I am pleased to announce a strong set of results for the Cpl group in the sixmonths to December 2007. Profit before tax increased by 45% to €11.7 million.Net fee income (Gross profit) of €27.8 million is 40% higher than last year.Revenues from our permanent placement business in the period increased by 32%over the six months to December 2006. This performance has been helped byincreased demand for IT, telecoms and finance professionals. Our contractor andtemporary fees have increased by 50% over the same period last year, reflectinggrowth in demand for non-permanent staff across all sectors. In particular,light industrial and healthcare have been strong growth areas for the Group. Cplpaid over 5,000 temps and contractors in December 2007. Our regional officeshave also performed very well, benefiting from the new offices added to theGroup towards the end of last year. A key performance measure for the Group is the conversion ratio of gross profitto profit before tax and amortisation. This was 42.8% in the six months toDecember 2007, compared to 44.7% for the year to June 2007. This reflects theongoing investment by Cpl in our international and local businesses. Cpl now hasoffices in Prague, Bratislava and Warsaw. Cpl has integrated the recently acquired businesses of Kate Cowhig InternationalLimited., the Richmond Recruitment Group and Northside Recruitment Limited. Weare very pleased with the performance of these companies in the six months toDecember 2007. In July Cpl acquired Allied Nurses Agency Limited. The companyprovides locum nurses and health care assistants to clients throughout Ireland.With its extensive operations in the nursing sector Allied Nurses AgencyLimited has proven to be an excellent fit with Cpl's existing healthcarebusinesses, which comprised Medical Recruitment Specialists, Kate CowhigInternational Recruitment Limited and Nursefinders UK Limited. Together thesebusinesses have firmly established Cpl's healthcare division as a major nationalplayer in the healthcare sector. On the international front, the group now has offices in Prague, Bratislava andWarsaw. Our intention is to grow a dynamic recruitment company in the CentralEuropean region and to continue to investigate and avail of opportunities toexpand our operations abroad. The Group had cash balances of €29.6 million at 31 December 2007. Developmentmomentum continued in the six months to December 2007 and our net expenditure onacquisitions for the six months amounted to €4 million. Cpl's strategy has beento develop robust and diversified revenue streams, and to enhance these throughthe addition of carefully selected acquisitions, which we work hard to integrateinto the Group. There was an increase in working capital associated with thestrong growth in revenue. Cpl operates in a highly competitive environment. We focus on the changing needsof our clients. We offer flexible products that help us build strong clientrelationships. We believe in our candidates and continue to be committed todelivering a high level of service to our clients. I wish to take this opportunity to welcome all the staff who have joined ourteam by way of our acquisitions. The Group's success is attributable to thequality of our entire team. We now have 279 consultants compared with 237 inJune 2007, and 26 of these are located in Central and Eastern Europe. On behalfof the Board I wish to express my gratitude to all members of our team for thecontinued commitment and dedication to the business. We have recently welcomed two new non-executive directors, Breffni Byrne andOliver Tattan, to our Board. Breffni and Oliver both have considerable businessexperience at senior executive level and as directors, and they bring extensiveand complementary skills and expertise to the Board. The continuing directorsare very much looking forward to working closely with Oliver and Breffni for thebenefit of the group and our shareholders. Outlook Our results for the six months to 31 December 2007 reflect continuing profitablegrowth in our business across all business sectors. Although the Irish economicenvironment is somewhat less favourable than it has been in recent years,nevertheless we expect our business to continue to perform well over the comingmonths. The Board is recommending an interim dividend of 2.5 cent per share. Thedividend will be payable on 29 February 2008 to shareholders on the company'sregister at the close of business on the record date of 1 February 2008. Group income statementfor the half year ended 31 December 2007 Half Year ended Half Year ended Year ended 31-Dec-07 31-Dec-06 30-Jun-07 •'000 •'000 •'000 (Unaudited) (Unaudited) Audited Revenue 132,421 94,181 195,540Cost of sales (104,617) (74,322) (152,530) Gross profit 27,804 19,859 43,010Distribution expenses (1,171) (1,174) (2,007)Administrative expenses (15,202) (10,959) (22,456) Operating profit 11,431 7,726 18,547Financial income 302 342 736Financial expenses (1) (9) (10) Profit before tax 11,732 8,059 19,273Income tax expense (1,525) (1,048) (2,475) Profit for the Financial Year 10,207 7,011 16,798Attributable to:Equity Shareholders 10,190 7,011 16,786Minority interest 17 12 - 10,207 7,011 16,798 Basic earnings per share 27.4 cent 18.9 cent 45.1 cent Diluted earnings per share 27.4 cent 18.9 cent 45.0 cent Consolidated Balance SheetAt 31 December 2007 31/12/2007 31/12/2006 30/06/2007 (Unaudited) (Unaudited) (Audited)AssetsNon-current assetsProperty, plant and equipment 1,469 1,435 1,273Goodwill and Intangible assets 17,846 6,659 15,105Deferred tax asset 13 42 13Total non-current assets 19,328 8,136 16,391 Current assetsTrade and other receivables 33,234 21,563 23,201Cash and cash equivalents 29,636 26,247 29,653Corporation tax refundable 120 - -Total current assets 62,870 47,810 52,974Total assets 82,198 55,946 69,365 EquityIssued capital 3,719 3,719 3,719Share premium 1,701 1,698 1,701Merger reserve (3,300) (3,300) (3,300)Retained earnings 51,453 32,976 42,183 53,573 35,093 44,303Minority Interest 29 12Total equity 53,602 35,093 44,315LiabilitiesNon-current liabilitiesFinancial liabilities 317 296 -Provisions 967 177 967Total non-current liabilities 967 494 1,263Current liabilitiesFinancial liabilities 67 35 71Trade and other payables 23,537 19,085 20,604Corporation tax payable 1,415 1,020 -Provisions 2,610 219 3,112Total current liabilities 27,629 20,359 23,787Total liabilities 28,596 20,853 25,050Total equity and liabilities 82,198 55,946 69,365 Group Cash Flow Statement Half Year ended Half Year ended Year endedfor the half year ended 31 December 2007 31/12/2007 31/12/2006 30/06/2007 •'000 •'000 •'000 (Unaudited) (Unaudited) (Audited)Cash flows from operating activitiesProfit for the financial year 10,207 7,011 16,798Adjustments for:Depreciation on property, plant and equipment 196 135 209Amortisation of intangible assets 96 25 106Financial income (302) (342) (734)Financial expense 1 9 10Income tax expense 1,525 1,048 2,475 Operating profit before changes in workingcapital and provisions 11,723 7,886 18,864(Increase)/decrease in trade andother receivables (7,287) (4,538) (5,186)Increase in trade and other payables and 643 2,397 3,251provisions Cash generated from operations 5,079 5,745 16,929Interest paid (1) (9) (10)Income tax refund / (paid) 53 (2,411) -Interest received 302 342 734Net cash from operating activities 5,380 6,131 15,242 Cash flows from investing activitiesAcquisition of subsidiary, net of cash acquired (2,639) (166) (4,888)Deferred consideration paid (1,313) (151) -Purchase of property, plant and equipment (308) (426) (319)Purchase of intangible assets (306) - -Net cash from investing activities (4,260) (592) (5,664) Cash flows from financing activitiesRepayment of borrowings (271) (27) (41)Dividends paid (837) (557) (1,208)Proceeds from issue of share capital 17 20 -Net cash from financing activities (1,108) (567) (1,229) Net increase in cash and cash equivalents 12 4,972 8,349Cash and cash equivalents at beginning of year 29,624 21,275 21,275Cash and cash equivalents end of year 29,636 26,247 29,624 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 figures for the half year ended 31 December 2007 are unaudited. Thecomparative figures for the half year ended 31 December 2006 are also unaudited.The amounts for the year ended 30 June 2007 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 IFRS 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 2007 31 December 2006 30 June 2007 •'000 •'000 •'000Ordinary dividends:Interim dividend paid - - 651Final dividend paid 837 557 557 877 557 1,208 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 2007 is37,199,825 (period ended 31 December 2006 - 37,165,715; year ended 30 June 2007- 37,191,606). It has been calculated based on the profit for the financialperiod ended 31 December 2007 of €10,207,000 (period ended 31 December 2006 -£££7,011,000; year ended 30 June 2007 - €16,786,000). This information is provided by RNS The company news service from the London Stock Exchange