CPS.L Regulatory News (CPS)

24 Jan 2006 07:00

CPL Resources PLC24 January 2006 CPL RESOURCES PLC Chairman's 2006 Interim Statement For the six months to December 2005 The Board of Directors of CPL Resources plc is pleased to announce an excellentfinancial and operational performance for the six months to 31 December 2005.Financial highlights for the period include: • Earnings per share of 10.6 cent, compared with an earnings per share of 6.0 cent for the six months to December 2004 • Profit before tax of €4.6 million, an increase of 79% over the corresponding period in the preceding year • Revenue of €66.3 million, representing growth of 34% year on year • Gross profit of €13.1 million, up 41% from €9.3 million in the half year to December 2004 CPL has had an excellent first half, achieving growth in profit before tax of79% year-on-year. Our gross profit, which represents our net fee income, was€13.1 million for the six months, an increase of 41% on the same period lastyear. This performance demonstrates the Group's ability to achieve increasedearnings through market share gains, rigorous cost control and organic growth.It also reflects a strong performance in each of our principal business areas,being the placement of contract, temporary and permanent employees with clients,and in all business sectors. Net fee income in our permanent placement business has increased by 50% over thecorresponding period last year, with all divisions performing well. Thisperformance has been helped by increased demand for IT, Telecoms and Financeprofessionals. Our contractor and temporary fees have increased by 33%,reflecting growth in the demand for non-permanent staff in all areas, includingoffice management and administration, customer service, engineering, healthcareand manufacturing operations, and for temporary staff in the pharmaceutical,biotechnology, clinical research and medical device industries. Newer areas ofour business also performed well in the period. These included BroadReachInternational, our Executive Search and Selection consultancy for the placementof senior executive level talent, and Cpl Managed Services, which managesselected business processes (including call centres, administrative services andrecruitment solutions) on behalf of clients. The Group continued to focus on cost control and efficiencies during the period.The conversion ratio of gross profit to profit before tax was 35% in the sixmonths to December 2005 compared with 28% in the same period last year. Wecontinually invest in our team and believe that we can continue to achieveincreases in business activity without a proportionate rise in overheads. The Group had net cash balances of €10.8 million at 31 December 2005.Notwithstanding the working capital demands associated with strong growth inbusiness activity, this figure is €3.7 million higher than the correspondingbalance at 31 December 2004. We are pleased that the efforts of our team tomanage working capital tightly have resulted in an excellent level of net cashgeneration. The second six months of our financial year to 30 June 2006 have begun well,with no significant adverse events currently expected to impact our business inthe short term. We believe that we remain well positioned to continue to reapthe benefits of a strong and robust business model operating in a favourableeconomic environment. 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. Ourmanagement team continue to embrace market opportunities and convert them intoshareholder value. Their skill, dedication and professionalism are the drivingforces behind the Group's continued growth. CPL's success 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 Directors have recommended an interim dividend of 1.4 cent per ordinaryshare. The dividend will be payable on 3rd March 2006 to holders of ordinaryshares at the close of business on the record date of 3rd February 2006. John Hennessy Chairman 24 January 2006 Consolidated Income Statement For the half year ended 31 December 2005 Half Year ended Half Year ended Year ended 31-Dec-05 31-Dec-04 30-Jun-05 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited) Group revenue 66,333 49,619 105,265 Cost of sales (53,206) (40,326) (85,193) Gross profit 13,127 9,293 20,072 Administrative expenses (7,774) (6,127) (12,845) Distribution expenses (818) (621) (1,528) Operating profit 4,535 2,545 5,699 Financial income 77 33 108 Financial expenses (7) (5) (25) Profit before tax 4,605 2,573 5,782 Income tax (691) (359) (666) Profit for the financial 3,914 2,214 5,116 period Basic earnings per share 10.6 cent 6.0 cent 13.9 cent Fully diluted earnings per share 10.4 cent 6.0 cent 13.8 cent Consolidated Balance Sheet At 31 December 2005 31-Dec-05 31-Dec-04 30-Jun-05 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited) Assets Non-current assets Goodwill 5,622 5,527 5,622 Intangible assets 189 113 167 Property, plant and equipment 973 866 811 Total non-current assets 6,784 6,506 6,600 Current assets Trade and other receivables 18,673 13,086 13,372 Cash and cash equivalents 11,185 7,497 11,661 Total current assets 29,858 20,583 25,033 Total assets 36,642 27,089 31,633 Equity Issued capital 3,688 3,677 3,688 Share premium 1,671 1,656 1,671 Capital conversion reserve fund 57 57 57 Merger reserve (3,357) (3,357) (3,357) Retained earnings 21,597 15,444 18,051 Total equity 23,656 17,477 20,110 Liabilities Non-current liabilities Financial liabilities 367 311 300 Provisions - 178 111 Total non-current 367 489 411 liabilities Current liabilities Financial liabilities 16 16 16 Trade and other payables 11,863 8,927 10,892 Corporation tax payable 589 58 85 Provisions 151 122 119 Total current liabilities 12,619 9,123 11,112 Total liabilities 12,986 9,612 11,523 Total equity and liabilities 36,642 27,089 31,633 CONSOLIDATED STATEMENT OF CASH FLOWS For the half year ended 31 December 2005 Half Year ended Half Year ended Year ended 31-Dec-05 31-Dec-04 30-Jun-05 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited) Cash flows from operating activities Cash generated from 365 2,115 7,671 operations Interest paid (7) (5) (25) Interest received 77 33 108 Income taxes paid (187) - (736) Net cash inflow from 248 2,143 7,018 operating activities Cash flows from investing activities Acquisitions - deferred (79) - (179) consideration paid Purchase of intangible assets (22) - - Purchase of property, (322) (130) (333) plant and equipment Net cash (outflow) (423) (130) (512) from investing activities Cash flows from financing activities Dividends paid (368) (221) (516) Increase in borrowings 90 - - Repayment of borrowings (23) (46) (106) Issue of ordinary share capital - - 26 Net cash (outflow) (301) (267) (596) from financing activities Change in cash and (476) 1,746 5,910 cash equivalents Cash and cash 11,661 5,751 5,751 equivalents at beginning of period Cash and cash 11,185 7,497 11,661 equivalents at end of period 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 will be for the year ended 30 June2006. Full details of the main changes arising from the transition to IFRS areset out in a separate document issued today. The Group's IFRS accountingpolicies are also set out in that document. The figures for the half year ended 31 December 2005 are unaudited. Thecomparative figures for the half year ended 31 December 2004 are also unaudited.The amounts for the year ended 30 June 2005 represent an abbreviated version ofthe Group's full financial statements for the year on which the auditors issuedan unqualified audit report and which have been restated in accordance withIFRS, as set out in the IFRS transition document issued separately today. The restated 2005 preliminary financial information is subject to the issuanceby the IASB of additional interpretations prior to 30 June 2006, which couldhave a retrospective effect. As a result, it is possible that further changesmay be required to the 2005 financial information prior to its inclusion ascomparatives in the 2006 financial statements. 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 2005 31 December 2004 30 June 2005 •'000 •'000 •'000 Ordinary dividends: Interim dividend paid - - 295 Final dividend paid 368 221 221 368 221 516 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 period ended 31 December 2005 is36,880,825 (period ended 31 December 2004 - 36,784,825; year ended 30 June 2005- 36,823,210). It has been calculated based on the profit for the financialperiod ended 31 December 2005 of €3,914,000 (period ended 31 December 2004 -€2,214,000; year ended 30 June 2005 - €5,116,000). 4. Cash generated from operations Cash generated from operations Half Year ended Half Year ended Year ended 31-Dec-05 31-Dec-04 30-Jun-05 •'000 •'000 •'000 ( Unaudited) ( Unaudited) ( Audited) Operating profit 4,535 2,545 5,699 Depreciation 160 121 275 Movement in debtors (5,301) (1,297) (1,583) Movement in creditors 971 746 3,280 Cash generated from 365 2,115 7,671 operations 5. Analysis of net funds Cash at bank and in hand Bank loan Net Total •'000 •'000 •'000 At 30 June 2005 11,661 (316) 11,345 Cash flow (476) (67) (543) At 31 December 2005 11,185 (383) 10,802 24 January, 2006 This information is provided by RNS The company news service from the London Stock Exchange