CPS.L Regulatory News (CPS)

26 Jan 2005 07:00

CPL Resources PLC26 January 2005 CPL PLC Interim Results for the half year to 31 December 2004 Chairman's Interim Statement The Board of Directors of CPL Resources plc is pleased to announce that theGroup has had an excellent half year to 31 December 2004. CPL has achievedsignificant increases in turnover, operating profits and earnings per share.Financial highlights for the six month period include: • Earnings per share of 5.5 cent, compared with 2.1 cent for the corresponding period in the prior year • Turnover of €49.6 million, up 43% on last year • Profit before tax up from €0.9 million to €2.4 million • Net cash balances of €7.1 million (up from €5.3 million at 30 June 2004) • Continued growth in our contract and temporary businesses • Strong generation of fees in the permanent placement sector The Group has produced a strong performance for the half year to 31 December2004. Our gross profit, which represents our net fee income, was €9.3 millionfor the six months, an increase of 57% on the same period last year. Thissubstantial growth reflects a strong performance in all sectors in which weoperate, and in each of our principal business areas, being the placement ofcontract, temporary and permanent employees with clients. Expenses have increased by 37% to €6.9 million, reflecting the need to servicethe growth in our business. We are pleased the ratio of costs to net fee incomehas improved over the period. We also believe that we have surplus capacitywithin our cost base which will allow further increases in business activity tobe accommodated without a proportionate rise in overheads. CPL is the leading recruitment specialist in Ireland. The Group now operates ina wide spread of business sectors including Technology, Accounting and Finance,Sales, Engineering, Light Industrial, Healthcare and Pharmaceutical and OfficeAdministration. We are delighted to have experienced growth in all the areas inwhich we operate in the six months to 31 December 2004. Net Fee Income in our permanent placement business has increased verysubstantially, with all divisions performing well. This has been helped byincreased demand for IT, Telecoms and Finance professionals. Our contractor andtemporary employee numbers have also increased, reflecting growth in the demandfor non-permanent staff in all areas, including office management andadministration, customer service, engineering, healthcare and manufacturingoperations, and in the provision of temporary staff to the pharmaceutical,biotechnology, clinical research and medical device industries. The Group had net cash balances of €7.1 million at 31 December 2004. Thisfigure is €1.8 million higher than the balance at 30 June 2004, and €2.8 millionhigher than the corresponding balance at 31 December 2003. We are especiallypleased with this performance given the increased working capital demandsarising from the growth in our business. In recent years CPL has concentrated on broadening our business base. We nowoperate in a wide variety of industries and business sectors, and we havesuccessfully developed a very substantial business in the provision of temporaryemployees, while simultaneously growing our existing contractor and permanentplacement businesses. We have achieved this through a combination of organicgrowth and carefully selected acquisitions. Our focus has been on making ourbusiness more resilient and positioning ourselves to take advantage ofimprovements in the economic environment. We operate on the leading edge of economic activity, because changes in theeconomic environment tend to give rise quickly to shifts in employment patterns.As a result our performance is closely linked with performance of the economygenerally. The second six months of our financial year to 30 June 2005 havebegun strongly, with no significant adverse events expected to impact ourbusiness in the short term. We believe that we remain well positioned tocontinue to benefit from a favourable economic environment in the markets inwhich we operate. The success of CPL is due to the dedication and loyalty of our own people andour customers. On behalf of the Board of Directors I would like to extend myappreciation to our customers for their continued support and to the entire teamin CPL for their continued professionalism, commitment and hard work. The Directors have recommended an interim dividend of 0.8 cent per ordinaryshare. The dividend will be payable on 07 March 2005 to holders of ordinaryshares at the close of business on the record date of 04 February 2005. John HennessyChairman 26 January 2005 Consolidated Profit and Loss accountFor the half year ended 31 December 2004 Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 Notes (Unaudited) (Unaudited) (Audited) Turnover - Continuing operations 49,619 34,683 70,748 - Acquisitions 3,111 _______________________________________________________ 49,619 34,683 73,859Cost of sales (40,326) (28,757) (60,601) _______________________________________________________Gross Profit 9,293 5,926 13,258 _______________________________________________________ Administrative expenses (6,307) (4,424) (9,715)Distribution expenses (621) (602) (1,050) _______________________________________________________ Operating Profit - Continuing operations 2,365 900 2,477 - Acquisitions 0 16 _______________________________________________________ 2,365 900 2,493 _______________________________________________________ Interest, net 28 41 71 _______________________________________________________Profit on Ordinary Activities before Taxation 2,393 941 2,564 _______________________________________________________ Taxation on profit on ordinary activities (359) (160) (384) _______________________________________________________Profit on Ordinary Activities after Taxation 2,034 781 2,180 _______________________________________________________ Dividends paid and proposed 2 (295) (147) (368) _______________________________________________________Retained Profit for the Financial Period 1,739 634 1,812 _______________________________________________________ Profit and Loss Account, start of period 13,230 11,418 11,418 _______________________________________________________Profit and Loss Account, end of period 14,969 12,052 13,230 =======================================================Earnings per Ordinary Share 3 5.5 cent 2.1 cent 6.0 cent =======================================================Fully diluted earnings per ordinary share 5.5 cent 2.1 cent 5.9 cent ======================================================= Consolidated Balance SheetAt 31 December 2004 Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 (Unaudited) (Unaudited) (Audited) Fixed AssetsTangible Assets 979 911 970Intangible Assets 5,347 4,936 5,527 _______________________________________________________ 6,326 5,847 6,497 _______________________________________________________ Current AssetsDebtors 13,086 10,455 11,789Cash at bank and in hand 7,497 4,659 6,689 _______________________________________________________ 20,583 15,114 18,478 _______________________________________________________ Creditors: amounts falling due within one year (9,418) (6,592) (9,153) _______________________________________________________Net Current Assets 11,165 8,522 9,325 _______________________________________________________ _______________________________________________________Total Assets less Current Liabilities 17,491 14,369 15,822 _______________________________________________________ Creditors: amounts falling dueafter more than one year (489) (309) (559) _______________________________________________________Net Assets 17,002 14,060 15,263 =======================================================Capital and ReservesCalled up share capital 3,677 3,652 3,677Capital conversion reserve fund 57 57 57Share premium 1,656 1,656 1,656Merger reserve (3,357) (3,357) (3,357) Profit and loss account 14,969 12,052 13,230 _______________________________________________________Shareholders' Funds - all Equity 17,002 14,060 15,263 ======================================================= Consolidated Cash flow StatementFor the half year ended 31 December 2004 Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 Note (Unaudited) (Unaudited) (Audited)Net Cash Inflows / ( Outflows) from Operating Activities 4 2,115 (1,517) 183 Returns on Investments andServicing of Finance 5 28 41 71 Taxation 6 - (174) (396) Capital Expenditure and Financial Investment 7 (130) (146) (204) Acquisitions, net of cash acquired - (113) (433)Equity Dividends paid (221) (146) (293) ________________________________________________________Cash inflow /(outflow) before Financing 1,792 (2,055) (1,072) ________________________________________________________ Financing (46) (95) 14 _______________________________________________________Increase/(Decrease) in Cash 1,746 (2,150) (1,058) _______________________________________________________ Reconciliation of Net Cash Flow toMovement in Net FundsIncrease / (Decrease)in cash in the period 8 1,746 (2,150) (1,058) Cash outflow from decrease in debt andlease financing 8 46 98 14 ________________________________________________________Movement in Net Funds in the Period 1,792 (2,052) (1,044) ________________________________________________________ Net Funds, beginning of period 5,329 6,373 6,373 ________________________________________________________Net Funds, end of period 9 7,121 4,321 5,329 ________________________________________________________ 1. Basis of Preparation This interim report has been prepared on the basis of the accounting policies set out in the Annual Report for the year ended 30 June 2004. The figures for the half year ended 31 December 2004 are unaudited. The comparative figures for the half year ended 31 December 2003 are also unaudited. The amounts for the year ended 30 June 2004 represent an abbreviated version of the Group's full financial statements for the year on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies. 2. Dividends Paid & Proposed Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 Ordinary Dividends: Interim dividend proposed 295 147 - Final dividend proposed - - 221 Interim dividend proposed and paid - - 147 _______________________________________________________ 295 147 368 ======================================================= 3. Earnings Per Ordinary Share The earnings per ordinary share is calculated on the basis that the weighted average number of shares in issue for the period ended 31 December 2004 is 36,784,825 (period ended 31 December 2003 - 36,521,825; year ended 30 June 2004 - 36,602,994). It has been calculated based on the profit on ordinary activities after taxation for the period ended 31 December 2004 of €2,034,000 (period ended 31 December 2003 - €781,000; year ended 30 June 2004 - €2,180,000). 4. Reconciliation of Operating Profit to Net Operating Cash Flows Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 (Unaudited) (Unaudited) (Audited) Operating profit 2,365 900 2,493 Depreciation 121 142 242 Amortisation of Goodwill 180 159 325 Increase in debtors (1,297) (3,258) (3,442) Increase in creditors 746 540 565 _______________________________________________________ Net Cash Inflows from Operating Activities 2,115 (1,517) 183 ======================================================= 5. Returns on investments and servicing of finance Interest paid (5) (2) (11) Interest element of finance lease payments (1) Interest received 33 42 83 Net cash inflow from returns on _______________________________________________________ Investments and servicing of finance 28 41 712 ======================================================= 6. Taxation _______________________________________________________ Corporation tax paid (174) (396) ======================================================= 7. Capital expenditure and financial investment _______________________________________________________ Payments to acquire tangible fixed assets (130) (146) (204) ======================================================= 8. Financing Loan repayments (46) (97) (13) Finance lease payments - (1) (1) _______________________________________________________ (46) (98) (14) Issue of ordinary share capital - 3 28 _______________________________________________________ Net cash (outflow) from financing (46) (95) 14 ======================================================= 9. Analysis of Net Funds Cash at bank Bank Bank Net and in hand Overdraft Loan funds •'000 •'000 •'000 •'000 At 30 June, 2004 6,689 (938) (422) 5,329 Cash flow 808 938 46 1,792 _______________________________________________________ At 31 December, 2004 7,497 - (376) 7,121 ======================================================= 10. Reconciliation of Movement on Shareholders' Funds Half Year ended Half Year ended Year ended 31 December 2004 31 December 2003 30 June 2004 •'000 •'000 •'000 (Unaudited) (Unaudited) (Audited) Opening Shareholders' Funds 15,263 13,423 13,423 Share Issued 0 3 28 Profit for the Financial period 2,034 781 2,180 Dividends paid and proposed (295) (147) (368) _______________________________________________________ Closing Shareholders' Funds 17,002 14,060 15,263 ======================================================= 26 January, 2005 This announcement has been issued through the Companies Announcement Service ofthe Irish Stock Exchange. 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