26th January 2017

Cpl Resources plc is pleased to announce increases in both revenue and gross profit for the six months ending December 2016. These results illustrate the Group's continued growth in a market that remains highly competitive but has seen continued organic growth across many key business sectors.



Half year highlights

  • 6% increase in revenues to €228.7 million
  • 6% increase in gross profit (net fee income) to €36.2 million
  • Profit before tax of €8.1 million, a 7% increase
  • Earnings per share increases 8.5% to 23.0 cent
  • 10% increase in interim dividend to 5.75 cent per share
During the six months ended 31 December 2016, Cpl experienced further improvements in trading conditions in certain market areas. Revenues for the six months to 31 December 2016 increased by 6% to €228.7 million. Gross profit increased by 6% against the same period last year to €36.2 million. The Group's adjusted operating profit, which excludes non-cash foreign exchange and LTIP charges, was €9.0 million for the six months to 31 December 2016, a 6% increase on the same period last year.  The Group delivered a 9% increase in earnings per share to 23.0 cent for the six months to 31 December 2016.  John Hennessey CEO Chairman said “I am pleased to report that in the six months to 31 December 2016 the Group delivered continued growth in revenues, net fee income and profits”. 
 
Cpl continues to work with clients to understand their specific requirements, and with candidates in order to match their skills to those client requirements. The proportion of net fee income that is made up of permanent fees has reduced from 40% to 37%, mainly as a result of longer lead times in appointing nursing staff in the UK following regulatory changes. The temporary staffing market remains highly competitive, but there has been some marginal improvement. Cpl continues to grow and develop the people within the Group who are fundamental to continued success.

The strength of the Balance Sheet reflects the positive cash-generating capability of Cpl. The Group has a cash balance of €35.2 million as at 31 December 2016 (December 2015: €27.6 million). The Board proposes to pay an interim dividend of 5.75 cent per share, an increase of 10% on last year, reflecting the Group’s strong performance in the period.

In the six month period to 31 December 2016, Cpl has seen continued organic growth across many key business sectors. Political and economic events globally during the period to 31 December 2016 have had limited impact on these key sectors, except for foreign exchange translations. During calendar year 2017, the outcome of these events will become clearer, and consequent opportunities and challenges will begin to present themselves. 

Anne Heraty CEO highlighted that “We remain confident in the outlook for the business and expect to deliver continued profitable growth for the remainder of the financial year".
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