Company name CPL Resources PLC
Headline Half Yearly Report


RNS Number : 8372Y
CPL Resources PLC
30 January 2014
 

Cpl Resources plc

Results for the Half Year Ended 31 December 2013

Cpl Resources plc ('Cpl', the 'Group' or the 'Company'), Ireland's leading employment services group, today announced results for the half year ended 31st December 2013.

Chairman's statement

I am pleased to report that in the six months to 31 December 2013 the Group delivered a strong operating performance, with improved revenues, gross profits and earnings per share.

 

Highlights

 

§ Strong operating performance

 

§ 14% increase in revenue to €184.3 million

 

§ 18% increase in operating profit to €6.9 million

 

§ 17% increase in profit before tax to €7.0 million

 

§ 17% increase in earnings per share to 19.8 cent

 

§ 19% increase in interim dividend per share to 4.75 cent

 

Half Year Highlights

Half Year Ended

Half Year Ended

% change


31-Dec-13

31-Dec-12



€ 000's

€ 000's


Revenue

184,327

161,671

14%

Gross profit

27,002

23,713

14%

Operating profit

6,855

5,811

18%

Profit before tax

6,956

5,954

17%

Earnings per share

19.8 cent

16.9 cent

17%

Dividend per share

                    4.75 cent

             4.0 cent

19% 

Conversion Ratio*




Operating profit

25.4%

24.5%


Profit before tax

25.8%

25.1%






Permanent gross profit

10,043

7,521

34%

Temporary gross profit

16,959

16,192

5%





Permanent gross profit  as % of the total gross profit

32%


Temporary gross profit as % of the total gross profit

63%

68%


 

* as % of gross profit.



 

 

During the six months to 31 December 2013 the Group continued the delivery of strong growth across the business, resulting in record revenues of €184.3 million for the half year. The Group's operating profit of €6.9 million for the six months to 31 December 2013 is 18% higher than the same period last year. Profit before tax increased by €1.0 million to €7.0 million. Earnings per share of 19.8 cent for the six months to 31 December 2013, represents a 17% increase when compared to 16.9 cent for the half year to 31 December 2012. 

 

We have continued our policy of controlling costs tightly and improving productivity across the Group in order to maximise profitability. This has delivered an improvement in the Group's conversion ratio of gross profit to operating profit to 25.4% up from 24.5% in the same period last year.

 

We continue to experience a degree of positive momentum in our principal markets, although significant economic challenges remain in many of those markets. There is a general oversupply of people available for work, but at the same time there is a shortage of specific skills that are in demand. The Cpl team has continued to work closely with our clients to understand their specific requirements, and with our candidates in order to match their skills to those client requirements.  As a result our gross profit generated from permanent placements in the six months to December 2013 was €10.0 million, an increase of 34%. I am particularly pleased to report strong growth in our international business, reflected by the fact that 40% of our permanent fees were generated outside of Ireland in the six months to 31 December 2013 

 

We continue to see many companies opting for temporary employment offering that enables them to recruit personnel based on the variable demands of their businesses.  In the six months to 31 December 2013 the Group has continued to develop our competence in the provision of fully outsourced services, which require specific technical skills and multiple European languages. Revenue generated from temporary assignments was €174.2 million, representing 13% growth over same period last year. The corresponding gross profit was €17.0 million, 5% higher than the six months to 31 December 2012. 9% of temporary gross profit was generated outside of Ireland.

 

Margin pressure continues across the temporary staffing market and this market segment remains highly competitive. We are very pleased to have increased the average number of people placed with our clients to in excess of 9,150 for the period ended 31 December 2013.

 

We continue to enjoy the benefits of having highly talented and energetic people within the Group.  On behalf of the Board I wish to express my gratitude for the continuing hard work and dedication of our people and for their commitment to our core values - customer focus, accountability, respect, effective communication and empowerment.

 

Cash

 

The Group has a cash balance of €22.1 million as at 31 December 2013. In the six months to 31 December 2013 €7.1 million was generated in cash flow from operating activities before changes in working capital and provisions. Strong organic growth in our temporary business requires significant investments in working capital, and this has given rise to a net cash outflow from operations of €3.2 million in the period.

 

Dividend

 

The Board has decided that the Company will pay an interim dividend of 4.75 cent per share, an increase of 19% on the corresponding period last year.  The dividend will be payable on 7th March 2014 to shareholders on the company's register at the close of business on the record date of 7th February 2014. The Group has a progressive dividend policy which reflects underlying earnings growth and the continued strength of the Group's balance sheet.

 

Outlook

 

Recent months have seen some indicators in our principal markets move tentatively into positive territory.  We see opportunities for growth but we still face challenges in many markets arising from economic uncertainty and competitive pressures. Our strong financial position provides use with the resources to capitalise on growth opportunities as they arise. We expect further profitable growth in the second half of our financial year.

 

John Hennessy

Chairman                                                                                                                                              

30 January 2014



 

 

Condensed Group Statement of Comprehensive Income

for the period ended 31 December 2013






Half Year ended

Half Year ended

Year ended


31 Dec 2013

31 Dec 2012

30 Jun 2013


€'000

€'000

€'000


(Unaudited)

(Unaudited)

Audited









Revenue

184,327

161,671

330,758

 

Cost of sales

(157,325)

(137,958)

(281,915)





Gross profit

27,002

23,713

48,843

 

Distribution expenses

(1,650)

(1,399)

(2,930)

Administrative expenses

(18,497)

(16,503)

(34,193)





Operating profit

6,855

5,811

11,720

Financial income

107

145

573

Financial expenses

(6)

(2)

(9)

 

 

Profit before tax

6,956

5,954

12,284

Income tax expense

(904)

(773)

(1,591)

 

Profit for the financial period / year - all attributable to equity shareholders

 

6,052

 

5,181

10,693

 

Other Comprehensive Income

Foreign currency translation differences - foreign operations

(70)

(11)

(67)

 

Total comprehensive income for the period / year all attributable to equity shareholders

 

5,982

 

5,170

10,626





 

 

Basic earnings per share

19.8 cent

16.9 cent

35.0 cent

 

Diluted earnings per share

19.8 cent

16.9 cent

35.0 cent

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Group Statement of Changes in Equity

for the period ended 31 December 2013

   

 

 




Capital

Capital









redemption

conversion


Currency




Share

Share

reserve

reserve

Merger

translation

Retained

Total


Capital

Premium

fund

fund

reserve

reserve

earnings

equity


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000



















Balance at 1 July 2012

3,053

1,705

667

57

(3,357)

77

52,722

54,924

 

Total comprehensive









 income for the period









Profit for the financial period

-

-

-

-

-

-

5,181

5,181

Foreign currency translation

-

-

-

-

-

(11)

-

(11)










Total Comprehensive income for the period

-

-

-

-

-

(11)

5,181

5,170










Transactions with owners









Dividends paid

-

-

 -

-

-

-

(1,069)

(1,069)


         

         


         

         


          

          

Balance at 31 December 2012

3,053

1,705

 667

57

(3,357)

66

56,834

59,025










Balance at 1 July 2013

3,053

1,705

667

57

(3,357)

10

61,124

 

63,259

 

Total comprehensive income for the period









 

Profit for the financial period

-

-

-

-

-

-

6,052

6,052

Foreign currency translation

-

-

-

-

-

(70)

-

(70)










Total Comprehensive income for the period

-

-

-

-

-

(70)

6,052

5,982










Transactions with owners

Dividends paid

-

-

 -

-

-

-

(1,375)

(1,375)


         

         


         

         


          

          

Balance at 31 December 2013

3,053

1,705

667

57

(3,357)

(60)

65,801

67,866











































































 

Condensed Group Balance Sheet




at 31 December 2013





31 Dec 2013

31 Dec 2012

30 Jun 2013


 

 

€'000

€'000

€'000


(Unaudited)

(Unaudited)

(Audited)


Assets





Non-current assets





Property, plant and equipment

1,268

1,250

1,168


Goodwill and intangible assets

11,679

12,880

11,701


Deferred tax asset

507

483

457


 

Total non-current assets

13,454

14,613

13,326







Current assets





Trade and other receivables

71,335

58,034

61,920


Cash and cash equivalents

22,097

22,416

27,931


Short-term bank deposits

-

4,176

-


Current tax recoverable

702

727

756


 

Total current assets

94,134

85,353

90,607


 

Total assets

107,588

99,966

103,933







Equity





Issued share capital

3,053

3,053

3,053


Share premium

1,705

1,705

1,705


Other reserves

(2,693)

(2,567)

(2,623)


Retained earnings

65,801

56,834

61,124


 

Total equity

67,866

59,025

63,259


 

Liabilities





Non-current liabilities





Financial liabilities

-

8

-


Provisions

-

1,740

-


 

Total non-current liabilities

-

1,748

-


 

Current liabilities





Financial liabilities

-

5

-


Bank overdraft

-

17

-


Trade and other payables

39,648

38,633

40,524


Current tax payable

-

256

-


Provisions

74

282

150


 

Total current liabilities

39,722

39,193

40,674


 

Total liabilities

39,722

40,941

40,674


 

Total equity and liabilities

107,588

99,966

103,933


 

 

 

 

 

 

 

 

 

Condensed Group Cash Flow statement


for the period ended 31 December 2013









 


Half year ended

31 Dec 2013

Half year ended

31 Dec 2012

Year ended

30 Jun 2013


€'000

€'000

€'000


(Unaudited)

(Unaudited)

(Audited)

Cash flows from operating activities




Profit for the financial period / year

6,052

5,181

10,693

Adjustments for:




Depreciation on property, plant and equipment

245

165

327

Amortisation of intangible assets

40

59

124

Financial income

(107)

(145)

(573)

Financial expense

6

2

9

Income tax expense

904

773

1,591

Loss on sale of subsidiary

-

-

167





Operating cashflows before changes in working




capital

7,140

6,035

12,338

(Increase) in trade and




other receivables

(9,471)

(6,547)

(10,748)

(Decrease)/Increase in trade and other payables

 and provisions

(876)

1,452

3,702





Net Cash generated from operations

(3,207)

940

5,292

 

Interest paid

(6)

(2)

(9)

Income tax paid

(900)

(517)

(2,086)

Interest received

                   92

                   130

329

Net cash (outflow)/inflow from operating activities

(4,021)

551

3,526





Cash flows from investing activities




Deferred consideration paid

(76)

(548)

(799)

Disposal of business net of cash disposed of

-

-

25

Purchase of property, plant and equipment

(342)

(182)

(260)

Purchase of intangible assets

(20)

(187)

(267)

Transfer from short term deposits

-

-

4,176

Net cash (used in) / from investing activities

(438)

(917)

2,875





Cash flows from financing activities




(Decrease) in finance leases

-

(20)

(33)

Dividends paid

(1,375)

(1,069)

(2,291)

Net cash (used in) financing activities

(1,375)

(1,089)

(2,324)





Net (decrease)/increase in cash and cash equivalents

(5,834)

(1,455)

4,077

Cash and cash equivalents at beginning of

 period / year

27,931

23,854

23,854

Cash and cash equivalents end of period / year

22,097

22,399

27,931









 



 

Notes supporting condensed interim financial statements

 

1. Basis of preparation

 

The consolidated financial information of the Group has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS), including interpretations issued by the International Accounting Standards Board ("IASB") and its committees and adopted by the EU.

 

The figures for the half year ended 31 December 2013 are unaudited. The comparative figures for the half year ended 31 December 2012 are also unaudited. The amounts for the year ended 30 June 2013 represent an abbreviated version of the Group's full financial statements for the year on which the auditors issued an unqualified audit report. The financial statements for the year ended 30 June 2013 have been filed with the registrar of companies.

 

The preparation of financial information in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

 

 

2. Dividends to equity shareholders

 


Half Year ended

Half Year ended

Year ended


 31 Dec 2013

 31 Dec 2012

30 June 2013


€'000

€'000

€'000

Ordinary dividends:




Interim dividends paid

-

-

1,222

Final dividend paid

1,375

1,069

1,069


1,375

1,069

2,291

 

 

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 half year ended 31 December 2013 is 30,545,159 (period ended 31 December 2012 - 30,545,159; year ended 30 June 2013 - 30,545,159).  It has been calculated based on the profit for the financial period ended 31 December 2013 of €6,052,000 (period ended 31 December 2012 - €5,181,000; year ended 30 June 2013 - €10,693,000).

 


This information is provided by RNS
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