Company name CPL Resources PLC
Headline Final Results


RNS Number : 9112X
CPL Resources PLC
03 September 2015
 

3rd September 2015

Cpl Resources Plc

Results for the Full Year Ended 30 June 2015

 

Dublin, 3 September 2015: Cpl Resources Plc ('Cpl', the 'Group' or the 'Company'), Ireland's leading employment services group, today announced results for the year ended 30 June 2015.

 

Full Year Highlights

 

 -          Revenue increase to €393.6 million, up 6.6% on last year

 

-           Gross Profit increase to €58.7 million up 7.3% on last year

 

-           Profit Before Tax down 2.1% to €14.1 million

 

-           Basic earnings per share of 40.2 cent versus 40.7 cent

 

-           Total dividend per share of 9.75 cent (2014: 9.75 cent)

 

-           Acquisition of Clinical Professionals Limited - UK Pharmaceutical and Life Science Recruitment Company

 

John Hennessy, Chairman commented:

 

"I am pleased to report that the 12 months ended 30 June 2015 has been another year of growth for Cpl.  Economic indicators in our main markets are positive, and we have invested in strengthening our team and our systems to allow us to meet demand as these markets continue to recover and grow.

 

2015 marks the 25th anniversary of the establishment of CPL.  Over that period we have grown from small beginnings to become Ireland's leading provider of people and employment services to business, with significant operations overseas, and we expect to continue to achieve growth in our business in the years ahead."

 

Anne Heraty CEO added:

 

"Cpl grew revenue and gross profit by 7% to €393.6 million and €58.7 million. The employment market continues to improve with skills shortages in some key sectors. I am also delighted to announce the acquisition of Clinical Professionals Limited a UK leading Pharmaceutical and Life Science recruitment company. We look forward to working with the management, staff and their clients in the forthcoming years. 

 

For Further Information:

 

Anne Heraty, CEO, CPL Resources Plc: +353 1 614 6000

 

Mark Buckley, CFO, CPL Resources Plc: +353 1 614 6000

 

Ivan Murphy/ Daragh O'Reilly, Davy Corporate Finance: +353 1 679 6363



 

Cpl Resources Plc

 

Chairman's statement

 

The financial year ended 30 June 2015 has been another year of growth for CPL.   

 

Financial highlights of the Group's performance include:

 

·     Increase in revenue, up 7% to €393.6 million

·     Increase of €4.0 million in gross profit to €58.7m

·     Profit before tax of €14.1 million

·     Earnings per share of 40.2 cent  (2014: 40.7 cent)

·     Total dividend per share of 9.75 cent  (2014: 9.75 cent)

 

Full Year Highlights

 

Highlights

2015

2014

%


€ 000

€ 000

change 

Revenue

393,648

369,273

7%

Gross profit

58,667

54,672

7%

Operating profit

13,957

14,217

(2%)

Profit before tax

14,082

14,384

(2%)

Earnings per share

40.2 cent

40.7 cent

(1%)

Dividend per share

9.75 cent

9.75 cent

0%





Conversion ratios**




Operating profit

23.8%

26.0%


Profit before tax

24.0%

26.3%






Net cash

30,475

30,518





 

The Group's results for the year to 30 June 2015 reflect growth across most of the business sectors and locations in which we operate.  We have taken the opportunity presented by this growth to invest in strengthening our team and our systems.  Although this investment has reduced our profits for the year we are well positioned to respond to further recovery and growth in our principal markets and sectors.

 

Economic indicators, including employment trends, are broadly positive in our principal markets.  However, we are mindful that we operate in a very competitive industry and that continued growth in our main markets remains sensitive to events affecting the wider European and global economies.

 

During the year demand for people in both permanent and temporary roles grew across most sectors. Our fees from permanent placements grew by 16% year on year.  In our temporary business we succeeded in reducing downward pressure on margins while delivering growth in both revenues and gross profit.  

 

We maintain a focus on the management of costs in our business, with operating profit ratio of 24% in the financial year. The Group continues to have a strong balance sheet, with net assets in excess of €81 million at 30 June 2015 up from €72 million in the prior year.  We ended the year with net cash of more than €30 million at the year end, despite the continued working capital investment needed to fund the growth in our temporary business.

 

 

People

 

2015 marks the 25th anniversary of the establishment of CPL.  From very modest beginnings the Group has become Ireland's leading provider of people and employment services to businesses, and has expanded its operations internationally.  Since its inception as a small recruitment agency, the Group has grown by diversifying successfully into a wide variety of business sectors, product offerings and markets.  The period from 1990 to 2015 has been marked by a number of economic cycles, including very significant downturns.  We have weathered the storms, learned from them and emerged each time with a stronger and more resilient business than before.

 

During that period we have also made several important acquisitions that have contributed to our growth, and we announce another addition to the Group today.  We are pleased to announce the acquisition of Clinical Professionals Limited, a Pharmaceutical and Life Science recruitment company operating in the United Kingdom, and we look forward to working with the management and staff of that company to develop the business and increase our presence in the UK market.

 

Our record of success over 25 years has been achieved through the extraordinary and sustained commitment and dedication of our people, under the leadership of a highly talented group of executive directors and senior management.  I am most grateful to each and every one of the people who, through their ability and exceptional efforts, have contributed to our growth and success over 25 years.  I also wish to thank our clients for their support and their loyalty to our business.

 

 

Earnings per Share, Dividend & Dividend Policy

 

CPL has delivered earnings per share in the twelve months to June 2015 of 40.2 cent. In deciding how to use our free cash flow, the Board continues to prioritise the maintenance of a strong balance sheet, allowing us to be in a position to take advantage of opportunities to invest in further growth, both organically and through acquisition.  The Group also has a progressive dividend policy, which reflects underlying earnings growth and the continued strength of the Group's balance sheet.

 

The Board is recommending a final dividend of 5.0 cent per share. This will bring the total dividend for the year to 9.75 cent per share. The dividend, if approved by the shareholders, will be payable on 2 November 2015 to shareholders on the Company's register at the close of business on the record date of 9 October 2015.

 

Outlook

 

Our business is affected by several key variables, including employment and economic trends in our key markets.  Current indicators suggest that modest economic growth will continue in these markets, and we expect that these factors, together with the efforts of our people, will allow us to achieve further growth in our business during the financial year to 30 June 2016.

 

 

 

John Hennessy

Chairman                                                                                                         

2 September, 2015

 

Cpl Resources Plc

 

Chief Executive's review

 

This year Cpl celebrates our 25th year of finding the best talent for our clients and the best jobs for skilled people. Over the last 25 years the scale and pace at which we operate has changed significantly although the fundamental challenge for our clients is still the same - how to attract and retain top talent. Today we operate from 36 offices in nine countries finding the best talent for clients. A measure of our success is the increase in revenue and the repeat work we get from our valued clients. I am pleased to report that in the year to 30 June 2015 we increased our revenue by €24.4 million to €393.6 million, an increase of 7%, and gross profit by €4.0 million to €58.7 million, also an increase of 7%.  Our operating profit is €14.0 million, down from €14.2 million the previous year. In the first half of our financial year we made a number of investments, expanding the Hub in Krakow, new head office facilities and upgrading some of our systems. Our operating profit in the second six months is up 34%.

 

The Irish Labour market continued to improve during 2014. Employment increased by 33,000 (annual average) and the employment rate increased by 1.2% to 61.7% with 1.91 million people in employment. The increase in employment was broadly based with 11 out of 14 economic sectors recording gains. The largest increases were recorded in the construction and financial (including real estate) sectors which accounted for just over half of all jobs created.  Momentum has continued into 2015. The number of people employed grew by 1% quarter on quarter in Q2 2015, one of the fastest rates of growth since the start of the recovery. The unemployment rate has dropped to 9.5% in July 2015, its lowest level since December 2008. While this is encouraging, there is still a long way to go to reach full employment. We are now seeingMany of the skills shortages are in sectors where Cpl have a strong presence such as ICT, Healthcare, Pharmaceutical and Finance. Companies in these sectors are looking internationally for talent. In the first 9 months of 2014 approximately 4,100 new employment permits were issued in Ireland, an increase of 34% on 2013. The increase was mostly due to an increase in the number of permits issued to IT workers, but also due to the reintroduction of medical employment permits. The IT sector accounted for 43% of all new employment permits issued in 2014, with a further 25% issued to the healthcare sector.

 

In May 2014 Cpl opened a sourcing hub to locate people with hard to find skills for our clients. We have 13 recruiters employed in the hub and we are seeing positive results from their search efforts. The sourcing hub gives us a competitive advantage when designing solutions for clients who have difficulty accessing scarce skills or who need to hire teams rapidly.

 

 

Financial Highlights

 

The Group increased its revenue by 7% to €393.6 million in the year to 30 June 2015 (2014: €369.3 million). Gross profit increased by 7% to €58.7 million (2014: €54.7 million). The Group's gross margin was 14.9% (2014: 14.8%). Our operating profit is €14.0 million (2014: €14.2 million). Profit before tax is €14.1 million (2014: €14.4 million) and our earnings per share was 40.2 cent (2014: 40.7 cent).

 

Our operating expenses were €44.7 million, 11% higher than last year. The majority of our cost base, circa 73%, is staff related costs. As previously mentioned we invested in the first six months and our improvement in gross profit and operating profit in the second half of the year reflects this investment. Gross profit was up €2.2 million to €30.4 million in the second half and operating profit was up €2.0 million to €8.0 million including foreign exchange movements.

 

Our balance sheet is strong. At 30 June 2015 our net cash balance was €30.5 million, notwithstanding the investment in working capital required to grow our revenues by €24.4 million. Our largest asset is

our trade and other receivables which grew to €81.8 million in the year to 30 June 2015 from €70.0 million in the year to 30 June 2014. Our track record for debtor collections over the years has been consistently good with minimal bad debts.  This is as a result of our blue-chip client base as well as the diligent monitoring of outstanding debtor balances.

 

We paid our shareholders an interim dividend of 4.75 cent per share. The Board is recommending a final dividend of 5.0 cent per share for the year to 30 June 2015. The total dividend per share for the year is 9.75 cent.

 

Key Performance Indicators

2015

2014

Gross margin

14.9%

14.8%

Operating margin

3.6%

3.8%

Conversion Ratio



       Operating Profit

23.8%

26.0%

       Profit before tax

24.0%

26.3%




Permanent fees as % of the total gross profit

40.8%

37.9%

Temporary fees as % of the total gross profit

59.1%

62.1%

Contractor and temporary staff headcount at the year end

9,729

9,572    

Number of recruiters at the year end

   399

   397

 

Our gross margin was 14.9% in the year to 30 June 2015. We are starting to see margin pressure in our temporary business level off. We remain focused on restructuring how we deliver to these customers in order to drive efficiency and maximise returns. Permanent fees increased by 15.8% to €24.0 million. Gross profit from permanent placement accounts for 40.8% of the total gross profit.

 

Our conversion rate of gross profit to operating profit is one of our key performance metrics in the Group and was 23.8% in 2015.

 

 

Operations Review

 

Cpl is a leader in the provision of specialist recruitment and outsourcing services. Our capability spans the entire employment lifecycle and includes permanent, temporary and contract recruitment, workforce management, training and outplacement. We have a broad and diverse range of customers from market-leading multinationals to small and medium enterprises.

 

Our recruitment business operates through distinct specialist brands in a wide range of sectors including technology, accounting and finance, healthcare, pharmaceutical, sales, engineering, light industrial and office administration.

 

Our managed services and outsourcing business assumes accountability for selected business process on behalf of clients. Cpl brings value to our clients by creating measurable improvements and cost savings in areas that are viewed as non-core to our clients. Our main service offerings are: Contact Centre Outsourcing, Recruitment Process Outsourcing (RPO) and HR Consulting Services (which includes outplacement).

 

 

Permanent Placement

 

Our permanent placement business had a successful year to 30 June 2015. Permanent fee revenue increased by 15.8% to €24.0 million (2014: €20.7 million). Leading contributors to growth were our international businesses, particularly our healthcare business.

 

Our permanent placement business in Ireland performed well against a positive backdrop in job creation in both indigenous companies and foreign owned companies. The IDA had a record year in 2014 with one of the highest net levels of job creation in a decade. Circa 15,000 new jobs were created with IDA client companies. When job losses were taken into account the net increase in employment was 7,131. The indigenous sector also recorded a strong performance in 2014.

 

Jobs data for 2015 suggest continuous improvement in employment growth particularly in full-time jobs. Cpl are continuing to selectively add to our teams in certain sectors to support growth in permanent placement fees.

 

 

Temporary Staffing

 

Cpl provides temporary and contract staff to large number of clients at any one time. We finished the year with 9,729 people working on behalf of Cpl on client projects, an increase of 157 on the previous year.

 

Revenues generated from temporary assignments in the year to 30 June 2015 were €369.3 million (2014: €348.5 million) representing 6.0% growth. We generated €34.7 million gross profit, 2.1% higher than the year to June 2014. In prior years, margin erosion has been a challenge in our temporary business, but seems to be stabilising in this year. 

 

Historically, temporary and flexible staffing has been utilised more for lesser skilled roles. In Cpl, we are seeing greater demand for flexibility in professional specialist roles, for example in the Technology, Pharmaceutical, Financial Services and Healthcare industries. This demand is driven both by the highly skilled individual who wants choice and flexibility and by o

 

 

Overseas Business

 

Our international divisions, particularly healthcare, had a strong performance in the year to 30 June 2015.  Demand for doctors, nurses and allied health professionals remains high. Our business in Central and Eastern Europe also had some significant client wins. 26.5% of our permanent fees now come from outside Ireland and we have 36 offices in nine countries.

 

Strategy

 

During the year we conducted a review of the Group's strategy. The review confirmed that Cpl's strategic goals are appropriate to meeting current and future market opportunities.

 

Our primary goal is to build a profitable cash generative business with good predictability of earnings.  We will do this by continuing to extend our leading position in specialist recruitment and by building a balanced business mix therefore avoiding overdependence on any one service, sector or geography. We will focus mainly on organic expansion, while using selective acquisitions to build platforms in new sectors or markets with good long term potential.  Cpl's acquisition of Clinical Professionals Limited is a good example of an acquisition which gives us a platform for growth in the UK.

 

 

Acquisitions

 

On 2 September 2015 Cpl acquired Clinical Professionals Limited a leading UK based Pharmaceutical and Life Science Recruitment Company. Cpl acquired 89.8% of the business and 63.5% (€5.1 million) of the potential total consideration payable was paid at completion. The balance is contingent on certain earn out targets being achieved. Clinical Professionals' clients include global leaders in pharmaceutical development and clinical research, whilst their expertise encompasses a wide remit of life science job sectors, including dedicated teams within clinical research, drug safety and pharmacovigilance, medical communications, QA/QC, regulatory affairs and medical affairs.  The Pharmaceutical and Life Science sectors are an important growth opportunity for Cpl. This acquisition complements our existing successful Pharmaceutical Recruitment business in Ireland and gives us a platform for growth in the UK. The company has offices in both Reading and London.

 

 

People

 

It is undoubtedly talented people who drive businesses. I would like to thank our talented and dedicated employees for their commitment to delivering for our candidates and clients. I am delighted to welcome those people who joined Cpl during the year. I also want to thank our loyal customers for their partnership and support during the year.

 

 

Outlook

 

We have a strong business model with an excellent client base and highly skilled employees as well as a history of financial and operational success. Our priorities for 2016 will be to stay focused on growing our net fee income and profit before tax while expanding our footprint in the UK and internationally.

 

Economic data indicates that the Irish economy is growing at a rate of approximately 5%. Employment growth was strong in the past year although we are seeing skills shortages in certain sectors. We believe we have the opportunity to grow further in Ireland as demand for skilled talent intensifies. Our performance in Cpl improved in the second half of the year to 30 June 2015 and while we have limited visibility particularly in our permanent placement business we believe our recent investments position us well for the future.

 

 

 

Anne Heraty

Chief Executive Officer

2 September, 2015

 

 



 

Cpl Resources Plc

 

Group Statement of Comprehensive Income

for the year ended 30 June 2015

 

           


2015

2014



€'000

€'000





Revenue


393,648

369,273

Cost of sales


(334,981)

(314,601)



_________

_________





Gross profit


58,667

54,672

Distribution expenses


(3,726)

(3,423)

Administrative expenses


(40,984)

(37,032)



_________

_________





Operating profit


13,957

14,217

Financial income


125

170

Financial expenses


-

(3)



_________  

_________ 





Profit before tax


14,082

14,384

Income tax expense


(1,797)

(1,937)



________ 

_________





Profit for the financial year- all attributable to equity




Shareholders


12,285

12,447



_________

_________

 

 

Profit attributable to:




Owners of the Parent

Non - controlling interests


12,374

(89)

12,447

-



_________

_________



 

12,285

                

 

 

12,447

                

 

Other comprehensive income

Foreign currency translation differences - foreign operations

 

 

Total comprehensive income for the year - all


 

 

(304)

                

 

 

(101)

                

attributable to equity shareholders


11,981

12,346



_________

_________





Basic earnings per share


40.2 cent

40.7 cent





Diluted earnings per share


40.2 cent

40.7 cent


Cpl Resources Plc

Group Statement of Changes in Equity

for the year ended 30 June 2015




Other

Capital











undenominated

conversion


Currency

Share based



Nom -

Total


Share

Share

capital

reserve

Merger

translation

payment

Retained


Controlling

Shareholders


capital

premium

fund

fund

reserve

reserve

reserve

earnings

Total

interests

Equity


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

     €'000

'000

€'000













Balance at 30 June 2013

3,053

1,705

667

57

(3,357)

10

-

61,124

63,259

-

63,259

Total comprehensive income for the year












Profit for the financial year

-

-

-

-

-

-

-

12,447

12,447

-

12,447













Foreign currency translation effects

-

-

-

-

-

(101)

-

-

(101)

-

(101)













Share based payment charge

-

-

-

-

-

-

54

-

54

-

54













Transactions with Shareholders












Dividends paid

-

-

 -

 -

 -

 -

-

(2,826)

(2,826)

-

(2,291)













Balance at 30 June 2014

3,053

1,705

667

57

(3,357)

(91)

54

70,745

72,833

-

72,833













Balance at 1 July 2014

3,053

1,705

667

57

(3,357)

(91)

54

70,745

72,833

-

72,833

Total comprehensive income for the year












Profit for the financial year

-

-

-

-

-

-

-

12,374

12,374

(89)

12,285













Foreign currency translation effects

-

-

-

-

-

(304)

-

-

(304)

-

(304)













Share based payment charge

-

-

-

-

-

-

123

-

123

-

123













Transactions with Shareholders












Dividends paid

-

-

-

-

-

-

-

(2,978)

(2,978)

-

(2,978)



          

         

         

         



          




Balance at 30 June 2015

3,053

1,705

667

57

(3,357)

(395)

177

80,141

82,048

(89)

81,959

 

Cpl Resources Plc

Company Statement of Changes in Equity

for the year ended 30 June 2015

                                                                

                                                                                                                   




Capital

Capital







redemption

conversion

Share Based




Share

Share

reserve

reserve

Payment

Retained

Total


capital

premium

fund

fund

Reserve

earnings

equity


€'000

€'000

€'000

€'000

€'000

€'000

€'000









Balance at 1 July 2013

3,053

1,705

667

57

-

4,187

9,669

Total comprehensive income








for the year








Profit for the financial year

-

-

-

-

-

2,142

2,142

Share based payment charge

-

-

-

-

54

-

54

Transactions with shareholders








Dividends paid

-

-

-

-

-

(2,826)

(2,826)









Balance at 30 June 2014

3,053

1,705

       667

57

54

3,503

9,039









Balance at 1 July 2014

3,053

1,705

       667

57

54

3,503

9,039

Total comprehensive income








for the year








Profit for the financial year

-

-

-

-

-

1,217

1,217

Share based payment charge

          -

-

-

-

123

-

123

Transactions with shareholders








Dividends paid

-

-

-

-

-

(2,978)

(2,978)









Balance at 30 June 2015

3,053

1,705

667

57

177

1,742

7,401


Cpl Resources Plc

 

Group and Company Balance Sheets

as at 30 June 2015



Group

Company



2015

2014

2015

2014

Assets


€'000

€'000

€'000

€'000

Non-current assets






Property, plant and equipment


1,835

1,320

1,833

261

Goodwill and intangible assets


12,661

11,984

1,259

487

Investments in subsidiaries


-

-

13,870

13,592

Deferred tax asset


439

386

28

31



           

           

          

          







Total non-current assets


14,935

13,690

16,990

14,371



          

          

          

          

Current assets






Trade and other receivables


81,831

69,978

107,881

80,609

Current tax recoverable


451

-

-

4

Cash and cash equivalents


30,475

30,518

19,303

19,964



          

          

          

          







Total current assets


112,757

100,496

127,184

100,577



          

          

          

          







Total assets


127,692

114,186

144,174

114,948



           

           

           

           







Equity






Issued share capital


3,053

3,053

3,053

3,053

Share premium


1,705

1,705

1,705

1,705

Other reserves


(2,851)

(2,670)

901

778

Retained earnings


80,141

70,745

1,742

3,503



           

           

           

           



82,048

72,833

7,401

9,039

Non-controlling interest


(89)

-

-

-

 

 


           

           

           

           

Total equity


81,959

72,833

7,401

9,039



           

           

           

          

                                                                 

 


Cpl Resources Plc

 

Group and Company Balance Sheets (continued)

as at 30 June 2015

 

                                                                 



Group

Company



2015

2014

2015

2014



€'000

€'000

€'000

€'000

Current liabilities






Trade and other payables


45,733

40,892

136,773

105,834

Current tax payable


-

386

-

-

Provisions


-

75

-

75



           

           

           

           







Total current liabilities


45,733

41,353

136,773

105,909



           

           

           

           







Total liabilities


45,733

41,353

136,773

105,909



           

           

           

           







Total equity and liabilities


127,692

114,186

144,174

114,948



           

           

           

             

 

 

 

 

 

 

 

 

Cpl Resources Plc

 

Group and Company Cash Flow Statements

for the year ended 30 June 2015

 

           


Group

Company



2015

2014

2015

2014



€'000

€'000

€'000

€'000

Cash flows from operating activities






Profit for the financial year


12,285

12,447

1,217

2,142

Adjustments for:






Depreciation on property, plant and






equipment


425

415

413

74

Share based payment charge


123

54

-

-

Amortisation of intangible assets


165

81

165

62

Financial income


(125)

(170)

(127)

(187)

Financial expense


-

3

-

-

Income tax expense


1,797

1,937

13

2

Loss on sale of subsidiary


-

-

-

-



           

           

           

           

Operating cashflows before changes in






working capital


14,670

14,767

1,681

2,093







(Increase) in trade and other receivables


(12,199)

(8,097)

(27,323)

(21,439)

Increase in trade and other






payables


4,073

368

29,784

21,303



           

           

           

           







Cash generated from operations


6,544

7,038

4,142

1,957







Interest (paid)


-

(3)

-

-

Income tax (paid)


(1,919)

(724)

 (6)

 (2)

Interest received


176

108

     178

     125



           

           

            

            







Net cash from operating activities


4,801

6,419

4,314

2,080



           

           

            

            

Cash flows from investing activities






(Increase) in investments


-

-

(155)

-

Deferred consideration paid


(75)

(75)

(75)

(75)

Purchase of property, plant and






equipment


(949)

(567)

(925)

(108)

Purchase of intangible assets


(842)

(364)

(842)

(347)



           

           

            

            







Net cash (outflow) from investing activities


(1,866)

(1,006)

(1,997)

(530)



            

            

            

            

 

 

 



 

Cpl Resources Plc

 

Group and Company Cash Flow Statements (continued)

for the year ended 30 June 2015

 



Group

Company



2015

2014

2015

2014



€'000

€'000

€'000

€'000







Cash flows used in financing activities






Dividends paid


(2,978)

(2,826)

(2,978)

(2,826)



________

________

_______

________







Net cash (used in) financing activities


(2,978)

(2,826)

(2,978)

(2,826)



________

________

________

________







Net (decrease)/increase in cash and cash






Equivalents


(43)

2,587

(661)

(1,276)

Cash and cash equivalents at beginning






of year


30,518

27,931

19,964

21,240



________

________

________

________

Cash and cash equivalents at






end of year


30,475

30,518

19,303

19,964



            

            

            

            

 

 

 



 

Cpl Resources Plc

 

Notes 

 

1       Financial income and expenses                                                                                   


2015

2014


€'000

€'000




Interest (income) on cash deposits

(125)

(170)

 

 

Interest expense

        

        

Interest payable

-

3


        

        




 

2       Income tax expense                                                                             

           

2015

2014


€'000

€'000

Recognised in the income statement:






Current tax expense



Current year

1,858

1,843

Adjustments in relation to prior years

(24)

23


_____

_____

Current tax expense

1,834

1,866




Deferred tax



Origination and reversal of temporary differences

(37)

71


_____   

_____   

Total tax in the income statement

1,797

1,937


 _____        

 _____        




 

 



 

Cpl Resources Plc

 

Notes (continued)

 

Reconciliation of effective tax rate

 

2015

 

2014


€'000

€'000




Profit before tax

14,082

14,384


 _____ 

 _____




Tax based on Irish corporation tax rate of 12.5%

1,760

1,798




Non-deductible items

46

25







Differences in effective tax rates on overseas earnings

8

5

Effect of change in UK tax rate

-

21

Under / (Over) provision in prior years

(24)

23

Other

7

65


 _____

 _____




Total tax in income statement

1,797

1,937


 __     

 __      

                                                                                                              

3       Dividends to equity shareholders

 

         Interim dividends to equity shareholders in Cpl Resources Plc are recognised when the interim dividend is paid by the Company. The final dividend in respect of each financial year is recognised when the dividend has been approved by the Company's shareholders. During the financial year, the following dividends were recognised:           


2015

2014


€'000

€'000

Final dividend paid in respect of previous financial year



of 5.0 cent (2014: 4.5 cent) per ordinary share

1,527

1,375

Interim dividend paid in respect of current financial year



of 4.75 cent (2014: 4.75 cent) per ordinary share

1,451

1,451


          

          





2,978

2,826


         

         

 

The directors have proposed a final dividend in respect of the 2015 financial year of 5.0 cent per ordinary share. This dividend has not been provided for in the Company or Group balance sheet as there was no present obligation to pay the dividend at the year end. The final dividend is subject to approval by the Company's shareholders at the Annual General Meeting.

  

 

Cpl Resources Plc

 

Notes (continued)

 

4       Earnings per share


2015

2014


€'000

€'000

Numerator for basic and diluted earnings per share:



Profit for the financial year attributable to equity



shareholders

12,285

12,447


                  

                   

Denominator for basic earnings per share:



Weighted average number of shares in issue



for the year

30,545,159

30,545,159


                   

                  




Denominator for diluted earnings per share:

30,545,159

     30,545,159


                  

                  




Basic and diluted earnings per share

    40.2 cent

       40.7 cent


                 

                  







 

5    Trade and other receivables                               


Group

Company


2015

2014

2015

2014


€'000

€'000

€'000

€'000






Trade receivables

61,898

53,317

-

-

Accrued income

17,721

15,158

-

-

Prepayments and other debtors

2,212

1,503

1,263

784

Amounts due from subsidiary





undertakings

-

-

106,618

79,393

VAT recoverable

-

-

-

432


              

              

            

            







81,831

69,978

107,881

80,609


              

            

            

             

 

         Amounts due from subsidiary undertakings are repayable on demand.

 

 

 

 

Cpl Resources Plc

 

Notes (continued)

 

6       Net funds                                                                      


Group

Company


2015

2014

2015

2014


€'000

€'000

€'000

€'000






Cash and cash equivalents

30,475

30,518

19,303

19,964


            

            

            

            






Cash and cash equivalents in





the cash flow statement

30,475

30,518

19,303

19,964







            

            

            

            






Net funds

30,475

30,518

19,303

19,964


            

            

            

            

 

 

7        Share capital, share premium, and other reserves                                                     


2015

2014


€'000

€'000

Authorised



50,000,000 ordinary shares at €0.10 each

5,000

5,000


           

           








€'000

€'000




Allotted, called up and fully paid



30,545,159 ordinary shares at € 0.10 each

3,053

3,053


           

           

                                                                                                                       

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

         Share premium at 30 June 2015 amounted to €1,705,000 (2014: €1,705,000).

 

Other reserves comprise an other undenominated capital fund of €666,666 (2014 : €666,666), a capital conversion reserve of €57,000 (2014 : €57,000), a merger reserve of €3,357,000 negative (2014 : €3,357,000 negative) a currency translation reserve of €395,000 negative (2014 : €91,000 negative) and a share based payment reserve of €177,000 (2014 : €54,000). The merger reserve arose in 1998 when the Company acquired by way of a share for share exchange the share capital of two group companies formerly under common ownership, management, and control. The translation reserve movement comprises all foreign exchange differences from 1 July 2014 arising from the translation of the net assets of the Group's non-euro denominated operations including the translation of the results of such operations from the average exchange rate for the year to the exchange rate at the balance sheet date.

 



 

Cpl Resources Plc

 

Notes (continued)

 

8       Trade and other payables

 

         Amounts falling due in less than one year:

 


Group

Company


2015

2014

2015

2014


€'000

€'000

€'000

€'000






Trade creditors

2,576

1,817

2,073

1,571

Accruals

Deferred income

27,738

349

23,592

389

1,327

-

825

-

VAT

9,174

8,004

8,024

-

PAYE/PRSI

5,896

7,090

-

-

Amounts due to subsidiary





undertakings

-

-

125,349

103,438


            

            

             

             







45,733

40,892

136,773

105,834


             

             

             

             

 

Amounts due to subsidiary undertakings are repayable on demand.

 

9       Basis of preparation

 

         The financial information included in this preliminary result statement has been extracted from the Group's financial statements for the year ended 30 June 2015 and is prepared based on accounting policies set out therein. As permitted by EU law and in accordance with AIM / ESM rules, the Group financial statements have been prepared in accordance with International Financial Reporting Standards and their interpretations issued by the International Accounting Standards Board as adopted by the EU. The Group Financial Statements will be filed with the Irish Registrar of Companies and circulated to shareholders in due course.

 

END

 


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