Company name CPL Resources PLC
Headline Half Yearly Report


RNS Number : 2291N
CPL Resources PLC
28 January 2016
 

Cpl Resources Plc

Results for the six months ended 31 December 2015

 

CPL delivers Strong double-digit earnings growth in First Half of 2016

 

Cpl Resources Plc ('Cpl' or the 'Group'), Ireland's leading employment services group, today announced results for the half year ended 31 December 2015.

 

Chairman's Statement

I am pleased to report that in the six months to 31 December 2015 the Group delivered continued strong growth in revenues, net fee income and profits.

 

Highlights

 

·      12% increase in revenues to €216.4 million

 

·      20% increase in gross profit (net fee income) to €34.0 million

 

·      Adjusted operating profit* of €8.4 million, an increase of 39% over the same period last year

 

·      37% increase in adjusted profit before tax*, to €8.4 million

 

·      25% increase in profit before tax to €7.6 million

 

·      11% increase in interim dividend to 5.25 cent per share

Half year highlights

Half year ended

Half year ended

% change

 €000s except where indicated

31-Dec-15

31-Dec-14






Revenue

216,364

193,218

12%

Gross Profit

33,999

28,227

20%

Adjusted Operating profit*

8,415

6,044

39%

Adjusted Profit before tax*

8,421

6,125

37%





Operating profit

7,565

5,970

27%

Profit before tax

7,571

6,051

25%

Earnings per share

21.2 cent

17.2 cent

23%

Dividend per share

5.25 cent

4.75 cent

11%





Conversion ratio **




Adjusted Operating Profit

24.8%

21.4%


Adjusted Profit before tax

24.8%

21.7%


Operating Profit

22.3%

21.1%


Profit before tax

22.3%

21.4%






Net fee income - permanent placements

13,640

11,162

22%

Net fee income - temporary and contract

20,359

17,065

19%





Permanent net fee income as a %




of total gross profit

40%

40%


Temporary and contract net fee income as a %




of total gross profit

60%

60%


* Adjusted operating profit and adjusted profit before tax exclude non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP)

** As a % of gross profit.

 

Revenues for the six months to 31 December 2015, including four months' trading in Clinical Professionals, our recent UK acquisition, increased by 12% to €216.4 million. Our gross profit grew by 20% against the same period last year to €34.0m. The Group's adjusted operating profit, which excludes non-cash LTIP charges, was €8.4 million for the six months to 31 December 2015, 39% higher than the same period last year. Adjusted profit before tax increased by €2.3 million to €8.4 million. Including the non-cash LTIP charge, profit before tax increased by 25%. The non-cash LTIP charge was €850k in the six months to 31 December 2015 and €74k in the six months to 31 December 2014. The LTIP charge for the six months to 31 December 2015 reflects current expectations on achieving the performance targets included in the LTIP awards which may result in the vesting of these instruments.

The Group delivered earnings per share of 21.2 cent for the six months to 31 December 2015, up 23% on same period last year.

We have achieved growth across all of our main business units and markets, and the acquisition of Clinical Professionals in September 2015 also contributed to our strong performance during the period. Our conversion rate of gross profit to operating profit (excluding LTIP) has increased to 24.8%, from 21.4% in the same period last year.

During the six months ended 31 December 2015, we have experienced improvements in conditions in our markets, including markets outside of Ireland which delivered 26% of total fees in the period.  However, skills shortages in certain sectors continue to cause challenges. The Group continues to work with clients to understand their specific requirements and with our candidates in order to match their skills to those client requirements. Margin pressure continues across the temporary staffing market and this market segment remains highly competitive.

We continue to employ professional and committed people within the Group, and we were pleased to see the quality of our people and our services recognised by the National Recruitment Federation, which recently awarded us the title Recruitment Agency of the Year for 2015.  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 the Group.

Cash

The Group has a cash balance of €27.6 million as at 31 December 2015. In the six months to 31 December 2015 €8.8 million was generated in cash flow from operating activities before acquisition consideration and changes in working capital. Our business requires significant investment in working capital and this, together with our acquisition of Clinical Professionals for an initial net cash consideration of €4.5m, has given rise to a net cash outflow from cash and cash equivalents of €2.9 million in the period.

Dividend

The Board proposes to pay an interim dividend of 5.25 cent per share, an increase of 11% on last year's interim dividend which reflects the Group's strong performance in the period and attractive prospects.  The dividend will be payable on 4th March 2016 to shareholders on the register at the close of business on the record date of 5th February 2016.

Board

Having been a director of the Group since its flotation, Garret Roche today retires from the Board.  On behalf of my fellow directors and all of our people I would like to thank Garret for his exceptional dedication and commitment to his role as a director and for his valuable contribution to our success.  Mark Buckley, our Chief Financial Officer, has been appointed to the Board with effect from today, and I welcome him to the Board and look forward to continuing to work with him as he takes on this additional role. Additional disclosures in respect of Mr. Buckley under paragraph (g) of Schedule Two of the AIM and ESM Rules will be made under a separate regulatory filing.  

Outlook

In the six month period to 31 December 2015 we have seen continued organic growth across key business sectors. The acquisition of Clinical Professionals was completed in the period and performance from this business has been in line with expectations.

While the pace of growth in many markets remains somewhat uncertain, we remain confident in the outlook for the business and expect to deliver continued profitable growth for the remainder of the financial year.

John Hennessy

Chairman

28 January 2016

 



 

Condensed Group Statement of Comprehensive Income

for the period ended 31 December 2015

                                                                                                                              


6 months ended

6 months ended

Year ended


31-Dec-15

31-Dec-14

30-Jun-15


€'000

€'000

€'000


(Unaudited)

(Unaudited)

(Audited)





Revenue

216,364

193,218

393,648

Cost of sales

(182,365)

(164,991)

(334,981)


_______

_______

_______

Gross profit

33,999

28,227

58,667





Distribution expenses

(2,091)

(1,852)

(3,726)

Administrative expenses

(24,343)

(20,405)

(40,984)


_______

_______

_______

Operating profit

7,565

5,970

13,957

Financial income

6

81

125


_______

_______

_______

Profit before taxation

7,571

6,051

14,082





Income tax expense

(984)

(787)

(1,797)


_______

_______

_______

Profit for the financial period/year

6,587

5,264

12,285


_______

_______

_______

Other comprehensive income




Foreign currency translation differences -




foreign operations

33

(91)

(304)


_______

_______

_______

Total comprehensive income for the




period/year

6,620

5,173

11,981


_______

_______

_______




 

Profit attributable to:








Owners of the Parent

6,482

5,264

12,374

Non - controlling interests

105

-

(89)


_______

_______

_______


6,587

5,264

12,285


_______

_______

_______

Total comprehensive income attributable to




Owners of the Parent

(51)

(91)

(304)

Non - controlling interests

84

-

-


_______

_______

_______


33

(91)

(304)


_______

_______

_______





Basic earnings per share (cent)

21.2

17.2

40.5





Diluted earnings per share (cent)

21.2

17.2

40.5


Condensed Group Balance Sheet

as at 31 December 2015


31-Dec-15

31-Dec-14

30-Jun-15


€'000

€'000

€'000


(Unaudited)

(Unaudited)

(Audited)

Fixed Assets




Non current assets




Property, plant and equipment

1,933

1,817

1,835

Goodwill and intangible assets

18,701

12,346

12,661

Deferred tax asset

444

422

439


_______

_______

_______

Total non-current assets

21,078

14,585

14,935


_______

_______

_______

Current assets




Trade and other receivables

90,689

77,891

81,831

Current tax recoverable

-

-

451

Cash and Cash equivalents

28,591

24,226

30,475


_______

_______

_______

Total current assets

119,280

102,117

112,757


_______

_______

_______

Total assets

140,358

116,702

127,692


_______

_______

_______

Capital and reserves




Issued share capital

3,053

3,053

3,053

Share premium

1,705

1,705

1,705

Other reserves

(2,052)

(2,688)

(2,851)

Retained earnings

85,096

74,482

80,141


_______

_______

_______

Equity attributable to owners of the Company

87,802

76,552

82,048

Non - controlling interests

172

-

(89)


_______

_______

_______

Total equity

87,974

76,552

81,959


_______

_______

_______

Liabilities




Non current liabilities

1,285

-

-


_______

_______

_______

Total non current liabilities

1,285

-

-


_______

_______

_______

Current liabilities




Trade and other payables

48,667

40,051

45,733

Interest bearing loans and borrowings

983

-

-

Provisions

1,375

-

-

Current tax payable

74

99

-


_______

_______

_______

Total current liabilities

51,099

40,150

45,733


_______

_______

_______

Total liabilities

52,384

40,150

45,733


_______

_______

_______

Total equity and liabilities

140,358

116,702

127,692


_______

_______

_______


Condensed Group Statement of Changes in Equity

for the period ended 31 December 2015

                                                                                                            




Other

Capital



Share








denominated

conversion


Currency

based



Non -

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 1 July 2014

3,053

1,705

667

57

(3,357)

(91)

54

70,745

72,833

-

72,833

Total comprehensive income for the period












Profit for the financial period

-

-

-

-

-

-

-

5,264

5,264

-

5,264

Foreign currency translation

-

-

-

-

-

(91)

-

-

(91)

-

(91)

Transactions with shareholders












Share based payment charge

-

-

-

-

-

-

73

-

73

-

73

Dividends paid

-

-

-

-

-

-

-

(1,527)

(1,527)

-

(1,527)


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Balance at 31 December 2014

3,053

1,705

667

57

(3,357)

(182)

127

74,482

76,552

-

76,552


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Balance at 1 July 2015

3,053

1,705

667

57

(3,357)

(395)

177

80,141

82,048

(89)

81,959

Total comprehensive income for












the period












Profit for the financial period

-

-

-

-

-

-

-

6,482

6,482

105

6,587

Foreign currency translation

-

-

-

-

-

(51)

-

-

(51)

84

33

Transactions with shareholders












Share based payment charge

-

-

-

-

-

-

850

-

850

-

850

Dividends paid

-

-

-

-

-

-

-

(1,527)

(1,527)

-

(1,527)


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Total contributions and distribution

3,053

1,705

667

57

(3,357)

(446)

1,027

85,096

87,802

100

87,902


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Changes in ownership interests












Non controlling interest on












acquisition in year

-

-

-

-

-

-

-

-

-

72

72


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Total changes in ownership interests

-

-

-

-

-

-

-

-

-

72

72


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

Balance at 31 December 2015

3,053

1,705

667

57

(3,357)

(446)

1,027

85,096

87,802

172

87,974


_______

_______

_______

_______

_______

_______

_______

_______

_______

_______

_______


Condensed Group cash flow statement

for the period ended 31 December 2015


6 months ended

6 months ended

Year ended


31-Dec-15

31-Dec-14

30-Jun-15


€'000

€'000

€'000


(Unaudited)

(Unaudited)

(Audited)

Cash flows from operating activities




Profit for the financial period/year

6,587

5,264

12,285

Depreciation on property, plant and equipment

274

192

425

Share based payment charge

850

73

123

Amortisation of intangible assets

145

43

165

Financial income

(6)

(81)

(125)

Income tax expense

984

787

1,797


_______

_______

_______

Operating cash flows before changes in working capital

8,834

6,278

14,670





(Increase) in trade and other receivables

(5,347)

(8,088)

(12,199)

Increase/(decrease) in trade and other payables and provisions

487

(841)

4,073


_______

_______

_______

Cash generated from/(used) in operations

3,974

(2,651)

6,544





Income tax (paid)

(464)

(1,110)

(1,919)

Interest received

60

165

176


_______

_______

_______

Net cash provided by/(used in) operating activities

3,570

(3,596)

4,801


_______

_______

_______

Cash flows from investing activities




Deferred consideration paid

-

(75)

(75)

Acquisition of business, net of cash acquired

(4,471)

-

-

Purchase of property, plant and equipment

(307)

(689)

(949)

Purchase of intangible assets

(132)

(405)

(842)


_______

_______

_______

Net cash (outflow) from investing activities

(4,910)

(1,169)

(1,866)


_______

_______

_______





Cash flows from financing activities




Dividends paid

(1,527)

(1,527)

(2,978)


_______

_______

_______

Net cash (used in) financing activities

(1,527)

(1,527)

(2,978)


_______

_______

_______





Net (decrease) in cash and cash equivalents

(2,867)

(6,292)

(43)





Cash and cash equivalents at beginning of period/year

30,475

30,518

30,518


_______

_______

_______

Cash and cash equivalents at end of period/year

27,608

24,226

30,475


_______

_______

_______

                                                                                                                                                               


Notes supporting condensed interim financial statements

 

1.       Basis of preparation

The condensed consolidated interim financial information of the Group has been prepared in euro 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 committee and adopted by the EU. There are no new standards, amendments to standards or interpretations which are mandatory for the first time for financial periods commencing on 1 July 2015 which have a significant impact on the Group's accounting policies or on the reported results.         

 

The figures for the half year ended 31 December 2015 are unaudited. The comparative figures for the half year    ended 31 December 2014 are also unaudited. The amounts for the year ended 30 June 2015 represent an    abbreviated version of the Group's full financial statements for the year on which the auditors issued an    unqualified audit report. The Group is not subject to significant seasonal factors.

The financial statements for the year ended 30 June 2015 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                                            


6 months ended

6 months ended

Year ended


31-Dec-15

31-Dec-14

30-Jun-15


€'000

€'000

€'000

Ordinary dividends:




Interim dividends paid (4.75c per ordinary share)

-

-

1,451

Final dividends paid (5.0c per ordinary share)

1,527

1,527

1,527


_______

_______

_______


1,527

1,527

2,978


_______

_______

_______


 

3.       Earnings per 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 2015 is 30,545,159 (period ended 31 December 2014 - 30,545,159; year ended   30 June 2015 - 30,545,159). It has been calculated based on the profit attributable to the owners of the Company for the financial period ended 31 December 2015 of €6,482,000 (period ended 31 December 2014 - €5,264,000; year ended 30 June 2015 - €12,374,000).

4.       Acquisitions

On 2 September 2015 the Group acquired an 89.8% stake in Pharma Professionals Limited ("PPG"). PPG is the parent company of Clinical Professionals Limited a leading UK based pharmaceutical and Life Sciences recruitment company. At completion 63.5% of the consideration payable was paid and the balance sheet is contingent on certain earn out targets being achieved.

5.          Share Based Payments

 The LTIP charge for the six months to 31 December 2015 was €850k and €74k in the six months to 31 December 2014. This reflects current expectations on achieving the performance targets included in the LTIP awards which may result in the vesting of these instruments. Full details of the scheme are outline in Note 26 of the 2015 Annual report.

 

6.       Events after the reporting date

              There have been no significant event since the period end 31 December 2015.

[END]


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR VDLFLQFFBBBK