PRETAX PROFITS at recruitment firm CPL Resources dropped 92 per cent to €1.7 million for the 12 months to June, in what it called “better than expected” annual results. Describing last year as “unprecedented”, CPL said gross profits dropped by a third to €35 million with revenues falling 18 per cent to €212.4 million.

Fees from the firm’s permanent placement business were halved to €12.2 million while the gross profit from its temporary employee business was €22.3 million, a fall of 20 per cent.

Despite these reductions CPL recorded an adjusted operating profit of €8.2 million. It also took an impairment charge of €8 million.

Salaries were down 21 per cent due to a reduction in staff numbers from 483 to 333 over the year and the company said its monthly cost base was 43 per cent lower at the end of its financial year than in June 2008.

Chief executive Anne Heraty said all divisions had felt the impact of the recession, especially in the second half of the year as many customers dramatically slowed down hiring of permanent staff. She said any rise in employment was likely to lag an improvement in the economy. “Past cycles indicate that we could see a prolonged period of rising unemployment. This suggests that demand for recruitment services will be weak though 2010”

The company noted that unemployment in the State more than doubled during the year to the end of March 2009.