IEX-LISTED recruitment firm CPL Resources said its revenue in the second half of 2009 declined due to continued weakness in the economy, but it pointed to resilience in the temporary sector.
Interim results for the six months to December 31st, 2009, showed a 53 per cent rise in profit before tax to €2.4 million year-on-year. The figure is in line with a trading statement last November, when CPL said it expected to report pretax profit of over €2 million for the second half of 2009.
However, the 2008 results included a €4.5 million impairment charge that dragged down profit in that period. The company warned its markets remain challenging and the outlook was uncertain in Ireland and in other locations in which the firm operates.
Group gross profit fell 37 per cent compared to the same period in 2008, dipping to €12.9 million, while revenue slipped about 23 per cent from €118.9 million to €91.3 million. Net fee income for the six months was 10 per cent lower than the six months to June 2009, while permanent fees were down 15 per cent. However, CPL said it was witnessing a trend of growth in demand for temporary staff, with net fee income in that sector showing similar levels seen in the first half of the year.
“Net fee income in our temporary placement business has been more resilient to date across most of the group. Unfortunately, the pricing environment in the temporary placement business has become more difficult. This has resulted in a 26 per cent decline in gross profit from this sector of our business compared with the same period in 2008,” CPL said.
The group said its cash balances were €42 million at December 31st, 2009. The business generated €1.8 million from operating activities in the six months to December 2009. CPL spent €1.4 million on acquisitions in the six months to the end of December, and said it would continue to seek suitable acquisition opportunities.
“The markets in which we operate remain difficult and employment trends continue to present challenges,” CPL chairman John Hennessy said.
