Irish recruitment firm CPL Resources (CPL: ID) reported revenue for the year ending 30 June 2014 of €369.3 million, an increase of +12% from €330.8 million a year ago.

Gross profit for the period rose by +12% to €54.7 million, up from €48.8 million last year. Operating profit for the year was €14.2 million, equating to year-on-year growth of +21% from €11.7 million in 2013.

John Hennessy, Chairman of CPL Resources, commented: “I am pleased to report that the 12 months ended 30 June 2014 has been another successful year for CPL. Our results reflect growth across all our major areas and locations. Economic conditions and employment trends are improving, although recovery in many of the markets in which we operate is fragile, and our industry remains highly competitive. We expect to continue to deliver growth in profits over the coming year.”

Anne Heraty, CEO of CPL, added: “CPL achieved record revenues and gross profit… The labour market continues to recover with total employment on the rise in both the international and domestic sectors of the economy. Companies are gaining the confidence to invest in hiring people on a permanent basis.” 

Revenue derived from temporary assignments in the year to June 2014 were €348.5 million, up by +10.6% from €315 million last year. Gross profit from temporary recruitment rose by +2.5% to €34 million. CPL Resources advised that it is still experiencing margin pressure in its temporary business, particularly where clients have high volume requirements.

Permanent recruitment revenue rose by +31.7% to €20.8 million, up from €15.8 million in 2013. CPL advised that permanent placement was particularly strong in its international business.

Ms Heraty commented: “Growth in our revenues and gross profit was broad based, driven by strong demand for skilled talent in sectors and occupations such as ICT, Healthcare, Pharmaceutical, and Professional Services.”

As a total of gross profit, fees from temporary recruitment accounted for 62.1%, down from 67.9% last year. Permanent fees for the year accounted for 37.9% of total gross profit, up from 32.1% a year ago.

In May 2014, the company opened an office in Krakow, Poland, taking its total number of overseas offices to 36 in nine countries; Ireland, Poland, Slovakia, Czech Republic, Spain, the UK, Canada, and Hungary.  

Looking forward, the company is focused on organic expansion, but will consider selective acquisitions to build platforms in new sectors or markets.

In trading today, the company’s share price rose by +0.1% to €7.11, an increase of +18.4% compared with a year ago. Based on its current share price, the company has a market value of €217.2 million.