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Ireland — CPL pre-tax profits up in spite of lower revenues

28 January 2010
Recruitment firm CPL Resources Plc. (DQ5:ISE) has reported pre-tax profits of 2.4 million Euro for the six months to December 2009, an improvement from the 1.5 million Euro reported the same time the previous year.

However, the group's gross profit fell by 37% to 12.9 million Euro, reflecting the continuing weakness of the Irish economy.
Revenues were also lower for the six month period, declining from 118.9 million Euro to 91.4 million Euro as the markets in which CPL operates 'continues to remain difficult and employment trends continue to present challenges'.

The recruitment firm said it was starting to see an increase in demand for temporary staff and net fee income in its temporary business in the six months to December 2009 was similar to that generated in the six months to June 2009.

CPL said it had cash balances of 42 million Euro by the end of 2009. It added that the business generated 1.8 million Euro from operating activities in the six months to December, while 1.5 million Euro was spent on acquisitions in that time.
The company said the markets in which it operates remain challenging and the economic outlook remains uncertain in Ireland and its other locations.

"In these conditions we are continuing to manage our cost base carefully, to provide excellent service to our clients and to pursue opportunities to add to our business as they arise," the company said.

It said it does not anticipate any significant expansion or retraction in demand for its services in the short time.

"Our goal is to consistently remain profitable regardless of the economic circumstances," commented CPL's chief executive Anne Heraty.

"We are one of the most operationally efficient and financially disciplined companies in our industry, remaining profitable despite the harshest of economic environments," she added.

She said that CPL continues to look for suitable acquisition opportunities.

In early trading CPL's shares were unchanged at 2.15 Euro.



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