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Ireland – Cpl Resources makes record revenue in tough market

06 September 2012

Ireland’s largest staffing firm Cpl Resources (CPS:LSE) drove this year’s revenue to a record high, defying economic uncertainty and difficult trading conditions, the firm reported on Thursday.

“2012 was a year of significant progress for Cpl. Our focus will continue to be on looking for opportunities in those sectors and geographies that are doing well, while continuing to carefully monitor our cost base,” said chief executive Anne Heraty.

Looking ahead, the firm expects to achieve further profitable growth in the months ahead.

Revenue in the 12 months to June 2012 was €290.24 million, a +23% increase from last year. The firm saw continued pressure on prices and margins during the year, but gross profit was up +17.5% to €43.54 million. The gross margin declined by -0.7% to 15.0%.

Strict cost alignments have helped increase operating profit by +39.3% to €10.01 million while the operating margin dropped by -0.3% to 3.4%. In the period, profit after tax was up +17.4% to €8.4 million.

The temporary staffing business performed strongly during the year with revenue rising by +23.6% to €276.7 million, but the firm saw growing pressure from clients to reduce costs. Overall, the temporary business generated €30 million in gross profit, +17.2% higher than last year.

The permanent staffing segment saw a +18.8% increase in fees which amounted to €13.6 million. Fees generated outside Ireland grew by +18.0%.

The staffing firm continued to expand internationally during the year with 37% of its permanent fees and 7% of temporary fees now derived from international markets. The staffing company is looking to achieve organic growth in the still growing markets of Central and Eastern Europe.

In the year, the firm made its first investment in Scandinavia with the acquisition of European Human Resources, a firm which provides HR solutions in Northern Europe.

Cpl dominates the Irish staffing market with over twice the market share of its closest rival, specialist provider CAE Parc. The firm operates internationally with offices in the UK, the Czech Republic, Slovakia, Poland, Hungary, Sweden and Spain. It provides recruitment services such as temporary staffing, permanent recruitment, managed services and outsourcing.

After announcing its financial results this morning, the company’s share price was up +3.2% setting a new 52-week high at €3.20, +28% increase from a year ago. The firm has a market value of €94.69 million, making it the 47thlargest staffing firm in the world by market capitalisation.  

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