Leading employment services group Cpl Resources Plc, which employs 20 people across Northern Ireland, today announced results for the half year ended 31 December 2017.

Half year highlights

• 12% increase in revenues to €256.7 million

• 12% increase in gross profit (net fee income) to €40.5 million

• Profit before tax of €9.0 million, an 11% increase

• Earnings per share increased 15% to 26.4 cent

• 10% increase in interim dividend to 6.35 cent per share

Revenues for the six months to 31 December 2017, which includes a full six months’ trading contribution by RIG Healthcare Group (“RIG”), a recent UK acquisition, increased by 12% to €256.7 million. Gross profit increased by 12% against the same period last year to €40.5 million. The Group’s profit before tax was €9.0 million for the six months to 31 December 2017, an 11% increase on the same period last year.  Conversion rate of gross profit to operating profit (excluding non–cash foreign currency translations and LTIP charges) was 23.1% in the period.

In the six months to 31 December 2017, €9.8 million was generated in cash flow from operating activities before tax and changes in working capital. The Group delivered a 15% increase in earnings per share to 26.4 cent for the six months to 31 December 2017, positively impacted by the Tender Offer which was completed during the period.  The Board proposes to pay an interim dividend of 6.35 cent per share, an increase of 10% on last year’s interim dividend, reflecting the Group’s strong performance in the period.

Áine Brolly CEO of Cpl in Northern Ireland commented:

“The Group continues to work with clients to understand their specific requirements and with our candidates in order to match their skills to those client requirements. The proportion of our net fee income that is made up of temporary fees has increased from 63% in the same period last year to 68%, driven primarily by RIG’s revenue mix but also by organic growth across our sectors. This shift in our business model is reflective of a global move toward the “gig economy” and greater flexibility for client and candidate alike. We also improved the margin on our temporary business to 11.3% (2016: 10.6%).”

The Group has invested significantly in its technology platform over the past few years and are pioneering one of the first artificial intelligence tools in the recruitment sector. Cpl is committed to staying at the forefront of AI and machine learning technology in order to make the recruitment process faster and more efficient for the benefit of candidates and clients.

Áine added:

“As we move into the second half of our financial year we are closely monitoring activity levels in all of our markets. We remain conscious of the impact of political, regulatory and economic events globally on our business. Positive momentum in the Irish and Eurozone labour markets should position the Group well for further growth across its key business sectors. We remain confident in the outlook for the business and expect to deliver continued profitable growth for the remainder of the financial year. In Northern Ireland we have restructured and reshaped the business to support expansion in the market through our strategy of rapid growth including the potential for the acquisition of locally based recruitment companies.”