Cpl Resources Share Discussion Threads

[primrose 100] 13/9/2004 17:31

Results now in. See below.

Turnover up 41% & pre-tax profits up by 49%.

Another cracking set of results.

Momentum carried on into July & August.

Looking very good.



RNS Number:7623C
CPL Resources PLC
09 September 2004



CPL RESOURCES PLC


Strong operational and financial performance by CPL Resources


Cpl Resources plc, Ireland's leading employment services group, is delighted to
report an excellent operational and financial performance for the year ended 30
June 2004. The group's turnover increased by 41%, over the prior year, to Euro73.9
million. The group's gross profit (i.e. net fee income) grew by 25% to Euro13.3
million. Pre-tax profits increased by 49% to Euro2.6 million. Fully diluted
earnings per share were 5.9 cent, up by 55% from 3.8 cent in 2003.


A final dividend of 0.6 cent per share is proposed, bringing the total dividend
for the year to 1 cent per share.


Commenting on the group's performance, Cpl Chief Executive, Anne Heraty, said:


"We are passionate about the quality of service we provide to our clients and as
a result we won a high level of repeat business. We also expanded our client
base by winning new business. During the year we worked with over 1,500 clients,
ranging from large multinationals, to mid-sized and small companies. All of our
divisions experienced significant growth.


During the year Cpl provided long or short term work assignments to over 10,000
people and we placed over 1,750 people in permanent employment.


Cpl's strategy of developing a balanced earnings stream has continued to prove
successful. We continued to diversify the group's operations across a number of
key business sectors in order to avoid over dependence on any one sector. We
have balanced our net fee income between temporary and permanent recruitment -
51% permanent and 49% temporary - and we have balanced our operations between
specialist and generalist recruitment - 73% specialist and 27% generalist.


The acquisition of Medical Personnel Limited in March 2004 has strengthened our
presence in the contract nurse recruitment market. We expect demand in this
sector to continue to grow due to the shortage of qualified healthcare
personnel.


Ms Heraty pointed out that the growth in workforce management solutions requires
prudent financial management.


"Notwithstanding the increased demands on our working capital caused by this
strong growth, the group has continued to generate positive cash-flows during
the year through a combination of tight cost control, excellent working capital
management and the cash generative nature of the group's mix of services. The
net cash balance at 30 June 2004 was Euro5.3 million".


We had a strong second half to June 2004 and that momentum has continued into
the current year. We have made investments in people, infrastructure and back
office technology. As a result we believe we are well positioned to take
advantage of the improved economic conditions.


Cpl chairman, Mr. John Hennessy, thanked the group's clients for their continued
loyalty and support and also paid tribute to the team at Cpl for their
commitment and professionalism.


"The group has emerged in excellent financial and operational shape from a
period when the economic and business environment was uncertain and challenging.
Our business strategy of diversifying through selective acquisitions and focused
business development while managing costs carefully has served us well. We have
experienced better trading conditions during the year in most of our business
sectors and we are very well positioned to take advantage of continued
improvement."


"We are looking forward with confidence to another challenging year in Cpl."


Consolidated Profit and Loss account
For the year ended 30 June 2004

2004 2003
euro'000 euro'000
Group Turnover

- Continuing operations 70,748 52,436

- Acquisitions 3,111 -
73,859 52,436

Cost of sales (60,601) (41,803)

Gross Profit 13,258 10,633

Administrative expenses (9,715) (8,070)

Distribution expenses (1,050) (925)

Group operating profit

- Continuing operations 2,477 1,344

- Acquisitions 16 -
2,493 1,638
Interest, net 71 83

Profit on ordinary activities before taxation 2,564 1,721

Taxation on profit on ordinary activities (384) (334)

Profit for the financial year 2,180 1,387

Dividends paid and proposed (368) (255)

Retained profit for the financial period 1,812 1,132

Profit and Loss Account, beginning of year 11,418 10,286

Profit and Loss Account, end of year 13,230 11,418

Earnings per ordinary share 6.0 cent 3.8 cent

Fully diluted earnings per ordinary share 5.9 cent 3.8 cent


Consolidated Balance Sheet
At 30 June 2004


2004 2003
euro'000 euro'000
Fixed Assets

Tangible Assets 970 907

Goodwill 5,527 5,095

6,497 6,002
Current Assets

Debtors 11,789 7,197

Cash at bank and in hand 6,689 6,809

18,478 14,006

Creditors: amounts falling due within one year (9,153) (5,950)

Net Current Assets 9,325 8,056

Total Assets less Current Liabilities 15,822 14,058

Creditors: amounts falling due after more than one (559) (635)
year

Net Assets 15,263 13,423

Capital and Reserves

Called up share capital 3,677 3,649

Capital conversion reserve fund 57 57

Share premium 1,656 1,656

Merger reserve (3,357) (3,357)

Profit and loss account 13,230 11,418

Shareholders' Funds - all Equity 15,263 13,423


Consolidated Cash flow Statement
For the year ended 30 June 2004


2004 2003
euro'000 euro'000

Net Cash Inflows from operating activities 183 3,289

Returns on investments and servicing of finance 71 83

Taxation (396) (345)

Capital expenditure and financial investment (204) (47)

Acquisitions (433) (628)

Equity Dividends paid (293) (344)

Net cash (outflow)/inflow before Financing (1,072) 2,008

Financing 14 (766)

(Decrease)/Increase in cash (1,058) 1,242




Reconciliation of net cash flow to movement in net funds
for the year ended 30 June 2004
2004 2003
euro'000 euro'000

(Decrease)/Increase in cash in the period (1,058) 1,242

Cash outflow from decrease in debt and lease 14 795
financing

Movement in net funds (1,044) 2,037

Net funds at beginning of year 6,373 4,336

Net funds at end of year 5,329 6,373


Notes to the consolidated cash flow statement



Reconciliation of operating profit to net
cash flows from operating activities 2004 2003
euro'000 euro'000

Operating profit 2,493 1,638

Depreciation 242 293

Profit on disposal of fixed assets - (6)

Amortisation of goodwill 325 310

Movement in debtors (3,442) (552)

Movement in creditors 565 1,606

Net cash inflows from operating activities 183 3,289



Analysis of net funds
1 July 2003 Cash flow 30 June 2004
euro'000 euro'000 euro'000

Cash at bank and in hand 6,809 (120) 6,689

Bank overdrafts - (938) (938)

Loans (435) 13 (422)

Finance leases (1) 1 -

At 30 June 2004 6,373 (1,044) 5,329



Dividends Paid & Proposed 2004 2003
euro'000 euro'000

Dividends paid of 0.4 cent (2003 0.3 cent) per 147 109
ordinary share
Dividends proposed of 0.6 cent (2003 0.4 cent) per 221 146
ordinary share
368 255

[primrose 100] 27/8/2004 10:00

Looks like a few shrewdies are getting in ahead of the results (which we already know are going to be excellent).

Time to have a look if you haven't done so before.

[cockneyrebel] 15/6/2004 11:34

Well if you think these are cheap have you looked at NRG (Northern Recruitment)?

They issues a "will be substantially ahead" statement themselves recently too. Probably on a PE of 10 for the year just ending and low single digits the way they are growing.

Also none of the intangibles, has pure organic growth more or less.

120% earnings growth this year.

And it's not an Irish company witch ten to trade on lower PE's.

CR

[royaloak] 14/6/2004 14:23

Just issued a bullish trading statement!

[primrose 100] 23/1/2004 11:45

INterims are now out & are very impressive again.

Among the highlights of another challenging period for the CPL Resources plc
group were


• Strong financial performance in a competitive and changing market

• Turnover up 48% to €34.7 million

• Profit before tax up 35% to €941,000

• Earnings per share up 40% to 2.1 cent

• Continued change in business mix, with significant increases in fee income
from temporary employees and contractors

[primrose 100] 13/1/2004 11:04

Sorry. Make that 20%

[primrose 100] 13/1/2004 10:46

And another 10%.

AEC - did you end up buying any?

[primrose 100] 08/1/2004 08:35

Aec,

I haven't heard a thing.

CPL are well worth a look even with the rise though IMHO.

They rode the tech boom for all it was worth & went from a tiddler to a reasonably large company in no time flat.

They then realised that the tech boom was about to go bust & diversified into other areas very successfully. In financial terms, this meant treading water for a year (an incredible result in the circumstances). Since then, they have returned to the growth curve in style. They are obviously brilliant at what they do.

[arc en ciel] 07/1/2004 16:56

Primrose:

It appears no-one was listening. I certainly wasn't, more's the pity.

The jump in September was attributable to the excellent results. The shares haven't moved much since.

Can you explain today's extraordinary leap? A broker note? No announcement seems to have been made.

aec

[primrose 100] 07/1/2004 16:38

Actually up 30odd %.

I really hope that someone on here was listening.

[primrose 100] 07/1/2004 12:45

Up another 16% today.

I presume nobody was listening to me.

I feel like John the Baptist sometimes.

[primrose 100] 06/1/2004 09:45

Just noticed that these have been inching up again.

Anybody else into this great little company.

It has been a star in both good & bad markets. Management has not put a foot wrong so far.

[primrose 100] 17/9/2003 14:25

Hope somebody else got into this.

Now up 40% in 2 days since my original post.

Plenty to come IMHO.

[primrose 100] 15/9/2003 16:52

In a very difficult, CPL have managed to:
- nearly double turnover
- add 40% to profitability
- diversify so that they are no longer overly-reliant on the technology market
- improve cashflow faster than profitability

They are well worth a look if people haven't had a look at them before.

RNS Number:7735P
CPL Resources PLC
15 September 2003

CPL RESOURCES PLC

Interim Results for the year ended 30 June, 2003

Strong operational and financial performance by CPL Resources.

CPL Resources plc, Ireland's leading employment services group, today 15
September, 2003 announced very strong results in a difficult trading
environment, for the year ended 30 June, 2003.

Highlights:

* Strong operational and financial performance achieved in a difficult
market

* Profitable diversification resulting in improved financial performance

* Turnover up 92% to Euro52.4 million

* Profit before tax up 41% to Euro1.7 million

* Earnings per share up 41% to 3.8 cent

* Acquisition and integration of Multiflex and Techskills businesses

* Change in business mix, with significant increases in fee income from
temporary employees and contractors

* Substantial improvement in working capital management

* Significant improvement in cash, with net funds of Euro6.4 million at 30
June, 2003 (2002 - Euro4.3 million)

Commenting on the group's performance, CPL Chief Executive, Anne Heraty, said:

"We are very pleased with these results, particularly coming as they do in a
difficult business and economic climate. Our strategy of tactical
diversification, together with tight cost control and prudent financial
management is clearly bearing fruit," she said.

"CPL retains a core competency in information technology, and has diversified
into finance and accounting, healthcare, engineering and managed services &
office support divisions. In September 2002, we acquired the business of
Multiflex, a light industrial recruitment company, and Techskills, which
provides skilled engineers to a broad range of clients. Both businesses have
been successfully integrated into the group, benefiting from the management
infrastructure already in place at CPL and at the same time enabling us to
provide additional services to our existing CPL clients.

"CPL is committed to improving the competitiveness of our clients. We recognised
a number of years ago that our clients would require a flexible approach to
workforce management and we are now the leading provider of innovative and cost
effective workforce solutions in Ireland. In June 2003 we had over 1500
temporary professionals working on client sites.

Ms Heraty pointed out that the growth in workforce management solutions requires
prudent financial management. "As well as keeping control of our costs, we have
strengthened the management of our working capital and maintain strong cash
reserves, up to Euro6.8m from Euro4.3m last year. Our strong cash balance is helped by
a significant reduction in average debtor days, and this is particularly welcome
in the context of increased working capital demands arising out of the shift to
managing temporary professionals."

CPL chairman, Mr John Hennessy, thanked the group's clients for their continued
loyalty and support and also paid tribute to the team at CPL for their
commitment and professionalism.

"Our position as Ireland's leading provider of employment services is the result
of the skill and dedication of an excellent team throughout our organisation. I
am very proud of their achievements and very grateful to them for their
outstanding contributions, individually and collectively, to the success of our
business.

"The outlook for the Irish economy in general, and many of the sectors in which
we operate, remains somewhat uncertain and negative trends persist in employment
across many industries. However, CPL will continue to take advantage of
opportunities in the market place and diversify, where appropriate, with a view
to continuing to achieve profitable growth."

A final dividend of 0.4 cent per share is proposed, bringing the total dividend
for the year to 0.7 cent per share.



Consolidated Profit and Loss account
For the year ended 30 June 2003
2003 2002
Euro'000 Euro'000
Group turnover
- Continuing operations 37,949 27,298
- Acquisitions 14,487 -
52,436 27,298
Cost of sales (41,803) (18,470)
Gross Profit 10,633 8,828
Administrative expenses (8,070) (6,785)
Distribution expenses (925) (852)

Group operating profit
- Continuing operations 1,347 1,191
- Acquisitions 291 -
1,638 1,191
Interest, net 83 111

Profit on ordinary activities before taxation 1,721 1,302

Taxation on profit on ordinary activities (334) (319)
Profit on Ordinary Activities after taxation 1,387 983
Dividends paid and proposed (255) (452)
Retained Profit for the financial year 1,132 531
Profit and loss account, at beginning of year 10,286 9,755
Profit and loss account at end of year 11,418 10,286
Earnings per ordinary share 3.8 2.7
Fully diluted earnings per ordinary share 3.8 2.7



Consolidated Balance Sheet
At 30 June 2003
2003 2002
Euro'000 Euro'000
Fixed Assets
Intangible Assets - goodwill 5,096 4,595
Tangible Assets 907 1,117
6,002 5,712
Current Assets
Debtors 7,197 6,645
Cash at bank and in hand 6,809 5,567
14,006 12,212
Creditors:
Creditors: amounts falling due within one year (5,950) (5,244)
Net Current Assets 8,056 6,968
Total Assets less current liabilities 14,058 12,680
Creditors: amounts falling due after more than one year (635) (418)
Net Assets 13,423 12,262
Capital and Reserves
Called up share capital 3,649 3,620
Capital conversion reserve fund 57 57
Share premium 1,656 1,656
Merger reserve (3,357) (3,357)
Profit and loss account 11,418 10,286
Shareholders' Funds - all equity 13,423 12,262



Consolidated Cash flow Statement
For the year ended 30 June 2003
2003 2002
Euro'000 Euro'000
Net Cash Inflows from operating activities
for the year ended 30 June 3,289 2,402
Returns on investments and servicing of finance 83 111
Taxation (345) (1,345)
Capital expenditure and financial investment (47) (26)
Acquisitions (628) (659)
Equity dividends paid (344) (452)
Net cash inflow before financing 2,008 31
Financing (766) (818)
Increase / (decrease) in Cash 1,242 (787)


Reconciliation of Net Cash Flow to Movement in Net Debt
for the year ended 30 June 2003 2002
Euro'000 Euro'000
(Decrease)/Increase in cash in the period 1,242 (787)
Cash outflow from decrease in debt and lease financing 795 818
Movement in Net Funds in the Period 2,037 31
Net funds at beginning of year 4,336 4,305
Net funds at end of year 6,373 4,336


Notes to the consolidated cash flow statement


Reconciliation of operating profit to net operating cash flows 2003 2002
Euro'000 Euro'000
Operating profit 1,638 1191
Depreciation 293 256
Profit on disposal of fixed assets (6) -
Amortisation of goodwill 310 213
(Increase)/ decrease in debtors (552) 658
Increase in creditors 1,606 84
Net Cash Inflows from Operating Activities 3,289 2,402
Returns on investments and servicing of finance
Interest paid (22) (61)
Interest element of finance lease payments (1) (7)
Interest received 106 179
Net cash inflow from returns on
investments and servicing of finance 83 111
Taxation
Corporation tax paid (345) (1,345)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (47) (26)
Acquisitions, net of cash acquired
Acquisition of Marlborough and Ann O'Brien (186) (616)
Acquisition of Multiflex (163)
Acquisition of Techskills (279)
Acquisition of Careers Register (43)
(628) (659)



Notes to the consolidated cash flow statement

Financing 2003 2002
Euro'000 Euro'000
Loan repayments (758) (758)
Finance lease payments (37) (60)

Net cash (outflow) from financing (795) (818)
Issue of ordinary share capital 29
Net Cash outflows from financing (766) (818)


Analysis of Net Funds
Cash at bank Bank Loan Finance Net
and in hand leases funds
Euro'000 Euro'000 Euro'000 Euro'000
At 30 June, 2002 5,567 (1,193) (38) 4,336
Cash flow 1,242 758 37 2,037
At 30 June, 2003 6,809 (435) (1) 6,373


Dividends Paid & Proposed 2003 2002
Euro'000 Euro'000
Dividends paid of Euro0.3 cent (2002 Euro0.6 cent) per ordinary share 109 217
Dividends proposed of Euro0.4 cent (2002 Euro0.65 cent) per ordinary share 146 235
255 452

[vegrqbvgt4e] 31/1/2003 11:04

On more try & that's it.

[vegrqbvgt4e] 29/1/2003 15:29

Pathetic effort to keep this on the front page.

[vegrqbvgt4e] 29/1/2003 14:46

Figures are in today.

Very, very good performance in very difficult circumstances.

- Turnover up
- Pre-tax profit up

[steve_mac] 22/11/2002 14:13

A few points:

1. volume will be on ISEQ, therefore LSE vol is meaningless and not worth reference.

2. The aforementioned "Burn rate" is not burn at all but cash spent on acquisitions.

3. They obviously way overpaid for Careers register back in 2000 an yet have continued their acquisition spree, without doing any work on this company I would pressume management learnt from mistakes and made "better" purchases in 2001/2.

They seem to be determined to take share in the downturn and position themselves for better times. As they remain profitable I imagine they will be successful. In 2000 I think Marlborough were worth 100 million. I would think CPL wil double and treble in size going into an economic upturn.

The shares are tightly held so a takeover is very unlikely. If it happened it would be a huge premium to current valuation.

Managment seems to the best of a bad bunch in the industry. 2 obvious mistakes thus far.
1. going public
2. over paying for careers


Disclosure: no position

[vegrqbvgt4e] 19/11/2002 13:22

Big fall today.

Can't see why - results were quite commendable given the circumstances.

They have lots of cash in the bank & are still making money.

One-way bet from here - no?

[dermothagan] 21/5/2002 00:04

Well, whatever happened to move the price so high so fase is now over and was very weird indeed, based on almost no volume, no news, no anything really. very odd. guess we all missed the boat, ho hum

[lateral thinker] 15/5/2002 10:28

D,

They are valued at £8.8m & had €4.3 million in the bank (as of last June).

They have always been profitable so that figure is probably higher than that by now (albeit that they have made a small purchase).

They still seem to be quite cheap to me.

[dermothagan] 13/5/2002 17:40

Right, I have done a bit of research there is not much on this company out there, but it might be interesting.

Results out for end of 2001 show:


Expenses
Costs for the period of €3.7 million were 31% lower than last year. (2000: €5.5m).

Profit before Tax
Pre-tax profits amounted to €673,000. This represents a decrease of 76% on the €2.7 million recorded in the corresponding period last year.

Balance Sheet
Our balance sheet position remains strong. Net assets at 31 December 2001 were €12.1 million (30 June 2001: €11.7 million) and our net cash balance at that date was €4.9 million (30 June 2001: €4.3 million).


As you can see not much profit with a health cash burn/year.
Further announcement 25th Feb show purchase of competitor from receivers for undisclosed sum. This will mean that cash is running very low.


CPL Resources plc has agreed with David Hughes, Receiver, of Marlborough Group Limited and Ann O’Brien Secretarial Limited to purchase the temporary contract business of Marlborough Group Ltd and Ann O’Brien Secretarial Limited subsidiaries of Marlborough Group Plc. This business includes contracts under which temporary staff is provided to customers by Marlborough Group Ltd, and Ann O’Brien Secretarial Ltd, together with related assets, including business names and other intellectual property. A further announcement will be made in due course.


I see a few possibilities happening,
- The company has streamlined and brought down their internal costs, purchased a competitors bankrupt business and are now worth so little overall that they could be taken over. It is now possible for one large company (poss. UK) to move quickly and buy into the Irish market.

- The have had their credit extended.

- They have now been re-valued to incorporate the Marlborough acquisition.

I could be way off the mark on this but have a hunt around yourselves see what you can dig up. This may be worth a look if a takeover is on the cards.

What is weird is that the company must have very little in the bank, but is valued at £8.8M. I can't really see what is happening. They must have recently got more money from somewhere else, but there is no RNS about that.


????

[lateral thinker] 13/5/2002 17:26

The former - CPL Resources - CPS is the ticker

[dermothagan] 13/5/2002 16:51

Are we talking about the Irish recruitment company CPS or the company that makes umbrellas CPL.