Cpl Resources Share Discussion Threads

[lbo] 25/7/2009 22:46

"we expect"!

LOL



"Over 74% of Cpl's gross profit is generated from professional and specialist recruitment, and key markets for the Group such as the services sector are expected to continue to experience job growth"

[fr4dge] 24/7/2009 15:29

YES they did.

I quote "we expect that the Group's profit for the year will be in line with market expectations".

[lbo] 24/7/2009 15:16

NO they did not say "profits will be in line"

THEY SAID "we expect" they will be in line with the warning of "uncertain"

Its a hint of things are getting worse since H1 as reflected in the economy albeit at a slower pace but sinking is still sinking!

[fr4dge] 24/7/2009 14:11

Yes. They did. Really!

Despite these difficult circumstances the Group has remained profitable
throughout the year to 30 June 2009. After taking account of impairment charges we expect that the Group's profit for the year will be in line with market expectations, and our balance sheet remains strong.

Note that profits will be in line - AFTER taking account of impairment charges.

Of course the remainder of 2009 is uncertain. They would be mental not to even acknowledge as such.

However - based on what they have seen so far - which is half the year - the expect to be in line with market expectations even after writing some of their investments down.

Looks like the balance sheet will be even stronger this year than last.

[lbo] 24/7/2009 14:04

Did they really!

"It is impossible to predict with any accuracy whether the markets in which the
Group operates will experience any significant improvement in the foreseeable
future, and accordingly the outlook for the Group for the remainder of 2009
remains uncertain"

[fr4dge] 24/7/2009 13:56

LBO,

What makes you think revenues are falling faster than they cust costs?

They have guided the market that they expect to meet forecasts this year?

We all know Ireland is in a terrible state - but - I repeat - they tell us that they will meet forecast this year.

[lbo] 24/7/2009 13:48

You are missing the warning signs! Revenues are falling faster then they can cut costs (thus the distressed acquisitions) and they are in the worst possible sector in this recession. Its only a matter of time before they are losing money but DYOR.

CPL profitable but warns of uncertainty ahead as it adjusts to difficult conditions




Business and debt lawsuits double in wake of downturn

[fr4dge] 24/7/2009 11:54

LBO,

You appear to have missed the next sentence.

The Irish economy has seen a marked and sustained reduction in activity in
recent times and this has had a significant adverse effect on employment
figures, the availability of jobs and the demand for recruitment and related
services. The CPL Group has responded to these challenges by reducing costs in a careful and controlled manner, by making changes to our business model to
respond to new market conditions and by availing of opportunities presented by
the difficult economic environment.
Despite these difficult circumstances the Group has remained profitable
throughout the year to 30 June 2009. After taking account of impairment charges we expect that the Group's profit for the year will be in line with market expectations, and our balance sheet remains strong.

So despite the abominable conditions, they expect to be profitable this year - in line ith market expectations - which has them on an expected EPS of 10p.

Given the fact the share price is entirely covered by net current assets & they have no long term debt, I really see no need to panic.

[lbo] 24/7/2009 11:19

I think you may have your head in the sand! Even CPL are warning its getting worse. How long before those falling sales and profits become losses and the cash is being burned?

"The Irish economy has seen a marked and sustained reduction in activity in
recent times and this has had a significant adverse effect on employment
figures, the availability of jobs and the demand for recruitment and related
services"

[evaluate] 24/7/2009 07:28

The rate of people hiring won't deteriorate - it's already at a tiny fraction of what it was 2 years ago.

The company has shown that it can remain profitable in that kind of market - a remarkable achievement IMV.

As stated, the share price is completely covered by cash - so as long as they continue to cut their cloth accordingly, the company will remain a safe bet.

When their markets (it's nonty only Ireland any more) do recover, the share priuce will do too.

[lbo] 24/7/2009 00:47

"Company is still profitable - even in the worst possible market conditons"

Unemployment is still rising and nobody expects firms to even think about starting recruiting for another year or two at least even if the recovery comes so I suspect they have not even glimpsed the "the worst possible market conditons" yet.



Cowen says dole claimants will rise to 500,000 by Christmas; Irish unemployment to remain elevated for extended period

[evaluate] 17/7/2009 17:24

Company is still profitable - even in the worst possible market conditons.

Share price is entirely covered by net current assets with no long term liabilities.

I.e. business is in for free.

[lbo] 13/7/2009 10:45

LONDON (SHARECAST) - Recruiter Hays said it has been another tough quarter with demand continuing to weaken in both its temporary and permanent placement businesses.

[lbo] 25/6/2009 12:59

Fifty three thousand more people joined the dole queues in the first three months of this year compared to the last quarter of 2008 with employment down a staggering 158,500 compared to the first quarter of last year.



Next week marks the end of CPL's financial year, and we expect that the group will
likely issue a pre-close statement to coincide with the year-end. With this in mind,
we are taking the opportuniy to remind investors of our current thinking.
It is clear that the current Irish economic climate is extremely challenging, and we
expect it to remain so for the next 18 months. Unemployment now stands at
11.8%, and we expect the rate to peak below 15% in late 2010. The one positive
glimmer is that the rate of job loss increases is at least slowing, having peaked in
January-February 2009. Accordingly, we are currently forecasting a 34% drop in Net Fee Income (NFI) in FY 2009 followed by a further 36% cut in FY 2010. From the peak, permanent NFI is now forecast to fall 73%, while temporary decreases 45%.

[lbo] 24/6/2009 20:31

Unemployment to climb to 15.5% next year says IMF

[fr4dge] 24/6/2009 12:10

It's up 10% over the lst month.

[lbo] 24/6/2009 11:39

Big share price drop and collapsing profits with hint otherwise! Remember you are dealing with an ex Anglo Irish Bank director!

[evaluate] 16/6/2009 07:52

LBO,

They have bundles & bundles of cash.

It covers most of the share price. There won't be a right issue.

They also have real experience of surviving a market that goes against them quickly.

They were very exposed to the tech market before the dot bomb crash - managing to diversify away just before, during & after.

I believe they will handle the current problems as well as they can be handled & expect them to receover quickly once the market recovers - though this might take a while.

[lbo] 15/6/2009 21:07

Or a pump and dump for a rights issue! Expanding into a declining Irish jobs market is not going to end well for shareholders.



Commuter-belt counties hit by biggest rise in dole numbers



CPL buys Kenny Whelan from receiver

[fr4dge] 11/6/2009 15:19

The rise continues!

Let's hope it's a sign the results will be OK.

[lbo] 09/6/2009 15:32

Irish jobs outlook is worst in the world

[evaluate] 06/6/2009 17:00

27.5% jump in CPL yesterday.

Out of the blue as far as I can see.

Anybody got any ideas on this?

[lbo] 06/6/2009 16:51

Number of unemployed over 400,000

Receiver for Newcourt as shares suspended

[fr4dge] 08/5/2009 09:36

Recruitment in Ireland is going to be a tough business for a while.

Luckily CPL's price is pretty much completely covered by cash.

the business is in for nothing.

[l3gend] 07/5/2009 22:10

LBO what is your point?