ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

CPS Cpl Resources Plc

995.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Cpl Resources Plc LSE:CPS London Ordinary Share IE0007214426 EUR0.10
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 995.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

CPL Resources PLC Final Results (0419Q)

07/09/2017 7:00am

UK Regulatory


Cpl Resources (LSE:CPS)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Cpl Resources Charts.

TIDMCPS

RNS Number : 0419Q

CPL Resources PLC

07 September 2017

7 September 2017

Full year Results show record revenues of EUR455.2m with continued geographic reach

Cpl Resources Plc

Results for the Full Year Ended 30 June 2017

Dublin, 7 September 2017: Cpl Resources Plc ('Cpl', the 'Group' or the 'Company'), Ireland's leading employment services group, today announced results for the year ended 30 June 2017.

Highlights

   --     Proposal to return EUR25 million in capital to all shareholders by way of a Tender Offer 
   --     Revenue increased by EUR21.8 million, to EUR455.2 million 
   --     Gross Profit increased by 3% to EUR71.8 million 
   --     3% increase in Profit before tax to EUR15.8 million 
   --     Earnings per share of 43.7 cent  (2016: 43.9 cent) 
   --     Total dividend per share of 11.5 cent  (2016: 11.0 cent) 

John Hennessy, Chairman commented:

"The Group's results for the year ended 30 June 2017 show growth in revenue and profit before tax, reflecting expansion of our team, development of our service offering and broadening of our geographical footprint.

In recent months, the Board has considered a range of strategic and financial options to enhance shareholder value, particularly taking account of the continued generation of positive cash flows by the Group. Cpl remains a profitable, cash generative business and has built up a net cash position of EUR33.6 million as at 30 June 2017. Following careful consideration and having taken appropriate advice, the Board has determined that a return of surplus capital is in the best interests of shareholders. Consequently, subject to shareholder approval, we intend to return up to EUR25 million of surplus capital, in the form of a tender offer, to shareholders.

The Board is recommending a final dividend of 5.75 cent per share. This will bring the total dividend for the year to 11.5 cent per share.Based on current trends and circumstances in our main markets we expect to deliver further growth in our business during the financial year to 30 June 2018."

Anne Heraty CEO added:

"We continued to grow our international footprint opening offices in Munich and Boston during the year. We now have over 40 offices in 10 countries. These offices provide Cpl clients with the international reach they need especially in resourcing local talent. We also made further strategic progress with the acquisition of RIG Healthcare Group. This is Cpl's first entry into the locum doctor market and enhances the Company's operating presence in the UK, following the acquisition of Clinical Professionals in September 2015.

We will continue to invest wisely to capture opportunities for growth. Cpl has a strong balance sheet with net assets of EUR103.7 million generated over the 27 years of continuous profitability. We believe our balance sheet and strong cash flows give us the resources to invest in the growth and expansion of our business while also returning capital to shareholders."

This announcement contains inside information

For Further Information:

Anne Heraty, CEO, Cpl Resources Plc: +353 1 614 6000

Mark Buckley, CFO, Cpl Resources Plc: +353 1 614 6000

Ivan Murphy/ Daragh O'Reilly, Davy Corporate Finance: +353 1 679 6363

Melanie Farrell/ Jonathan Neilan, FTI Consulting: +353 1 765 0888

Cpl Resources Plc

Chairman's statement

The financial year ended 30 June 2017 has been a year of growth in revenue and profit before tax for Cpl.

Highlights of the Group's performance include:

- Revenue increased by EUR21.8m to EUR455.2m

- Gross Profit increased by 3% to EUR71.8m

- 3% increase in Profit before tax of EUR15.8m

- Earnings per share of 43.7 cent

- Total dividend per share of 11.5 cent

- Proposal to return EUR25 million in capital to all shareholders by way of a Tender Offer

Full Year Highlights

 
                       Year ended   Year ended   % change 
                       30-June-17   30-June-16 
--------------------  -----------  -----------  --------- 
                          EUR'000      EUR'000 
 Revenue                  455,194      433,391         5% 
 Gross Profit              71,822       70,053         3% 
 Operating profit          15,387       15,384 
 Profit before tax         15,777       15,390         3% 
 Earnings per share     43.7 cent    43.9 cent 
 Dividend per share     11.5 cent    11.0 cent         5% 
--------------------  -----------  -----------  --------- 
 
 Conversion ratio * 
 Operating Profit           21.4%        22.0% 
 Profit before tax          22.0%        22.0% 
--------------------  -----------  -----------  --------- 
 

* as % of gross profit

The Group's results for the year ended 30 June 2017 show growth in revenue and profit before tax, reflecting expansion of our team, development of our service offering and broadening of our geographical footprint.

Our revenue grew by EUR22 million in the financial year, up 5% on the prior year, and Group gross profit and profit before tax grew by 3% in the year. The demand for talented temporary staff among our clients grew at a stronger pace than for permanent employees across most sectors during the year, with temporary fees growing by 12%. The demand for permanent staff was adversely affected by changes in regulation in the healthcare sector and concerns about Brexit, which slowed recruitment decisions by certain employers. Our profit before tax is modestly ahead of the prior financial year, which, in light of the changed mix of business between temporary and permanent recruitment in the year, is a positive performance.

At year end, the Group had a strong balance sheet, with net assets of EUR104 million at 30 June 2017, up from EUR94 million in the prior year. We ended the year with net cash of more than EUR33 million, after investing EUR10 million in RIG Healthcare Group and funding the working capital demands arising from the continued growth in our temporary business. It is in this context that we are pleased to announce the intention to return capital to shareholders by way of a tender offer.

Tender Offer

In recent months, the Board has considered a range of strategic and financial options to enhance shareholder value, particularly taking account of the continued generation of positive cash flows by the Group. As part of this the Board has, and will continue to, review acquisition and investment opportunities which may optimise value for shareholders and in June this year we were pleased to announce the acquisition of a 91% shareholding in RIG Healthcare Group.

Cpl remains a profitable, cash generative business and has built up a net cash position of EUR33.6 million as at 30 June 2017. Following careful consideration and having taken appropriate advice, the Board has determined that a return of surplus capital is in the best interests of shareholders.

Consequently, subject to shareholder approval, we intend to return up to EUR25 million of surplus capital, in the form of a tender offer, to shareholders (the "Tender Offer"). As was the case in the Group's previous return of capital to shareholders in 2011, the return of capital will be made by way of a fixed price tender offer structure. The Tender Offer will be made at a price per Ordinary Share of EUR6.75 (the "Tender Price").

The Board believes that a return of capital in the amount proposed represents the most effective use of those shareholder funds and that the continued strength of the Group's balance sheet, and its cashflow generation after the return of those funds, will be sufficient to pursue the Group's stated growth objectives. The Tender Offer provides all shareholders with choice (that is, the discretion to participate) and certainty of value. Those shareholders who do not wish to participate can retain their full existing investment in the company.

Further details on the Tender Offer are included in the section entitled "Proposed Tender Offer".

People

Once again our people have delivered outstanding service to our clients and candidates during the year. The continuous growth in our business poses challenges to our teams, and they have responded well to these challenges. Our customers continue to give us very positive feedback on the service they receive.

On behalf of the Board, I would like to thank all of our people for their commitment, dedication and hard work, delivered daily for the benefit of the whole Group. I also wish to thank our clients and candidates for their continued support, their valuable input and their loyalty to our business.

Board & Executive announcements

In March 2017, Colm Long was appointed to the Board as an independent non-executive director. Colm has extensive experience of media and digital businesses and has contributed very positively to the Board since his arrival. We are delighted to welcome him and look forward to working with him in the future.

As the Group embarks on its next phase of growth, the Board has appointed Mark Buckley, current CFO, to the position of Deputy CEO and COO for the Group, with responsibility for operational performance and delivery of service to clients. We look forward to working with Mark as he takes on these important roles.

I am also delighted to announce that Lorna Conn has been appointed CFO of the Cpl Group. The Board and management look forward to working with Lorna, who will join us on 2 October 2017.

Earnings per Share, Proposed Dividend & Dividend Policy

Cpl has delivered earnings per share in the twelve months to 30 June 2017 of 43.7 cent. The Group also has a progressive dividend policy which reflects underlying earnings growth and our continued financial strength.

The Board is recommending a final dividend of 5.75 cent per share. This will bring the total dividend for the year to 11.5 cent per share. The dividend, if approved by the shareholders, will be payable on 6 November 2017 to shareholders on the Company's register at the close of business on the record date of 13 October 2017.

Outlook

Economic indicators, including employment trends, are generally positive in our principal markets. Our industry is highly competitive, and our continued growth remains sensitive to events affecting the wider European and global economies. As the UK moves towards its planned departure from the EU, the terms of which remain unclear, "Brexit" continues to give rise to uncertainty in our main markets. We will continue to monitor these developments closely, and assess and respond to their implications for our business.

Based on current trends and circumstances in our main markets we expect to deliver further growth in our business during the financial year to 30 June 2018.

John Hennessy

Chairman

7 September 2017

Chief Executive Review

In the financial year to 30 June 2017 Cpl delivered growth in revenues, gross profit and profit before tax. Our revenue increased by 5% to EUR455.2 million, gross profit and profit before tax increased by 3% to EUR71.8 million and EUR15.8 million respectively. Our net cash balance is EUR33.6 million post our investment of EUR10 million in the acquisition of RIG Healthcare in June 2017. Growth in our temporary placement and managed services business was strong and outpaced permanent placement which was impacted by regulatory changes to international nurse recruitment in the UK.

Financial Highlights

The Group increased its revenue by 5% to EUR455.2 million in the year to 30 June 2017 (2016: EUR433.4 million). Gross profit increased by 3% to EUR71.8 million (2016: EUR70.1 million). The Group's gross margin was 15.8% (2016: 16.2%). Profit before tax was EUR15.8 million (2016: EUR15.4 million) and our diluted earnings per share was 43.7 cent (2016: 43.9 cent).

Our operating expenses were EUR56.4 million, 3.1% higher than last year. Our conversion rate of gross profit to profit before tax was 22.0% (2016: 22.0%).

Most of our cost base is people related and the other main components are offices and investment in our technology infrastructure. We continued to invest in technology to improve productivity and ensure ease of use for our clients and candidates. One of our key projects during the year was the investment in a web and mobile based App that harnesses the latest in smartphone technology for booking and managing temporary staff. The App manages all aspects of front and back office including: communications, bookings, scheduling, timesheet management, accounting and compliance. It is designed to drive efficiencies, increase recruiter productivity and improve service levels to our candidates and clients.

Our balance sheet remains strong with net assets of EUR103.7 million (2016: EUR93.7 million). Goodwill and intangible assets increased by EUR8.5 million to EUR26.0 million, reflecting the acquisition of RIG Healthcare Group on 6 June 2017. Trade and other receivables stood at EUR 99.7 million, up from EUR90.3 million at 30 June 2016. From a financial perspective managing working capital is key to our success. Cash flow in the year was strong with EUR10.1 million of net cash generated prior to the RIG acquisition, to bring the closing net cash balance to EUR33.6 million.

The interim dividend paid was 5.75 cent per share. The Board is recommending a final dividend of 5.75 cent per share for the year to 30 June 2017, resulting in a total dividend per share for the year of 11.5 cent, a 5% increase from the prior year.

Operations Review

Cpl's capability spans the entire employment lifecycle and includes permanent, temporary and contract recruitment, workforce management, training, outsourcing and outplacement. We have a diverse range of clients from market leading multinationals to small and medium enterprises.

Cpl is a recognised leader in permanent and temporary recruitment. Our business is based on matching the capabilities of our candidates to our clients in a rapidly changing marketplace. We operate through distinct specialist brands in a wide range of sectors including technology, finance and legal, healthcare, pharmaceutical, life science, sales, engineering, HR, light industrial and office administration.

Our managed services and outsourcing business assumes accountability for selected business process on behalf of clients. Cpl brings value to our clients by creating measurable improvements and cost savings in areas that are viewed as non-core to our clients. Our main service offerings are: Contact Centre Outsourcing, Recruitment Process Outsourcing (RPO) and HR Consulting Services (which includes outplacement). These projects are normally contracted for a number of years. During the year we delivered managed services/outsourced projects to over 15 clients including leading organisations in the financial services, technology and pharmaceutical sectors.

 
 Key Performance Indicators      2017      2016 
 Gross margin                    15.8%     16.2% 
 Operating margin                 3.4%      3.6% 
 
 Conversion Ratio 
    Operating Profit             21.4%     22.0% 
     Profit before tax           22.0%     22.0% 
 
 Permanent fees as % of 
  the total gross profit         36.3%     41.5% 
 Temporary fees as % of 
  the total gross profit         63.7%     58.5% 
 
 Contractor and temporary 
  staff headcount at the 
  year-end                       11,504    11,367 
 Average number of recruiters 
  during the year (incl. 
  RIG)                               547       503 
------------------------------  --------  -------- 
 

Due to the change in business mix between permanent and temporary fees our gross margin in the year to June 2017 was 15.8%, a reduction of 40 basis points. Most of our growth occurred in our temporary business. Our permanent placement business which generates 100% gross margin represented 36.3% of total gross profit whereas in the year to June 2016 it was 41.5% of total gross profit.

We improved our margin on temporary business to 10.7% (2016: 10.1%)

Our operating margin was 3.4%, a year on year reduction driven mainly by the change in business mix, increase in staff numbers, investment in offices and technology infrastructure. Taking a long-term view of the business, we will continue to invest in talent and technology. We expect in the coming year to see an improvement in our operating margin through an increase in productivity due to the investment already made.

Permanent

Most of our permanent placement work is undertaken on a contingent basis, which means we only generate revenue when the candidate is placed in a role. If the time to successfully place candidates is extended this impacts our cost base and recruiter productivity.

Last year I highlighted that international nurse recruitment in the UK was undergoing significant change driven mainly by changes in regulation and concerns about "Brexit". This impacted our performance in permanent placements in the year to June 2017. While other divisions such as technology, pharma and financial services performed well, it was not sufficient to compensate for the reduction in international nurse recruitment in the UK.

Permanent fee revenue decreased by 10.3% to EUR26.1 million (2016: EUR29.1 million).

Looking ahead to 2018, we believe international nurse recruitment is stabilising and the demand for talent in the technology, pharma and financial services sector remains strong.

Temporary

Our temporary and contracting business provides clients with qualified, skilled people on short and long terms assignments. Demand for temporary and contract staff remained strong during the year and we grew net fee income by 11.7% to EUR45.7 million (2016: EUR41.0 million). We were able to build on the improvement in temporary and contract staffing margins that we experienced last year. Margin in year to 30 June 2017 was 10.7% (2016: 10.1%).

We finished the year with 11,504 temporary staff and contractors working on behalf of Cpl on client projects. Our clients recognise the value that temporary and contract staffing can bring to managing total labour costs. It adds a variable cost component to a company's other-wise fixed labour costs. At the same time many of our candidates are also seeking more flexibility. Highly skilled professionals particularly in ICT and engineering are choosing to work on a project basis.

Driven by this increasing demand from our clients and candidates for greater flexibility, temporary and contract staffing continues to represent an area of significant growth opportunity.

People

Our talented and experienced team are committed to our core values of accountability, respect, customer focus, effective communication and empowerment. In 2017, Cpl Resources plc was recognized in the Best Places to Work program's large category. This recognition is important for the Group as attracting and retaining the best talent in the industry is key to operational excellence which delivers real value to our clients.

Management Team & Appointment of CFO

Our management team continues to evolve. I am delighted Mark Buckley has taken on the role of COO and deputy CEO. We are also delighted to welcome Lorna Conn to the team. Lorna has been appointed as our CFO of the Group. Lorna trained as a Chartered Accountant with Deloitte and has held a number of senior finance roles both in Ireland and the US. Her most recent role was Finance Director at ISS Ireland, part of the ISS Group Plc. Lorna joins us on 2 October 2017.

I would like to thank our talented and dedicated colleagues for their commitment to delivering for our candidates and clients. I am delighted to welcome those people who joined Cpl during the year and I also want to thank our loyal customers for their partnership and support during the year.

Strategy

Our strategy to develop a balanced business mix and therefore avoid overdependence on any one service, sector, or geography remains unchanged. We generated 63.7% of our net fee income from temporary recruitment and 36.3% from permanent recruitment.

We continued to expand organically in new markets. We opened offices in Munich and Boston during the year. Our business outside Ireland now accounts for approximately 25% of the Groups net fee income. We have over 40 offices in 10 countries. These offices provide Cpl clients with the international reach they need especially in resourcing local talent.

Ardlinn, our executive search brand, which we launched in July 2016 to support our clients recruiting top level C-suite talent has had a very successful first year and is profitable. They have completed a number of international assignments, recruiting high impact leadership talent for clients. We will build on this success by expanding the team in the coming year.

Now more than ever CEO's and boards are acutely aware of the critical role key leadership talent plays in building competitive advantage. We believe Ardlinn is well positioned to source and attract the right leadership talent for our clients.

Acquisition

We focus mainly on organic expansion, while using selective acquisitions to build platforms in new sectors or markets with good long-term potential. We are keen to deepen our presence in high value sectors such as Healthcare which is labour intensive and experiencing skills shortages. The acquisition of RIG Healthcare is a further step in extending the Group's footprint in the healthcare sector.

In June 2017, we acquired a 91% shareholding in RIG Healthcare Group (RIG) for a cash consideration of EUR9.5m. RIG Healthcare Group, the trading name of RIG Locums Limited and RIG Medical Recruit Limited, is a UK specialist healthcare recruiter with a focus on market niches within the Locum Doctors and Allied Health Professions. They have five offices across the UK.

RIG supplies qualified medical professionals to the UK's National Health Service (NHS) with a particular focus on radiography, occupational therapy, pharmacy and physiotherapy. Healthcare recruitment, staffing and training has long been one of Cpl's most important sectors in Ireland and the UK. RIG will complement the Company's existing portfolio of healthcare brands which include: Cpl Healthcare, Kate Cowhig International Healthcare Recruitment, Servisource Healthcare and Private Homecare. The acquisition is Cpl's first entry into the locum doctor market and enhances the Company's operating presence in the UK, following the acquisition of Clinical Professionals in September 2015.

Outlook

As we enter the year to June 2018, market conditions across the sectors in which we operate are mixed. Economic trends are favourable with strong employment growth in Ireland and the Eurozone. Unemployment in Ireland is expected fall to less than 6% by year end and unemployment in the Eurozone is expected to fall below 9%. Despite this there are considerable risks on the horizon. In Cpl, we are mindful of the uncertainty that 'Brexit' creates in our core markets and we are closely monitoring the potential impacts both positive and negative of 'Brexit' on our business. On the positive we have seen an increase in enquiries from companies looking to establish in Ireland and increased demand for insurance financial services and fintech talent. On the negative, there are threats to employment in sectors exposed to the UK.

From a longer-term point of view, we operate in attractive markets with a strong business model and significant global clients. All indicators suggest that the labour market is tightening and there is a widening skills gap in a number of specialist skills areas. Our key focus is on supporting clients in sectors and occupations where these skills gaps occur. This places higher value on our services and presents us with growth opportunities.

We will continue to invest wisely to capture opportunities for growth. Cpl has a strong balance sheet with net assets of EUR103.7 million generated over the 27 years of continuous profitability. We believe our balance sheet and strong cash flows give us the resources to invest in the growth and expansion of our business while also returning capital to shareholders.

Anne Heraty

Chief Executive Officer

7 September 2017

Proposed Tender Offer

The Board is proposing to return up to EUR25 million of surplus capital to shareholders through the Tender Offer. As was the case in the Group's previous return of value to shareholders in 2011, the return of capital will be made by way of a fixed price tender offer structure and tenders will only be accepted at the Tender Price of EUR6.75 per Ordinary Share.

Background and reasons for the proposed Tender Offer

In the year to 30 June 2017, the Group reported strong operational and financial performance. The Group has continued to generate positive cash flow and as a result has built up a net cash position of EUR33.6 million as at 30 June 2017. In the absence of the proposed Tender Offer the Board would expect the Group's positive cash position to continue to increase further.

To date in 2017, the Board has considered a range of strategic and financial options to enhance shareholder value. The Board, in consultation with its advisers, reviewed a number of factors including:

   --     the Group's current net cash position; 
   --     the Group's ongoing earnings and cash flow generation; 

-- the relatively low interest income capable of being generated by the Group's current cash balance; and

   --     acquisition and investment opportunities. 

Following this review, the Board (with the exception of Anne Heraty and Paul Carroll, who absented themselves from deliberations relating to the proposed Tender Offer) unanimously determined that a return of surplus capital is in the interests of shareholders. The Board believes that a return of capital in the amount proposed represents the most effective use of those shareholder funds and that the continued strength of the Group's balance sheet, and its cashflow generation after the return of those funds, will be sufficient to pursue the Group's stated growth objectives.

The Board concluded, following consultation with the Group's advisers, that a return of up to EUR25 million of capital by way of the Tender Offer is in the interests of the Group and its shareholders as it provides shareholders with both choice (that is, the discretion to participate) and certainty of value.

An independent committee of the Board, comprised of independent non-executive directors Breffni Byrne, Oliver Tattan and Colm Long, was formed to consider and settle the terms and conditions of the Tender Offer, including the Tender Price.

Summary of the Tender Offer

The Tender Offer will be made to shareholders at the Tender Price of EUR6.75 per Ordinary Share. The Tender Price represents a premium of 15.2 per cent. to the closing price of EUR5.86 per Ordinary Share on 6 September 2017, (being the latest practicable date prior to this announcement) and represents a premium of 14.1 per cent. to the volume weighted average price over the three months to 6 September 2017.

The Group intends to purchase, in aggregate, up to 3,703,703 Ordinary Shares from shareholders at the Tender Price. These Ordinary Shares will subsequently be cancelled by the Group. Each shareholder will be entitled to sell up to approximately 12 per cent. of their shareholding, rounded down to the nearest whole number of Ordinary Shares (the "Guaranteed Entitlement"). Shareholders will also have an opportunity to sell more than their Guaranteed Entitlement to the extent that other shareholders tender less than their Guaranteed Entitlement. To the extent that any Shareholders have tendered less than their Guaranteed Entitlement, surplus tenders will be accepted in proportion to the number of additional Ordinary Shares tendered so that the total number of Ordinary Shares purchased pursuant to the Tender Offer does not exceed 3,703,703.

The Board reserves the right at any time prior to the anticipated completion of the Tender Offer and having regard to prevailing market conditions, to (i) vary the Tender Price; and/or (ii) change the maximum number of Ordinary Shares that can be tendered pursuant to the Tender Offer; and/or (iii) not proceed with the Tender Offer; if they conclude that the implementation of the Tender Offer at the Tender Price is no longer in the interests of the Group and/or its shareholders.

Each of the Directors has irrevocably committed to participate in the Tender Offer on a pro rata basis.

Benefits of a Tender Offer

The benefits of the Tender Offer, compared to other available options for a return of capital to shareholders, include that the Tender Offer:

   a)   provides those shareholders who wish to sell Ordinary Shares with the opportunity to do so; 

b) enables those shareholders who do not wish to receive capital at this time to maintain their full investment in the Group;

c) is available to all shareholders (other than shareholders who may be resident in certain prohibited territories) regardless of the size of their shareholdings;

d) ensures equal opportunity to all shareholders to participate in the return of capital by offering the Guaranteed Entitlement to all shareholders; and

e) will have a positive impact on both the Group's earnings per share and dividend per share as all shares acquired under the Tender Offer will be cancelled.

Shareholder Approval

The Tender Offer will be subject to approval by Cpl's shareholders at an Extraordinary General Meeting ("EGM"). A notice of EGM together with additional explanatory documentation setting out further detail with regard to the background to and reasons for, the terms and conditions of and instructions on how to participate in, the Tender Offer will be sent to shareholders in due course.

Cpl Resources Plc

Group Statement of Comprehensive Income

for the year ended 30 June 2017

 
                                                             2017                    2016 
                                                          EUR'000                 EUR'000 
 
 Revenue                                                  455,194                 433,391 
 Cost of sales                                          (383,372)               (363,338) 
 
 
 Gross profit                                              71,822                  70,053 
 Distribution expenses                                    (4,134)                 (4,059) 
 Administrative expenses 
  *                                                      (52,301)                (50,610) 
 
 
 Operating profit                                          15,387                  15,384 
 Financial income                                             438                      61 
 Financial expenses                                          (48)                    (55) 
 
 
 Profit before tax                                         15,777                  15,390 
 Income tax expense                                       (2,337)                 (1,968) 
 
 
 Profit for the financial 
  year- all attributable to 
 equity shareholders                                       13,440                  13,422 
                                                                    __________ 
 
 
 Profit attributable to: 
 Owners of the Parent                                      13,394                  13,434 
 Non - controlling interests                                   46                    (12) 
 
 
                                                           13,440                  13,422 
 
 
 
 Other comprehensive income 
 Foreign currency translation 
  differences - foreign operations                          (453)                   (198) 
 
 
 Total comprehensive income 
  for the year - all 
 attributable to equity shareholders                       12,987                  13,224 
 
 
 Basic earnings per share                               43.7 cent               43.9 cent 
 
 Diluted earnings per share                             43.7 cent               43.9 cent 
 
 * Includes EUR388,000 of non-cash 
  LTIP charge (2016 : EUR1,987,000) 
 
 

Cpl Resources Plc

Group Statement of Changes in Equity

for the year ended 30 June 2017

 
                                                    Other                                             Share 
                                            undenominated                  Currency         Put       based                                      Non          Total 
                                                                                                                                                   - 
                        Share       Share         capital      Merger   translation      option     payment    Retained                  Controlling   Shareholders 
                      capital     premium            fund     reserve       reserve     reserve     reserve    earnings          Total     interests         Equity 
 
                      EUR'000     EUR'000         EUR'000     EUR'000       EUR'000     EUR'000     EUR'000     EUR'000        EUR'000       EUR'000        EUR'000 
 
 Balance at 1 
  July 
  2015                  3,053       1,705             724     (3,357)         (395)           -         177      80,141         82,048          (89)         81,959 
 Total 
 comprehensive 
 income for the 
 year 
 Profit/(loss) 
  for the 
  financial 
  year                      -           -               -           -             -           -           -      13,434         13,434          (12)         13,422 
 Foreign currency 
  translation 
  effects                   -           -               -           -         (198)           -           -           -          (198)             -          (198) 
 
 Transactions 
 with 
 Shareholders 
 Share based 
  payment 
  charge                    -           -               -           -             -           -       1,987           -          1,987             -          1,987 
 Dividends paid             -           -               -           -             -           -           -     (3,131)        (3,131)             -        (3,131) 
 Put Option 
  granted                   -           -               -           -             -       (400)           -           -          (400)             -          (400) 
 Non controlling 
  interest on 
  acquisition 
  in year                   -           -               -           -             -           -           -           -              -            72             72 
 
 Balance at 30 
  June 2016             3,053       1,705             724     (3,357)         (593)       (400)       2,164      90,444         93,740          (29)         93,711 
                   ==========  ==========  ==============  ==========  ============  ==========  ==========  ==========  =============  ============  ============= 
 
 Balance at 1 
  July 
  2016                  3,053       1,705             724     (3,357)         (593)       (400)       2,164      90,444         93,740          (29)         93,711 
 Total 
 comprehensive 
 income for the 
 year 
 Profit for the 
  financial year            -           -               -           -             -           -           -      13,394         13,394            46         13,440 
 
 Foreign currency 
  translation 
  effects                   -           -               -           -         (460)           -           -           -          (460)             7          (453) 
 
 Transactions 
 with 
 Shareholders 
 Share based 
  payment 
  charge                    -           -               -           -             -           -         388           -            388             -            388 
 Dividends paid             -           -               -           -             -           -           -     (3,512)        (3,512)          (31)        (3,543) 
 Shares issued             33           -               -           -             -           -           -           -             33             -             33 
 Put option 
  granted                   -           -               -           -             -       (740)           -           -          (740)             -          (740) 
 Non-controlling 
  interest on 
  acquisition 
  in year                   -           -               -           -             -           -           -         735            735           124            859 
 
 Balance at 30 
  June 2017             3,086       1,705             724     (3,357)       (1,053)     (1,140)       2,552     101,061        103,578           117        103,695 
                   ==========  ==========  ==============  ==========  ============  ==========  ==========  ==========  =============  ============  ============= 
 

Cpl Resources Plc

Company Statement of Changes in Equity

for the year ended 30 June 2017

 
                                                      Other 
                                              undenominated     Share        Put 
                                                                based 
                           Share      Share         capital   payment     option    Retained     Total 
                         capital    premium            fund   reserve    reserve    earnings    equity 
                         EUR'000    EUR'000         EUR'000   EUR'000    EUR'000     EUR'000   EUR'000 
 
 Balance at 1 
  July 2015                3,053      1,705             724       177          -       1,742     7,401 
 Total comprehensive 
  income for the 
  year 
 Profit for the 
  financial year               -          -               -         -          -       1,911     1,911 
 
 Transactions 
  with shareholders 
 Share based payment 
  charge                       -          -               -     1,987          -           -     1,987 
 Dividends paid                -          -               -         -          -     (3,131)   (3,131) 
 Put Option Granted            -          -               -         -      (400)           -     (400) 
                       ---------  ---------  --------------  --------  ---------  ----------  -------- 
   ------------------ 
 Balance at 30 
  June 2016                3,053      1,705             724     2,164      (400)         522     7,768 
                       =========  =========  ==============  ========  =========  ==========  ======== 
 
 Balance at 1 
  July 2016                3,053      1,705             724     2,164      (400)         522     7,768 
 Total comprehensive 
  income for the 
  year 
 Profit for the 
  financial year               -          -               -         -          -      29,698    29,698 
 
 Transactions 
  with shareholders 
 Share based payment 
  charge                       -          -               -       388          -           -       388 
 Dividends paid                -          -               -         -          -     (3,512)   (3,512) 
 Shares issued                33          -               -         -          -           -        33 
 Put option granted            -          -               -         -      (740)           -     (740) 
                       ---------  ---------  --------------  --------  ---------  ----------  -------- 
 
 Balance at 30 
  June 2017                3,086      1,705             724     2,552    (1,140)      26,708    33,635 
                       =========  =========  ==============  ========  =========  ==========  ======== 
 

Cpl Resources Plc

Group and Company Balance Sheets

as at 30 June 2017

 
                                         Group                  Company 
                                    2017        2016        2017        2016 
 Assets                           EUR'000      EUR'000     EUR'000    EUR'000 
 Non-current assets 
 Property, plant 
  and equipment                     1,870       1,994       1,603       1,721 
 Goodwill and intangible 
  assets                           26,002      17,489       1,316       1,421 
 Investments in subsidiaries             -           -     31,065      21,132 
 Deferred tax asset                   710         786           70          63 
 
 
 Total non-current 
  assets                             28,582    20,269      34,054      24,337 
 
 Current assets 
 Trade and other 
  receivables                        99,664    90,333       119,286   122,262 
 Cash and cash equivalents           38,819    34,843       9,659      20,680 
 
 
 Total current assets             138,483      125,176      128,945   142,942 
 
 
 Total assets                     167,065      145,445      162,999   167,279 
 
 
 Equity 
 Issued share capital               3,086       3,053       3,086       3,053 
 Share premium                      1,705       1,705       1,705       1,705 
 Other reserves                   (2,274)       (1,462)     2,136       2,488 
 Retained earnings                101,061       90,444      26,708       522 
                                                          ________ 
                                  103,578       93,740      33,635      7,768 
 Non-controlling 
  interest                            117        (29)            -          - 
 
 
 Total equity                      103,695       93,711    33,635       7,768 
 
 

Cpl Resources Plc

Group and Company Balance Sheets (continued)

as at 30 June 2017

 
                                        Group                     Company 
                                     2017         2016          2017        2016 
                                  EUR'000       EUR'000      EUR'000      EUR'000 
 Current liabilities 
 Trade and other 
  payables                        61,415        50,133      127,409        157,910 
 
 
 Total current liabilities         61,415        50,133     127,409        157,910 
 
 
 Non current liabilities 
 Contingent consideration               815      1,201             815      1,201 
 Put option liability                1,140         400         1,140          400 
 
 
 Total non current 
  liabilities                        1,955       1,601          1,955       1,601 
 
 
 Total liabilities                 63,370       51,734      129,364        159,511 
 
 
 Total equity and 
  liabilities                     167,065      145,445      162,999        167,279 
 
 
 
 

Cpl Resources Plc

Group and Company Cash Flow Statements

for the year ended 30 June 2017

 
                                                    Group                       Company 
                                           2017          2016             2017            2016 
                                        EUR'000       EUR'000          EUR'000         EUR'000 
 Cash flows from operating 
  activities 
 Profit for the financial 
  year                                   13,440        13,422           29,698           1,911 
 Adjustments for: 
 Depreciation on property, 
  plant and 
 Equipment                                  770           590              544             510 
 Share based payment 
  charge                                    388         1,987                -               - 
 Amortisation of intangible 
  assets                                    459           343              450             331 
 Financial income                         (438)          (61)                -            (33) 
 Financial expense                           48            55                -               - 
 Income tax expense/(credit)              2,337         1,968              (7)            (35) 
                                        _______       _______          _______         _______ 
 Operating cashflows 
  before changes in 
 working capital                         17,004        18,304           30,685           2,684 
 
 (Increase)/decrease 
  in trade and other receivables        (3,320)       (4,849)            2,975        (14,429) 
 Increase/(decrease) 
  in trade and other payables             6,590         1,092         (30,881)          21,136 
                                        _______      ________         ________        ________ 
 
 Cash generated from 
  operations                             20,274        14,547            2,779           9,391 
 
 Interest (paid)                           (48)          (55)                -               - 
 Income tax (paid)                      (1,825)       (2,485)              (6)               - 
 Interest received                           22           110                -              82 
                                       ________      ________         ________        ________ 
 
 Net cash from operating 
  activities                             18,423        12,117            2,773           9,473 
                                       ________      ________         ________         _______ 
 Cash flows from investing 
  activities 
 Investments in subsidiaries                  -             -          (9,544)         (3,998) 
 Purchase of property, 
  plant and 
 equipment                                (667)         (684)            (426)           (398) 
 Acquisition of business 
  (net of cash and 
 loans acquired)                       (13,359)       (5,083)                -               - 
 Purchase of intangible 
  assets                                  (345)         (602)            (345)           (569) 
                                       ________       _______          _______         _______ 
 
 Net cash (outflow) from 
  investing activities                (14,371)        (6,369)         (10,315)         (4,965) 
 

Cpl Resources Plc

Group and Company Cash Flow Statements (continued)

for the year ended 30 June 2017

 
                                      Group                 Company 
                                   2017        2016         2017      2016 
                                EUR'000     EUR'000      EUR'000   EUR'000 
 
 Cash flows used in 
  financing activities 
 Shares issued                       33           -           33         - 
 Dividends paid                 (3,543)     (3,131)      (3,512)   (3,131) 
                               ________                 ________ 
 
 Net cash (used in) 
  financing activities          (3,510)     (3,131)      (3,479)   (3,131) 
                               ________                 ________ 
 
 Net increase/(decrease) 
  in cash and cash 
 Equivalents                        542       2,617     (11,021)     1,377 
 
 Cash and cash equivalents 
  at beginning 
 of year                         33,092      30,475       20,680    19,303 
                               ________                 ________ 
 Cash and cash equivalents 
  at 
 end of year                     33,634      33,092        9,659    20,680 
 

Cpl Resources Plc

Notes

   1       Financial income and expenses 
 
                                                  2017      2016 
                                               EUR'000   EUR'000 
 
 Interest (income) on cash                        (32)      (61) 
  deposits 
  Change in fair value of financial              (406)         - 
   liabilities 
                                                 _____     _____ 
                                                 (438)      (61) 
 
 
   Interest expense 
 Interest payable                                   48        55 
 
 
 
 
   2       Income tax expense 
 
                                           2017      2016 
                                        EUR'000   EUR'000 
 Recognised in the income statement: 
 
 Current tax expense 
 Current year                             2,276     2,299 
 Adjustments in relation to prior 
  years                                       6        26 
                                          _____     _____ 
 Current tax expense                      2,282     2,325 
 
 Deferred tax 
 Origination and reversal of 
  temporary differences                     106     (321) 
 Adjustments in relation to prior 
  years                                    (51)      (36) 
                                          _____     _____ 
 Total tax in the income statement        2,337     1,968 
                                          _____     _____ 
 
 
 

Cpl Resources Plc

Notes (continued)

 
 
   Reconciliation of effective 
   tax rate                             2017      2016 
                                     EUR'000   EUR'000 
 
 Profit before tax                    15,777    15,390 
                                       _____     _____ 
 
 Tax based on Irish corporation 
  tax rate of 12.5%                    1,972     1,924 
 
 Non-deductible items                    122       111 
 Other deductions                        104     (110) 
 Differences in effective tax 
  rates on overseas earnings              29        45 
 Losses on which deferred tax 
  not recognised                         154         8 
 Income taxed at higher rate               1         - 
  (Over) provision in prior years       (45)      (10) 
                                       _____     _____ 
 
 Total tax in income statement         2,337     1,968 
                                       _____     _____ 
 
 
   3       Dividends to equity shareholders 

Interim dividends to equity shareholders in Cpl Resources Plc are recognised when the interim dividend is paid by the Company. The final dividend in respect of each financial year is recognised when the dividend has been approved by the Company's shareholders. During the financial year, the following dividends were recognised:

 
                                      2017      2016 
                                   EUR'000   EUR'000 
 Final dividend paid in respect 
  of previous financial year 
 of 5.75 cent (2016: 5.0 cent) 
  per ordinary share                 1,756     1,527 
 
 Interim dividend paid in 
  respect of current financial 
  year 
 of 5.75 cent (2016: 5.25 
  cent) per ordinary share           1,756     1,604 
 
 Dividend paid in respect               31         - 
  of Non-controlling interest 
 
 
                                     3,543     3,131 
 
 

The directors have proposed a final dividend in respect of the 2017 financial year of 5.75 cent per ordinary share. This dividend has not been provided for in the Company or Group balance sheet as there was no present obligation to pay the dividend at the year end. The final dividend is subject to approval by the Company's shareholders at the Annual General Meeting.

Cpl Resources Plc

Notes (continued)

   4       Earnings per share 
 
                                           2017         2016 
                                        EUR'000      EUR'000 
 Numerator for basic and diluted 
  earnings per share: 
 Profit for the financial year 
  attributable to equity 
 shareholders                            13,394       13,434 
 
 Denominator for basic earnings 
  per share: 
 Weighted average number of 
  shares in issue 
 for the year                        30,655,391   30,545,159 
 
 
 Denominator for diluted earnings 
  per share:                         30,655,391   30,545,159 
 
 
 Basic and diluted earnings             43.7            43.9 
  per share                              cent           cent 
 
 
 
 
   5    Trade and other receivables 
 
                               Group              Company 
                         2017      2016      2017      2016 
                      EUR'000   EUR'000   EUR'000   EUR'000 
 
 Trade receivables     74,841    74,069         -         - 
 Accrued income        20,581    13,623         -         - 
 Prepayments and 
  other debtors         3,710     1,915     1,667       738 
 Corporation tax          532       726         -         - 
 VAT                        -         -       395         - 
  Amounts due from 
  subsidiary 
 undertakings               -         -   117,224   121,524 
 
 
                       99,664    90,333   119,286   122,262 
 
 

Amounts due from subsidiary undertakings are repayable on demand.

Cpl Resources Plc

Notes (continued)

   6       Net funds 
 
                                    Group                  Company 
                                 2017      2016       2017        2016 
                              EUR'000   EUR'000    EUR'000     EUR'000 
 
 Cash and cash equivalents     38,819    34,843      9,659      20,680 
 Bank overdraft                   (6)     (307)          -           - 
 Invoice discounting 
  facility                    (5,179)   (1,444)          -           - 
 
 
                               33,634    33,092      9,659      20,680 
 
 Cash and cash equivalents 
  in 
 the cash flow statement       33,634    33,092      9,659      20,680 
 
 
 Net funds                     33,634    33,092      9,659      20,680 
 
 
   7        Share capital, share premium, and other reserves 
 
                                                                      2017      2016 
                                                                   EUR'000   EUR'000 
 Authorised 
                      50,000,000 ordinary shares at EUR0.10 each     5,000     5,000 
 
 
                                                                   EUR'000   EUR'000 
                              Allotted, called up and fully paid 
  30,875,856 (2016: 30,545,159) ordinary shares at EUR 0.10 each     3,086     3,053 
 

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Share premium at 30 June 2017 amounted to EUR1,705,000 (2016: EUR1,705,000).

Other reserves comprise an other undenominated capital fund of EUR723,666 (2016: EUR723,666), a merger reserve of EUR3,357,000 negative (2016: EUR3,357,000 negative) a currency translation reserve of EUR1,053,000 negative (2016: EUR593,000 negative), a share based payment reserve of EUR2,552,000 (2016: EUR2,164,000) and a put option reserve of EUR1,140,000 negative (2016: EUR400,000 negative). The merger reserve arose in 1998 when the Company acquired by way of a share for share exchange the share capital of two group companies formerly under common ownership, management, and control. The translation reserve movement comprises all foreign exchange differences from 1 July 2015 arising from the translation of the net assets of the Group's non-euro denominated operations including the translation of the results of such operations from the average exchange rate for the year to the exchange rate at the balance sheet date.

Cpl Resources Plc

Notes (continued)

   8       Trade and other payables 

Amounts falling due in less than one year:

 
                                 Group            Company 
                           2017      2016      2017      2016 
                        EUR'000   EUR'000   EUR'000   EUR'000 
 
 Trade creditors          2,802     2,788       940     2,135 
 Invoice discounting 
  facility                5,179     1,444         -         - 
  Bank overdraft              6       307         -         - 
  Accruals               33,515    25,306     2,494     3,394 
 VAT                     10,064     8,822         -     8,094 
 PAYE/PRSI                9,849    11,466         -         - 
 Amounts due to 
  subsidiary 
 undertakings                 -         -   123,975   144,287 
 
 
                         61,415    50,133   127,409   157,910 
 
 
 

Amounts due to subsidiary undertakings are repayable on demand.

Cpl Resources Plc

Notes (continued)

   9       Acquisitions and disposals 

On 6 June 2017 Cpl acquired a 100% shareholding in RIG Healthcare Group ("RIG") for a cash consideration of EUR9.5m. RIG Healthcare Group is the trading name of RIG Locums Limited and RIG Medical Recruit Limited.

On 30 June 2017 the existing management team of RIG subscribed for a 9% shareholding in RIG.

The acquisition is Cpl's entry to the locum doctor market and enhances the group's operating presence in the UK.

The provisional fair values of the assets and liabilities which were acquired, determined in accordance with IFRS, were as follows:

 
                                     Book      Fair          Fair 
                                               Value 
                                    Value   Adjustment      Value 
                                  EUR'000      EUR'000    EUR'000 
 
 Property, plant 
  and equipment                         3            -          3 
  Trade and other 
   receivables                      7,597            -      7,597 
  Trade and other 
   payables                       (2,741)            -    (2,741) 
 Cash acquired                        144            -        144 
 Loans acquired                   (3,959)            -    (3,959) 
 
 Net identifiable                   1,044            -      1,044 
  assets and liabilities           ______      _______     ______ 
  acquired 
 Goodwill arising                                           8,500 
  on acquisition                                           ______ 
                                                            9,544 
                                                           ______ 
 
 
  Satisfied by:                                             9,544 
  Cash consideration                                       ______ 
 
 
   10     Basis of preparation 

The financial information included in this preliminary result statement has been extracted from the Group's financial statements for the year ended 30 June 2017 and is prepared based on accounting policies set out therein. As permitted by EU law and in accordance with AIM / ESM rules, the Group financial statements have been prepared in accordance with International Financial Reporting Standards and their interpretations issued by the International Accounting Standards Board as adopted by the EU. The Group Financial Statements will be filed with the Irish Registrar of Companies and circulated to shareholders in due course.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR LFMRTMBIMBRR

(END) Dow Jones Newswires

September 07, 2017 02:00 ET (06:00 GMT)

1 Year Cpl Resources Chart

1 Year Cpl Resources Chart

1 Month Cpl Resources Chart

1 Month Cpl Resources Chart

Your Recent History

Delayed Upgrade Clock