Recruitment woes hit CPL

CPS

Published date:
Thursday, January 31, 2008

CPL Resources (CPS:AIM) – Interims PTP: €11.7m (€8.1m) Divi: 2.5c (1.75c)

The Irish recruitment agency saw pre-tax profit rise 45%. Earnings from placing candidates in permanent jobs benefited from higher demand in IT, telecoms and finance. Revenue growth was also seen from arranging contract and temporary workers in light industrial and healthcare. Both areas saw fee income rise 50%.

CPL is confident about sustaining this performance, despite acknowledging a less favourable economic climate. The positive outlook wasn’t enough to revive its share price which stayed flat at 275p, having halved since May 2007.

Healthcare should become a stronger focus for the business, having recently made several acquisitions in this field. Quoted rival Healthcare Locums (HLO:AIM) saw its share price double last year as it enjoyed strong growth from serving this sector. Its bull run peaked in September, which doesn’t bode well for CPL.

Shares says: Until economic sentiment improves, the staffing sector will be depressed. Sit tight.

by: Dan Coatsworth

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