Cpl Announce Strong FY2020 Results

Cpl Resources Plc (‘Cpl’, the ‘Group’ or the ‘Company’), Ireland’s leading talent and workforce solutions group, today announces results for the year ended 30 June 2020.

Financial Highlights

  • 10% increase in adjusted profit before tax to €27.9m
  • 10% increase in adjusted basic earnings per share to 88.8 cent
  • 4% increase in gross profit (net fee income) to €100.3m
  • Gross profit margin up 58 basis points to 17.6%
  • Strong cash generation with net cash position of €68.1m, up from €40.1m a year ago

Operational & Strategic Highlights

  • Demonstrated resilience of operating model during challenging market conditions presented by Covid-19 pandemic
  • Strategic and decisive actions taken to manage costs and preserve cash in response to Covid-19
  • Continued growth in recurring revenues with Flexible Talent (including Covalen, our managed solutions division) now representing almost 73% of gross profit
  • Operational efficiencies, proactive cost actions and a growing contribution from Covalen delivered a 44 basis point increase in adjusted operating margin to 5.0%
  • New organisation structure established around core service pillars – Recruitment, Managed Solutions and Healthcare
  • Investment in both internal and external innovative technology solutions
  • Investment in Cpl brand refresh, rolling out across financial year 2021

Other Highlights

  • Swift and effective reaction to Covid-19 pandemic, putting the safety of our people at the centre of our response
  • Successful mobilisation of workforce to a remote working environment and associated investment in support structures for the health and wellbeing of our people
  • Continued focus on diversity and inclusiveness in the workforce and the ongoing support of charities and community engagement
  • Publication of inaugural Responsible Business Policy Report detailing environmental, social and governance activities and targets
  • The process of Board refreshment continues with the retirement of Breffni Byrne from the Board at Cpl’s AGM on 23 November

John Hennessy, Chairman, commented:

The Cpl team has delivered an outstanding performance and excellent earnings growth for the year to June 2020. The performance delivered is particularly impressive given the impact of Covid-19 on our business since March 2020.  Although the ongoing pandemic has impacted our Permanent fees, we have delivered profitable growth, demonstrating the resilience of the Group’s business model, particularly in Flexible Talent.

Our business delivers value by responding to the essential needs of businesses and candidates by matching the right people with the right opportunities, and by providing workforce solutions that support our clients’ business objectives. Our success is driven by the quality of our people, who operate to the highest standards across a rich and diverse client portfolio. The quality and commitment of all of our people is evident in the strength of our full year performance, and particularly against the backdrop of Covid-19 in the second half of the year.

During the year we also strengthened our focus on, and commitment to, ESG issues, which we believe will play an increasingly important role in the long-term success of our business.  We are committed to ensuring that our ESG profile aligns with the expectations of our shareholders and other stakeholders. Whilst early in the financial year we are pleased with the trading performance to date which is in line with our expectations.”

Anne Heraty, CEO, added:

“Cpl has delivered another year of strong earnings growth and excellent cash conversion, while increasing our net fee income by 4%, gross margin by almost 0.6% and our adjusted profit before tax by 10%. The Group’s strong performance in the year to June 2020 is a testament to the success of our strategy to increase the contribution of recurring revenues across high growth sectors.

This provides a strong degree of resilience in the face of unprecedented, economic shocks such as the Covid-19 pandemic. Our managed solutions division, Covalen, continues to experience strong, consistent growth and is well positioned for future growth both domestically and internationally. Since year-end, we have seen an encouraging improvement in Permanent fees driven mainly by our technology and finance divisions. I would like to thank our team, our clients and all of our stakeholders whose support and commitment ultimately define our success.”

For further information, please contact:

Cpl Resources Plc + 353 1 614 6000

  • Anne Heraty, CEO
  • Lorna Conn, CFO
  • David Marshall, Head of Corporate Development

Davy Corporate Finance (Nomad and Euronext Growth Advisor)

  • Ivan Murphy/ Daragh O’Reilly: +353 1 679 6363
  • Shore Capital (Joint Corporate Broker) +44 (0)20 7408 4090
  • Stephane Auton/ Daniel Bush (Corporate Advisory)
  • Malachy McEntyre/ Fiona Conroy (Corporate Broking)

FTI Consulting (Media Relations)

  • Melanie Farrell/ Jonathan Neilan: +353 1 765 0888