Strong Growth at CPL
Ireland's leading talent and workforce solutions group, announces a trading update
Cpl Resources plc (“Cpl” or the “Group”), Ireland’s leading talent and workforce solutions group, announces a trading update for the six months to 30 June 2020. Cpl announced half year results on 23 January 2020 for the six months to 31 December 2019 and at that time, the Group reported strong growth in profits and earnings per share. This momentum continued into the second half of the financial year until March 2020, at which time the Group started to experience the adverse impact of the Covid-19 pandemic.
A key priority for Cpl since then has been protecting the health of all of its employees, including those on-site with clients, while ensuring the implementation of all health and safety measures recommended by the relevant authorities. The Group successfully mobilised office-based employees to a remote working environment and ensured business continuity by working closely with employees, candidates and clients.
Since March 2020 trading in the Group’s Flexible Talent business, which represents over 70% of the Group’s Net Fee Income, was resilient and has continued to perform well with solid demand across the pharmaceutical, life science and technology sectors. The Group’s Permanent placement business was negatively impacted as hiring activity was reduced across many sectors.
Given the Group’s strong performance in the first nine months of the financial year, together with cost initiatives adopted in response to Covid-19, adjusted profit before tax for the full year to 30 June 2020 is expected to be broadly in-line with market expectations. Cpl has a strong balance sheet, which continues to support the working capital requirement of our Flexible Talent business.
Current market conditions continue to be impacted by the economic slowdown associated with Covid-19. That impact is expected to continue through fiscal 2021. The Group will continue to monitor the situation closely and provide updates where appropriate.
The Group plans to announce its full year results on 8 September 2020.