Source - RNS
RNS Number : 6211I
CPL Resources PLC
01 September 2016
 

1 September 2016

Cpl Resources Plc

 

Results for the Full Year Ended 30 June 2016

 

Dublin, 1 September 2016: Cpl Resources Plc ('Cpl', the 'Group' or the 'Company'), Ireland's leading employment services group, today announced results for the year ended 30 June 2016.

 

 

 Full Year Highlights

·     Revenue increased by €39.7 million, to €433.4 million

·     Gross Profit increased by 19% to €70.1m

·     22% increase in adjusted Profit before tax to €17.4 million

·     Earnings per share of 43.9 cent  (2015: 40.2 cent)

·     Total dividend per share of 11.0 cent  (2015: 9.75 cent)

 

John Hennessy, Chairman commented:

"I am pleased to report that the 12 months ended 30 June 2016 has been a year of growth for Cpl, resulting in record revenues and net fee income.  These results have been achieved in a challenging and highly competitive environment and reflect the outstanding service delivered to our clients by all of our people.  Employment trends and economic indicators are broadly positive in our principal markets, and we expect to continue to grow profitably in the months ahead."

 

Anne Heraty CEO added:

"Cpl had a record year, with revenues and gross profits of €433.4m and €70.1m respectively. The investments we made over the past 18 months in people, in technology and in our talent innovation hub are paying off. We are committed to delivering outstanding service to our clients and candidates, supporting them to succeed in a changing environment. I am particularly pleased that we ended the year with in excess of 12,000 people working with or on behalf of Cpl, an increase of over 1,700 in the year." 

 

 

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



 

Cpl Resources Plc

 

Chairman's statement

 

The financial year ended 30 June 2016 has been another year of growth for Cpl.   

 

Financial highlights of the Group's performance include:

 

·     Revenue increased by €39.7 million, to €433.4 million

·     Gross Profit increased by 19% to €70.1m

·     22% increase in adjusted Profit before tax to €17.4 million

·     Earnings per share of 43.9 cent  (2015: 40.2 cent)

·     Total dividend per share of 11.0 cent  (2015: 9.75 cent)

 

Full Year Highlights

 


Year ended

Year ended

% change


30-June-16

30-June-15



€'000 

€'000 


Revenue

433,391

393,648

10%

Gross Profit

70,053

58,667

19%

Adjusted Operating profit*

17,371

14,080

23%

Adjusted Profit before tax*

17,377

14,205

22%





Operating profit

15,384

13,957

10%

Profit before tax

15,390

14,082

9%

Earnings per share

43.9 cent

40.2 cent

9%

Dividend per share

11.0 cent

9.75 cent

13%




Conversion ratio **




Adjusted Operating Profit

24.8%

24.0%


Adjusted Profit before tax

24.8%

24.2%


Operating Profit

22.0%

23.8%


Profit before tax

22.0%

24.0%


* Adjusted operating profit and adjusted profit before tax exclude non-cash charges relating to the Group's Long-Term Incentive Plan (LTIP).

** As a % of gross profit.

 

The Group's results for the year ended 30 June 2016 reflect strong growth across our business sectors and markets, combined with the effect of the acquisition of Clinical Professionals in September 2015. This strong performance is a result of a clear focus by our team on continuing to grow our existing business, selectively expanding our product offering and the markets we serve, and concentrating on managing costs and improving margins.

 

During the year demand for people in both permanent and temporary roles grew across most sectors. Our fees from temporary and permanent placements grew by 18% and 21% respectively year on year.  In our temporary business the growth in revenues was supplemented by an improvement in our margins. Our 10% growth in operating profit has been achieved after deducting a non-cash charge of €2.0 million (€0.1 million in the prior year) in respect of our share based long-term incentive plan for employees.

 

We maintain a focus on the management of costs in our business, with an adjusted operating profit ratio of 25% in the financial year. The Group continues to have a strong balance sheet, with net assets in excess of €93 million at 30 June 2016, up from €81 million in the prior year.  We ended the year with net cash of more than €33 million, after funding the increase in working capital resulting from the strong growth in our temporary business and after paying €4.0 million in cash consideration in respect of the acquisition of Clinical Professionals.

 

 

People

 

Given the nature of our core business, our clients and candidates are entitled to expect excellent service delivered by people who are carefully selected, and who have the right skills and experience for the job.  We measure customer satisfaction directly and by tracking client retention patterns, and these metrics demonstrate a high level of satisfaction with our services across our customer base.

 

Our growth and success are testament to the outstanding talent, expertise and commitment of our people and their dedication to delivering excellence. On behalf of the Board, I would like to acknowledge the contribution of all of our staff and management to the success of the Group, and to thank them for using their skills so effectively and for working so hard for the benefit of Cpl. I also wish to thank our clients and candidates for their support and their loyalty to our business.

 

 

Board Changes

 

During the year ended 30 June 2016, Garret Roche resigned from the Board of Cpl Resources plc.  As an executive director since our flotation, Garret made a huge contribution to the very substantial growth and success of the Group in that time.  He continues to play a very important leadership role in our business.  On behalf of the Board I would like to thank Garret for the positive energy, business insight and dedication that he brought to the Board during his term of office.

 

Mark Buckley joined the Board during the year. Mark has been the Group's Chief Financial Officer since July 2013 and he has contributed strongly to the Group's success since his appointment, both in the financial area and more generally as a member of Cpl's senior management team.  I welcome Mark to the Board and look forward to continuing to work with him.

 

 

Earnings per Share, Dividend & Dividend Policy

 

Cpl has delivered earnings per share in the twelve months to 30 June 2016 of 43.9 cent. In deciding how to use our free cash flow, the Board continues to prioritise the maintenance of a strong balance sheet, so that we can take advantage of opportunities to invest in further growth, both within the existing business and through acquisition.  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 11.0 cent per share. The dividend, if approved by the shareholders, will be payable on 7 November 2016 to shareholders on the Company's register at the close of business on the record date of 14 October 2016.

 



 

Outlook

 

Economic indicators, including employment trends, are currently broadly positive in our principal markets.  Our industry remains highly competitive, and our continued growth is sensitive to events affecting the wider European and global economies.  The "Brexit" referendum result continues to give rise to uncertainty in our main markets, particularly in the U.K., and to a lesser extent in Ireland.  We remain of the view that "Brexit" will present both challenges and opportunities for our business, and we continue to monitor developments closely.

 

Current indicators suggest that modest economic growth will continue in our principal markets.  Accordingly, we expect to deliver further profitable growth in our business during the financial year to 30 June 2017.

 

 

John Hennessy

 

Chairman                                                                                                         

1 September, 2016

 

 

 

 

 

 

 

Cpl Resources Plc

 

Chief Executive's review

 

 

Cpl is delighted to report another strong performance for the Group in the year to 30 June 2016. Our focus on exceptional client service and innovative talent solutions has enabled us to deliver revenue and adjusted operating profit growth of 10% and 23% respectively. While the marketplace has improved our business still has the fundamental job of finding the best people and talent for our clients wherever they reside. We now operate from 10 countries and 37 offices around the globe with plans to build our footprint and presence further.

 

Labour markets continued to improve across Europe during the year and of particular interest to Cpl was the strength of both the Irish and UK employment market. The Irish and UK unemployment rate stood at 7.8% and 4.9% respectively at end of June 2016.  The Irish employment growth rate in 2015 was 2.9% well above the Euro area average of 0.9% and it was the 4th highest in the EU. While employment has not yet returned to peak pre-recession levels, over 1.98 million people were employed in Q4 2015 and forecasts suggest that employment will be back to prerecession levels by 2018 with all jobs previously lost being replaced. However we have yet to see the impact of "Brexit" on these forecasts.

 

Companies around the world are being affected by globalisation, by technology disruption and by access to qualified skilled talent. According to the PWC's Annual Global CEO Survey, 72% of CEOs are concerned about the availability of key skills, with 48% planning to increase headcount in the coming year. In this environment skilled talent is at a premium. We believe demand for skilled technical and professional talent will continue to grow, and that we are well positioned to take advantage of this increased demand.

 

We are excited by the opportunity in our Pharma and Life Sciences divisions. The acquisition of Clinical Professionals in September 2015 has extended our reach and complements the services we offer to our clients. I am pleased to report that the business is progressing to expectations and has had some strong client wins in the year.  We have invested further in our sourcing capabilities realising that our clients are now interested in the best talent from around the globe and we look at this as a key strength of the Group.

 

 

Financial Highlights

 

FY16 has been another record year for the Group, with double digit percentage increase across revenue, net fee income and adjusted profit before tax lines.

 

The Group increased its revenue by 10% to €433.4 million in the year to 30 June 2016 (2015: €393.6 million). Gross profit increased by 19% to €70.1 million (2015: €58.7 million). The Group's gross margin was 16.2% (2015: 14.9%). Adjusted Profit before tax was €17.4 million (2015: €14.2 million) and our earnings per share was 43.9 cent (2015: 40.2 cent).

 

Our operating expenses were €54.7 million and in correlation with our increase in gross profit, reflecting the fact that the majority of our cost base is staff related costs. I am delighted to report our conversion of gross profit to adjusted operating profit increased to 25% in the current year.

 

Our balance sheet remains strong with net assets of €93.7 million (2015: €82.0 million). Goodwill and intangible assets increased by €4.8 million to €17.5 million, reflecting the acquisition of Clinical Professionals Limited in September 2015. Our customer base is broadly diversified across industry sector. Trade and other receivables stood at €90.3 million, up from €82.3 million at 30 June 2015. Notwithstanding these investments in the acquisition and working capital, our net cash balance at 30 June 2016 was €33.1 million.

 

The interim dividend paid was 5.25 cent per share. The Board is recommending a final dividend of 5.75 cent per share for the year to 30 June 2016, resulting in a total dividend per share for the year of 11.0 cent, a 13% increase from the prior year.

 

 

 

Key Performance Indicators

2016

2015




Gross margin

 16.2%

14.9%

Adjusted Operating margin

   4.0%

  3.6%

 

Conversion Ratio



       Adjusted Operating Profit

 24.8%

24.0%

       Adjusted Profit before tax

 24.8%

24.2%




Permanent fees as % of the total gross profit

 41.5%

40.8%

Temporary fees as % of the total gross profit

 58.5%

59.2%

 

Contractor and temporary staff headcount at the year end

11,367

 9,729

Number of recruiters at the year end

     503

    399

 

 

As mentioned above, our gross margin increased to 16.2%. We generated an increase in our temporary business margin, reversing the trend we have experienced in recent years. Permanent fees increased by 21.3% to €29.1 million and accounts for 41.5% of total gross profit.

 

 

Operations

 

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 healthcare brands for example have been in operation for over 20 years and are all highly recognisable brands capable of attracting talent from around the globe.

 

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).

 

 

Permanent

 

With the ongoing "war for talent", skills shortages continue to emerge across a number of professional occupations particularly ICT, engineering, science and health. Our strength is in sourcing people with skills that are hard to find for our clients and as a result, our permanent placement business had a successful year with strong performance from a number of divisions, including our acquisition of Clinical Professionals in September 2015. Permanent fee revenue increased by 21.3 % to €29.1 million (2015: €24.0 million).

 

Cpl's healthcare divisions had a particularly strong year. Healthcare recruitment is undergoing a lot of change particularly in the UK driven mainly by immigration controls and concerns about "Brexit". Given our track record and database of hard to find specialist nurses and allied health professionals, we are well positioned to support our clients through this change.

 

 

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 18% to €41.0 million (2015: €34.7 million), a combination of organic growth and acquisition. 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 2016 was 10.1% (2015:  9.4%).

 

We finished the year with 11,367 temporary staff and contractors working on behalf of Cpl on client projects.  Our clients recognise the advantage that temporary and contract staffing can bring. 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. We are seeing growth in these areas.

 

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

 

 

People

 

Despite all the talk about how many jobs may not exist or be replaced by machines in the future, it is still humans that are the biggest determinant of success and never more so than in a professional services environment. Attracting and retaining the best talent in the industry is key to delivering the operational excellence that delivers real value to our clients. I would like to thank our talented and dedicated employees for their commitment to delivering for our candidates and clients. I am delighted to welcome those people who joined Cpl during the year. 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 focus mainly on organic expansion, while using selective acquisitions to build platforms in new sectors or markets with good long term potential. Clinical Professionals is a good example of an ideal fit with our overall strategy for growth and diversification. It builds on our capability to deliver to clients in the Pharma and Life Sciences sector both on a local and international platform.

 

We will continue to maintain a balanced earnings stream. We operate through specialist brands in several business sectors. We are not overly dependent on any one sector. Our net fee income in the year to 30 June 2016 was 58.5% from temporary recruitment and 41.5% from permanent recruitment.

 

We are ambitious to grow our business and service offering in our current geographies and sectors, and explore new geographic locations for our services with existing and new clients in the forthcoming periods.

 



 

Acquisition and Growth

 

Notwithstanding the organic growth we are experiencing in our existing business, as a Group we continue to look for ways to maximise shareholder return. In September 2015 we acquired a majority stake in Clinical Professionals Limited. We have now integrated this business into the Group and it is performing well. Clinical Professionals complements our existing scientific business and allows us to offer clients a broader geographic service offering.  

 

In the Autumn of 2015, Deena Energy Services opened a small Dubai subsidiary. This business continues to grow from an organic start up in January 2015. During the year we invested in new offices in Belfast and Reading, increasing capacity in both locations. In May 2016 we opened an office in Gdansk, bringing the number of Cpl offices in Poland to five.

 

In June 2016 we secured an Arbietnehmeruberlassungsgetz (AUG licence), permitting us to enter the labour leasing market in Germany. We plan to open our first German office, in Munich, in the coming months.

 

Ardlinn, our new executive search brand, was launched in July 2016 to enable us to recruit talent at the highest level for our clients. Ardlinn will use its international expertise and connections to provide Irish based companies with the top level C-suite talent they need, due to Ireland's continued status as a global leader in attracting high-value foreign direct investment (FDI) employment.

 

During the last year we have invested in developing our sales culture and have added further talent to the team. This is showing results through the winning of new clients and the retention of existing clients. New client wins cover both private and public sector organisations and provide a good opportunity for future growth.

 

Outlook

 

We expect the year to 30 June 2017 to be another year of steady growth, improved profitability and solid cash flows. Our key focus is on supporting clients in sectors and occupations where there are increasing skill shortages. This places higher value on our services and should help to improve our margins. However, we also need to be mindful of business risks such as those arising from "Brexit". How "Brexit" will affect our performance this year is hard to determine at this early stage.

 

Economic forecasts indicate growth rates of circa 4% in Ireland and continued growth in employment which is positive for Cpl. We have a robust business model, an excellent brand and customer base and a track record of delivering for our clients. Our success is driven through our people and we have a strong management team which we have added to in the past twelve months. Our priorities through 2017 will be to maintain and grow our net fee income while strategically growing and investing domestically and internationally. Should conditions change, we are prepared, we have flexibility in our cost base and we can moderate our growth plans.

 

 

Anne Heraty

 

Chief Executive Officer

1st September, 2016

 

 

 



 

Cpl Resources Plc

 

Group Statement of Comprehensive Income

for the year ended 30 June 2016



2016

2015

 



€'000

€'000

 





 

Revenue


 433,391

 393,648

 

Cost of sales


(363,338)

(334,981)

 



                   

                   

 





 

Gross profit


70,053

58,667

 

Distribution expenses


 (4,059)

 (3,726)

 

Administrative expenses *


     (50,610)

(40,984)

 



                   

                   

 





 

Operating profit


15,384

13,957

 

Financial income


       61

     125

 

Financial expenses


      (55)

         -

 



                   

                   

 





 

Profit before tax


15,390

14,082

 

Income tax expense


 (1,968)

 (1,797)

 



                   

                   

 





 

Profit for the financial year- all attributable to




 

equity Shareholders


13,422

12,285

 



                   

                   

 





 





 

Profit attributable to:




 

Owners of the Parent


13,434

12,374

 

Non - controlling interests


      (12)

      (89)

 



                   

                   

 





 



13,422

12,285

 



                   

                   

 





 





 

Other comprehensive income




 

Foreign currency translation differences - foreign operations


   (198)

   (304)

 



                   

                   

 





 

Total comprehensive income for the year - all




 

attributable to equity shareholders


13,224

11,981

 



                  

                   

 





 

Basic earnings per share


43.9 cent

40.2 cent

 





 

Diluted earnings per share


43.9 cent

40.2 cent

 





 

* Includes €1,987,000 of non-cash LTIP charge (2015 : €123,000)





Cpl Resources Plc

Group Statement of Changes in Equity

for the year ended 30 June 2016




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


 

€'000

 

€'000

 

€'000

 

€'000

 

€'000

 

€'000

 

€'000

 

€'000

     €'000

 

€'000

 

€'000













Balance at 30 June 2014

3,053

1,705

724

(3,357)

(91)

-

54

70,745

72,833

-

72,833

Total comprehensive income for the year












Profit/(loss) for the financial year

-

-

-

-

-

-

-

12,374

12,374

(89)

12,285

Foreign currency translation effects

-

-

-

-

(304)

-

-

-

(304)

-

(304)













Transactions with Shareholders
























Share based payment charge

-

-

-

-

-

-

123

-

123

-

123

Dividends paid

-

-

-

-

-

-

-

(2,978)

(2,978)

-

(2,978)













Balance at 30 June 2015

3,053

1,705

724

(3,357)

(395)

-

177

80,141

82,048

(89)

81,959













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

 

Cpl Resources Plc

Company Statement of Changes in Equity

for the year ended 30 June 2016

 

 




Other








undenominated

Share based

Put




Share

Share

capital

payment

option

Retained

Total


capital

premium

fund

reserve

reserve

earnings

equity


€'000

€'000

€'000

€'000

€'000

€'000

€'000









Balance at 1 July 2014

3,053

1,705

724

54

-

3,503

9,039

Total comprehensive income








for the year








Profit for the financial year

-

-

-

-

-

1,217

1,217









Transactions with shareholders








Share based payment charge

-

-

-

123

-

-

123

Dividends paid

-

-

-

-

-

(2,978)

(2,978)









Balance at 30 June 2015

3,053

1,705

724

177

-

1,742

7,401









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


Cpl Resources Plc

 

Group and Company Balance Sheets

as at 30 June 2016

                                                                 



Group

Company



2016

2015

2016

2015

Assets


€'000

€'000

€'000

€'000

Non-current assets






Property, plant and equipment


 1,994

 1,835

  1,721

 1,833

Goodwill and intangible assets


17,489

12,661

  1,421

 1,183

Investments in subsidiaries


        -

       -

21,132

13,946

Deferred tax asset


    786

    439

       63

       28



                

                

               

               







Total non-current assets


20,269

14,935

24,337

16,990



               

               

               

               

Current assets






Trade and other receivables


90,333

82,282

122,262

107,881

Cash and cash equivalents


34,843

30,475

 20,680

  19,303



                

               

               

               







Total current assets


  125,176

112,757

142,942

127,184



               

               

               

               







Total assets


  145,445

127,692

167,279

144,174



                

                

                

                







Equity






Issued share capital


3,053

3,053

3,053

  3,053

Share premium


1,705

1,705

1,705

  1,705

Other reserves


(1,462)

(2,851)

2,488

     901

Retained earnings


   90,444

    80,141

   522

  1,742



              

              

              

              



   93,740

82,048

7,768

  7,401

Non-controlling interest


     (29)

       (89)

       -

         -



                

                

                

                

Total equity


   93,711

81,959

7,768

  7,401



                

               

                

                

 


Cpl Resources Plc

 

Group and Company Balance Sheets (continued)

as at 30 June 2016

 

                                                                 



Group

Company



2016

2015

2016

2015



€'000

€'000

€'000

€'000

Current liabilities






Trade and other payables


  50,133

45,733

157,910

  136,773



               

              

                

              







Total current liabilities


      50,133

    45,733

   157,910

  136,773



                

              

                

             







Non current liabilities






Contingent consideration


        1,201

          -

       1,201

      -

Put option liability


           400

          -

      400

      -



                

               

                

               







Total non current liabilities


       1,601

          -

       1,601

      -



                

               

                

               







Total liabilities


      51,734

   45,733

    159,511

 136,773



                

               

                

               







Total equity and liabilities


    145,445

127,692

    167,279

 144,174



                 

               

                

                













 

 

 

 

 

 

 

Cpl Resources Plc

 

Group and Company Cash Flow Statements

for the year ended 30 June 2016

 



Group

Company

 



2016

2015

2016

2015

 



€'000

€'000

€'000

€'000

 

Cash flows from operating activities






 

Profit for the financial year


13,422

12,285

     1,911

1,217

 

Adjustments for:






 

Depreciation on property, plant and






 

Equipment


     590

   425

       510

   413

 

Share based payment charge


   1,987

   123

          -

      -

 

Amortisation of intangible assets


     343

   165

       331

   165

 

Financial income


      (61)

  (125)

      (33)

  (127)

 

Financial expense


       55

      -

          -

      -

 

Income tax expense/(credit)


   1,968

 1,797

       (35)

    13

 



               

                

               

               

 

Operating cashflows before changes in






 

working capital


    18,304

14,670

    2,684

  1,681

 







 

(Increase) in trade and other receivables


  (4,849)

(12,199)

 (14,429)

(27,323)

 

Increase in trade and other payables


      1,092

   4,073

 21,136

29,784

 



               

               

              

               

 







 

Cash generated from operations


   14,547

  6,544

  9,391

4,142

 







 

Interest (paid)


        (55)

        -

        -

     -

 

Income tax (paid)


  (2,485)

 (1,919)

        -

     (6)

 

Interest received


      110

    176

       82

   178

 



               

                

               

              

 







 

Net cash from operating activities


   12,117

  4,801

  9,473

4,314

 



               

                

              

               

 

Cash flows from investing activities






 

Investments in subsidiaries


         -

        -

  (3,999)

   (155)

 

Deferred consideration paid


         -

      (75)

         -

    (75)

 

Purchase of property, plant and






 

equipment


      (684)

    (949)

    (397)

   (925)

 

Acquisition of business (net of cash and






 

loans acquired)


  (5,083)

         -

             -

       -

 

Purchase of intangible assets


   (602)

    (842)

    (569)

   (842)

 



              

                

                

                

 







 

Net cash (outflow) from investing activities


  (6,369)

(1,866)

 (4,965)

  (1,997)

 


               

                

               

               

 







 

 

 

 

Cpl Resources Plc

 

Group and Company Cash Flow Statements (continued)

for the year ended 30 June 2016

 

 



Group

Company



2016

2015

2016

2015



€'000

€'000

€'000

€'000







Cash flows used in financing activities






Dividends paid


(3,131)

(2,978)

(3,131)

(2,978)



              

              

              

             







Net cash (used in) financing activities


(3,131)

(2,978)

(3,131)

(2,978)



              

             

              

              







Net increase/(decrease) in cash and cash






Equivalents


 2,617

     (43)

 1,377

   (661)







Cash and cash equivalents at beginning






of year


30,475

30,518

19,303

19,964



              

             

              

              

Cash and cash equivalents at






end of year


33,092

30,475

20,680

19,303



              

              

             

              

 

 

 

 

 

 

 

 

Cpl Resources Plc

 

Notes 

 

1       Financial income and expenses                                                                                   


2016

2015


€'000

€'000




Interest (income) on cash deposits

(61)

(125)

 

 

Interest expense

        

        

Interest payable

55

-


        

        




 

2       Income tax expense                                                                             

           

2016

2015


€'000

€'000

Recognised in the income statement:






Current tax expense



Current year

2,299

1,858

Adjustments in relation to prior years

26

       (24)


           

_____

Current tax expense

2,325

1,834




Deferred tax



Origination and reversal of temporary differences

(321)

(37)

Adjustments in relation to prior years

(36)

-


          

____   

Total tax in the income statement

1,968

1,797


           

__        




 

 



 

Cpl Resources Plc

 

Notes (continued)

 

Reconciliation of effective tax rate

 

2016

 

2015


€'000

€'000




Profit before tax

15,390

14,082


 _____

 _____




Tax based on Irish corporation tax rate of 12.5%

1,924

1,760




Non-deductible items

  111

46

Other deductions

  (110)

-

Differences in effective tax rates on overseas earnings

45

8

Losses on which deferred tax not recognised

8

-

Over provision in prior years

(10)

 (24)

Other

-

7


 _____

 _____




Total tax in income statement

1,968

1,797


_          

_          




                                                                                                              

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:           


2016

2015


€'000

€'000

Final dividend paid in respect of previous financial year



of 5.0 cent (2015: 5.0 cent) per ordinary share

1,527

1,527




Interim dividend paid in respect of current financial year



of 5.25 cent (2015: 4.75 cent) per ordinary share

1,604

1,451


          

          





3,131

2,978


         

         

 

The directors have proposed a final dividend in respect of the 2016 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


2016

2015


€'000

€'000

Numerator for basic and diluted earnings per share:



Profit for the financial year attributable to equity



shareholders

13,422

12,285


                  

                   

Denominator for basic earnings per share:



Weighted average number of shares in issue



for the year

30,545,159

30,545,159


                   

                  




Denominator for diluted earnings per share:

30,545,159

     30,545,159


                  

                  




Basic and diluted earnings per share

    43.9 cent

        40.2 cent


                 

                  







 

5    Trade and other receivables                               


       Group

       Company


2016

2015

2016

2015


€'000

€'000

€'000

€'000






Trade receivables

74,069

61,898

-

-

Accrued income

13,623

17,721

-

-

Prepayments and other debtors

1,915

2,212

738

1,263

Corporation tax

726

451

-

-

Amounts due from subsidiary





undertakings

-

-

121,524

106,618


              

              

            

            







90,333

82,282

122,262

107,881


              

            

            

             

 

         Amounts due from subsidiary undertakings are repayable on demand.

 

 

 

 

 

 

 

 

Cpl Resources Plc

 

Notes (continued)

 

6       Net funds                                                                      


Group

      Company


2016

2015

2016

2015


€'000

€'000

€'000

€'000






Cash and cash equivalents

34,843

30,475

20,680

19,303

Invoice discounting facility

(307)

-

-

-

Bank overdraft

(1,444)

-

-

-


            

            

            

            







33,092

30,475

    20,680

19,303






Cash and cash equivalents in





the cash flow statement

33,092

30,475

20,680

19,303


            

            

            

            






Net funds

33,092

30,475

20,680

19,303


            

            

            

            

 

 

7        Share capital, share premium, and other reserves                                                     


2016

2015


€'000

€'000

Authorised



50,000,000 ordinary shares at €0.10 each

5,000

5,000


           

           





€'000

€'000

Allotted, called up and fully paid



30,545,159 ordinary shares at € 0.10 each

3,053

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 2016 amounted to €1,705,000 (2015: €1,705,000).

 

Other reserves comprise an other undenominated capital fund of €723,666 (2015: €723,666), a merger reserve of €3,357,000 negative (2015: €3,357,000 negative) a currency translation reserve of €593,000 negative (2015: €395,000 negative), a share based payment reserve of €2,164,000 (2015: €177,000) and a put option reserve of €400,000 negative (2015: nil). 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


2016

2015

2016

2015


€'000

€'000

€'000

€'000






Trade creditors

2,788

2,576

2,135

2,073

Bank overdraft

Invoice discounting facility

Accruals

Deferred income

1,444

307

25,306

-

-

-

27,738

349

-

-

3,394

-

-

-

1,327

-

VAT

8,822

9,174

8,094

8,024

PAYE/PRSI

11,466

5,896

-

-

Amounts due to subsidiary





undertakings

-

-

144,287

125,349


            

            

             

             







50,133

45,733

157,910

136,773


             

             

             

             






 

Amounts due to subsidiary undertakings are repayable on demand.



 

Cpl Resources Plc

 

Notes (continued)

 

 

9       Acquisitions and disposals

 

On 2 September 2015, the Group acquired Pharma Professionals Limited. The provisional fair values of the assets and liabilities which were acquired, determined in accordance with IFRS, were as follows:         



Book

Fair Value

Fair



Value

Adjustment

Value



€'000

€'000

€'000






Property, plant and equipment

Trade and other receivables

Trade and other payables


53

3,532

(1,799)

-

-

-

53

3,532

(1,799)

Cash acquired


563


563

Loans acquired


(1,647)


(1,647)



            

             

             

Net identifiable assets and liabilities acquired

 


702

______

-

_______

702

______

Goodwill arising on acquisition

 

 

 

 

Satisfied by:

Cash consideration

Non - controlling interests

Contingent consideration




4,569

______

5,271

______

 

 

3,998

72

1,201

______





5,271

______











 

 

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 2016 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.

 

END

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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