CPL Resources

A diversification strategy continues to pay off handsomely for successful Irish staffer CPL Resources, which seems to be thriving whilst other recruiters struggle. Chaired by John Hennessy, CPL operates across a wide variety of industries like finance, technology, engineering, healthcare, pharmaceutical and the light industrial sector - and this spread into new markets has helped mitigate the negative effects of many sector downturns. In another tough half to December, pre-tax profits were hauled 35% higher to Û941,000 on turnover boosted a bumper 48% to Û34.7m. This translated into a 40% earnings hike to 2.1 cents per share. CPL also sports considerable balance sheet strength. Net cash at the half year was Û4.3m, Û2.1m higher than at December 2002, yet Û2.1m lower than the year-end due to the effect on working capital of the highly cyclical nature of certain parts of the business. Placing temporary staff is an increasingly important part of the business, and peering ahead, Hennessy says CPL is investing in new systems to boost the efficiency of its service to clients and candidates alike. Last financial year to June, CPL made pre-tax profits of Û1.7m, up 41%, on a 92% turnover hike to Û52.4m. Another impressive year looks to be shaping up.

Sector: General Industrials

Companies: CPL Resources

Market cap: £20.3m

PE Forecast: n/a

Share price: 55.5p

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