CPL Resources

Irish recruitment star CPL Resources’ unfettered share price growth continues, thanks to consistently strong results under chief executive and major shareholder Anne Heraty.

Record interims to December were awash with highlights, among them a 75% surge in pre-tax profits to €8m (£5.3m) – even more impressive given that 86% profits growth was delivered the previous year – delivered from a 40% sales rise to €94m (£63m) as income ‘outpaced’ costs. Earnings were a record 18.9 cents (12.6p) per share, and allowed for a half-time dividend of 1.75 cents.

These numbers were achieved on excellent organic growth rates across all businesses during the half. Income within the permanent placement business spiralled 46% higher on burgeoning demand for IT, telecoms and finance staff. Contractor and temporary fees raced 57% north on demand for staff across sectors ranging from office management and customer service to workers for the engineering, healthcare and biotechnology sectors. Another intriguing turn came from CPL Managed Services, which manages call centres and administrative services for clients.

Should such glowing organic growth rates falter, CPL has the firepower to finance deals both in Ireland and elsewhere, having closed the half with €26.2m (£17.5m) cash. Alongside the interims, CPL bought 75% of Key 6 Business Solutions, a venture with offices in Prague and Bratislava that should help with expansion in the Central European market. ‘It dovetails with our existing business in Poland and complements our current suite of specialist recruitment companies,’ enthused Heraty.

CPL trades on a lofty historic earnings multiple of 30.7 after a superb share price rise, a true growth company rating. Book some profits, but retain a stake in this fast-growing recruitment star with a solid yield. Reduce.