CPL jumps on upbeat earnings forecast
Shares in recruitment group CPL Resources jumped by over 4% as it hinted at full-year profit growth of around 15%.
The group is due to publish annual results for the 12 months to the end of June on September 11. In a brief trading update, CPL said pre-tax profits for the year are expected to be “in line with market expectations” and will reflect growth, as will revenues.
Davy’s Ross Harvey said this would imply profit growth of 15% for the year.
“Achieving this in the context of a challenging UK healthcare environment highlights the company’s adaptability, while a strong temp performance in response to changing market needs, demonstrates execution capability,” he said.
“We are particularly encouraged by the strong temp performance, given that it demonstrates CPL’s ability to capitalise on a market-wide shift by client companies and candidates towards favouring more flexible employment structures,” Mr Harvey said.
“Current market conditions are favourable with high demand for talent and low unemployment rates in key markets,” CPL said.
However, it said it remains conscious of the impact of political, regulatory and economic events globally.
“To balance these dynamics, and cognisant that the business carries good momentum from 2018, we expect to put through modest (2% to 3%) upgrades to our financial year 2019 pre-tax profit forecast, bringing it from €19.2m to around €19.7m,” said Mr Harvey.
CPL reported double-digit revenue, profit and earnings per share growth at the halfway stage of its just completed financial year.
