Employment services provider CPL resources plc (CPS.L) reported Wednesday a plunge in its pre-tax profit for the year 2009, reflecting a recession driven 18% decline in revenue and hefty impairment charges.
For the year ended June 30, 2009, profit before tax nose dived 92% to EUR 1.68 million from EUR 20.68 million in the previous year.
This results of 2009 included goodwill and intangible assets impairment charges of EUR 8.06 million, non-recurring costs of EUR 0.66 million, offset by a credit for negative goodwill arising on an acquisition of EUR 0.4 million. Profit before tax excluding impairment of goodwill and intangible assets was EUR 9.7 million.
Profit for the year attributable to equity holders plummeted to EUR 639 thousand or 1.7 cents a share from EUR 17.97 million or 48.3 cents a share.
Operating profit plunged to EUR 0.14 million from EUR 19.8 million. CPL resources recorded adjusted operating profit of EUR 8.20 million for fiscal 2009.
Gross profit dipped 33% year-over-year to EUR 35 million from EUR 52.5 million. Gross margin reduced to 16.5%, compared to 20.4% last year, reflecting the change in business mix between permanent and temporary placements and by lower prices offered to existing customers.
Annual revenue dipped 18% to EUR 212.39 million from EUR 257.64 million in the earlier year. The company noted that fees from its permanent placement business dropped 50% to EUR 12.2 million.
John Hennessy, CPL resources' chief executive, said, "Our business in the year to June 2009 reflected the economic and labour market conditions. All our divisions felt the impact especially in the second half of the year as many of our customers dramatically slowed down hiring on a permanent basis."
In addition, the company's board recommended a final dividend of 1.5 cent per share, payable on November 27, 2009 to shareholders on record of November 13.
CPS.L is currently trading at 158.05 pence, up 15.55 pence or 10.91%, on the LSE.
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