CPL Resources Plc. (CPS.L) Monday reported a fall in first-half profit, impacted by the deterioration in market conditions in most of the countries, where CPL operates. The company also recorded a goodwill impairment charge during the period.
The Ireland's employment services company's pre-tax profit for the first half dropped to EUR 1.52 million from EUR 11.73 million in the previous year. Profit for the period fell to EUR 739 thousands from EUR 10.2 million last year.
Profit attributable to equity shareholders was EUR 697 thousand or 2.0 cents per share, compared to EUR 10.19 million or 27.4 cents per share in the prior-year period.
The company recorded goodwill impairment charge of EUR 4.5 million during the six-month period.
Revenues for the period declined to EUR 118.94 million from EUR 132.42 million in the earlier year.
The Board is recommending an interim dividend of 1.5 cent per share, to shareholders of record on February 13, payable on March 13.
The company noted that net fee income from the permanent placement business decreased by 40% during the period.
Looking ahead, CPL said, "We are continuing to respond appropriately to these challenges by managing our cost base, focusing on cash generation and maximizing our opportunities in both the temporary and permanent placement markets. We have reduced our costs significantly, we are maintaining our focus on the delivery of valuable products and quality services to our clients and candidates."
CPS.L closed at 93 pence on January 28 on the LSE.
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