8th Sep 2010 07:00
CPL RESOURCES plc
Full Year Results for the Year Ended 30th June 2010
CPL Resources plc, Ireland's leading employment services group, announces full year results for the year ended 30th June 2010.
Financial Highlights
|
|
2010 |
2009 |
|
|
€ m |
€ m |
|
• Sales |
189.9 m |
212.4 m |
|
• Net Fee Income |
28.2 m |
35.0 m |
|
§ Operating profit |
4.0 m |
0.14 m |
|
• Adjusted operating profit *** • Profit before tax |
4.0 m 5.3 m |
8.2 m 1.7 m |
|
• Basic earning per share § Diluted Earnings per share • Adjusted diluted earning per share *** |
12.2 cent 12.2 cent 12.2 cent |
1.7 cent 1.7 cent 23.4 cent |
|
• Conversion ratio *** |
18.8% |
27.8% |
|
• Net Cash |
43.5 m |
42.5 m |
|
• Dividend per share |
4.0 cent |
3.0 cent |
*** Note this is shown before impairment of goodwill and intangible assets in 2009
John Hennessy Chairman of the Group said
"The year to 30 June 2010 was a very challenging one for many Irish-based businesses. The downturn in the global economy, and particularly in Ireland, has been severe, and full recovery from it will take considerable time.
Our strategy balances the need to take actions to protect current profitability with the investment required to build both now and for the next cycle of growth. Despite the uncertainty we still face in the economic landscape, there are a number of positive factors that will drive growth momentum over the coming years. These include deregulation, skills shortages and increased demand for flexible employment.
Although it is too early to conclude that a sustained economic recovery has begun in Ireland or in the other markets in which we operate, we are currently experiencing gradual, but noticeable, improvements in those markets. We believe that we are well positioned to take full advantage of economic recovery as and when it occurs and to avail of other opportunities that may arise for profitable growth in our business. "
Commenting on the group's performance and outlook, Cpl Chief Executive, Anne Heraty, said:
"Against a backdrop of the most severe labour market conditions and operating environment in our 20 year history, I am pleased to report profit before tax of €5.3 million and net cash of €43.5 million in the year to June 2010. Our strong financial position is complemented by a focused team of talented people who are committed to supporting our customers with innovative and flexible workforce solutions to meet their business needs in a very difficult operating environment.
With the severity of the recession many employers have had to make deep and painful cutbacks in their workforce. We believe they are now finding that they may have cut too deeply and need to hire again, particularly in specialist areas. In addition some employers are seeing an opportunity to build capability in their businesses, taking advantage of what is an exceptionally good time to hire talented people.
There are strong long-term demand drivers for our business such as an aging population, the declining tenure of employees, the need for flexibility, increased globalisation and the pressures on customers to minimise costs. We believe that as a result of the actions we have taken this year, Cpl is well positioned to take advantage of this market opportunity. Given the current market uncertainty we remain cautious in our short term outlook, however we are optimistic about the longer term opportunities."
For Further Information:
Anne Heraty, CEO , CPL Resources, 01 6146000
Josephine Tierney, Finance Director, 01 6146000
Ends
Chairman's Statement
The year to 30 June 2010 was a very challenging one for many Irish-based businesses. The downturn in the global economy, and particularly in Ireland, has been severe, and full recovery from it will take considerable time.
The effect of these economic conditions on the employment market presented particular challenges for the Cpl Group in the year just ended. As Ireland's leading provider of employment services, economic changes affecting the jobs market have an immediate impact on our business.
I am therefore pleased to report a pre-tax profit of €5.3 million for the year ended 30 June 2010. This compares with pre-tax profits of €1.7 million (after impairment charges of €8.1 million) for the prior year.
In the year to 30 June 2010 Group gross profit fell by 19% when measured against the same period last year. However, the Group's gross profit for the six months to June 2010 was 18% higher than the six months to December 2009, and 5% higher than the gross profit generated in the six months to June 2009.
Net fee income generated by our permanent placement business, decreased by 36% in the twelve months to June 2010. However, the rate of decline slowed to 15% in the six months to December 2009, and permanent placement net fee income in the six months to June 2010 increased by 28% when compared to the previous six months. Net fee income in our temporary placement business has been more resilient to date across most of the Group. Unfortunately the pricing environment in the temporary placement business has become more challenging. This has resulted in an 11% decline in gross profit in this segment of our business compared with last year. We are, however, beginning to see an increase in demand for temporary staff, and net fee income in our temporary business in the six months to June 2010 was 14% greater than the preceding six month period and 4% higher than in the six months to June 2009.
The Group had cash balances of €43.5 million at 30 June 2010. The business generated €4.2 million from operating activities in the twelve months to June 2010, while €1.8 million was spent on acquisitions in the same period. We continue to manage our debtor book actively and carefully. Our debtor days are similar to last year, and we remain focused on ensuring that cash is collected from debtors as quickly as possible. As a result, we have not experienced any significant increase in levels of bad or doubtful debts.
In line with our stated strategy to increase the range of services we offer to our customers, we acquired four businesses in the year to June 2010. These are:
·; Loss Control Services Limited (trading asNifast) - one of Ireland's leading providers of training and consultancy in all aspects of Health & Safety;
·; Ecom Interaction Services Limited - a business process outsourcing company for customer contact management, outsourced insurance administration and back-office processes;
·; Techstaff International Limited - a construction contractor business; and
·; Servisource - a provider of a broad range of home care and health care staffing services.
We focus on services that deliver value to our clients and candidates. We continue to grow our capabilities organically and, where appropriate, acquire companies which will enhance our service offering and improve the breadth and geographic balance of our business.
Our strategy balances the need to take actions to protect current profitability with the investment required to build both now and for the next cycle of growth. Despite the uncertainty we still face in the economic landscape, there are a number of positive factors that will drive growth momentum over the coming years. These include deregulation, skills shortages and increased demand for flexible employment.
I am particularly grateful to everyone who has worked with Cpl in a very challenging year. We are operating in more difficult times but we are fortunate to have a group of highly skilled and motivated people who are committed to the Group and are constantly looking for new ways to deliver value and outstanding service to our clients and candidates. I would also like to extend the appreciation of the Board to our customers for their continued loyalty and support.
The Board is recommending a final dividend of 2.5 cent per share. This will bring the total dividend for the year to 4.0 cent per share. The dividend, if approved by the shareholders, will be payable on 26 November 2010 to shareholders on the company's register at the close of business on the record date of 19 November 2010.
Outlook
Although it is too early to conclude that a sustained economic recovery has begun in Ireland or in the other markets in which we operate, we are currently experiencing gradual, but noticeable, improvements in those markets. We believe that we are well positioned to take full advantage of economic recovery as and when it occurs and to avail of other opportunities that may arise for profitable growth in our business.
John Hennessy
Chairman
Chief Executive's Review
Against a backdrop of the most severe labour market conditions and operating environment in our 20 year history I am pleased to report profit before tax of €5.3 million and net cash of €43.5 million in the year to June 2010. Our strong financial position is complemented by a focused team of talented people who are committed to supporting our customers with innovative and flexible workforce solutions to meet their business needs in a very difficult operating environment.
Most labour market and economic indicators continued to deteriorate in 2010. Recent official figures show that 13.7% of the workforce was unemployed at the end of June. The sectors that experienced the biggest job losses since the recession began in early 2008 were the more labour intensive sectors such as construction, and wholesale/retail. Most sectors lost jobs with the exception of the ICT (Information and Communication Technology) sector where there was a small increase in jobs. There is some tentative indication that unemployment may be starting to stabilise, with the number of job losses decreasing as the year progressed. Most commentators focus on the unemployment rate, a more prescient indicator of the health of the labour market, from a recruitment point of view, is the employment rate. This is the percentage of the population between the ages of 15 - 64 who are actually in employment. Unfortunately the employment rate was down by over 9% between the last quarter of 2007 and quarter one 2010. The employment rate now stands at 60.1%, or 1.86 million people in employment, the lowest level since 1998.
In spite of these severe market conditions there were some notable achievements during the year which will help position us for long term growth.
·; We were profitable generating €5.3 million profit before tax.
·; We reduced our cost base by €2.6 million while continuing to invest in people and infrastructure to support profitable growth.
·; Over 10,500 people worked on assignments through Cpl during the year.
·; We placed over 2,500 people in permanent jobs.
·; We increased the number of consultants from 194 at the start of the year to 222 at year end.
·; We retained all our top customers and we had a number of significant customer wins.
·; We are in the process of implementing a fully integrated, web-enabled enterprise-wide information systems platform. Phase 1 is now successfully complete.
·; We continued to build our European footprint with investment in new offices in Poland and Hungary.
·; We continued to invest in our healthcare business, setting up Homecare 24-7 and acquiring Servisource.
·; Our permanent placement business, which is most correlated with the economic environment, improved in the second half of the year. Fees generated in the six months to June 2010 were 28% higher than the fees generated in the preceding six months.
·; Net fees generated from our temporary staffing business increased by 14% sequentially in the second half of the year compared with the six months to December 2009.
Financial Highlights
Group revenue declined by 11% to €189.9 million in the year to 30 June 2010 (2009: €212.4 million). Gross profit was €28.2 (2009: €35.0 million) down 19 %. The Group's gross margin decreased by 1.6% to 14.9% down from 16.5% in 2009, partly from a reduction in the spread between our bill and pay rates and also as a result of the deterioration in permanent placement which has higher gross margin.
Profit before tax was €5.3 million (2009: €1.7 million).The results for 2009 include a goodwill and intangible asset impairment charge of €8.1 million. Earnings per share were 12.2 cent, (2009:1.7 cent).
Operating expenses were €24.3 million (2009: 26.8 million). Excluding acquisitions, operating expenses were €21.8 million down 18.7% on a like for like basis. Of our cost base, 62% relates to salaries which include bonuses and commissions which are highly correlated to gross profit. Most of our additional investment in the year was made in improving our technology infrastructure which will help us achieve greater efficiencies. We continue to tightly manage our operating expenses and to align our cost base with our fee generation.
At 30 June 2010, the Group had net cash of € 43.5 million (2009: €42.5million). Even in recession, Cpl produces strong cashflow with cash generated from operating activities before payment for acquisition of €4.2 million. Our debtor and cash balances are significant assets in Cpl. We ended the year with €33.7 million in trade debtors. Our cash balances and debtors are equivalent to 78% of our total assets.
We paid our shareholders an interim dividend of 1.5 cent per share. The Board is recommending a final dividend of 2.5 cent per share in respect of the year to 30 June 2010. The total dividend per share for the year is 4 cent, 33% higher than last year.
Operations Review
Cpl Resources plc is recognised as a leader in the provision of specialist recruitment and outsourcing services. Our capability spans the entire employment lifecycle and includes permanent, temporary and contract recruitment, workforce management, training, performance consulting, outsourcing and career transition. We have a broad and diverse range of customers from market-leading multi-nationals to small and medium enterprises.
During the year we continued to measure performance and some of our key performance indicators are outlined below.
Key performance indicators
2010 2009
|
Gross Margin |
|
14.9% |
16.5% |
|
Operating Margin |
|
2.1% |
**3.9% |
|
Conversion Ratio |
|
18.8% |
**27.8% |
|
|
|
|
|
|
Permanent Fees as % of total gross profit |
|
28% |
35% |
|
Temporary Fees as % of total gross profit |
|
72% |
65% |
|
|
|
|
|
|
Contractor and temporary staff headcount at year end |
|
4,680 |
4,860 |
|
|
|
|
|
|
Number of Recruiters at year end |
|
222 |
194 |
** 2009 figures are stated before impairment charges.
Our Gross margin in 2010 declined by 1.6%. This is partly due to pricing pressure and also to the business mix, with higher margin permanent placement facing a severe downturn. Net fee income from temporary staff recruitment declined by 10.5%, and represented 72% of gross profit in 2010. Our permanent business which generates 100% gross margin declined by 36% and represented 28% of gross profit in 2010.
Our operating margin was 2.1% down from 3.9%. We are continuing to focus on effectively managing our cost base and at the same time we are targeting investment where we see opportunity for long term growth and profitability. This year we invested in a web-enabled enterprise-wide information systems platform which will enable us to continue to improve our services to customers and to drive efficiencies across our business. We developed new web sites for our businesses in Poland, Czech Republic, and Slovakia. We also invested in start up costs to open new offices in Hungary and Poland and to launch our Homecare business.
Our conversion ratio was 18.8% down from 27.9%. The time to fill rate which is the length of time it takes a recruiter to fill a job has a significant impact on our productivity and conversion ratio. In recession it takes longer to place a candidate in a job with a higher risk of vacancies being cancelled or hiring freezes and candidates become more cautious about moving jobs.
Permanent Placement.
Overall net fees from permanent placement were down 36% in the year to June 2010, this followed on a 51% drop in the year to June 2009. The first half of the year was exceptionally difficult; however we experienced an increase in demand in the second half, particularly for people with specialist skills. This resulted in an increase of 28% in net fees from permanent placement in the second half of the year to June 2010. With the severity of the recession, many employers have had to make deep and painful cutbacks in their workforce. We believe they are now finding that they may have cut too deep and now need to hire, particularly in specialist areas. In addition, some employers are seeing an opportunity to build capability in their business, taking advantage of what is an exceptionally good time to hire talented people.
Temporary/contract placement
Our temporary and contract staff work in a wide range of industries and functional areas. We source interesting and challenging assignments for them and pay competitive rates while also providing flexible work options. Temporary and contract work is increasingly perceived as an attractive option by individuals, it enables them to gain a broad range of experience, build their skills and therefore increase their earning potential.
Fees generated from temporary assignments continued to be more resilient than fees from permanent placement. Fees from temporary/contract placement represented 72% of Group fees. While the number of temporary staff on customer site was down year on year, the trend in the second half was upward with an increase of 14% in fees from temporary assignments between the first and second half of the year. In a very difficult economic environment the advantage of using temporary and contract staff is clear. Cpl has the ability to deliver a variable cost component to a customer's otherwise fixed labour costs. With the need to make painful cutbacks in workforces fresh in the minds of many employers they may now see the benefit of employing temporary workers. While the use of temporary staffing is widely accepted for lesser skilled roles, this year we saw the number of professionals looking to work on a temporary/contract basis increasing. This, we believe, is due to the candidate's desire for more flexible hours and work arrangements and also the desire for challenging and interesting work which helps build skills and experience. Cpl has a large well established technical contracting business with contractors working assignments both here in Ireland and across Europe. We are seeing greater demand for temporary and project work in other professional roles such as Accountancy, Finance and Engineering.
Acquisitions
In line with our stated strategy, to increase the range of services we offer to our customers, we acquired the business and assets of the following companies during the year.
July 2009 Ecom Interaction is a business process outsourcing company for customer contact management, outsourced insurance administration and back-office processes. They have a blue chip customer base in finance, technology and commercial sectors. We are pleased with the performance of Ecom Interaction during the year, we have had some significant client wins and the business was profitable throughout the year.
July 2009 Nifast is one of Ireland's leading providers of training and consultancy in all aspects of health & safety. Established 22 years ago, Nifast assists companies in reducing the risks of accidents in the workplace and in managing their health and safety compliance to fulfil their statutory duties as employers. They are now fully integrated into the Cpl Group and are providing additional services to our customer base.
July 2009 Techstaff International Ltd supplies contractors in the construction sector. The business has integrated well with our Technical & Engineering Company, Tech Skills Resources Ltd. The combined entity specialises in the Irish Technical services arena.
Feb 2010 Servisource was established in 2000 to provide a broad range of home care and health care staffing services. Healthcare is a diverse and dynamic industry and the acquisition of Servisource complements Cpl's existing healthcare business. There is a growing need for qualified specialist health care staff on both a temporary and full time basis and employees are looking for more flexibility with their careers. The challenges of health care provision have become more complex, resulting in a significant opportunity for our healthcare business. The key drivers of these opportunities are advances in medical procedures and technology, an aging population, the need for flexibility to meet spikes in demand and the shortage of specialist nurses and healthcare professionals.
Cpl continues to look for suitable acquisition opportunities in order to enhance our service offering to our customers and to improve the geographic balance of our business.
Overseas Offices
We are continuing to build our international presence. The economic environment last year affected both revenue and profitability in our overseas offices. We made a number of organisational changes during the year, hiring additional talent, building our web presence in each country and opening an office in Hungary and a second office in Poland. As a result of these changes we saw improvement in net fees in the second half of the year and this momentum has continued over the summer months. We see significant opportunity for these offices.
People
The Cpl team worked incredibly hard to navigate the company through a difficult year. I want to take this opportunity to thank each and every member of our team for their commitment to delivering for our customers. I would like to welcome those people who joined us during the year, especially those who were employees of the businesses we acquired. We will continue to proactively invest in our people, supporting them to build their skills and capability. This in turn strengthens our service to clients. I would like to thank our customers for their loyalty and support.
Outlook
While there is a large amount of uncertainty about the economic outlook for the coming year, we are committed to improving our performance by growing our revenue and our profitability. We are determined to earn more of our existing customers' business in addition to winning new customers. There are strong long-term demand drivers for our business such as an aging population, the declining tenure of employees, the need for flexibility, increased globalisation and the pressures on customers to minimise costs. We believe that as a result of the actions we have taken this year, Cpl is well positioned to take advantage of this market opportunity. Given the current market uncertainty we remain cautious in our short term outlook, however we are optimistic about the longer term opportunities.
Group income statement
for the year ended 30 June 2010
|
|
Year ended |
Before impairment losses |
Impairment losses |
Year ended |
|
|
30 Jun 2010 |
30 Jun 2009 |
30 Jun 2009 |
30 Jun 2009 |
|
|
€'000 |
€'000 |
€'000 |
€'000 |
|
|
|
|
|
|
|
Revenue |
189,856 |
212,398 |
- |
212,398 |
|
Cost of sales |
(161,640) |
(177,410) |
- |
(177,410) |
|
|
|
|
|
|
|
Gross profit |
28,216 |
34,988 |
- |
34,988 |
|
Distribution expenses |
(1,677) |
(1,575) |
- |
(1,575) |
|
Administrative expenses |
(22,574) |
(25,209) |
(8,061) |
(33,270) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
3,965 |
8,204 |
(8,061) |
143 |
|
Financial income |
1,335 |
|
|
1,552 |
|
Financial expenses |
(9) |
|
|
(12) |
|
|
|
|
|
|
|
Profit before tax |
5,291 |
|
|
1,683 |
|
Income tax expense |
(793) |
|
|
(1,002) |
|
|
|
|
|
|
|
Profit for the Financial Year |
4,498 |
|
|
681 |
|
Attributable to: |
|
|
|
|
|
Equity Shareholders |
4,525 |
|
|
639 |
|
Minority interest |
(27) |
|
|
42 |
|
|
4,498 |
|
|
681 |
|
|
|
|
|
|
|
Basic earnings per share |
12.2 cent |
|
|
1.7 cent |
|
|
|
|
|
|
|
Diluted earnings per share |
12.2 cent |
|
|
1.7 cent |
Group Balance Sheet
As at 30 June 2010
|
|
Year ended |
Year ended |
|
|
30 Jun 2010 |
30 Jun 2009 |
|
€'000 |
€'000 |
|
|
Assets |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
1,424 |
1,444 |
|
Goodwill and intangible assets |
11,293 |
9,979 |
|
Deferred tax asset |
325 |
263 |
|
Total non-current assets |
13,042 |
11,686 |
|
|
|
|
|
Current assets |
|
|
|
Trade and other receivables |
33,703 |
29,424 |
|
Corporation tax receivable |
322 |
409 |
|
Short term bank deposits |
- |
19,995 |
|
Cash and cash equivalents |
43,461 |
22,505 |
|
Assets classified as held for sale |
150 |
- |
|
Total current assets |
77,636 |
72,333 |
|
Total assets |
90,678 |
84,019 |
|
|
|
|
|
Equity |
|
|
|
Issued capital |
3,720 |
3,720 |
|
Share premium |
1,705 |
1,705 |
|
Merger reserve |
(3,300) |
(3,300) |
|
Retained earnings |
60,869 |
57,460 |
|
|
62,994 |
59,585 |
|
Non-controlling interest |
71 |
98 |
|
Total equity |
63,065 |
59,683 |
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Financial liabilities |
158 |
81 |
|
Provisions |
700 |
- |
|
Total non-current liabilities |
858 |
81 |
|
Current liabilities |
|
|
|
Financial liabilities |
126 |
34 |
|
Trade and other payables |
26,620 |
23,814 |
|
Provisions |
9 |
407 |
|
Total current liabilities |
26,755 |
24,255 |
|
Total liabilities |
27,613 |
24,336 |
|
Total equity and liabilities |
90,678 |
84,019 |
Group statement of changes in equity
for the year ended 30 June 2010
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
conversion |
|
|
|
|
|
|
|
Share |
Share |
Reserve |
Merger |
Retained |
|
Non-controlling |
Total |
|
|
capital |
premium |
fund |
reserve |
earnings |
Total |
interest |
equity |
|
|
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 July 2008 |
3,720 |
1,705 |
57 |
(3,357) |
58,309 |
60,434 |
56 |
60,490 |
|
Profit for the financial year |
- |
- |
- |
- |
639 |
639 |
42 |
681 |
|
Dividends paid |
- |
- |
- |
- |
(1,488) |
(1,488) |
- |
(1,488) |
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2009 |
3,720 |
1,705 |
57 |
(3,357) |
57,460 |
59,585 |
98 |
59,683 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 July 2009 |
3,720 |
1,705 |
57 |
(3,357) |
57,460 |
59,585 |
98 |
59,683 |
|
Profit for the financial year |
- |
- |
- |
- |
4,525 |
4,525 |
(27) |
4,498 |
|
Dividends paid |
- |
- |
- |
- |
(1,116) |
(1,116) |
- |
(1,116) |
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2010 |
3,720 |
1,705 |
57 |
(3,357) |
60,869 |
62,994 |
71 |
63,065 |
Group cash flow statement
for the year ended 30 June 2010
|
|
Year ended |
Year ended |
|
|
30 Jun 2010 |
30 Jun 2009 |
|
|
€'000 |
€'000 |
|
Cash flows from operating activities |
|
|
|
Profit for the financial year |
4,498 |
681 |
|
Adjustments for: |
|
|
|
Depreciation on property, plant and equipment |
463 |
437 |
|
Loss on disposal of fixed assets |
7 |
- |
|
Adjustment to deferred consideration |
(317) |
- |
|
Amortisation of intangible assets |
594 |
409 |
|
Financial income |
(1,335) |
(1,552) |
|
Financial expense |
9 |
12 |
|
Income tax expense |
793 |
1,002 |
|
Impairment of goodwill |
- |
7,157 |
|
Impairment of intangible assets |
- |
904 |
|
Operating profit before changes in working |
|
|
|
capital and provisions |
4,712 |
9,050 |
|
(Increase)/decrease in trade and |
|
|
|
other receivables |
(1,685) |
6,459 |
|
Increase/(decrease) in trade and other payables and provisions |
906 |
(5,017) |
|
Cash generated from operations |
3,933 |
10,492 |
|
Interest paid |
9 |
(12) |
|
Income tax refunded / ( paid) |
(800) |
(1,852) |
|
Interest received |
1,078 |
1,405 |
|
Net cash from operating activities |
4,220 |
10,033 |
|
Cash flows from investing activities |
|
|
|
Acquisition of businesses, net of cash acquired |
(1,628) |
(760) |
|
Deferred consideration paid |
(162) |
(2,416) |
|
Purchase of property, plant and equipment |
(236) |
(340) |
|
Purchase of intangible assets |
(87) |
(75) |
|
Transfer from /(to) short term deposits |
19,995 |
(19,995) |
|
Net cash from investing activities |
17,882 |
(23,586) |
|
Cash flows from financing activities |
|
|
|
Decrease in finance leases |
(30) |
- |
|
Dividends paid |
(1,116) |
(1,488) |
|
Net cash from financing activities |
(1,146) |
(1,488) |
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
20,956 |
(15,041) |
|
Cash and cash equivalents at beginning of year |
22,505 |
37,546 |
|
Cash and cash equivalents end of year |
43,461 |
22,505 |
CPL Resources plc
Notes to Preliminary results for the year ended 30 June 2010.
1 Basis of preparation
The financial information included in this preliminary result statement has been extracted from the Group's financial statements for the year ended 30 June 2010 and is prepared based on the accounting policies set out therein. As permitted by European Union (EU) law and in accordance with AIM/ESM rules, the Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU. The Group Financial Statements have been approved by the Board of Directors on 7 September 2010 and will be filed with the Irish Registrar of Companies and circulated to shareholders in due course.
The financial information is presented in euro, rounded to the nearest thousand.
|
2 Income tax expense |
2010 |
2009 |
|
|
€'000 |
€'000 |
|
Recognised in the income statement: |
|
|
|
Current tax expense |
|
|
|
Current year |
833 |
1,353 |
|
Adjustments for prior years |
54 |
(86) |
|
|
|
|
|
Current tax expense |
887 |
1,267 |
|
Deferred tax |
|
|
|
Origination and reversal of temporary differences |
(94) |
(265) |
|
|
|
|
|
Total tax in the income statement |
793 |
1,002 |
|
|
|
|
|
Reconciliation of effective tax rate |
2010 |
2009 |
|
|
€'000 |
€'000 |
|
|
|
|
|
Profit before tax |
5,291 |
1,683 |
|
|
|
|
|
Tax based on Irish corporation tax rate of 12.5% (2009: 12.5%) |
661 |
210 |
|
|
|
|
|
Non-deductible items |
122 |
40 |
|
Goodwill impairment losses not deductible for tax purposes |
- |
894 |
|
Non-taxable adjustment for negative goodwill |
- |
(52) |
|
Income taxed at higher rate |
101 |
194 |
|
Losses utilised |
(101) |
(171) |
|
Foreign income taxed at higher rate |
(44) |
40 |
|
Other timing differences |
- |
(67) |
|
Under/(over) provision in prior year |
54 |
(86) |
|
|
|
|
|
Total tax in income statement |
793 |
1,002 |
|
3 Impairment losses |
2010 |
2009 |
|
|
€'000 |
€'000 |
|
Goodwill impairment charge |
- |
7,157 |
|
Intangible asset impairment charge |
- |
904 |
|
|
- |
8,061 |
|
4 Earnings per share |
2010 |
2009 |
|
|
€'000 |
€'000 |
|
Numerator for basic and diluted earnings per share: |
|
|
|
Profit for the financial year attributable to equity shareholders |
4,525 |
639 |
|
Denominator for basic earnings per share: |
|
|
|
Weighted average number of shares in issue |
|
|
|
for the year |
37,211,825 |
37,211,825 |
|
Effect of dilutive potential ordinary shares (share options) |
- |
7,023 |
|
|
|
|
|
Denominator for diluted earnings per share: |
37,211,825 |
37,218,848 |
|
|
|
|
|
Basic earnings per share |
12.2 cent |
1.7 cent |
|
|
|
|
|
Diluted earnings per share |
12.2 cent |
1.7 cent |
|
|
|
|
|
|
2010 |
2009 |
|
|
€'000 |
€'000 |
|
Adjusted fully diluted earnings per share |
|
|
|
Profit for the financial year attributable to equity shareholders |
4,525 |
639 |
|
Adjustments |
|
|
|
Impairment losses |
- |
8,061 |
|
|
|
|
|
Adjusted fully diluted earnings |
4,525 |
8,700 |
|
|
|
|
|
Denominator for adjusted diluted earnings per share: |
37,211,825 |
37,218,848 |
|
|
|
|
|
Adjusted fully diluted earnings per share |
12.2 cent |
23.4 cent |
Related Shares:
CPS.L