Half Yearly Report



Cpl Resources plc

Results for the Half Year Ended 31 December 2011

Cpl Resources plc, Ireland's leading employment services group, today announced results for the half year ended 31st December 2011.

Chairman's statement

I am pleased to report that in the six months to 31 December 2011 the Cpl Group ('Cpl' or the 'Group') delivered a strong operating performance and recorded increases in revenues and profits.

Highlights

" 28% increase in revenues to €143 million

" 27% increase in operating profit to €4.2 million

" Interim dividend per share of 3 cent (2010: 2.5 cent)

The economic uncertainty in Ireland and in other markets in which we operate has not abated in the six months to December 2011. As with many businesses this uncertainty and its effects on employment and on business confidence generally have given rise to very challenging trading conditions.

Against this background the Group's performance in the six months to 31 December 2011 has been strong. We have concentrated our efforts on meeting the changing needs of companies and candidates while managing our own cost base carefully. We have recorded an increase in our fees from permanent placements by 16.3% over the same period last year, while we have continued to experience significant pressure on prices and margins we are pleased to report a 24.2% increase in net fees from the placement of temporary employees. I am also pleased to report the continued profitable growth in our businesses outside Ireland.

The achievement of strong results and the maintenance of positive momentum in such uncertain times reflect outstanding commitment to the provision of excellent service across the whole Group. On behalf of the Board I would like to thank the management and staff of Cpl, in Ireland and overseas, for all of their continuing efforts. I would also like to extend the appreciation of the Board to our customers for their continued loyalty and support.

Tender Offer

During the six months to 31 December 2011 we announced a Tender Offer to return up to €20 million in surplus capital to shareholders by acquiring some of their shares in Cpl. The Board was pleased to note that the Tender Offer was fully taken up. The Group purchased 6,666,666 shares at €3 per share. All shares acquired have been cancelled, and this has given rise to a positive effect on the Group's earnings per share.

Earnings per Share

Our reported basic EPS of 10.9 cent per share was based on a weighted average number of shares in issue over the course of the six months of 36.10 million shares. The Group had 37.211 million shares in issues prior to the Tender Offer. The number of issued shares at 31 December 2011 is 30.545 million shares.

Dividend & Dividend Policy

As previously indicated, the Group's dividend policy is unaffected by the return of capital to shareholders. The Board is declaring an interim dividend of 3 cent per share. The dividend will be payable on 12 March 2012 to shareholders on the company's register at the close of business on the record date of 10 February 2012. The Group has a progressive dividend policy which reflects underlying earnings growth and the continued strength of the Group's balance sheet.

Outlook

Notwithstanding the Group's strong performance in the six months to 31 December 2011, very significant uncertainties remain in our principal markets. Although we expect to maintain our position in those markets, we do not anticipate that those markets themselves will grow significantly in the near future. As a consequence, it's not possible to forecast future performance with any certainty. We will, however, continue to focus on the delivery of excellent service to clients and candidates and to position ourselves to take advantage of any opportunities for growth that may arise.

John Hennessy

Chairman

27 January 2012

Condensed group Statement of Changes in Equity

For the period ended 31 December 2011

Notes supporting condensed interim financial statements

1. Basis of preparation

The consolidated financial information of the Group has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS), including interpretations issued by the International Accounting Standards Board ("IASB") and its committees and adopted by the EU.

The figures for the half year ended 31 December 2011 are unaudited. The comparative figures for the half year ended 31 December 2010 are also unaudited. The amounts for the year ended 30 June 2011 represent an abbreviated version of the Group's full financial statements for the year on which the auditors issued an unqualified audit report.

The preparation of financial information in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

2. Dividends to equity shareholders

3. Earnings per ordinary share

The earnings per ordinary share is calculated on the basis that the weighted average number of shares in issue for the half year ended 31 December 2011 is 36,100,714 (period ended 31 December 2010 - 37,211,825; year ended 30 June 2011 - 37,211,825). It has been calculated based on the profit for the financial period ended 31 December 2011 of €3,939,000 (period ended 31 December 2010 - €3,376,000; year ended 30 June 2011 - €7,159,000).

4. Share capital, share premium, and other reserves

5. Tender Offer

The Tender Offer described in the circular issued by the Company to its shareholders on 3 October 2011 (the "EGM Circular") closed on 1 November 2011 in accordance with its published timetable. A total of 14,372,768 Ordinary Shares were validly tendered at the Tender Price pursuant to the Tender Offer which equates to approximately 38.6 per cent of the 37,211,825 Ordinary Shares in issue at that time. The total number of Ordinary Shares purchased by the Company pursuant to the Tender Offer was 6,666,666 for a total consideration, before expenses, of approximately €20 million.

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