Cpl Resources plc (CPL:ID) (CPS:LN, sterling quote) (DQ5, its actual ISE/Euronext ticker) is Ireland’s leading recruitment firm – founded 30 years ago by CEO Anne Heraty, it’s been listed since its 1999 IPO. It provides talent & workforce solutions, via 13,000+ recruiters/contractors/temporary staff in 47 offices across 9 countries, focused primarily on Ireland, the UK, and Central & Eastern Europe. It operates via distinct specialist brands in sectors including technology, healthcare, pharmaceutical & life sciences, engineering, light industrial, finance & accounting, human resources & office administration, and sales. It boasts a broad range of clients from global multinationals to startups to local SMEs, and operates across the full talent spectrum from permanent, contract & temporary recruitment to the provision of managed workforce solutions & strategic talent advisory services.
In its FY-2019 annual report (NB: FY ended Jun-2019), Cpl reported record results & the launch of Covalen, its new managed solutions brand. Revenue increased 8% year-on-year to €565 million, with gross profit (i.e. net fee income) up 16% to €96 million, delivering 30% growth in adjusted operating profit (to €26 million) & exceptional 37% growth in diluted EPS to 77.2 cents a share. This is reflected in an annual dividend up 41% & a balance sheet boasting over €40 million in net cash. Cpl Resources now trades at €7.05 a share…a €193 million market cap, an enterprise value of €153 million & a 9.1 P/E multiple!
Wow…soooo, what’s the catch?!