Final Results

CPL Resources PLC
13 September 2002


                               CPL RESOURCES PLC

                        CPL Resources Remains Profitable
                 Despite IT Sector Downturn and Economic Slump


CPL Resources plc, Ireland's leading employment services group, today announced
full year results for the year ended 30th June 2002.


Highlights


  • Solid performance, through cost control and diversification in
    exceptionally difficult trading conditions;


  • Group revenue decreased by 22% to €27.3m (2001: €33.3m);


  • Operating costs reduced by 26%, with €2.7m expenses removed;


  • Profit before tax €1.3m, (2001: €5.1);


  • Earning per share 2.7cent (2001: 10.7 cent);


  • Strong balance sheet, with net cash balance of €4.3m unchanged after
    acquisition;


  • Successful integration of Anne O'Brien and other Marlborough businesses,
    including €4.4m contribution to group turnover;


  • Successful strategy of diversifying into new sectors and services.


Commenting on the results, Anne Heraty, Chief Executive of CPL Resources Plc
said:


'The year to June 2002 was the most challenging faced by the group since its
formation. The major impact was on our IT division, which until recently was our
primary source of growth. This, together with a general weakening of employment
demand in Ireland, created particularly difficult trading conditions. However,
the decline in business opportunity was offset by our successful diversification
strategy and selective cost cutting, which resulted in our remaining profitable
when others in the employment services sector have made losses or gone out of
business'.


Diversification Strategy - Organically and through Acquisition

'Our diversification strategy has seen us reduce our dependency on the IT sector
as we now apply our core competencies successfully across a range of business
sectors. These include, Finance and Accounting; Healthcare and Pharmaceutical;
Sales; Engineering and Office Support, as well as IT.


'We have also shifted the balance of revenues from permanent staff to temporary
and contract employees, adapting to our clients' growing need for flexible and
cost effective employment services. The number of temporary employees in the
group has grown by 245% in the year to the end of June', she said.


Ms Heraty went to describe the successful acquisition in the past year. 'Early
in 2002, we seized the opportunity to acquire the Anne O'Brien business and
other former operations of the Marlborough Group. By the end of June, these
businesses had been successfully integrated into the CPL group, making a
contribution to turnover of €4.4m. Our strategy includes seeking out further
acquisitions in the future, where more businesses will benefit from the
excellent management and infrastructure already in place in CPL'.


Cost Control and Cash Management

Ms Heraty also described how cost reductions have been implemented without
diminishing the quality of service to clients or incurring major redundancy
costs. 'We are pleased to have been able to streamline our business effectively
with no negative impact on our clients or our valued staff. Through selective
cost cutting and prudent cash management - we have further reduced debtor days
by 12% in the period - we have reduced our operating expenses by over 25%,
removing €2.7 million operating expenses. This has left our balance sheet in a
strong position with net cash balance of €4.3 million, unchanged on the year in
spite of the acquisition of Anne O' Brien business'.


Group chairman, Mr John Hennessy, commended the management and staff on such a
solid performance in difficult circumstances. 'The year under review has
presented many difficult challenges for all of our people, many of whom have not
had to face adverse economic conditions before. I am particularly grateful to
our management and staff for meeting these challenges with such positive energy
and loyalty. The strength and ability of the management team must also be
commended in devising a strategy and sticking to it through adversity.
Diversification and cost control are the twin pillars of a strategy which will
see us through these difficult conditions', he said.


Outlook and Dividend

The chairman said that while there was no immediate prospect of a significant
improvement in the trading environment, the Group was well positioned to
continue to adapt to the conditions. 'The difficult trading conditions
experienced in the year to 30 June 2002 have continued since that date and there
is no clear indication yet that that the market is entering a period of
sustained recovery. However, the Group continues to trade profitably and remains
very well positioned to continue to expand and diversify effectively. This will
allow us respond quickly and positively to improvements in the market and the
economy as well as seize further strategic opportunities as they arise.'


The final dividend of 0.65 cent per share is proposed, bringing the total
dividend for the year to 1.25 cent per share, unchanged from last year.




CPL Resources Plc
Consolidated Profit and Loss Account
For the Year Ended 30 June 2002
                                                                       2002              2001
                                                                      €'000             €'000
Turnover
- Continuing operations                                              22,878            35,003
- Acquisitions                                                        4,420                 -
                                                                     27,298            35,003

Cost of sales                                                      (18,470)          (19,402)

Gross Profit                                                          8,828            15,601
Administrative expenses                                             (6,785)           (9,097)
Distribution expenses                                                 (852)           (1,243)

Operating Profit
- Continuing operations                                                 934             5,261
- Acquisitions                                                          257                 -
                                                                      1,191             5,261
Interest, net                                                           111             (113)

Profit on Ordinary Activities before Taxation                         1,302             5,148

Taxation on profit on ordinary activities                             (319)           (1,182)

Profit for the Financial Year                                           983             3,966
Dividends paid and proposed                                           (452)             (452)

Retained profit for the year                                            531             3,514

Profit and Loss Account, start of year                                9,755             6,241

Profit and Loss Account, end of year                                 10,286             9,755

Earnings per ordinary share                                        2.7 cent         11.0 cent

Fully diluted earnings per ordinary share                          2.7 cent         10.7 cent





CPL Resources Plc
Consolidated Balance Sheet - 30 June 2002
                                                                              2,002                    2,001
                                                                              €'000                    €'000
Fixed Assets
Tangible assets                                                               1,117                    1,347
Intangible assets                                                             4,595                    3,565

                                                                              5,712                    4,912
Current Assets
Debtors                                                                       6,645                    7,303
Cash at bank and in hand                                                      5,567                    6,523

                                                                             12,212                   13,826
Creditors: Amounts falling due within one year                              (5,244)                  (5,736)

Net Current Assets                                                            6,968                    8,090

Total Assets less Current Liabilities                                        12,680                   13,002

Creditors: Amounts falling due after more than one year                       (418)                  (1,211)

Provisions for Liabilities and Charges
- deferred taxation                                                               -                     (60)

Net Assets                                                                   12,262                   11,731

Capital and Reserves
Called up share capital                                                       3,620                    3,620
Capital conversion reserve fund                                                  57                       57
Share premium                                                                 1,656                    1,656
Merger reserve                                                              (3,357)                  (3,357)
Profit and loss account                                                      10,286                    9,755

Shareholders' Funds - all Equity                                             12,262                   11,731





CPL Resources Plc
Consolidated Cash Flow Statement
For the Year Ended - 30 June 2002
                                                                                  2,002              2,001
                                                                                  €'000              €'000

Net Cash Inflow from Operating Activities                                         2,402              7,061

Returns on Investments and Servicing of Finance                                     111              (113)
Taxation                                                                        (1,345)            (1,208)

Capital Expenditure and Financial Investment                                       (26)              (160)

Acquisitions, net of cash acquired                                                (659)            (1,249)

Equity Dividends paid                                                             (452)              (399)

Cash Inflow before Financing                                                         31              3,932
Financing                                                                         (818)                  3

(Decrease) / Increase in cash                                                     (787)              3,935

Reconciliation of Net Cash Flow to Movement in Net Debt

(Decrease) / Increase in cash in the year                                         (787)              3,935
Cash outflow (inflow) from decrease in debt and lease financing                     818                (3)

Movement in Net Funds in the Year                                                    31              3,932

Net Funds, beginning of year                                                      4,305                373

Net Funds, end of year                                                            4,336              4,305




For further information
Contact

Anne Heraty
353 1 6146000

Issued on behalf of CPL by Whelan Communications
Contact

Brian Whelan
353 1 8872644/ 353 (0) 86 8177178

Suzanne Mc Cormack
353 1 8872684/353 (0) 868573927



13 September, 2002


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