Final Results

CPL Resources PLC
09 September 2004



                               CPL RESOURCES PLC


         Strong operational and financial performance by CPL Resources


Cpl Resources plc, Ireland's leading employment services group, is delighted to
report an excellent operational and financial performance for the year ended 30
June 2004. The group's turnover increased by 41%, over the prior year, to €73.9
million. The group's gross profit (i.e. net fee income) grew by 25% to €13.3
million. Pre-tax profits increased by 49% to €2.6 million. Fully diluted
earnings per share were 5.9 cent, up by 55% from 3.8 cent in 2003.


A final dividend of 0.6 cent per share is proposed, bringing the total dividend
for the year to 1 cent per share.


Commenting on the group's performance, Cpl Chief Executive, Anne Heraty, said:


'We are passionate about the quality of service we provide to our clients and as
a result we won a high level of repeat business. We also expanded our client
base by winning new business. During the year we worked with over 1,500 clients,
ranging from large multinationals, to mid-sized and small companies. All of our
divisions experienced significant growth.


During the year Cpl provided long or short term work assignments to over 10,000
people and we placed over 1,750 people in permanent employment.


Cpl's strategy of developing a balanced earnings stream has continued to prove
successful. We continued to diversify the group's operations across a number of
key business sectors in order to avoid over dependence on any one sector. We
have balanced our net fee income between temporary and permanent recruitment -
51% permanent and 49% temporary - and we have balanced our operations between
specialist and generalist recruitment - 73% specialist and 27% generalist.


The acquisition of Medical Personnel Limited in March 2004 has strengthened our
presence in the contract nurse recruitment market. We expect demand in this
sector to continue to grow due to the shortage of qualified healthcare
personnel.


Ms Heraty pointed out that the growth in workforce management solutions requires
prudent financial management.


'Notwithstanding the increased demands on our working capital caused by this
strong growth, the group has continued to generate positive cash-flows during
the year through a combination of tight cost control, excellent working capital
management and the cash generative nature of the group's mix of services. The
net cash balance at 30 June 2004 was €5.3 million'.


We had a strong second half to June 2004 and that momentum has continued into
the current year. We have made investments in people, infrastructure and back
office technology. As a result we believe we are well positioned to take
advantage of the improved economic conditions.


Cpl chairman, Mr. John Hennessy, thanked the group's clients for their continued
loyalty and support and also paid tribute to the team at Cpl for their
commitment and professionalism.


'The group has emerged in excellent financial and operational shape from a
period when the economic and business environment was uncertain and challenging.
Our business strategy of diversifying through selective acquisitions and focused
business development while managing costs carefully has served us well. We have
experienced better trading conditions during the year in most of our business
sectors and we are very well positioned to take advantage of continued
improvement.'


'We are looking forward with confidence to another challenging year in Cpl.'


                         Consolidated Profit and Loss account
                           For the year ended 30 June 2004

                                                          2004        2003 
                                                      euro'000    euro'000 
   Group Turnover                                                         

    - Continuing operations                             70,748      52,436 

    - Acquisitions                                       3,111           - 
                                                        73,859      52,436 

    Cost of sales                                     (60,601)    (41,803) 

    Gross Profit                                        13,258      10,633 

    Administrative expenses                            (9,715)     (8,070) 

    Distribution expenses                              (1,050)       (925) 

    Group operating profit                                                 

    - Continuing operations                              2,477       1,344 

    - Acquisitions                                          16           - 
                                                         2,493       1,638 
    Interest, net                                           71          83 

    Profit on ordinary activities before taxation        2,564       1,721 

    Taxation on profit on ordinary activities            (384)       (334) 

    Profit for the financial year                        2,180       1,387 

    Dividends paid and proposed                          (368)       (255) 

    Retained profit for the financial period             1,812       1,132 

    Profit and Loss Account, beginning of year          11,418      10,286 

    Profit and Loss Account, end of year                13,230      11,418 
                                                                           
    Earnings per ordinary share                       6.0 cent    3.8 cent 

    Fully diluted earnings per ordinary share         5.9 cent    3.8 cent 
 
 
Consolidated Balance Sheet 
At 30 June 2004 

                                                                            
                                                             2004        2003 
                                                         euro'000    euro'000 
  Fixed Assets                                                                

  Tangible Assets                                             970         907 

  Goodwill                                                  5,527       5,095 

                                                            6,497       6,002 
  Current Assets                                                              

  Debtors                                                  11,789       7,197 

  Cash at bank and in hand                                  6,689       6,809 

                                                           18,478      14,006 

  Creditors: amounts falling due within one year          (9,153)     (5,950) 

  Net Current Assets                                        9,325       8,056 

  Total Assets less Current Liabilities                    15,822      14,058 

  Creditors: amounts falling due after more than one        (559)       (635) 
  year                                                                        

  Net Assets                                               15,263      13,423 

  Capital and Reserves                                                        

  Called up share capital                                   3,677       3,649 

  Capital conversion reserve fund                              57          57 

  Share premium                                             1,656       1,656 

  Merger reserve                                          (3,357)     (3,357) 

  Profit and loss account                                  13,230      11,418 

  Shareholders' Funds - all Equity                         15,263      13,423 
 
 
Consolidated Cash flow Statement 
For the year ended 30 June 2004 

                                                                             
                                                            2004        2003 
                                                        euro'000    euro'000 

    Net Cash Inflows from operating activities               183       3,289 

    Returns on investments and servicing of finance           71          83 

    Taxation                                               (396)       (345) 

    Capital expenditure and financial investment           (204)        (47) 

    Acquisitions                                           (433)       (628) 

    Equity Dividends paid                                  (293)       (344) 

    Net cash (outflow)/inflow before Financing           (1,072)       2,008 

    Financing                                                 14       (766) 

    (Decrease)/Increase in cash                          (1,058)       1,242 
 
 

                                                                              
  Reconciliation of net cash flow to movement in net funds                    
  for the year ended 30 June 2004                                             
                                                             2004        2003 
                                                         euro'000    euro'000
 
  (Decrease)/Increase in cash in the period               (1,058)       1,242 

  Cash outflow from decrease in debt and lease                 14         795 
  financing                                                                   

  Movement in net funds                                   (1,044)       2,037 

  Net funds at beginning of year                            6,373       4,336 

  Net funds at end of year                                  5,329       6,373 
 
 
Notes to the consolidated cash flow statement 
      

                                                                          
      Reconciliation of operating profit to net         
      cash flows from operating activities              2004        2003                    
                                                     euro'000    euro'000 

      Operating profit                                  2,493       1,638 

      Depreciation                                        242         293 

      Profit on disposal of fixed assets                    -         (6) 

      Amortisation of goodwill                            325         310 

      Movement in debtors                             (3,442)       (552) 

      Movement in creditors                               565       1,606 

      Net cash inflows from operating activities          183       3,289 
 

                                                                           
     Analysis of net funds                                                 
                                  1 July 2003    Cash flow    30 June 2004 
                                     euro'000     euro'000        euro'000
 
     Cash at bank and in hand           6,809        (120)           6,689 

     Bank overdrafts                        -        (938)           (938) 

     Loans                              (435)           13           (422) 

     Finance leases                       (1)            1               - 

     At 30 June 2004                    6,373      (1,044)           5,329 
 

                                                                              
  Dividends Paid & Proposed                                  2004        2003 
                                                         euro'000    euro'000
 
  Dividends paid of 0.4 cent (2003 0.3 cent) per              147         109 
  ordinary share                                                              
  Dividends proposed of 0.6 cent (2003 0.4 cent) per          221         146 
  ordinary share                                                              
                                                              368         255 
 
 
8 September, 2004 






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