Interim Results

CPL Resources PLC
15 September 2003

                               CPL RESOURCES PLC

                Interim Results for the year ended 30 June, 2003

Strong operational and financial performance by CPL Resources.

CPL Resources plc, Ireland's leading employment services group, today 15
September, 2003 announced very strong results in a difficult trading
environment, for the year ended 30 June, 2003.

Highlights:

  • Strong operational and financial performance achieved in a difficult
    market

  • Profitable diversification resulting in improved financial performance

  • Turnover up 92% to €52.4 million

  • Profit before tax up 41% to €1.7 million

  • Earnings per share up 41% to 3.8 cent

  • Acquisition and integration of Multiflex and Techskills businesses

  • Change in business mix, with significant increases in fee income from
    temporary employees and contractors

  • Substantial improvement in working capital management

  • Significant improvement in cash, with net funds of €6.4 million at 30
    June, 2003 (2002 - €4.3 million)

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

'We are very pleased with these results, particularly coming as they do in a
difficult business and economic climate. Our strategy of tactical
diversification, together with tight cost control and prudent financial
management is clearly bearing fruit,' she said.

'CPL retains a core competency in information technology, and has diversified
into finance and accounting, healthcare, engineering and managed services &
office support divisions. In September 2002, we acquired the business of
Multiflex, a light industrial recruitment company, and Techskills, which
provides skilled engineers to a broad range of clients. Both businesses have
been successfully integrated into the group, benefiting from the management
infrastructure already in place at CPL and at the same time enabling us to
provide additional services to our existing CPL clients.

'CPL is committed to improving the competitiveness of our clients. We recognised
a number of years ago that our clients would require a flexible approach to
workforce management and we are now the leading provider of innovative and cost
effective workforce solutions in Ireland. In June 2003 we had over 1500
temporary professionals working on client sites.

Ms Heraty pointed out that the growth in workforce management solutions requires
prudent financial management. 'As well as keeping control of our costs, we have
strengthened the management of our working capital and maintain strong cash
reserves, up to €6.8m from €4.3m last year. Our strong cash balance is helped by
a significant reduction in average debtor days, and this is particularly welcome
in the context of increased working capital demands arising out of the shift to
managing temporary professionals.'

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.

'Our position as Ireland's leading provider of employment services is the result
of the skill and dedication of an excellent team throughout our organisation. I
am very proud of their achievements and very grateful to them for their
outstanding contributions, individually and collectively, to the success of our
business.

'The outlook for the Irish economy in general, and many of the sectors in which
we operate, remains somewhat uncertain and negative trends persist in employment
across many industries. However, CPL will continue to take advantage of
opportunities in the market place and diversify, where appropriate, with a view
to continuing to achieve profitable growth.'

A final dividend of 0.4 cent per share is proposed, bringing the total dividend
for the year to 0.7 cent per share.



                      Consolidated Profit and Loss account
                        For the year ended 30 June 2003
                                                                                        2003                2002
                                                                                       €'000               €'000
Group turnover
- Continuing operations                                                               37,949              27,298
- Acquisitions                                                                        14,487                   -
                                                                                      52,436              27,298
Cost of sales                                                                       (41,803)            (18,470)
Gross Profit                                                                          10,633               8,828
Administrative expenses                                                              (8,070)             (6,785)
Distribution expenses                                                                  (925)               (852)

Group operating profit
- Continuing operations                                                                1,347               1,191
- Acquisitions                                                                           291                   -
                                                                                       1,638               1,191
Interest, net                                                                             83                 111

Profit on ordinary activities before taxation                                          1,721               1,302

Taxation on profit on ordinary activities                                              (334)               (319)
Profit on Ordinary Activities after taxation                                           1,387                 983
Dividends paid and proposed                                                            (255)               (452)
Retained Profit for the financial year                                                 1,132                 531
Profit and loss account, at beginning of year                                         10,286               9,755
Profit and loss account at end of year                                                11,418              10,286
Earnings per ordinary share                                                              3.8                 2.7
Fully diluted earnings per ordinary share                                                3.8                 2.7



                           Consolidated Balance Sheet
                                At 30 June 2003
                                                                                           2003                2002
                                                                                          €'000               €'000
Fixed Assets
Intangible Assets - goodwill                                                              5,096               4,595
Tangible Assets                                                                             907               1,117
                                                                                          6,002               5,712
Current Assets
Debtors                                                                                   7,197               6,645
Cash at bank and in hand                                                                  6,809               5,567
                                                                                         14,006              12,212
Creditors:
Creditors: amounts falling due within one year                                          (5,950)             (5,244)
Net Current Assets                                                                        8,056               6,968
Total Assets less current liabilities                                                    14,058              12,680
Creditors: amounts falling due after more than one year                                   (635)               (418)
Net Assets                                                                               13,423              12,262
Capital and Reserves
Called up share capital                                                                   3,649               3,620
Capital conversion reserve fund                                                              57                  57
Share premium                                                                             1,656               1,656
Merger reserve                                                                          (3,357)             (3,357)
Profit and loss account                                                                  11,418              10,286
Shareholders' Funds - all equity                                                         13,423              12,262



                        Consolidated Cash flow Statement
                        For the year ended 30 June 2003
                                                                            2003             2002
                                                                           €'000            €'000
Net Cash Inflows from operating activities
for the year ended 30 June                                                 3,289            2,402
Returns on investments and servicing of finance                               83              111
Taxation                                                                   (345)          (1,345)
Capital expenditure and financial investment                                (47)             (26)
Acquisitions                                                               (628)            (659)
Equity dividends paid                                                      (344)            (452)
Net cash inflow before financing                                           2,008               31
Financing                                                                  (766)            (818)
Increase / (decrease) in Cash                                              1,242            (787)


Reconciliation of Net Cash Flow to Movement in Net Debt
for the year ended 30 June                                                  2003             2002
                                                                           €'000            €'000
(Decrease)/Increase in cash in the period                                  1,242            (787)
Cash outflow from decrease in debt and lease financing                       795              818
Movement in Net Funds in the Period                                        2,037               31
Net funds at beginning of year                                             4,336            4,305
Net funds at end of year                                                   6,373            4,336


                   Notes to the consolidated cash flow statement


Reconciliation of operating profit to net operating cash flows                     2003                  2002
                                                                                  €'000                 €'000
Operating profit                                                                  1,638                  1191
Depreciation                                                                        293                   256
Profit on disposal of fixed assets                                                  (6)                     -
Amortisation of goodwill                                                            310                   213
(Increase)/ decrease in debtors                                                   (552)                   658
Increase in creditors                                                             1,606                    84
Net Cash Inflows from Operating Activities                                        3,289                 2,402
Returns on investments and servicing of finance
Interest paid                                                                      (22)                  (61)
Interest element of finance lease payments                                          (1)                   (7)
Interest received                                                                   106                   179
Net cash inflow from returns on
investments and servicing of finance                                                 83                   111
Taxation
Corporation tax paid                                                              (345)               (1,345)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                          (47)                  (26)
Acquisitions, net of cash acquired
Acquisition of Marlborough and Ann O'Brien                                        (186)                 (616)
Acquisition of Multiflex                                                          (163)
Acquisition of Techskills                                                         (279)
Acquisition of Careers Register                                                                          (43)
                                                                                  (628)                 (659)



                   Notes to the consolidated cash flow statement

Financing                                                                          2003                   2002
                                                                                  €'000                  €'000
Loan repayments                                                                   (758)                  (758)
Finance lease payments                                                             (37)                   (60)

Net cash (outflow) from financing                                                 (795)                  (818)
Issue of ordinary share capital                                                      29
Net Cash outflows from financing                                                  (766)                  (818)


Analysis of Net Funds
                                              Cash at bank           Bank Loan            Finance               Net
                                               and in hand                                 leases             funds
                                                     €'000               €'000              €'000             €'000
At 30 June, 2002                                     5,567             (1,193)               (38)             4,336
Cash flow                                            1,242                 758                 37             2,037
At 30 June, 2003                                     6,809               (435)                (1)             6,373


Dividends Paid & Proposed                                                                2003              2002
                                                                                        €'000             €'000
Dividends paid of €0.3 cent (2002 €0.6 cent) per ordinary share                           109               217
Dividends proposed of €0.4 cent (2002 €0.65 cent) per ordinary share                      146               235
                                                                                          255               452





15 September, 2003


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