Interim Results

CPL Resources PLC
23 January 2004

                               CPL RESOURCES PLC




Chairman's Interim Statement

Among the highlights of another challenging period for the CPL Resources plc
group were


  • Strong financial performance in a competitive and changing market

  • Turnover up 48% to €34.7 million

  • Profit before tax up 35% to €941,000

  • Earnings per share up 40% to 2.1 cent

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


CPL Resources plc has again produced a very good performance for the half year
to 31 December 2003. We have continued to face very challenging economic
conditions in a competitive and changing market. Despite this, we increased
gross profit (i.e. net fee income) by 16% in the first half of the year to €5.9
million. The Group recorded pre-tax profits of €941,000 (2002 - €696,000) and
fully diluted earnings per share of 2.1 cent (2002 - 1.5 cent).


The Group has a net cash balance of €4.3 million at 31 December 2003. This
figure is €2.1 million lower than the balance at 30 June 2003, but €2.1 million
higher than the corresponding balance at 31 December 2002, reflecting the impact
on working capital of the highly cyclical nature of certain parts of our
business.


We now operate in a wide variety of industries, including the technology,
finance, engineering, healthcare, pharmaceutical and light industrial sectors.
We offer a complete suite of employment services to our clients in all of these
areas. The placement of temporary employees and contractors with a wide range of
clients is an increasingly important part of our business.


Your company has continued to deliver a performance better than others in the
recruitment sector. Our strategy of diversification into new markets and
products in order to develop a balanced revenue stream continues to work well
for the Group. Our diversification strategy has helped to mitigate the adverse
effects of the downturn in the technology industry. However, our established
expertise and experience in this area ensure that we remain well positioned to
take advantage of any upturn in the sector.


The Group is investing in new systems to ensure that we offer the most efficient
service to our clients and candidates especially in the temporary and contract
business. We have also launched six new websites with further enhancements
planned for the second half of the year.


The past six months have been successful for CPL, particularly when viewed in
the light of the challenges facing us. I would like to extend my appreciation to
our customers for their continued loyalty and support and to the entire team in
CPL for their continued professionalism, commitment, hard work and dedication.


The remainder of our fiscal year to 30 June 2004 promises a continuation of the
challenging environment of the recent past. We will continue to respond
positively, to seek further opportunities to expand and diversify and to take
advantage of any positive developments in our markets.


The Directors have recommended an interim dividend of 0.4 cent per ordinary
share. The dividend will be payable on 5 April 2004 to holders of Ordinary
shares at the close of business on the record date of 6 February 2004.


John Hennessy

Chairman


22 January 2004




For Further Information:

Anne Heraty, CPL Resources, 01 614 6000

Josephine Tierney CPL Resources, 01 5005993





 
CPL Resources Plc 
Consolidated Profit and Loss account 
For the half year ended 31 December 2003 

                                                                                                             
                                                         Half Year ended     Half Year ended     Year ended  
                                                        31 December 2003    31 December 2002    30 June 2003 
                                                                euro'000            euro'000        euro'000 
                                                             (Unaudited)         (Unaudited)       (Audited) 
          Turnover                                                                                           
          - Continuing operations                                34,683              17,316          36,272  
          - Acquisitions                                                              6,060          16,164  
                                                                 34,683              23,376          52,436  

          Cost of sales                                         (28,757)            (18,259)        (41,803) 
          Gross Profit                                            5,926               5,117          10,633  
          Administrative expenses                                (4,424)             (3,935)         (8,070) 
          Distribution expenses                                    (602)               (521)           (925) 

          Operating Profit                                                                                   
          - Continuing operations                                   552                 528           1,344  
          - Acquisitions                                            349                 133             295  
                                                                    900                 661           1,638  
          Interest, net                                              41                  35              83  
          Profit on Ordinary Activities before                                                               
          Taxation                                                  941                 696           1,721  
          Taxation on profit on ordinary activities                (160)               (145)           (334) 
          Profit on Ordinary Activities after                                                                
          Taxation                                                  781                 551           1,387  
          Dividends paid and proposed                              (147)               (109)           (255) 
          Retained Profit for the Financial Period                  634                 442           1,132  
          Profit and Loss Account, start of                                                                  
          period                                                 11,418              10,286          10,286  
          Profit and Loss Account, end of                                                                    
          Period                                                 12,052              10,728          11,418  
          Earnings per Ordinary Share                                2.1                 1.5             3.8 
          Fully diluted earnings per ordinary share                  2.1                 1.5             3.8 
 
 
CPL Resources plc 
Consolidated Balance Sheet 
At 31 December 2003 

                                                                                                           
                                     Balance Sheet                                                         
                                                       Half Year ended     Half Year ended     Year ended  
                                                      31 December 2003    31 December 2002    30 June 2003 
                                                              euro'000            euro'000        euro'000 
                                                           (Unaudited)         (Unaudited)       (Audited) 
              Fixed Assets                                                                                 
              Tangible Assets                                     911               1,026             907  
              Intangible Assets                                 4,936               5,381           5,095  
                                                                5,847               6,407           6,002  
              Current Assets                                                                               
              Debtors                                          10,455               9,940           7,197  
              Cash at bank and in hand                          4,659               3,071           6,809  
                                                               15,114              13,011          14,006  
              Creditors:                                                                                   
              amounts falling due within one year              (6,592)             (6,365)         (5,950) 

              Net Current Assets                                8,522               6,646           8,056  

              Total Assets less Current                                                                    
              Liabilities                                      14,369              13,053          14,058  

              Creditors: amounts falling due                                                               
              after more than one year                           (309)               (343)           (635) 
              Net Assets                                       14,060              12,710          13,423  

              Capital and Reserves                                                                         
              Called up share capital                           3,652               3,626           3,649  
              Capital conversion reserve fund                      57                  57              57  
              Share premium                                     1,656               1,656           1,656  
              Merger reserve                                   (3,357)             (3,357)         (3,357) 
              Profit and loss account                          12,052              10,728          11,418  

              Shareholders' Funds - all Equity                 14,060              12,710          13,423  
 
 


CPL Resources Plc 
Consolidated Cash flow Statement 
For the half year ended 31 December 2003 
 

                                                                                                             
                                                         Half Year ended     Half Year ended     Year ended  
                                                        31 December 2003    31 December 2002    30 June 2003 
                                                                euro'000            euro'000        euro'000 
                                                             (Unaudited)         (Unaudited)       (Audited) 
          Net Cash ( Outflows) / Inflows from                                                                
          Operating Activities                                   (1,517)               (893)          3,289  

          Returns on Investments and                                                                         
          Servicing of Finance                                       41                  35              83  

          Taxation                                                 (174)               (196)           (345) 
          Capital Expenditure and Financial                                                                  
          Investment                                               (146)                (21)            (47) 
          Acquisitions, net of cash acquired                       (113)               (801)           (628) 
          Equity Dividends paid                                    (146)               (235)           (344) 
          Cash outflow before Financing                          (2,055)             (2,111)          2,008  
          Financing                                                 (95)               (415)           (766) 
          (Decrease)/Increase in Cash                            (2,150)             (2,526)          1,242  
          Reconciliation of Net Cash Flow to                                                                 
          Movement in Net Debt                                                                               
          (Decrease)/Increase in cash in the period              (2,150)             (2,526)          1,242  
          Cash outflow from decrease in debt and                                                             
          lease financing                                            98                 421             795  
          Movement in Net Funds in the Period                    (2,052)             (2,105)          2,037  
          Net Funds, beginning of period                          6,373               4,336           4,336  
          Net Funds, end of period                                4,321               2,231           6,373  
 



CPL Resources Plc 
Notes to the consolidated cash flow statement 

                                                                                                                      
  Reconciliation of Movement on Shareholders' Funds                                                                   
                                                                  Half Year ended     Half Year ended     Year ended  
                                                                 31 December 2003    31 December 2002    30 June 2003 
                                                                         euro'000            euro'000        euro'000 
                                                                      (Unaudited)         (Unaudited)       (Audited) 
  Opening Shareholders' Funds                                             13,423              12,262          12,262  
  Share Issued                                                                 3                   6              29  
  Profit for the Financial period                                            781                 551           1,387  
  Dividends paid and proposed                                               (147)               (109)           (255) 

  Closing Shareholders' Funds                                             14,060              12,710          13,423  

  Reconciliation of Operating Profit to Net Operating Cash                                                            
  Flows                                                                                                               
  Operating profit                                                           900                 661           1,638  
  Depreciation                                                               142                 153             293  
  (Profit) on disposal of fixed assets                                                                            (6) 
  Amortisation of Goodwill                                                   159                 162             310  
  Movement in debtors                                                     (3,258)             (3,294)           (552) 
  Movement in creditors                                                      540               1,425           1,606  

  Net Cash Inflows                                                                                                    
  from Operating Activities                                               (1,517)               (893)          3,289  
  Returns on investments and servicing of finance                                                                     
  Interest paid                                                               (2)                (10)            (22) 
  Interest element of finance lease payments                                                                      (1) 
  Interest received                                                           42                  45             106  
  Net cash inflow from returns on                                                                                     
  Investments and servicing of finance                                        41                  35              83  
  Taxation                                                                                                            
  Corporation tax paid                                                      (174)               (196)           (345) 
  Capital expenditure and financial investment                                                                        
  Payments to acquire tangible fixed assets                                 (146)                (21)            (47) 
  Financing                                                                                                           
  Loan repayments                                                            (97)               (403)           (758) 
  Finance lease payments                                                      (1)                (18)            (37) 
                                                                             (98)               (421)           (795) 
                                                                               3                   6              29  
  Net cash (outflow) from financing                                          (95)               (415)           (766) 
 


CPL Resources Plc 
Notes to the consolidated cash flow statement (continued) 

                                                                                                  
                      Analysis of Net Funds                                                       
                                                Cash at bank    Bank Loan     Finance         Net 
                                                 and in hand                   leases      funds  
                                                    euro'000     euro'000    euro'000    euro'000 
                      At 30 June, 2003                6,809         (435)         (1)      6,373  
                      Cash flow                      (2,150)          97           1      (2,052) 

                      At 31 December, 2003            4,659         (338)          0       4,321 
 
 

                                                                                                         
                Dividends Paid & Proposed                                                                
                                                       Half Year ended    Half Year ended    Year ended  
                                                                Dec-03             Dec-02         Jun-03 
                                                              euro'000           euro'000       euro'000 
                Ordinary Dividends:                                                                      
                Interim dividend proposed                         147                109              -  
                Final dividend proposed                             -                  -            146  
                Interim dividend proposed and paid                  -                  -            109  
                                                                  147                109            255  
 
 

23 January, 2004 
 
END  

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