CPL's trading performance was badly hit by the economic slowdown on its information technology division. As a result, group revenues fell by 22 per cent to €27.3 million. However, CPL said it had diversified into other areas such as finance and accounting, healthcare and pharmaceuticals, and engineering. It acquired the Anne O'Brien business and some of the former operations of the Marlborough Group which contributed €4.4 million to turnover.

Pre-tax profits at the specialist recruitment group, CPL Resources, have slumped to €1.3 million in the year ended June from €5.1 million a year earlier.

The company described the year as "the most challenging faced by the group since its formation" but said cost control and diversification had helped it deliver a solid performance in difficult trading conditions.

However, it sees no signs of an improvement in the trading environment in the short term. "The difficult trading conditions experienced in the year to June 30th, 2002 have continued since that date and there is no clear indication yet that the market is entering a period of sustained recovery," chairman Mr John Hennessy said.

The company, which is 80 per cent controlled by chief executive Ms Anne Heraty and her husband, Mr Paul Carroll, plans to pay a final dividend of 0.65 cents, bringing the total dividend to 1.25 cents, unchanged from last year.

CPL also reported a shift in revenues from permanent staff to temporary and contract employees, whose numbers grew by 245 per cent in the year. The firm said its net cash balances were unchanged on the year at €4.3 million, despite the acquisition of the Ann O'Brien business, largely due to a 25 per cent decline in operating expenses.