The first stage in the break-up of troubled recruitment company Marlborough by receiver Mr David Hughes has been completed with agreement to sell the group's temporary contract business and the Ann O'Brien Secretarial subsidiary to CPL Resources.
Mr Hughes would not reveal the price paid by CPL for the two businesses but, in the case of Ann O'Brien, the price is well below the €5 million (£3.94 million) Marlborough itself paid for the business two and a half years ago. "You have to accept the reality of the situation," Mr Hughes said. "Other recruitment agencies were sniping and we had to have an early sale," he said. The contract business had lost a contract to supply temporary baggage handlers to Ryanair last Friday, he added.
Mr Hughes said he had not got a final figure for the number of contract employees for which CPL would be taking responsibility, but it runs into "hundreds". These employees, while working for a variety of companies, are actually paid by the recruitment company.
CPL managing director Ms Ann Heraty was not available for comment, but her company's purchase of the Marlborough assets comes only months after the group warned that its financial performance this year would be significantly lower than last year when it had profits of €4.5 million on turnover of €26 million.
CPL floated on the markets in mid-1999 and rose as high as €1.70 in 1980. The past year, however, has seen the shares slump to the current €0.20, where CPL is valued at €7.2 million. Ms Heraty and her husband Mr Paul Carroll own more than 80 per cent of CPL.
The receiver added that he was making good progress on the sale of PPG, the Marlborough subsidiary which specialises in the recruitment of accounting and financial services staff. Mr Hughes had met two interested parties and expected to meet another today. Like Ann O'Brien, PPG is seen as one of the more saleable Marlborough assets.
Marlborough has estimated debts of €15 million, the bulk of which are due to AIB which appointed Mr Hughes as receiver.
It is not yet clear whether a receiver has yet been appointed to Marlborough's holding company in the UK.
