DAVY VIEW

Cpl has reported a very resilient set of FY 2020 results despite the impact of COVID-19 (CV-19). The benefits of deriving 73% of revenues from Flexible Talent shone through, with strong demand continuing through an otherwise challenging calendar Q2. We expect to move our FY 2021 adjusted PBT to c.€25-26m, better than initially thought after the July trading update. This implies that Cpl is trading on an FY 2021 P/E of c.9x, a compelling valuation relative to the sector. We reiterate our ‘Outperform’ rating.