DAVY VIEW

Both divisions continue to show strong momentum, with each growing net fee income (NFI) by 10% in H1 2020. Overall gross margin was boosted by solid growth in the Permanent division and the continued shift to higher-margin, higher value-add services on the Flexible Talent side. We view Cpl’s current FY 2020 P/E of 9.7x as very attractive against a broader sector trading at c.13x and reiterate our ‘Outperform’ rating.