Share price jumps 14% at CPP after acquisition
The share price at credit card insurance company CPP Group closed 14% up last Friday following the announcement that it was set to acquire a new company about to launch some
CPP’s share price closed on 14.25p on Friday 17 March, its biggest hike since January. It has undertaken a major restructure of the business which directors said would cost £6.5m, but profits are expected to be ahead again and the new acquisition is a positive sign for the group’s recovery efforts.
The York-based company announced at the end of last week that it would be acquiring an Irish tech business, Blink Innovation.
The Cork-based company is in the process of developing a digital assurance product for the travel market, and is set to launch what it calls the world’s first real-time resolution flight interruption insurance.
CPP Group faced hardship during 2016 when founder Hamish Ogston ousted turnaround chief executive Steve Callaghan with the help of minority shareholders Schroders last year.
Pre-tax profits took a dive following the boardroom coup, but share price rocketed more than 70% when CPP said it would be reporting profits ahead of market expectations back in November 2016.
York-based CPP’s share price, for the year to 19 March 2017, courtesy of the London Stock Exchange
In the main market, the FTSE 100 closed on a high last week, closing Friday’s session 9 points up at 7424.
