CPP returns to growth in pivotal year
CPP Group, which has faced several years of reputational and financial damage, has reported its first year of growth since 2011 in what its chief executive described as one of the most important years in the company’s history.
The group, which specialises in ID and credit card theft protection and a range of life assistance products, “significantly” increased revenues in 2017 driven by rapid international growth and returned to statutory profitability. Group revenue from continuing operations has increased by 24% to £91.4m, representing the first year of growth since 2011.
International revenues grew by 54% to £69.1m, which includes revenue from India which has increased by 164% to £40m from £15.2m in 2016.
CPP reported a return to statutory operating profit of £3.5m from a £1.8m loss in 2016.
It said underlying operating profit reduced to £3.9m from £8.4m with the growth in its international business not yet covering the reduction in the higher margin restricted UK renewal book.
Chief executive Jason Walsh said: “This was one of the most important years in CPP’s history, one in which we not only significantly improved the financial performance of the group but also, and more importantly, refocused it for future growth and prosperity.
“Today CPP is a fundamentally stronger and more energised business than before. Our international business is continuing to grow rapidly and together with once again having an approved company as an intermediary in the UK market we will continue to develop suites of innovative technology-based protection services that will benefit all our markets. Our corporate office is much smaller and our core team are sufficiently nimble to take advantage of growth opportunities.
“Our strong balance sheet and cash resources give us ample opportunity to invest in new products and services or make strategic acquisitions, while our growing array of partners will enable us to bring our services to market. We are looking forward to another year of growth in 2018.”
The group was fined £10.5m by the Financial Conduct Authority in 2012 and paid out £65.8m in compensation to customers for mis-selling.
It hit the headlines again in 2016 after a boardroom coup led by major shareholder Hamish Ogston and investors Schroder saw turnaround chief executive Steve Callaghan replaced with Walsh, a former employee of the business.
