CPP chairman promises fightback

CPP chairman Charles Gregson has vowed the company will rebuild confidence among shareholders in its business model in the wake of the investigation by the Financial Services Authority.

The York-based company is dealing with the fallout from the year-long FSA investigation which found some customers may have been mis-sold identity protection products while others may have been sold card protection policies for fraud which is already covered by banks.

Before the investigation CPP shares were trading at more than 300p but closed on Friday at 52p.

Writing in the company’s annual report, Mr Gregson tells shareholders CPP is “determined to rebuild confidence in the Group’s business model to a level at least comparable with the resolute trust that millions of satisfied customers have in our products and services across all our geographical markets.”

Describing the FSA’s findings as a “deeply regrettable chapter” for CPP, Mr Gregson also reveals the strain put on the company by the investigation saying meeting the regulator’s demands for information had “absorbed a significant amount of resource” which had “inevitable impacted adversely” on the business.

He adds: “It has been a difficult year for the Group but we remain committed to providing our customers with products and services that given them real value and at a price that is affordable.”

CPP has already set aside £15m to meet the costs associated with the investigation and compensation it may need to pay and has begun a programme of voluntary redundancies.