Listed financial assistance firm reports strong revenue growth despite dip in profits

CPPGroup, the global product innovation business, has reported a significant rise in overall revenues despite experiencing £1m drop in profits at the half year mark.

For the six months ending 30 June, the Leeds-based company saw group revenues increase by 18% to £51.3m (H1 2017: £45.3m).

Revenue from Ongoing Operations rose by 36% to £40m (H1 2017: £31.1m), and its India revenues increased by 60% to £28.3m(H1 2017: £19.2 million).

During this period the listed firm also saw growth in its worldwide customer numbers, which increased by 23% to 6.7 million (31 December 2017: 5.5 million).

Despite this, CCPGroup reported pre-tax profits of £1.3m, which is down from last year’s achievement of £2.3m. Statutory operating profit also dropped to £1.2m (H1 2017: £2.4m).

The company noted that this profit loss was due to its “growing revenue profile which naturally carries associated costs of sale and is replacing the falling renewal revenue of the back books in our European-based markets and costs associated with business growth projects.”

Jason Walsh, CEO of CPPGroup, said: “We are now starting to see how revenue growth in our continuing businesses is outstripping the decline from our historic back book activities. The revenue growth that we saw in 2017 and which has continued in the first half of 2018 has laid the foundation for further growth.

“We have continued to invest in expanding our product and service capability; whilst the restructuring activities that we have commenced in our EU markets demonstrate the importance we place on operating efficiently and managing our cost base.

“We are delivering against our strategic plan and expect to continue this good progress.”