Indian recovery results in growth for financial services business
CPP Group, the multinational company which specialises in the financial services and insurance markets has said it expects revenues to be ahead of market expectations as it continues to “grow” despite the ongoing disruption caused by Covid-19.
In a trading update the firm has stated that since its half-year results were published in September, it has continued to win new business and build its pipeline of opportunities, strengthening and growing its partner base ongoing turbulence to the global trading environment.
According to the announcement the Leeds-headquartered group’s key growth market, India, is recovering better than expected for both the firm’s “core business and in its majority owned business process management company, Globiva”.
As a result of the recovery in India, as well as a “steady performance” of the firm’s renewal portfolios in the UK and EU and a “resilient performance” in its operations in Turkey, the board expects revenue for the year to 31 December 2020 to be circa £7m ahead of market consensus and in the region of £140m.
Walsh, commented: “Despite the ongoing disruption and uncertainty caused by the pandemic in the second half, we continued to deliver consistently high levels of service and grow our business.”
He added that the firms “ability to respond quickly and effectively” to the evolving needs of its customers and partners meant the group was able to strengthen existing relationships and forge new ones. Explaining that this “will further benefit the Group in 2021 and beyond”.
The trading update added that the firm expects EBITDA in the range of £7.1m to £7.3m, which is more than 10% ahead of the market consensus of £6.4m. It also highlighted that its “conservative plan for managing its cash resources” which was implemented in early 2020 meant its “financial position remains robust”.
The trading update follows the group’s UK operations – CPP Group UK, which has acted as a start-up since launching in 2018 – confirming that it was “recruiting for a significant number of senior and junior roles” as it looks to further expand and grow with ambitious plans for 2021.
The group’s full year results are expected on 24 March.
