CPP confident despite ‘unwelcome’ FSA probe

CPP today posted increased half-year revenues and profits but said that as expected an ongoing investigation by the Financial Services Authority into the way it sold its identity products had hit its figures.

York-based CPP offers protection against lost wallets, mobile phones, keys and credit cards as well as identity theft.

Speaking as the company announced its results for the six months to June 30, chief executive Eric Woolley said: “The group delivered another good revenue performance in the first half of 2011, albeit that costs and lost revenues as a result of the ongoing FSA investigation in the UK have impacted profitability.”

CPP has suspended sales of its identity protection products through its UK voice channels following the launch of the FSA investigation and a subsequent request from Barclaycard to suspend sales to its customers.

It emerged in March that the FSA had raised questions about the way customers were sold identity protection over the telephone by CPP.

Mr Wolley said: “Our international businesses continue to develop well, and it has been particularly pleasing to see such a strong performance in the US during the first half as we deepen important business partner relationships with the successful delivery of new campaigns.”

Despite growth in Northern Europe slowing because of the FSA investigation, progress was made in Turkey, Southern Europe, Mexico, North America, India and China.

Mr Woolley said CPP’s growth plans for its newer markets were “progressing very well” with plans well advanced for the company’s launch in Brazil.

“Whilst the continuing uncertainty resulting from the FSA investigation is unwelcome and the timeframe to conclusion remains unclear, I remain confident that we have excellent life assistance products, which fulfil a significant and growing need in our society, and a sound business model around which we aim to continue to grow both in the UK and internationally,” he added.

Revenue over the half year increased by 10% to £172.1m. Reported operating profit jumped by £1.6m to £23.5m and reported pre-tax profits were £23.1m, an increase of 33%.