Core operations resilient at insurance products group
Leeds-headquartered CPP Group, which provides assistance and insurance products, says it has achieved a robust trading performance from its core operations in its full year results for the 12 months ended 31 December 2022.
The group, which in October 2022 revealed a strategy to withdraw from its declining Legacy Businesses, reported that revenues from its continuing operations increased by 19% to £169.8m (2021 restated: £142.8m), while core revenues rose by 25% to £154.3m (2021: £123.2m).
Profit before tax from continuing operations decreased to £2.4m (2021 restated: £4.3m). On an underlying basis, profit before tax increased to £4.1m (2021 restated: £3.1m).
Simon Pyper, CEO, said: “In many respects, the results for the 2022 financial year are the last set of results for the group as historically constituted.
“Our new strategy and accompanying change management programme, published in October of last year, sets a new course for the business which will see the group exit from its Legacy businesses, address critical IT infrastructure requirements, and migrate towards an InsurTech business led by Blink Parametric and supported by CPP India and CPP Turkey.
“The size and scope of the change being implemented is profound and challenging, but I remain firmly of the view, that we have set the right course for the business.
“From a trading perspective our core businesses are performing very much in line with expectations.”
CPP explains its simplified structure is focused on its four core business units (Blink Parametric; CPP India; CPP Turkey; and Globiva) with a strategy in place to migrate to a product-led global InsurTech business.
It says Legacy business revenues and EBITDA continue to decline year-on-year.
The group notes its accelerated withdrawal from the Legacy markets will reduce overall profitability and cash over the next two years.
However, CPP stresses it is in a good financial position with which to embark on this step which it says will improve outcomes for all shareholders and other stakeholders in the medium-term.
