Insurance products group books losses of £6.1m
CPP Group has announced full year losses of £6.1m against a revenue rise of 14% to £193m for the 12 months to the end of December.
The Leeds firm’s results are in line with a trading update it issued in January. The losses are a result of £8.4m in exceptional items related to legacy business closures. EBITDA stood at £4.8m, down from £6.9 in 2022.
The firm refocussed on three core businesses – Blink Parametric, CPP India and CPP Turkey – where revenues rose 17% to £181m as it simplified its proposition from insurance to digital assurance products. CPP India and CPP Turkey saw strong growth, while Blink saw a 100% renewal rate and seven new business partners.
Chief executive Simon Pyper said, “That we have been able to implement and execute the change management programme, to divest non-core businesses such as Globiva and KYND, and at the same time, to deliver growth from our core business, is I believe, a testament to the quality of the people that I have the privilege to work with.”
He added, “Despite the good revenue growth, EBITDA from our core business units was lower than prior year at £7.4 million reflecting the planned investment in Blink, a mix change in CPP India product sales, and £0.8 million adverse currency movements.
“From an operational perspective, the group is now at the implementation stage of its change management programme which, at its conclusion, will see the group exit from its legacy businesses and focus on growing its core Blink, Indian, and Turkish operations.
The group achieved the majority of the objectives that it set for itself for 2023, having over the past year delivered a new IT platform for its business in India, exited from its legacy operations in Spain, and commenced the closure process for its legacy UK businesses.
“As expected, the legacy closure activity has led to substantial exceptional provisions in our financial statements and moreover, is expected to consume cash as the businesses are wound down over the medium-term.”
