CPP Group to float on stock market
YORKSHIRE company CPP Group is to float on the stock market.
The York-based company, which offers protection against lost wallets, mobile phones, keys and credit cards as well as identity theft, had earnings of £49.5m on revenue of £292m last year.
The float is expected to be completed by the end of March and is expected to target a post-float enterprise value of £450m.
The group, founded 30 years ago by Hamish Ogston, employs more than 1,000 staff in York and another 2,000 in 14 countries worldwide.
Mr Ogston, 61, will take some cash from the float to invest in his other business and charity interests, but will remain the majority shareholder.
CPP, which has customers including HSBC, RBS, Barclays and Santander, already operates in countries including India, Mexico and Turkey but plans to launch in China by the end of this year.
The float will allow CPP to widen its product portfolio and launch new products including travel services and legal assistance.
It is the second Yorkshire company this week to announce a stock market flotation. On Monday Leeds healthcare IT group EMIS revealed a £200m plan to float to raise £50m for expansion.
CPP had 10 million policies with an average revenue per policy of £29.21 in 2009.
“A listing will help to raise the profile of the group, incentivise employees and provide CPP with the right structure to continue its strong growth,” said Eric Woolley, 51, CPP’s chief executive.
The group, which has not yet placed a valuation on the float, said that the net proceeds will also be used to pay down part of existing net debt, which stood at £48.8m at the end of December.
The company has appointed UBS Investment Bank and JP Morgan Caznove as join co-ordinators and joint bookrunners.
Late last year the group agreed to buy the UK operation of MKM Group, which specialises in travel and loyalty cards, for up to £4.66m.
