CPP sees growth following IPO
CREDIT card insurer CPP said that it is continuing to grow its business as it publishes its first interim management statement since floating on the London Stock Exchange in March.
The York-based group, which offers protection against lost wallets, mobile phones, keys and credit cards as well as identity theft, said it was continuing expansion through the development of existing and new business partners from January 1.
CPP said that group revenue has growin in line with expectations. The Group annual renewal rate has remained in line with prior years at around 77%.
Group operating margins have continued to show some expansion mainly due to changes in product mix and the continued roll out of higher priced variants of existing products.
Since the IPO cash flows have remained strong and net debt has been subsequently reduced to £14m at April 30 compared to £49m at December 31, 2009, further strengthening CPP’s financial position.
Eric Woolley, group chief executive, said: “We are delighted to announce our first trading statement as a publicly listed company.
“In an uncertain economic environment we have grown income from new policies and maintained the group annual renewal rate in line with previous years, demonstrating the strength of our business model and the global demand for our products.”
He added: “The year is progressing in line with expectations and we continue to grow our business through the development of existing and new business partner relationships. I am pleased with the progress we have made and look forward to the coming year with confidence.”
As part of its initiative to develop packaged current account business CPP has started providing mobile phone insurance for a range of RBS and NatWest current account customer.
In North America the group has started sales of Identity Protection as a result of its new relationship with Sovereign Bank – a subsidiary of Santander.
CPP said that the introduction of EMV ‘chip and pin’ cards in Spain was underway. Business in India has also continued to grow with three more contracts with business partners signed taking the total number to nine.
In China, CPP has signed a contract with Guangdong Development Bank for the wholesale provision of Card Protection within its new premium card offering.
CPP group employs more than 1,000 staff in York and another 2,000 in 14 countries worldwide. Customers include HSBC, RBS, Barclays and Santander.
