International progress for CPP despite FSA fall-out

CPP today said it expects its half year revenues to be down and warned that further claims could be made against the business in the wake of a Financial Services Authority investigation.

The FSA launched an investigation into sales practices at York-based CPP in March 2011 and trading in its shares was suspended in February as the company negotiated with the regulator over changes to the way it worked and how it would compensate customers.
 
The suspension was lifted in March this year.

In a statement ahead of the end of its half year on June 30, the card protection company said that group operating performance continued to be in line with market expectations.

However, CPP expects to post “modest” year on year group revenue decline for the period as a consequence of falling card protection and identity protection sales in the UK.

It has seen growth in its North America and Asia Pacific markets.
 
“International operations have continued to make further good progress and a number of new business partners have been confirmed in the period,” CPP said.

“This demonstrates the continued relevance and consumer appeal of our products and services and longer-term opportunities for the group.”

CPP said it was still in discussions with the FSA regarding the group’s agreement to conduct a ‘Past Business Review’ under FSA supervision of direct sales of its card protection and identity protection products made since 2005. Compensation will be paid to customers where appropriate.

The company warned that “other claims or matters may arise against the group in connection with the FSA’s investigations, which could take a number of forms and therefore have a financial effect that cannot presently be estimated”.