CPP loses mobile phone contract

TROUBLED credit card protection policy firm CPP has confirmed that mobile phone operator Everything Everwhere is not renewing its contract.

The company said that while the news would hit revenues it would not have an “immediate materal impact” on the group’s operating profit and cash flow this year and next.

CPP had provided mobile phone insurance to customers of T-Mobile, now part of Everything Everywhere.

CPP chief executive Paul Stobart said: “CPP has enjoyed a strong working relationship with T-Mobile and whilst it is disappointing that this relationship has come to a close the longer-term prospects for the group in the mobile sector continue to be promising.”

York-based CPP is still dealing with the fallout from an investigation by the Financial Services Authority with the company having set aside almost £25m to meet the costs.

The investigation focused on the way CPP sold some of its products with the company now in discussions with the FSA over how it will compensate customers.

Shares in CPP closed last night at 7.7p compared to more than £3 before news of the investigation broke in March last year.