Profits rise at CPP
GLOBAL demand for its products have helped Yorkshire credit card insurer CPP deliver increased half-year profits.
The York-based group offers protection against lost wallets, mobile phones, keys and credit cards as well as identity theft.
CPP, which floated on the London Stock Exchange earlier this year, saw pre-tax profits for the six months to June 30 rise to £11.8m from £7.8m over the same period last year.
Group revenue grew by 11% to £156.9m.
Underlying operating profit was up by a fifth to £24m, with the margin increased to 15.3%. Operating profit was up 47% to £21.8m.
CPP slashed its net debt to £13.2m at June 30 following the flotation and is proposing to pay its first interim dividend at 2.42p.
Group chief executive Eric Woolley said: “I am very pleased with the performance of CPP in the first half of 2010. We have delivered a good set of results in line with expectations and achieved a successful listing on the London Stock Exchange.
“These results have been driven by an increase in new revenues and a steady renewal rate, evidence of the global demand for our products and the strength of our business model.”
Mr Woolley said the company’s UK core business had grown and through initiatives such as packaged accounts it was expanding its existing product and channel offering.
“Internationally we are making real progress with our recently launched markets in Turkey, India and Mexico all showing good growth year on year,” he added.
“CPP is a fast growing business with strong cash generation and a robust balance sheet. We are well positioned to build on this first set of results as a public company as we continue to execute on our proven growth strategy in the UK and internationally and so deliver sustainable profitable growth.”
He said that despite economic uncertainties, CPP was confident of continuing its strong performance going forward.
Over the period, CPP signed its first contract in China with Guangdong Development Bank and piloted an identity protection product in Spain.
