CPP considers its future
CPP Group today said it is looking at a restructure involving funding options and its stock market status.
The York-based insurer, which specialises in ID and credit card theft protection, was fined £10.5m by the Financial Conduct Authority in 2012 for mis-selling insurance products and is paying out £65.8m in compensation to customers.
CPP said that its trading performance reflects the “on-going challenges of the group’s environment” which involves paying out compensation to seven million customers who were mis-sold insurance.
In a pre-close statement to the stock market ahead of its half year results for the six months to June 30 which it will announce in August, the group said the scheme of arrangement claims continue to track within expectations and the total cost remains unchanged from estimates it made at its year end.
“As previously outlined, material uncertainties remain, particularly in relation to the scheme, liquidity and the execution and delivery of the Group’s longer-term plans,” it said.
CPP said its immediate focus is to complete compensation payments, manage costs tightly and return itself to “a position of stability” and is talking to key stakeholders to develop plans to restructure its balance sheet and is looking at future funding.
It is also looking at its position on the London Stock Exchange, saying it is “considering the appropriate UK listing for the group that provides the most suitable and efficient platform to execute the board’s future plans”.
It added: “A number of positive changes have taken place as part of the group’s on-going review of its existing activities, including the continued focus on the required improvements to the operating environment and IT infrastructure, which will contribute to providing a sustainable business proposition for the long term.”
