Surprise profit performance set for CPP after year of turmoil
DESPITE a major restructure and turbulent year for York’s CPP Group, the company is set to perform “materially ahead” of expectations.
In an update this morning, CPP Group, said that a focus on cost control increased sales volumes for its Indian business and the impact of weaker sterling on the results of its European operations had helped it recover after a boardroom coup earlier this year.
CPP, which specialises in credit card insurance, said it expected underlying operating profit for the full year to 31 December 2016 to be ahead of expectations which it laid out in its interims.
It also said it was negotiating with SSP to develop its own IT platform on its existing systems, a major undertaking, with restructuring costs already set to reach £6.5m.
In its interims in August this year, the company reported a massive dip in pre-tax profits, £2.5m for the six months to 30 June 2016, compared to £19.3m in the same period last year.
In May this year, major shareholder Hamish Ogston and investors Schroder undertook a boardroom coup and ousted turnaround chief executive Steve Callaghan in favour of a former employee of the business, Jason Walsh.
Mr Ogston presided over the company when it was fined £10.5m by the Financial Conduct Authority and was forced to pay out £65.8m in compensation to customers.
