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Trading Update
Resilient trading and strong EBITDA performance
CPP Group (AIM:CPP), the multinational product and services company which specialises in the financial services and insurance markets, provides an update on trading for the year ended 31 December 2020.
Since the publication of its half-year results in September 2020, the Group has continued to win new business and build its pipeline of opportunities, strengthening and growing its partner base despite the impact of the pandemic on the global trading environment.
The Board is pleased to report that the recovery in India, the Group's key growth market, has been stronger than anticipated, both in its core business and in its majority owned business process management company, Globiva. This has been supported by the steady performance of our renewal portfolios in the UK and EU and a resilient performance in our Turkish operation. As a result, the Board expects revenue for the year to 31 December 2020 to be circa £140 million compared to the current *market consensus of £133 million.
In light of the solid trading performance and a proactive focus on cost management across the Group, the Board now expects to report EBITDA in the range of £7.1 million to £7.3 million, which is more than 10% ahead of the market consensus of £6.4 million.
Early in 2020, once the nature of the pandemic became recognised, the company implemented a notably conservative plan for managing its cash resources. As a result the Group's financial position remains robust with a cash balance as at 31 December 2020 of £21.9 million.
While the global economic backdrop remains uncertain, the Group's ability to adapt to the challenges of 2020 give the Board confidence in the outlook for 2021.
The Group expects to report its full-year results on 24 March 2021.
Wow - movement in the right direction! Surely News due?
Some more positive news out this week.
Yorkshire Post:
Leeds-based CPP confirms it is to increase its UK workforce by 30 per cent
Insurance and services firm CPP Group is to increase its UK headcount by 30 per cent this year as part of a major recruitment drive. etc.
Looks like we are getting some reasonable share purchases going through now so might actually see some positive sp movement this year.
yes, but we said that last year when Directors bought in, then followed by good results, but the SP has only gone down, I don't know what its going to take to get this moving where it should be, I appreciate it will move on results, but the results this year we're good too. Hopefully 2021 will be the year!
That was the 2 director buys. A good sign of positive things to come.
Some decent buys going through today which caused the sp to move up a bit. Certainly looks a good time to be buying this one. Might see a nice double bubble up the nearer we get to those results.
Think your right that it will be March. I see latest sp target price is around 500p. Once next set of numbers are out then will have a better idea of realistic targets.
When do we see figures, I thought next ones are March time?
Been some nice director buys and can expect a big boom in sp once latest figures are out.
CPP Group (AIM: CPP), the international products and services business, announces that Chairman, Sir Richard Lapthorne, has today advised the Board of his intention to retire with effect from 31 January 2021.
Sir Richard has been Chairman of CPP Group since May 2016, during a period of material change, both in the way in which the Company and Board are managed and also in the implementation of significant management, operational and portfolio changes in the wider Group. He will be succeeded as Chairman by existing non-executive director, David Morrison, who brings more than 35 years' experience of active engagement in both private and public companies. As David said in the announcement of his appointment on 13 November, CPPGroup has demonstrated a strong track record in adding considerable value to its business partners and their customers, including investing in, or acquiring, start-up ventures and helping them grow to become significant contributors to the group's ongoing growth.
Jason Walsh, CPP Group's Chief Executive commented: "When Sir Richard was appointed as Chairman, CPP Group was facing a collapse in the renewability of its UK back book with no sight of a sustainable ongoing business to replace it, and a continued focus on historical issues. Without the full support of the Board under Sir Richard's leadership the positive progress we have made would not have been possible. He leaves the business in a much stronger position than it was in when he first joined, and I wish him all the best in his retirement."
Sir Richard added: "Over the past four and a half years the executive team has refined our global strategy, our product pipeline has been rebuilt, we have an assurance function operating worldwide that supervises regulatory compliance, the continued decline in the UK back book has been more than compensated by our growth in India and Turkey, and a new UK business is also developing positively. For me personally, CPP has been an interesting and enjoyable experience and I would like to thank my Board colleagues and, indeed all our colleagues around the world, for their extraordinary efforts in the development of the Company since 2016. I am proud of the progress that the Group has made in that time and, having assisted in bringing the Group to the position it is in today, this is a good moment for me to choose to retire and step down from the Board. I am happy that, in David, CPP Group has a successor who, with extensive experience in corporate roles, will provide the Board with new insights as the Company moves into a phase where it continues its growth and, in addition, delivers tangible rewards to its shareholders. As a significant shareholder myself, I sincerely wish him and the Company every success."
This is starting to make a move now in the right direction. Will be interesting to see profit margins for this year which should be a whole lot better and steadily increase. Added some more at the low point as think this should be a good long term hold.
Does anyone know what we're waiting for here, is it just a bigger profit, long term plan from BOD, this just hasn't moved from these lows for a very long time now, I've always had faith in CPP, but getting a little twitchy now
It does all sound very good and just what is needed for these times.
CPP's F-LITE takes off with major award win
CPPGroup Plc ("CPP" or "the Group") has launched an innovative parametric insurance product in China to provide instant non-cash compensation and support for travellers hit by delays or setbacks in their journey.
The new to market 'F-LITE' has already won the best technology innovation prize at the Asian Digital Insurance Forum 2020 and deals have been struck with partners including China Mobile International, AXA and Generali China Insurance to roll out the service to a potential customer base of 50 million.
F-LITE uses mobile technology to offer instant access to compensation if users experience flight delays and cancellations, including access to airport VIP lounges and duty-free store shopping coupons.
Upgrades to the product planned for later this year will see enhancements such as domestic airport express entry and boarding, food and drink vouchers, airport pick up service and emergency medical access added.
F-LITE accesses real-time data to provide help for customers as they need it, without needing to contact their travel insurance company, making it more efficient for consumers and providers.
Judges at the Asian Digital Insurance Forum, traditionally one of the biggest events of its kind in the world, hailed F-LITE's potential and said it reflected a "customer-first" philosophy.
Jason Walsh, CEO at CPP Group said:
"Winning this award is a reflection of the CPP ethos and corporate vision, where we only develop products based on insight and that help solve genuine consumer issues. This allows us to offer reassurance to those same consumers while adding significant value to our partners.
"This approach, combined with a strong belief in the power of local knowledge, has helped our transformation into a truly global business, allowing us to adapt, innovate and grow in markets across the world."
Is it coincidence or did someone buy shares at £38k and sold two days later at £34k - exactly the same amount of shares! Maybe saw a better short term opportunity somewhere else
Another piece of positive news. I’m sure we should be higher than this.
CPP has been advised that Oliver Laird, Chief Financial Officer has purchased a total of 21,619 ordinary shares of £1 each in the Group (the "Ordinary Shares"). Following the purchase, Oliver Laird has a total beneficial interest in 36,997 Ordinary Shares, representing approximately 0.42% of the issued share capital of the Group.
The shares have fallen quickly, I just hope it doesn't go below £2 and Mr Walsh thought the share consolidation would make i t less volatile. Yes they are making progress/profit but it's going to take many more years.
I thought the SP would have liked that news - just continues to fall - even with a profit now! Can’t understand this share!
(Alliance News) - CPPGroup PLC on Tuesday said it has won a contract to provide a claims handling service to automotive services company RAC Ltd.
The financial and insurance services provider said it will deal with all claims for Key Replace which is a supplementary benefit to the RAC's breakdown policies that covers keys that are lost, broken, stolen, or locked inside a vehicle.
CPPGroup said claims will be fulfilled by its network of fully-qualified and accredited locksmiths. It added that under the deal, the RAC will be provided with access to a suite of management information tools from CPP.
"To win the business of a major household name like the RAC speaks volumes for the headway we are making in our new UK business. We're delighted by the progress the UK business is making by developing new relationships and adding overall value to the group," said CPPGroup Chief Executive Jason Walsh.
A question asked by many but we have no answer unfortunately.
Why is the spread so high?
Yes it does, but they’ll still be the same value as if you sold last week for 3.5p. 1/100 share consolidation
*sell