CPPGroup plc ("CPP" or "the Group") announces that it has applied to the UKLA for a suspension of listing of its shares with immediate effect. Until such time as the suspension is lifted, trading in CPP's ordinary shares on the Official List of the London Stock Exchange will also be suspended.
The Group's application follows communications from the FSA over the weekend concerning its investigation into certain issues surrounding the sale of the Group's Card Protection and Identity Protection products in the UK. The FSA has requested CPP to undertake a review of certain past business sales and to make certain changes to its renewals process. The request comes as a result of the FSA's findings into CPP's sales practices.
Whilst CPP has acknowledged to the FSA that a past business review is appropriate, the Board of CPP has informed the FSA that its requirements are disproportionate and threaten the viability of the business. The Board has been, and remains, absolutely committed to working closely and cooperatively with the FSA to resolve its issues. At the same time it has frequently emphasised the potential threat to CPP, a business which employs 1,341 people in the UK and 1,969 people in 16 countries worldwide, of prolonged discussions. CPP has taken significant and successful steps in recent months to make changes, move the business forward and to adopt a more customer centric culture. Its latest customer feedback is positive and reaffirms the importance of, and need for, the services it provides to CPP customers.
The FSA and CPP have agreed to continue discussions around which a mutually agreeable review of past business sales and renewal policy might be undertaken. The FSA has stated its view thatsome form of customer review exercise will be required. There is no certainty that these discussions will be resolved or what the scope of any review exercise that might be acceptable to both FSA and CPP might be. The FSA has indicated that such discussions are likely to continue for no longer than two weeks.
CPP remains committed to achieving an outcome that is acceptable to FSA, its customers, and its shareholders. Notwithstanding, it is likely that any agreed outcome will have a significant adverse financial impact on the Group, but until such outcome is determined the Group cannot predict the scale or consequences of that impact. Given the uncertainty as to such outcome, CPP is currently unable to assess accurately its financial position and inform the market accordingly, and as such considers an immediate suspension to be appropriate. The Group expects that the suspension will remain in force until such time as CPP is able to determine with sufficient clarity the financial impact of such actions as are required by the FSA to be taken, which may not be known for some time.
Further announcements will be made in due course.
A conference call for analysts and investors will take place at 8.00am this morning, dial-in details for which are as follows:
Tel: +44 (0)20 3140 0668
Participant access code: 474095#
Paul Stobart, Group Chief Executive
Shaun Parker, Chief Financial Officer
Tel. +44 (0)20 7353 4200 (today)
Tel: +44 (0)1904 544702 (thereafter)
Tel. +44 (0)20 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.