Cppgroup Share News (CPP)

LONDON (Alliance News) - CPPGroup PLC on Wednesday said exceptional costs in relation to restructuring activities in Europe and the UK resulted in a sharp drop in annual pretax profit.

The company, which provides identity and credit card protection services, also said that currency depreciation in growth markets like India and Turkey also adversely impacted results.

The company recorded pretax profit of GBP300,000 for 2018, down from GBP3.8 million in the year ago period. Exceptional costs for the year totaled GBP3.1 million versus GBP100,000.

Revenue increased of 13% to GBP110.1 million from GBP97 million, mainly due to continued growth in the Indian business.

The company has not declared a dividend for the year as its board remains of the view that it is not appropriate to pay a dividend at this time.

CPP Group said it will maintain a strategy of supporting growth and expects further revenue growth again in 2019 led by India as well as some other key markets.

The company also said it has launched in Bangladesh, having had acquired its first customer in country. CPP Group aims to enter the card protection market which is a new product to the country, alongside the launch of phone insurance. It expects that volumes will continue to grow in 2019.

In the UK, CPP Group has developed a suite of technology-led key cover and cyber products and have signed its first new partner contract. Deploying these UK products into other markets will be a key focus for 2019 and beyond, the company said.

CPP Group does not expect Brexit to have a significant impact on operations or performance due to its decentralized operating model.

"Our global footprint is expanding gradually and we are continuing to deepen our partner and product reach in markets where we see significant growth potential. We are growing strongly in India and Turkey and are excited about our recent launch into Bangladesh and the prospects for our Chinese business now the technical infrastructure is complete," said Chief Executive Jason Walsh.

"We are looking to the future with increasing confidence and expect further strong strategic and operational progress in 2019," Walsh added.

Shares in CPP Group were flat midday on Wednesday at 6.50 pence per share.