CPP Group surges after lifting FY guidance

(ShareCast News) - Shares in CPP Group soared over 27% early on Thursday, after the financial services and telecoms group said it expected its operating profit for the year to be significantly higher than expected.The London-listed company, however, warned that its revenue will be "materially lower" following the closure of the Airport Angel airport lounge access unit.CPP swung to a profit in the first six months to the year, posting an operating profit before exceptional items and matching share plans of £2.2m compared with a £3,000 on the same basis in the first half of 2014.The group posted a net profit of £17.1m in the period compared with a £2.7m in the corresponding period 12 months ago, as a decline in revenue was offset by a £18.9m in exceptional credit relating to the compromise of the commission deferral agreement.In July 2013, the group agreed with some of its business payments to defer payments of commission that would have otherwise being due in the year to 30 June. CPP has since settled the commission deferral agreement after raising £20m fundraising upon listing to the AIM market in February this year."CPP has made significant progress in the first half of 2015," said group chief executive Stephen Callaghan."Securing new equity funding and restructuring of the group's debt has provided the business with a stable financial platform, and the business has delivered an improved profit performance underpinned by our on-going focus on costs.""There is much work to do for the group to realise its growth ambitions, however we are seeing encouraging progress from the actions we are taking to improve our financial performance."CPP shares were up 33.74% to 11.00p at 1106 BST on Friday.