Last checked at 14 Sep 2016 17:16
14 September 2016
CPPGroup plc
Statement re IT Platform
CPPGroup Plc: IT Platform Update
As announced in its interim results on 18 August 2016, CPPGroup Plc (CPP or the Group) is currently redesigning its operating structure to create a more cost-effective and flexible platform that is focused on serving the future needs of the Group. This is intended to enable the Group's strategy of developing new products and services that answer customer needs and concerns and deliver them increasingly through digital and mobile channels.
As part of this, CPP recently completed an in-depth review of its current IT arrangements and likely needs over the coming years. The change in product and service focus drives a change in the Group's IT requirements. As a consequence, CPP has informed SSP Limited (SSP), its current IT development partner, that it intends to develop its own IT platform which will be built on its existing systems and be more relevant to CPP's customers and its suite of products and services and also support the Group's growth internationally.
This change in IT approach will give rise to a one-time write-off of capitalised expenditure of approximately £6.5 million, together with a cash payment that is currently being finalised with SSP. This payment will be met from the Group's existing financial resources. The operating and financial benefits of this change are important to the development of the business and will accrue from 2017 and beyond.
For further information please contact:
CPPGroup Plc
Jason Walsh, Chief Executive Officer
Mike Corcoran, Chief Financial Officer
Tel: +44 (0)1904 544500
Investec Bank plc
Nominated Adviser and Corporate Broker
Sara Hale / James Rudd / Carlton Nelson
Tel: +44 (0)20 7597 4000
Maitland
Neil Bennett; Daniel Yea
Tel: +44 (0)20 7379 5151