Last checked at 19 Jan 2023 07:00
19 January 2023
CPPGroup plc
(the "Group" or the "Company")
Trading Update for Financial Year 2022
Ahead of its full-year results, CPP Group (AIM: CPP), a provider of assistance and insurance products, which reduce disruptions to everyday life for millions of customers across the world is pleased to provide a trading update for the year ended 31 December 2022. The Board expects to report revenues from continuing operations that are circa +19% ahead of the prior year (+15% on a constant currency basis). EBITDA from continuing operations is expected to be better than market expectations at circa £6.9 million (2021 restated: £7.2 million) for the year.
In October 2022 the Group set out the conclusions from its strategy review and accompanying change management programme which will see the Group exit from its legacy operations, address critical IT infrastructure requirements, and migrate the Group towards an InsurTech business led by Blink and supported by CPP India and CPP Turkey. The Group has already made some good progress with regard to its legacy operations, withdrawing from China, Bangladesh, and Mexico. Furthermore, in the fourth quarter of last year, the Group agreed terms with third party underwriters to exit from its Spanish and Portuguese operations over the next 12 months. As we look to 2023 the Group expects, as part of the change management programme, to complete the operational scalability project for Blink by the end of the first quarter and, by the end of the third quarter, to have delivered the first phase of a new IT platform for its operations in India.
The Group's change management programme is a complex set of seven inter-dependent projects that is not expected to conclude before the end of the 2025 financial year. Inevitably, given the scale of the changes being implemented, there will be hiccups along the way, which in turn may lead to some adjustment to both targets and deadlines. Notwithstanding the challenges of implementation, the direction and speed of travel is considered to be both right and necessary and the Board is pleased with the progress being made so far.
The core business (Blink, CPP India, CPP Turkey and Globiva) performed well during 2022 and we expect to make further progress in the current financial year. As expected, the legacy business continues to decline and plans for the ultimate withdrawal from it will be addressed over the medium term by the change management programme.
The Company expects to publish its audited full year results on 28 March 2023.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Enquiries:
CPP Group plc | |
Simon Pyper, Chief Executive Officer | Tel: via Alma PR |
David Bowling, Chief Financial Officer
| |
Liberum Capital Limited | |
(Nominated Adviser and Sole Broker) | Tel: +44 (0)20 3100 2000 |
Richard Lindley | |
Lauren Kettle | |
Alma PR | |
(Financial PR Adviser) | Tel: +44 (0)20 3405 0205 |
Josh Royston | |
David Ison | |
Kieran Breheny | |
About CPP Group:
CPP Group creates assistance and insurance products which reduce the disruptions to everyday life for millions of people across the world. These products are provided through partnerships with leading insurance, banking and finance companies either as embedded solutions or as relevant add-ons to enhance their core offering and deliver additional revenue streams. CPP Group is listed on AIM, operated by the London Stock Exchange.
For more information on CPP visit https://international.cppgroup.com/