REG - CPPGroup Plc - Pre-Close Trading Update for Financial Year 2021

CPPGroupAnnouncement

19/01/2022 07:05

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RNS Number : 8808Y  CPPGroup Plc  19 January 2022

19 January 2022

CPPGroup plc

("CPP Group" or the "Company")

Pre-Close Trading Update for Financial Year 2021

Ahead of the 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, confirms that it expects to report financial
results for the year ended 31 December 2021 broadly in line with market
expectations.

On a reported basis, the Board expects full year 2021 revenues from continuing
operations to be +5% ahead of the prior year, and, on a constant currency
basis, to be ahead of prior year by circa 11%.  EBITDA from continuing
operations is expected to increase by £1.7m to £7.5m for the same period,
aided by a one-time benefit from the release of a third-party commission
provision amounting to £1.1m relating to our legacy card and identity
products.

The fact that CPP has been able to make solid progress, despite the continued
headwinds brought about by Covid-19 and a sustained strengthening of Sterling,
reflects the continued growth of our Indian business as well as measures to
take cost out of central overheads.

For the financial year ending 31 December 2022, the Board expects revenues
from continuing operations to show further growth and be broadly in line with
market expectations. However, the current product mix in India coupled with
the unfavourable economic and currency situation in Turkey is expected to
limit both margin and EBITDA growth in the next twelve months.

Furthermore, the benefits hitherto anticipated from the migration to a new
Group IT platform will be less than originally anticipated in 2022. This,
combined with additional costs associated with managing the UK renewal book,
have resulted in a lowering of expectations for 2022. The Board now expects
EBITDA from continuing operations for the financial year 2022 to be broadly in
line with 2021.

The Company expects to publish its audited full-year results on 29 March 2022.

 

Jason Walsh, CEO of CPP Group, commented:

"The EBITDA growth for 2021 demonstrates the good progress we have made as a
business across a broad range of metrics. We have performed well despite both
currency headwinds and the disruption that Covid-19 has and continues to have
on the normal day-to-day lives of our customers, partners, and colleagues.

Whilst it is disappointing to re-set market expectations over the near term,
the business continues to make good progress in a number of its key markets.
2022 will see an emphasis on these growth markets and the creation of a
roadmap towards a scalable, more efficient operating model. I and the Board
remain confident about the future of the Group and that the technology led
strategy which we are following will deliver improved returns over the medium
to long term."

 

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
 Jason Walsh, Chief Executive Officer  Tel: +44 (0)77 6437 8580
 Simon Pyper, Chief Financial Officer

 Liberum Capital Limited
 (Nominated Adviser and Sole Broker)   Tel: +44 (0)20 3100 2000
 Richard Lindley
 Lauren Kettle
 Kane Collings
 Christopher Whitaker

 Alma PR
 (Financial PR Adviser)                Tel: +44 (0)20 3405 0205
 Josh Royston
 David Ison
 Kieran Breheny
 Faye Calow

 

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 as 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/
(https://international.cppgroup.com/)

 

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