REG - CPPGroup Plc - Trading Update for Financial Year 2022

CPPGroupAnnouncement

19/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230119:nRSS1865Na&default-theme=true

RNS Number : 1865N  CPPGroup Plc  19 January 2023

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBPMRTMTABBBJ