REG - CPPGroup Plc - Trading Update for six months ended 30 June 2023

CPPGroupAnnouncement

18/07/2023 07:00

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RNS Number : 2821G  CPPGroup Plc  18 July 2023

18 July 2023

CPPGroup plc

("CPP Group", "Group", or the "Company")

Trading Update for the six months ended 30 June 2023

 

Ahead of its Interim 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 six months to 30 June 2023 in line with the Board's
expectations.

On a reported basis, the Board expects revenues from continuing operations to
be circa +22% ahead of the prior year, and, on a constant currency basis, to
be ahead of the prior year by circa +26%.  EBITDA from continuing operations
is expected to be broadly in line with the prior year at circa £2.9 million
(H1 2022 restated: £2.9 million).

The Group, despite recent currency headwinds, continues to record good revenue
growth in its key Indian and Turkish markets. Blink Parametric ("Blink"), the
Group's InsurTech business focused on the global travel sector, continues to
progress, and has this year secured a number of new clients in the UK,
European and North America markets. Additionally, Blink has achieved a 100%
renewal rate of its existing customer base which provides a further proof
point on the value Blink helps to create for its partners.

 

Operationally, the Group is now at the implementation stage of its change
management programme which, at its conclusion, will see CPP exit from its
Legacy businesses and focus on growing its Blink, Indian, and Turkish
operations. The key milestones for this year are the delivery of a new IT
platform for India; the building of capacity for Blink; and commencing active
closure plans for key Legacy businesses, whilst migrating the Legacy
operations onto lower cost third party platforms which will be used for the
duration of their wind-down. As expected, the Legacy closure activity will
lead to substantial exceptional provisions in both the interim and full year
results. To date the implementation of the change management programme is
proceeding as planned, and the Group expects to meet the operational
objectives it set itself for this financial year.

 

The Group's Interim Results for the six months ended 30 June 2023 are due to
be published on 19 September 2023.

Simon Pyper, CEO of CPP Group, commented:

"From a trading perspective the Group's performance in the first half was
encouraging. Additionally, growth, renewals, and new client wins in Blink
provide strong evidence that our strategy and approach is appropriate, and
more importantly, starting to deliver positive outcomes, though at a somewhat
more measured pace than originally expected.

With regards to the change management programme, we continue to make good
progress and expect by the end of the year to deliver on a number of key
objectives, including the delivery of a new IT platform for our Indian
business.

The change management programme is the 'how' we build a better future for the
Group, one which on completion should provide better outcomes for all
shareholders and other stakeholders.

Whilst there is much to be done, I am confident that we are travelling in the
right direction and at an appropriate speed."

 

Enquiries:

 CPP Group plc
 Simon Pyper, Chief Executive Officer    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                            cpp@almapr.co.uk
 David Ison
 Kieran Breheny

 

About CPP Group:

CPP Group is a technology-driven assistance company that creates embedded and
ancillary real-time assistance products and resolution services that reduce
disruption to everyday life for millions of people across the world, at the
time and place they are needed, 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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