REG - CPPGroup PLC - Transformation of CPP Group: Disposal of CPP India

CPPGroupAnnouncement

23/07/2025 07:00

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RNS Number : 1368S  CPPGroup PLC  23 July 2025

CPPGroup Plc

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

 

  Transformation of CPP Group to a parametric Insurtech business: Blink

Disposal of CPP India

CPP Group (AIM: CPP) announces that it has agreed terms for the disposal of
CPP Assistance Services Private Ltd ("CPP India") for a total cash
consideration of US$21.0 million (approximately £15.7 million(1)) (the
"Sale"). The transaction, which remains subject to inter alia shareholder
approval, marks a significant milestone in the Group's strategic
transformation. Upon completion, CPP Group will fully exit from its legacy
operations and complete its evolution into a focused parametric InsurTech
business, Blink.

Background, Rationale and Strategic Focus on Blink

As announced on 18 June 2025, CPP Group is executing a clear and deliberate
strategy to exit legacy businesses and focus exclusively on Blink, its
scalable, high-margin, technology-led InsurTech platform. The proposed
disposal of CPP India represents a key milestone in this transformation
simplifying the Group's structure and enabling the reallocation of capital to
its most strategically important asset.

 

Since inception, Blink has evolved to a commercially proven platform with
significant long-term growth potential. Operating in high-growth sectors such
as travel disruption and cybersecurity, Blink is well positioned in markets
where parametric models typically command significantly higher valuation
multiples than traditional insurance or assistance models.

 

To unlock Blink's full potential, additional capital is required. The proceeds
of the proposed sale of CPP India, in addition to the £6.1 million to be
received following the successful disposal of CPP Turkey, will be used to:

·      accelerate investment in Blink's commercial and technology
roadmap;

·      restructure and materially reduce central costs; and

·      support working capital requirements.

CPP India's business model has become increasingly constrained. With 85% of
FY2024 revenue derived from a single partner, limited growth prospects, rising
regulatory pressure, and a requirement for further investment, the Board
believes a sale at an appropriate valuation and with partner alignment is in
the best long-term interests of both CPP India and the Group.

 

The Group's strategic direction is clear: exit legacy operations, invest in
Blink, and unlock long-term shareholder value.

 

Disposal of CPP India
CPP Group has agreed terms with OneAssist Consumer Solutions Private Limited  and Bolttech Device Protection India Private Limited (the "Buyers"), both privately owned businesses headquartered in India, for the disposal of CPP India. Under the agreement, the Buyers will acquire 100% of CPP India for a total cash consideration of US$21.0 million (c. £15.7 million(1)), of which US$15.8 million (c. £11.8 million(1)) (75%) is payable on completion. The remaining balance will be paid in two equal instalments, six and twelve months post-completion, contingent on the satisfaction of agreed performance conditions. Indian exchange laws require taxation on the disposal, which is expected to total c. £2 million, to be withheld by the Buyers. Additionally, costs associated with the disposal in FY2025 are expected to total c. £0.9 million.

 

CPP India is a provider of assistance and protection services, offering a
range of white labelled products in collaboration with banks, NBFCs, and
financial technology businesses across India. CPP India's core offerings
include Card Protection for lost or stolen cards, FoneSafe insurance for
mobile devices, Asset Secure extended warranties for consumer electronics, and
LivPlus wellness packages.

 

As previously noted, CPP India derives the vast majority of revenue from a
single business partner, operates under increasing regulatory scrutiny, and
would require capital investment to maintain or grow value. The Group's
strategy does not support reinvestment in legacy assistance models, making a
well-executed sale the optimal route forward.

 

For the financial year ended 31 December 2024, CPP India contributed £6.6
million to the overall Group EBITDA of £1.4 million and reported a profit
before tax of £4.7 million. As at year-end, CPP India held net assets of
£2.3 million.

 

Strategic Alignment: A Singular Focus on Blink

Blink has rapidly matured into a scalable, high-margin InsurTech platform, now
deployed in 22 markets through 28 insurance partners. During FY2024, Blink
achieved:

·      Over 1.5 million policies sold with Blink technology embedded

·      100% renewal rate across all active partners

·      62% growth in Annual Recurring Revenue (ARR) to £1.6 million

Blink's two core markets travel disruption (flight delays, lost luggage) and
cybersecurity (personal data and dark web monitoring) are both expected to
experience sustained global growth. This positions Blink to benefit from
strong structural tailwinds.

 

By divesting non-core legacy assets, the Group is now able to:

·      Deepen strategic partnerships with global insurers

·      Accelerate commercial delivery

·      Expand product innovation and modular development

·      Scale a next-generation platform purpose-built for global
deployment

Investment in Talent and Leadership

To lead Blink through its next phase of growth, Brian Barter was appointed CEO
of Blink on 5 June 2025. Brian brings significant experience in scaling global
fintech and SaaS platforms, having previously held leadership roles at
Accenture, Bank of Ireland, and BoatyardX. His appointment underlines the
Group's commitment to establishing Blink as a globally relevant, always-on
InsurTech platform, delivering innovation and long-term value for partners and
shareholders alike.

 

Restructuring and Cost Reduction

As legacy operations are exited, the Group will transition into a simpler,
leaner, Blink-focused organisation. In line with this evolution, a cost
reduction and restructuring programme will be launched in September 2025,
delivering a significant reduction in central costs.

 

Further detail will be provided as part of the Group's Interim Results, due at
the end of September 2025.

 

Application of Funds

Proceeds from the disposals of CPP Turkey and CPP India will be deployed to
support the Group's strategic priorities. No shareholder distribution is
expected at this time. Funds will be allocated as follows:

·      Investment in Blink's technology and commercial growth

·      Ongoing working capital needs, including cost reduction programme

·      Repayment of the Group's RCF facility with Barclays, which will
be withdrawn in September 2025

The consideration for CPP India is US$21.0 million (c. £15.7 million(1))
which will be used to support Blink's expansion and the necessary run-off and
restructuring of the Group's remaining legacy operations, including central
costs. As of 30 June 2025, the Group held net funds of £8.1 million.

 

Should Shareholders approve the Sale, ongoing revenue and EBITDA for the Group
will be reduced and, after deducting liabilities, the Sale is expected to
result in a gain on disposal of approximately £10 million(2) (unaudited)
which will be recognised in the Group's accounts for the year ending 31
December 2025.

 

Shareholder Circular

The size of the transaction relative to the Group constitutes a fundamental
change of business pursuant to Rule 15 of the AIM Rules and is therefore
subject to shareholder approval. A Circular is expected to be issued in late
July / early August, which will contain further details on the Sale and will
also contain a notice convening a General Meeting of the Company in August.

 

 

Simon Pyper, Chief Executive Officer of CPP Group, commented:

"The sale of CPP India marks another key milestone in our strategic
transformation. Alongside the earlier disposal of CPP Turkey, this deal
simplifies the Group and strengthens our ability to accelerate investment in
Blink. Under Brian's leadership, Blink is evolving into a best-in-class,
global InsurTech platform with the potential to deliver meaningful, long-term
value for shareholders."

 
(1) Calculated at current £:US$ exchange rate of 1.34. The SPA provides for the transaction exchange rate to be fixed seven days prior to completion.

(2) Gain on disposal is estimated based on 30 June 2025 closing position in
India, being the latest financial information available at the time of issue
and is subject to audit. Estimates are also subject to movements in exchange
rates.

 

 

 

ENQUIRIES

 

CPPGroup plc

Simon Pyper, Chief Executive
Officer
via Alma Strategic Communications

David Bowling, Chief Financial Officer

 

Panmure Liberum

(Nominated Adviser and Sole
Broker)
Tel: +44 (0)20 310 2000

Stephen Jones

Atholl Tweedie

Will King

 

Alma Strategic
Communications
                            CPP@almastrategic.com
(mailto:CPP@almastrategic.com)

Josh Royston
 
           Tel: +44 (0)20 3405 0205 (tel:+442034050205)
 

Andrew Jaques

David Ison

 

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

 

 

 

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