CPPGroup Plc Trading Update for Financial Year 2022 (1865N)
January 19 2023 - 2:00AM
UK Regulatory
TIDMCPP
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 GBP6.9 million (2021
restated: GBP7.2 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 Tel: via Alma PR
Officer
David Bowling, Chief Financial
Officer
Liberum Capital Limited
(Nominated Adviser and Sole Tel: +44 (0)20 3100 2000
Broker)
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/
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