CPPGroup Plc Trading Statement (2231H)
March 23 2020 - 9:17AM
UK Regulatory
TIDMCPP
RNS Number : 2231H
CPPGroup Plc
23 March 2020
23 MARCH 2020
CPPGROUP PLC
TRADING UPDATE FOR THE YEAR ENDED 31 DECEMBER 2019
Yesterday we received a request from the FCA (alongside many
other companies) that we delay the announcement of our annual
results. Accordingly the Company has agreed with this request and
earlier this morning announced a delay. For the avoidance of doubt
this is part of a broader request made by the FCA yesterday to
listed firms who are due to make results announcements over the
coming weeks, and is not a reflection of the trading position of
the Company. CPP had intended to release its annual results on
March 25(th) and, in light of this general postponement at the
request of the FCA, has prepared this brief trading update.
Trading Update
The Group has generated rapid growth in its international
revenue and customer numbers, leading to a financial performance
for 2019 that was in line with the Board's expectations. Our key
strategic markets and investments made promising progress in
2019.
We saw Group revenue increase by 26% to GBP138.4 million (2018:
GBP110.1 million) continuing the strong growth seen since 2016.
This was driven by revenue from Ongoing Operations rising by 37% to
GBP121.0 million (2018: GBP88.0 million), which included a 53%
increase in Indian revenues to GBP99.6 million (2018: GBP65.3
million).
Our adjusted EBITDA increased by 38% to GBP8.7 million (2018:
GBP6.3 million). Reportable EBITDA reduced to GBP5.4 million (2018:
GBP3.9 million) as a result of charging start-up costs from our
investment in business growth projects which totalled GBP3.3
million (2018: GBP2.4 million) . As at December 31(st) 2019 net
funds comprised cash and cash equivalents of GBP22.0 million.
We have seen an increased diversification in our Indian business
with the launch of a new product (LivPlus), and partnerships with
major brands such as Tata Capital Financial Services (Tata) and
American Express. Globiva continues to outperform expectations as
one of India's fastest growing Business Process Management (BPM)
providers with over 2,000 billable seats across four locations. Our
partner base has grown 50% driven by our key strategic markets of
India, Turkey, China, the UK and Blink. Our partners worldwide
provide potential access to over 200 million customers.
We continue to monitor the economic uncertainties and the
challenges posed globally by the coronavirus outbreak and the
impact it may have on the Group. Further updates in this regard
will be made as appropriate.
Jason Walsh, Chief Executive Officer, commented:
"2019 has been another positive year for the Group as we
continue to execute our strategic plan. International revenues are
growing rapidly with the strong performance reported last year
being surpassed in 2019. India has again been the driving force
behind this progress, significantly increasing its revenue,
profitability and customer numbers, whilst Turkey continues to make
a valued contribution.
"CPP is a partnership-focused business and we are pleased by the
success we have had in the year in deepening relationships with
existing partners whilst further expanding our potential through
new partnerships with major brands across our key markets. It is
these relationships that will underpin the future success of the
business.
"Looking ahead, we are ideally positioned to continue the
delivery of our strategic plan and build value. We have long-term
partnerships that are flourishing around the Group, our
acquisitions are performing well and are adding value, and our
developing markets are making good progress with exciting
propositions and sales pipelines. The investment we have made in
technology will also put us at the forefront of delivering
tech-enabled digital solutions for our partners and their
customers. However, the impact coronavirus will have on our
partners and the behaviour of customers is not yet clear. We
continue to monitor the situation and will respond
accordingly."
Enquiries:
CPPGroup Plc
Jason Walsh, Chief Executive Officer
Tel: +44 (0)7764 378580
Oliver Laird, Chief Financial Officer
Tel: +44 (0)113 487 7350
Nominated Adviser and Broker
Investec Bank plc: Sara Hale, Carlton Nelson
Tel: +44 (0)20 7597 5970
About CPP
CPP Group is a partner focused, global product and services
company, specialising in the financial services and insurance
markets. We use our local knowledge from 12 country markets within
Asia, Europe and Central America to provide our business partners
with technology-led product, marketing and distribution expertise
that deliver commercial benefits and bring meaningful solutions to
over 10 million end customers worldwide.
CPP's diverse range of insurance and assistance products can be
designed to suit the bespoke needs of our business partners through
providing their customers with peace of mind by reducing the
stresses of everyday life, ranging from protection of mobile
phones, payment cards and household belongings to keeping travel
plans moving and the monitoring of compromised personal data.
For more information on CPP visit
https://international.cppgroup.com
REGISTERED OFFICE
CPPGroup Plc
6 East Parade
Leeds
LS1 2AD
Registered number: 07151159
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END
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