CPPGroup Plc Pre-Close Trading Update for Financial Year 2021 (8808Y)
January 19 2022 - 02:00AM
UK Regulatory
TIDMCPP
RNS Number : 8808Y
CPPGroup Plc
19 January 2022
19 January 2022
CPPGroup plc
("CPP Group" or the "Company")
Pre-Close Trading Update for Financial Year 2021
Ahead of the 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, confirms
that it expects to report financial results for the year ended 31
December 2021 broadly in line with market expectations.
On a reported basis, the Board expects full year 2021 revenues
from continuing operations to be +5% ahead of the prior year, and,
on a constant currency basis, to be ahead of prior year by circa
11%. EBITDA from continuing operations is expected to increase by
GBP1.7m to GBP7.5m for the same period, aided by a one-time benefit
from the release of a third-party commission provision amounting to
GBP1.1m relating to our legacy card and identity products.
The fact that CPP has been able to make solid progress, despite
the continued headwinds brought about by Covid-19 and a sustained
strengthening of Sterling, reflects the continued growth of our
Indian business as well as measures to take cost out of central
overheads.
For the financial year ending 31 December 2022, the Board
expects revenues from continuing operations to show further growth
and be broadly in line with market expectations. However, the
current product mix in India coupled with the unfavourable economic
and currency situation in Turkey is expected to limit both margin
and EBITDA growth in the next twelve months.
Furthermore, the benefits hitherto anticipated from the
migration to a new Group IT platform will be less than originally
anticipated in 2022. This, combined with additional costs
associated with managing the UK renewal book, have resulted in a
lowering of expectations for 2022. The Board now expects EBITDA
from continuing operations for the financial year 2022 to be
broadly in line with 2021.
The Company expects to publish its audited full-year results on
29 March 2022.
Jason Walsh, CEO of CPP Group, commented:
"The EBITDA growth for 2021 demonstrates the good progress we
have made as a business across a broad range of metrics. We have
performed well despite both currency headwinds and the disruption
that Covid-19 has and continues to have on the normal day-to-day
lives of our customers, partners, and colleagues.
Whilst it is disappointing to re-set market expectations over
the near term, the business continues to make good progress in a
number of its key markets. 2022 will see an emphasis on these
growth markets and the creation of a roadmap towards a scalable,
more efficient operating model. I and the Board remain confident
about the future of the Group and that the technology led strategy
which we are following will deliver improved returns over the
medium to long term."
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
Jason Walsh, Chief Executive Tel: +44 (0)77 6437 8580
Officer
Simon Pyper, Chief Financial
Officer
Liberum Capital Limited
(Nominated Adviser and Sole Tel: +44 (0)20 3100 2000
Broker)
Richard Lindley
Lauren Kettle
Kane Collings
Christopher Whitaker
Alma PR
(Financial PR Adviser) Tel: +44 (0)20 3405 0205
Josh Royston
David Ison
Kieran Breheny
Faye Calow
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 as 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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