CPPGroup Plc Trading update for six months ended 30 June 2024

RNS Number : 8225W

CPPGroup Plc

18 July 2024

 

18 July 2024

CPPGroup plc

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

Trading update for the six months ended 30 June 2024

 

Ahead of its Interim Results, CPP Group (AIM: CPP), a provider of real-time, digitally delivered assistance products which reduce disruptions to everyday life for millions of people confirms that it expects to report financial results for the six months to 30 June 2024 in line with the Board's expectations.

 

On a reported basis, the Board expects revenues from continuing operations to be circa £89.1 million (H1 2023 restated: £90.6 million) which is 2% below prior year (2% higher on a constant currency basis). EBITDA from continuing operations is expected to be circa £1.1 million (H1 2023 restated: £2.1 million).  Continuing operations include the results for Blink, CPP India, Globiva, CPP Turkey and the UK Legacy business which is now in run-off. The results for the Group's legacy Spanish, Portuguese and Italian businesses are, as a result of either sale or closure, reported separately as discontinued operations.

The Group's core business units, comprising Blink, CPP India, Globiva and CPP Turkey, reported revenues of circa £88.2 million (H1 2023: £87.0 million) and EBITDA of circa £4.0 million (H1 2023: £3.9 million) which is a satisfactory set of results given both currency headwinds and the adverse impact of Bajaj Finance Limited ("Bajaj") transferring a portion of their LivCare policy book to locally based insurers in the first quarter of the year, as previously announced. In July 2024, the Group signed a contract extension with Bajaj to 31 December 2027.

 

Operationally, during the first half of the year the Group completed its Change Management Programme. Save for the UK legacy business which is in run-off, all of the Group's legacy operations have now ceased.

 

The Group's Interim Results for the six months ended 30 June 2024 are due to be published on 17 September 2024.

Simon Pyper, CEO of CPP Group, commented:

"Generally, our first half trading performance was satisfactory and is in line with expectations. Blink continues to demonstrate good progress, securing five new contract wins in the first half of the year and maintaining its 100% partner renewal rate. Furthermore, Blink has a robust pipeline of new business opportunities, and I expect further good progress to be made before the end of this financial year. CPP India and CPP Turkey, despite currency headwinds, are performing as expected.

Operationally, the Group completed its Change Management Programme with each of the Core business units now having their own independent IT and operational infrastructure. With the closure of the Group's legacy systems in the second quarter of this year, central overheads are reducing to a more normalised run rate, as expected.

I expect the progress made during the first half of 2024 to continue during the remainder of this year and into next."

 

Enquiries:

 

CPP Group plc

Simon Pyper, Chief Executive Officer                   Tel: [phone]

David Bowling, Chief Financial Officer  

 

Panmure Liberum        

(Nominated Adviser and Sole Broker)                  Tel: [phone]

Richard Lindley

Will King            

             

  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/

 

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