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:
+44 (0)7917 795601
David Bowling, Chief Financial
Officer
Panmure Liberum
(Nominated Adviser and Sole Broker)
Tel:
+44 (0)20 3100 2000
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.