CPP Group, a provider of assistance and insurance products which reduce disruptions to everyday life for millions of customers across the world, is pleased to announce its full year results for the 12 months ended 31 December 2022.
A focused business
In October of last year, CPP Group set out the conclusions of an extensive strategy review, the future direction of the Group and the accompanying change management programme – a complex set of eight inter-dependent projects. This will see the Group migrate away from its declining Legacy operations (primarily the UK and European renewal books of business, which are principally Card Protection and Identity Protection) to a product-led global InsurTech business led by Blink Parametric, and supported by its CPP India and CPP Turkey businesses. The Group is moving towards becoming a simpler business, with all units contributing to growth and improving returns for shareholders.
- Group revenue from continuing operations increased by 19% to £169.8 million (2021 restated: £142.8 million)
- EBITDA from continuing operations decreased by 5% to £6.9 million (2021 restated: £7.2 million)
- Core revenues (Blink, CPP India, CPP Turkey and Globiva) increased by 25% to £154.3 million (2021: £123.2 million) and Core EBITDA increased by 20% to £5.0 million (2021: £4.1 million)
- Central overheads reduced to £3.4 million (2021: £4.3 million)
- Profit before tax from continuing operations decreased to £2.4 million (2021 restated: £4.3 million). On an underlying basis profit before tax has increased to £4.2 million (2021 restated: £3.0 million)
- Profit after tax from continuing operations reduced to £0.1 million (2021 restated: £0.6 million)
- Cash balance of £21.0 million at 31 December 2022 (2021: £22.3 million)
- Simplified structure focused on four business units (Blink Parametric; CPP India; CPP Turkey and Globiva)
- Strategy in place to migrate to a product-led global InsurTech business
- Simplified the management and operational structures
- Core business performing well, growing revenues and EBITDA
- Major partner renewals for CPP India, and new partner wins for both CPP Turkey and Blink Parametric
- Legacy business (UK & European back book) revenues and EBITDA continue to decline year-on-year
- Change management programme progressing well and to plan:
- Disposal of China and Mexico and withdrawal from Bangladesh;
- Terms agreed with underwriters to exit from Spain and Portugal over the next 12 months; and
- Blink scalability project well advanced during the year and completed post period.
Simon Pyper, CEO of CPP Group, commented:
“In many respects, the results for the 2022 financial year are the last set of results for the Group as historically constituted. Our new strategy and accompanying change management programme, published in October of last year, sets a new course for the business which will see the Group exit from its Legacy businesses, address critical IT infrastructure requirements, and migrate towards an InsurTech business led by Blink and supported by CPP India and CPP Turkey.
We have already made some good progress with regards to our Legacy businesses, withdrawing from China, Bangladesh, and Mexico. Additionally, in the fourth quarter of last year, we agreed terms to dispose of our legacy Spanish and Portuguese operations which included the transfer of some business to a third-party underwriter. Despite the progress thus far, the change management programme, a complex set of eight inter-dependent projects, is not expected fully to conclude before the end of the 2025 financial year. The size and scope of the change being implemented is profound and challenging, but I remain firmly of the view, that we have set the right course for the business, which, over time, = will deliver satisfactory returns for shareholders and other stakeholders.
From a trading perspective our Core businesses are performing very much in line with expectations. From an operational point of view, we continue to make good progress in implementing the change management programme and expect to deliver on the objectives we have set ourselves for the 2023 financial year.”