CPP
Customer Login

Are you a CPP Card Protection or Identity Protection (IPA) customer?

Click here to access our customer website: www.cppdirect.co.uk

CPP Group, provider of real-time, digitally delivered assistance products which reduce disruptions to everyday life for millions of people across the world is pleased to announce its full year results for the 12 months ended 31 December 2023.

 

Financial Highlights:

  • Group revenue increased by 14% to £193.0 million (2022: £169.8 million).
  • EBITDA1 at £4.8 million (2022: £6.9 million).
  • Core business units3 revenues increased by 17% to £181.0 million (2022: £154.3 million).
  • EBITDA from Core business units3 at £7.4 million (2022: £8.3 million).
  • Exceptional items total £8.4 million (2022: £1.7 million) primarily relating to planned Legacy business closures.
  • Loss before tax of £6.1 million (2022: £2.4 million profit).
  • Cash balance of £19.0 million at 31 December 2023 (31 December 2022: £21.0 million).

Operational Highlights:

  • Group re-focused on three Core businesses (Blink Parametric; CPP India; and CPP Turkey).
  • Simplified proposition away from “insurance” to “digital assurance” services.
  • Core business3 performing well.
    • Seven new business partners and a 100% renewal rate for Blink Parametric
    • Strong growth in CPP India and CPP Turkey
  •  Change Management Programme proceeding as planned, with Phase 1 of the new Indian IT platform delivered.
  • Exit from Legacy operations progressing as expected and at pace.
  • Planned divestment of Globiva over three years for approximately £5.1 million announced in November 2023.
  • Disposal of minority interest in KYND Limited (“KYND”) for £2.6 million announced post period end.
  • Post period, due to regulatory changes in India, a subset of LivCare business with Bajaj has transferred from the Group.

Simon Pyper, CEO of CPP Group, commented:

“That we have been able to implement and execute the Change Management Programme (“CMP”), to divest non-core businesses such as Globiva and KYND, and at the same time, to deliver growth from our core business, is I believe, a testament to the quality of the people that I have the privilege to work with.

From a trading perspective the Group’s key Indian and Turkish markets, despite currency headwinds, performed well. Both businesses added new partners and new products and are well positioned to make further progress in 2024. Blink, the Group’s parametric business primarily focused on the global travel market, also made good progress, securing seven new business partners, and achieving a 100% renewal rate of its existing client base, both of which are further proof points of the value our services provide to both the Insurer and end customer. Despite the good revenue growth, EBITDA from our core business units was lower than prior year at £7.4 million reflecting the planned investment in Blink, a mix change in CPP India product sales, and £0.8 million adverse currency movements.

From an operational perspective, the Group is now at the implementation stage of its CMP which, at its conclusion, will see the Group exit from its Legacy businesses and focus on growing its core Blink, Indian, and Turkish operations. The Group achieved the majority of the objectives that it set for itself for 2023, having over the past year delivered a new IT platform for its business in India, exited from its legacy operations in Spain, and commenced the closure process for its legacy UK businesses. As expected, the legacy closure activity has led to substantial exceptional provisions in our financial statements and moreover, is expected to consume cash as the businesses are wound down over the medium-term.

Whilst much has been achieved, there remains much to be done before we fully realise our ambition to transform CPP into a digitally led parametric business. Progress may never be as fast as I would like, but I am confident that we are travelling in the right direction and at an appropriate speed.”

  1. EBITDA represents earnings before interest, taxation, depreciation, amortisation, and exceptional items.
  2. Core business units comprises revenue and EBITDA from CPP India, CPP Turkey, Blink Parametric and Globiva. Core total also includes central costs of £4.4 million (2022: £3.3 million).