CPP Group announces 2021 financial results
CPP Group Plc today reports a year of financial, operational progress and re-focus in its 2021 full year results
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 2021.
Financial Highlights:
- Group revenue from continuing operations increased by 5% to £143.6 million (2020 restated: £136.5 million)
- EBITDA from continuing operations increased by 29% to £7.5 million (2020 restated: £5.8 million).
- Profit before tax increased to £4.2 million (2020 restated: £0.9 million).
- Cash balance of £22.3 million as at 31 December 2021 (2020: £21.9 million).
- Final dividend proposed of 7.5 pence per share which will represent a full year dividend of 12.5 pence per share (2020: 25.0 pence per share).
Operational highlights:
- Strong recovery in our Indian market with CPP India growing revenue by 7% and Globiva widening its client base with revenue increasing by 51%.
- Expanded partner base and product innovation in Turkey with revenue growing 28% on a local currency basis.
- Making progress in the integration of Blink to strengthen the Group’s ability to deliver innovative parametric and digital solutions.
- Simplification of the Group to focus on key growth areas through:
- disposal of German card protection legacy business for £2.4 million;
- disposal of our historically loss-making China business in January 2022;
- restructure of Mexico and closure of the legacy Malaysia business; and
- post period, we have commenced the wind down of the UK MGA and Bangladesh.
- New Board and Executive team in place to provide strategic focus and drive the business forward sustainably.
Simon Pyper, CEO of CPP Group, commented:
“Despite the COVID-19 related headwinds which have challenged us all, the Group not only delivered a solid set of financial results but also made progress in simplifying and refocusing its operations through the sale of our German Card Protection business, the restructure of operations in Mexico and the closure of operations in Malaysia. Whilst there is still much to do, the changes introduced in 2021 have allowed the Group to refocus on its core operations in India and Turkey, and our digital rich, Blink parametric business.
The Group is now focused on optimising the allocation of human, intellectual and financial capital to where it can better achieve commercial advantage and attractive returns. To that end, and post the reporting period, the Group has exited from its underperforming China, Bangladesh and UK MGA operations. Additionally, the Board is evaluating the change management programme, introduced by the previous management team, to ensure that the various projects are consistent with the Group’s new ‘direction of travel’ and moreover, that the benefits assumed are realisable.
I am determined to re-energise CPP, to simplify its business model and to improve returns to shareholders.”