Half-year report for the six months ended 30 June 2020
- Group records good financial performance and retains solid cash position
- Effective response to coronavirus pandemic helps to achieve overall increases in revenues, profits and customer numbers
- Company focused on evolving products and services to reflect changing needs of partner businesses and consumers
CPPGroup Plc (CPP or the Group) today announces a healthy financial performance in the first half of 2020. A quick and effective response from the outset of the coronavirus outbreak has helped the multinational product and services company continue supporting business partners as well as maintaining a robust financial position.
Key financial indicators:
- Group revenue increased by 3% to £61.8 million (H1 2019: £60.2 million) with a strong Q1 being tempered by a COVID-19 constrained Q2, particularly in India
- Solid cash balance of £18.2 million (H1 2019: £22.4 million; 31 December 2019: £22.0 million)
- Adjusted EBITDA increased by 10% to £4.0 million (H1 2019: £3.6 million)
- EBITDA increased by 4% to £2.4 million (H1 2019: £2.3 million)
- Profit before tax increased by 19% to £1.0 million (H1 2019: £0.9 million)
- Excluding currency movements across our international markets:
- Revenue increased by 5%
- Adjusted EBITDA increased by 15%
- EBITDA increased by 11%
- Profit before tax increased by 29%
- Customer numbers increased to 10.9 million (H1 2019: 9.0 million; 31 December 2019: 10.6 million)
Operational highlights:
- Increased the partner base by retaining existing partnerships as well as securing new deals with major brands including Vakifbank in Turkey and RAC and Gallagher in the UK
- Maintained service to all customers throughout lockdown with transfer of customer service colleagues to home working
- Reaffirmed our financial contingency measures with renewal of £5 million borrowing facility for a further 3 year term to August 2023
- Progressed product innovation in light of changing customer expectations, such as an increased focus on the healthcare sector and digital solutions
- Opened up a global conversation with colleagues to understand the wider impact of coronavirus, giving us a platform to define new adaptable and productive working practices
- Further strengthened governance and assurance frameworks, ensuring compliance with business and regulatory requirements are maintained
Jason Walsh, Chief Executive at CPP Group, said:
“I am very pleased with our performance so far in 2020. Our response to COVID-19 has underlined the resilience of our people, our quality relationships with partners and ultimately our strong financial position.
“In-keeping with our efforts to improve efficiency over recent years, we have reduced costs while delivering excellent services for customers, winning new business and building a healthy sales pipeline for the future.
“Our strategic ambition, to create tangible value for partners through self-sustaining operations around the world, remains undiminished but the way we achieve it will naturally evolve as a result of COVID-19. The sectors we target for growth and the products and services we offer will change in emphasis – they will reflect the new needs of the businesses with which we partner and their customers.
“Our ability to adapt and remain flexible, coupled with the continued close attention we give to the impact of coronavirus, makes me confident we are well placed to maintain our robust financial performance over the long term.”