Half-year report for the six months ended 30 June 2021
CPP Group (AIM: CPP), the multinational provider of personal protection and insurance products and services, is pleased to announce its half year results for the six months ended 30 June 2021.
The Group delivered another half of robust financial and operational progress amid continuing challenges related to the pandemic. Revenues, profits and customer numbers all increased at the same time as making progress on strategic initiatives that put it in a strong position to support partners, deliver value for customers and maintain a robust financial position.
Key financial indicators:
- Group revenue from continuing operations increased by 10% to £66.4 million (H1 2020 restated: £60.3 million)
- EBITDA from continuing operations increased by 37% to £2.6 million (H1 2020 restated: £1.9 million)
- Reported loss before tax from continuing operations of £0.7 million (H1 2020 restated: £0.5 million profit)
- Underlying profit before tax from continuing operations of £0.8 million (H1 2020 restated: £0.6 million)
- Loss after tax from continuing operations of £1.8 million (H1 2020 restated: £1.2 million) which improves to an overall profit for the period of £1.3 million (H1 2020: £0.7 million loss) when including discontinued operations
- Cash balance of £19.6 million as at 30 June 2021 (H1 2020: £18.2 million)
- 5 pence per share interim dividend declared following recommencement of full year dividend announced in FY 2020 results
- Customer numbers increased to 12.3 million (H1 2020 restated: 10.8 million, FY 2020 restated: 11.6 million) with growth in India being well supplemented by customer acquisitions from new partners in Turkey and the UK
- The partner base continues to grow, including the addition of financial wellbeing company ClearScore in the UK. The partnership demonstrates our growing capability in embedded insurance
- Further product innovation to meet the changing needs of consumers with the release of a home emergency product range in the UK and EU, and plans to launch a similar line in Turkey
- Integration of Blink into our platform to strengthen the Group’s ability to meet the growing demand for parametric insurance solutions
- Established an IT team in our Indian business to build our new customer platform
- Disposal of German card protection legacy business for £2.4 million, providing additional financial flexibility for the Group to deliver its growth strategy
- Restructuring of Mexico and closure of Malaysia business units in line with the Group’s commitment to maximise value from its assets and focus on the areas with the strongest prospects
Jason Walsh, Chief Executive at CPP Group, said:
“The first half of 2021 was a similar story to that of 2020, with a strong first quarter tempered by the negative effects of COVID-19 in the second, particularly in our main market of India. Nonetheless, we have adapted well across our markets and delivered a solid overall performance on the corresponding period last year while making progress in restructuring elements of the Group to further strengthen its position for long-term, sustainable and profitable growth.
“We remain focused on growing our offering through innovation and strengthening our routes to market while continuing to drive efficiencies across the Group.
“Looking ahead, while the backdrop remains an uncertain one, the recovery we have seen in India and the continued traction in our other core markets gives us confidence that 2021 will be another year of progress. This view is underpinned by favourable macro-trends and a proven ability to innovate in collaboration with our partners to develop products that resonate with consumers, as well as a strong balance sheet and an organisational structure that is increasingly optimised for success. Therefore, whilst uncertainty remains from COVID-19, the Board believes the Company is trading broadly in line with market expectations for the full year.”