Half-year report for the six months ended 30 June 2022
CPP Group (AIM: CPP), 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 half year results for the six months ended 30 June 2022.
Robust performance and continued simplification of the business and proposition
Since the beginning of 2022 we have created a leaner organisational structure – focusing on four business units and an intention to move away from ‘insurance’ towards ‘real-time assistance’.
Despite the global economic environment, the Group’s core businesses continued to perform well.
The Group are focused on a broader multi-year Change Programme, with the aim to define what CPP’s purpose is, and to set a course for the Group that moves it closer to its vision of becoming a leading technology driven assistance business.
Financial Highlights:
- Group revenue from continuing operations increased by 18% to £77.8 million (H1 2021 restated: £65.7million)
- Core revenues increased by 26% to £69.5 million (H1 2021: £55.0 million)
- EBITDA from continuing operations increased by 18% to £3.1 million (H1 2021 restated: £2.6 million)
- Profit before tax from continuing operations increased to £1.3 million (H1 2021 restated: £0.5 million loss)
- Loss after tax from continuing operations improves to £0.2 million (H1 2021 restated: £1.6 million loss)
- Cash balance of £19.3 million at 30 June 2022 (H1 2021: £19.6 million)
- Dividends suspended pending completion of the strategy review (Change Programme)
Operational highlights:
- Simplified structure focused on four business units
- Simplified the proposition away from “insurance” to “real-time assistance” services
- Simplified the management and operational structures
- Core business (CPP India, CPP Turkey, Blink and Globiva) performing well
- Major partner renewals for CPP India, and new partner wins for both CPP Turkey and Blink
- Legacy Business (UK & European back book) revenues continue to record year-on-year decline
Simon Pyper, CEO of CPP Group, commented:
“Despite global economic headwinds, the Group has delivered robust revenue growth, particularly from its Indian and Turkish operations. Blink, the Group’s InsurTech business focused on the global travel sector, also performed well, albeit from a low base. As international travel recovers, Blink is starting to see growth in its new business pipeline. The good performance from our core markets somewhat masks the structural decline in profitability from our Legacy Businesses, a decline long understood by the business though never addressed.
On appointment, I found a business which had no adequate plan to address the decline in its Legacy Business, which had no sense of purpose, and no strategy for the future. Consequently, much of my time since appointment as CEO has been focused on simplifying the business, simplifying our proposition, and simplifying our management and operating structures. Additionally, the management team and I have been working on a broader Change Programme, the aim of which is to define what CPP’s purpose is, and to set a course for the business which over time should improve outcomes for our key stakeholders.
While cognisant of global economic headwinds, the Board remain confident in the outlook and growth prospects for our core operations. However, structural issues pertaining to our Legacy Business and associated IT costs need to be addressed which will have some impact on overall performance and we will provide further guidance in due course.”