CPPGroup Plc Trading Statement (8226E)
12 July 2021 - 4:00PM
UK Regulatory
TIDMCPP
RNS Number : 8226E
CPPGroup Plc
12 July 2021
12 July 2021
CPPGroup Plc
("CPP Group" or "the Group")
Trading Update for the Six Months Ended 30 June 2021
Resilient trading amidst difficult conditions
CPP Group (AIM:CPP), the multinational provider of personal
protection and insurance products and services, provides an update
on trading for the six months ended 30 June 2021.
Performance in the period has been largely resilient in spite of
continued disruptions caused by COVID-19 with the Group's trading
being in line with the Board's expectations.
India, the Group's largest market, entered a national lockdown
in the second quarter of 2021, leading to a sharp reduction in new
business activity during April and May. However, we have seen a
robust recovery in trading in the last few weeks and the lifting of
lockdown measures, as currently planned by the Indian authorities,
should see the trading performance of CPP India continue to improve
in the second half of 2021. Globiva, our Indian business process
management company, has seen little impact on its revenues during
this period.
In other territories, the pandemic continues to be a source of
uncertainty amongst consumers and our business partners. However,
the Group is pleased that renewals from the back-books remain
robust. The performance of the back-book businesses in the UK and
Europe continue to generate reliable, though declining, cash flow
for the Group.
The sale of the German card protection business in May was part
of the Group's focus on cost control and the most efficient use of
capital. This emphasis has led to restructuring the internal
operations of unprofitable business units to improve their
financial performance, as demonstrated by actions taken during the
period with respect to the businesses in Mexico, Malaysia and Blink
(the Group's parametric insurance provider).
Whilst the Group has weathered the most recent COVID-19 storms
satisfactorily, it is sensible at this point to take a guarded view
about the outlook for the remainder of the year given the dynamic
nature of the trading background. The Board anticipates being able
to provide further guidance when the interim results are
announced.
Jason Walsh, CEO of CPP commented:
"The COVID-19 situation has had an impact on trading conditions
in the first half of the year, and against that backdrop the Group
has performed well, with our operations in India in particular
showing great resilience. The Group's balance sheet and cash
position remain solid and good progress has been made with the
strategic review of the Group's businesses instigated earlier in
the year. I would like to express my thanks to our people for their
dedication during the first half of the year under very difficult
circumstances.
We look forward to providing more detail in our interim results
on 24 August."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Enquiries:
CPPGroup plc via Alma PR
Jason Walsh, CEO
Oliver Laird, CFO
Sarah Atherton, Company Secretary
Liberum Capital (Nominated Adviser & Sole Broker) +44 (0)20 3100 2000
Richard Lindley
Lauren Kettle
Kane Collings
Christopher Whitaker
Alma PR (Financial PR Adviser) +44 (0)20 3405 0205
Josh Royston cpp@almapr.co.uk
David Ison
Kieran Breheny
About CPP Group:
CPP Group takes away many of the stresses and strains of daily
life for millions of people across the globe. In collaboration with
selected partners in each country in which the Group operates, it
develops, aggregates, offers and supports a range of personal
protection and insurance products, which are sold alongside, or
packaged with, the core product offerings of the Group's partners.
CPP is listed on AIM, operated by the London Stock Exchange.
For more information on CPP visit
https://international.cppgroup.com/
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