CPP Group growth ambition enhanced by share consolidation approval
Shareholders of CPPGroup PLC have today approved a share consolidation which will help to sustain the business’s ability to achieve long term growth.
Shares in the AIM-listed CPP Group are being consolidated by a factor of 100 so 1,000 existing ordinary shares currently worth, for illustration, 4p each will become 10 new ordinary shares worth £4 each.
The consolidation exercise follows a resolution put to shareholders by CPP Group’s Board as part of its annual general meeting which took place today (Thursday, May 28).
During 2019 the Group reported an operating profit of £1.6 million (2018: £0.2 million loss) with pre-tax profit improving to £1.1 million from £0.3 million in 2018.
The existing shares will be cancelled at 6pm today (May 28), with trading in the new shares beginning at 8am tomorrow.
Jason Walsh, Chief Executive of CPP Group, said:
“This is a positive step in the development of CPP Group.
“Our share price has been stable overall for some time but because we have so many shares in issue for a business of our size, small changes in actual price represent large percentage swings which often results in greater volatility than you would expect.
“Over time that ripple effect can reduce confidence in the company unless you have a better knowledge of our deep foundations such as a strong back book of customers, together with a history of innovation. This means that our share price does not always reflect the successful, multinational operation that CPP Group is today.
“By consolidating our shares we hope to make it easier to grow and ultimately create a more successful and valuable Group.”