CPPGroup Plc – Full year report for the year ended 31 December 2017
CPP grows revenue through international expansion
During the year the Group significantly increased revenues, driven by rapid international growth, returned to statutory profitability, substantially improved its financial strength and implemented a new growth strategy focused on building partner relationships and investment in innovative product-based technology.
- Group revenue from continuing operations has increased by 24% to £91.4 million (2016: £73.6 million), representing the first year of growth since 2011.
- International revenues grew by 54% to £69.1 million (2016: £44.9 million). This includes revenue from India which has increased by 164% to £40.0 million (2016: £15.2 million).
- A return to statutory operating profit of £3.5 million (2016: £1.8 million loss). Underlying operating profit has reduced to £3.9 million (2016: £8.4 million) with the growth in our international business not yet covering the reduction in the higher margin restricted UK renewal book.
- A return to statutory profit after tax from continuing operations of £4.6 million (2016: £0.5 million loss).
- Unrestricted cash position improved significantly to £31.5 million (2016: £9.5 million) following approval from the PRA to lift the capital restrictions on Homecare Insurance Limited and the receipt of proceeds from the sale of the Head Office in York.
- The Group moved to a decentralised operating structure, giving our individual country operations greater responsibility and commercial freedom.
- Worldwide customer numbers have increased by 26% to 5.5 million (2016: 4.3 million) across 11 countries, including a 56% increase in our international customer base.
- Further expansion of product development capability with the recent acquisition of a strategic minority stake in KYND Limited, a London-based cyber security diagnostics provider.
Jason Walsh, Chief Executive Officer, commented:
“This was one of the most important years in CPP’s history, one in which we not only significantly improved the financial performance of the Group but also, and more importantly, refocused it for future growth and prosperity.
Today CPP is a fundamentally stronger and more energised business than before. Our international business is continuing to grow rapidly and together with once again having an approved company as an intermediary in the UK market we will continue to develop suites of innovative technology-based protection services that will benefit all our markets. Our corporate office is much smaller and our core team are sufficiently nimble to take advantage of growth opportunities. Our strong balance sheet and cash resources give us ample opportunity to invest in new products and services or make strategic acquisitions, while our growing array of partners will enable us to bring our services to market. We are looking forward to another year of growth in 2018”