CPP moves towards ‘stable foundation’

0
Have your say

CPP Group yesterday said it had made progress towards a “more stable foundation”, despite posting a large full year loss.

The York-based card protection firm has been writing to its seven million customers after setting up a compensation scheme following its mis-selling of insurance for bank and credit cards between 2005 and 2011. Customers voted in favour of the scheme earlier this year.

Customers paid £30 a year to insure their bank or credit cards and £80 for identity protection through CPP and its partners - 13 high street banks and card companies. But in many cases they did not need such policies, because they were already protected by their bank or card issuer.

CPP was fined £10.5m in November 2012 by the then Financial Services Authority. In the months that followed, the company’s share price fell dramatically and it lost a number of large contracts including RBS and Santander. By April 2013, CPP Group had plunged to a £20m annual loss.

Brent Escott, who became chief executive in September last year, said yesterday: “CPP is on a journey to rebuild, improve, modernise, and evolve.”

Revenue reduced to £178m during 2013, compared with £269.9m the year before. The group has recognised significant exceptional items in the period of £37.5m, mainly comprising customer redress and associated costs, This resulted in a reported operating loss of £39.3m. CPP employs 1,100 staff, including around 500 in York. Around 200 jobs have been lost at the company’s York operations in recent years.