Chief executive of CPP Group to step down

Eric Woolley, who led the York-based group onto the stock market last year, will be replaced next month by former Sage Northern Europe chief executive Paul Stobart.

CPP revealed in March the Financial Services Authority is investigating “alleged failings” in its sales calls for credit card and identity theft products.

The company said Mr Woolley’s decision to quit pre-dates the FSA investigation. Analysts at joint house brokers UBS added they believe Mr Woolley’s departure is unrelated to the probe.

A spokesman for the company said: “Eric has been with CPP for eight years and indicated last year his desire to step down as CEO once CPP had been established as a public company for two years.

“A comprehensive search process was initiated and we are delighted to have been able to secure the services of Paul Stobart to lead the business.”

Neither Mr Stobart or Mr Woolley were available for interview yesterday.

In a statement CPP chairman Charles Gregson said: “Paul has an excellent track record and brings significant, relevant experience to CPP following his 15 years at Sage.

“He understands the mechanics of a customer-focused, high service business and his very strong financial and operational background will be of great value to the group.

“The board also wishes to express its sincere appreciation to Eric for his work over the past eight years, including leading the business to a successful listing on the London Stock Exchange. We wish him every success for the future.”

Mr Stobart was an executive director and chief executive of Sage Northern Europe, part of the global business software group, until the end of May. He qualified as a chartered accountant with Price Waterhouse and spent five years in corporate finance with Hill Samuel before joining consultancy Interbrand.

He joined Sage in 1996 as business development director and had been touted as a possible new chief executive at the Newcastle-based FTSE 100 group.

Mr Stobart joins on October 1, when there will be a two-week handover from Mr Woolley. The former CEO will also be available for consultation for a further six months.

Mr Stobart said in a statement: “I am delighted and excited to be joining CPP at such an important stage in its development as a successful and growing international business and am looking forward enormously to working with Charles and the CPP team.”

Analysts at UBS said: “Eric Woolley had indicated his desire to step down from the role, and he will leave in mid-October after a two-week handover period with Paul. We have spoken to management and understand this is unrelated to the ongoing FSA investigation.”

They added Mr Woolley’s departure is likely to have little impact on the FSA probe.

“The principal parties at CPP coordinating with the FSA are the chief financial officer (Shaun Parker) and the chief operating officer (Stephen Kennedy).

“As such this has little bearing on the FSA investigation in our view. Stephen Kennedy used to run the UK business so he knows it in the most detail.

“In addition, worth noting that given the FSA regulation of CPP, the FSA would likely have interviewed and approved the new CEO.”

CPP, which was founded more than 30 years ago, recently reported 10 per cent growth in revenues to £172.1m in the first six months of the year, compared with the same period in 2010.

Underlying pre-tax profits increased by five per cent to £23.9m. However, the company’s UK business has been in limbo while it awaits the outcome of the investigation.

Despite the FSA probe, Northern Europe grew revenues by 12 per cent during the first six months of the year – although the growth rate slid to eight per cent in the second quarter.

North American revenues increased 24 per cent and Asia Pacific sales were up 17 per cent.

Providing protection

CPP was incorporated as Card Protection Plan in 1980 by entrepreneur Hamish Ogston.

It launched its card protection service in the UK the following year and during the 1990s expanded into Germany, Spain and Ireland. Mr Ogston became non-executive chairman of the group in 1999 and in 2000 CPP opened its York headquarters.

During the next decade the group embarked on a series of acquisitions, including buying homecare and mobile phone insurance products.

Eric Woolley and Shaun Parker, chief executive and finance director respectively, joined in 2003. The company floated on the London Stock Exchange in March 2010, raising £150m to fuel its expansion.