CPP Group wins new business despite pandemic

The Leeds-based firm now expects revenue and earnings to be ahead of current market expectations following solid trading and a proactive focus on cost management.

The group said it is building its pipeline of opportunities, whilst strengthening and growing its partner base despite the pandemic.

Jason Walsh, CPP’s chief executive, said: “Despite the ongoing disruption and uncertainty caused by the pandemic in the second half, we continued to deliver consistently high levels of service and grow our business.

“Our ability to respond quickly and effectively to the evolving needs of our customers and partners meant we were able to strengthen existing relationships and forge new ones, which will further benefit the group in 2021 and beyond.”

The firm said it was pleased to report that the recovery in India, the group’s key growth market, has been stronger than anticipated, both in its core business and in its majority owned business process management company, Globiva.

This has been supported by the steady performance of its renewal portfolios in the UK and EU and a resilient performance in its Turkish operation.

As a result, the board expects revenue for the year to December 31 to be around £140m compared with the current market consensus of £133m.

In light of the solid trading performance and a proactive focus on cost management across the group, the board now expects to report earnings in the range of £7.1m to £7.3m, which is more than 10 per cent ahead of the market consensus of £6.4m.

CPP said that early in 2020, once the nature of the pandemic became recognised, it implemented a notably conservative plan for managing its cash resources. As a result, it said the group’s financial position remains robust with a cash balance of £21.9m.

The firm said that while the global economic backdrop remains uncertain, the group’s ability to adapt to the challenges of 2020 give the board confidence in the outlook for 2021.

The group expects to report its full year results on March 24.