CPP posts rise in profit and recommences dividend payments for first time since 2011

Financial services provider CPP Group posted a rise in profit and revenue for the year ended December 31, 2020, despite "major disruption" from Covid-19 in the second quarter.

Jason Walsh, CEO of CPP Group, said: "The business is built on the strength of its partnerships and during the year we were not only able to maintain our base but grow it."

The Leeds-based firm reported a 2 per cent increase in group revenue to to £141.1m, up from £138.4m the previous year. While pre-tax profit increased to £2m, up from £1.1m.

CPP said it has made an 'effective response' to Covid-19 and saw continued new business wins and pipeline growth in a challenging economic environment.

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Jason Walsh, CEO of CPP Group, said: "While we saw major disruption from Covid-19 in the second quarter, the response of our teams, resilience of our model, and improving conditions in key markets meant we were able to deliver a robust performance in the second half and solid numbers for the full year.

"The business is built on the strength of its partnerships and during the year we were not only able to maintain our base but grow it.

"This demonstrates the value large-scale firms attach to our offering as a means to enhance their competitive advantage in times of heightened economic uncertainty.

"The rate of recovery from the pandemic will vary by territory and we recognise the need to continue managing the situation with care.

"However, there are positive signs across our key markets that give us confidence in our ability to continue to deliver progress."

CPP, multinational provider of personal protection and insurance products and services, saw a recovery in India, the group's main market, with a better than expected return of partner and consumer confidence in the second half.

The business also reported resilient performance of renewal books in its UK and EU markets and an encouraging performance in its Turkish operation.

The Leeds-based firm announced that recommence dividend payments - its first since 2011, with a proposed final dividend of 25p per ordinary share.

Mr Walsh added: "The reinstatement of the dividend is an important moment for CPP.

"After many years of reorganisation and investment, the group is now positioned for what we expect to be a period of continued growth, underpinned by our businesses in India, Turkey, and the UK.

"With the support of a robust balance sheet and solid cash generation, the Board are confident that the time is right for a stronger focus on shareholder returns in which the dividend has a key role."

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