CPP posts robust recovery figures despite virus disruption

Financial services provider CPP Group has reported robust trading in spite of the disruption caused by international lockdowns on its business.

CPP
CPP

In a trading update the Leeds-based firm said performance in the period has been largely resilient in spite of continued disruptions caused by COVID-19 with the group's trading being in line with the board's expectations.

India, CPP's largest market, entered a national lockdown in the second quarter of 2021, leading to a sharp reduction in new business activity during April and May.

Sign up to our Business newsletter

Sign up to our Business newsletter

However, the firm said it had seen a robust recovery in trading in the last few weeks and the lifting of lockdown measures, as currently planned by the Indian authorities, should see the trading performance of CPP India continue to improve in the second half of 2021.

Globiva, its Indian business process management company, saw little impact on its revenues during this period.

In other territories, it said the pandemic continues to be a source of uncertainty amongst consumers and our business partners.

However, CPP reported that renewals from the back-books remain robust. The performance of the back-book businesses in the UK and Europe continue to generate reliable, though declining, cash flow for the group.

The sale of its German card protection business in May was part of the Group's focus on cost control and the most efficient use of capital. This emphasis has led to restructuring the internal operations of unprofitable business units to improve their financial performance, as demonstrated by actions taken during the period with respect to the businesses in Mexico, Malaysia and Blink (the Group's parametric insurance provider).

Jason Walsh, CEO of CPP said: "The COVID-19 situation has had an impact on trading conditions in the first half of the year, and against that backdrop the Group has performed well, with our operations in India in particular showing great resilience. The Group's balance sheet and cash position remain solid and good progress has been made with the strategic review of the Group's businesses instigated earlier in the year. I would like to express my thanks to our people for their dedication during the first half of the year under very difficult circumstances.

"We look forward to providing more detail in our interim results on 24 August."