CPP says it is strong enough to withstand tough times

The Leeds-based firm said its insurance and assistance products offer consumers peace of mind during uncertain times, protecting them from unexpected expenditures and risk, as well as driving commercial benefits for the group.

Jason Walsh, chief executive of CPP Group, said: "Our card protection products have fraud features within them now.

"At times like this, we see the best and the worst of people. Cyber crime is on the rise and fraud is on the rise during times like this as people fall victim to various types of scams or phishing attacks.

"Our products help customers protect themselves."

CPP said it is taking steps to manage the challenges posed by the coronavirus outbreak, including limiting expenditure and working closely with partners to maintain its long-term growth strategy.

"We are looking at our discretionary overheads and we are looking at our cost base generally," said Mr Walsh.

"Across the organisation, we 've just completed an internal reforecast picture for 2020 and 2021 based on expectations we have now. We are quite well placed as a business. We've got a strong balance sheet and a strong cash position.

"Actually I would be looking to capitalise on opportunities that might present themselves. For example in the Indian market, our partners are looking to us to help them to strengthen their recovery."

The group announced a rise in revenue and profits in 2019. Pre-tax profit rose to £1.1m in 2019 from £300,000 in 2018.

Revenue jumped 26 per cent to £138.4m and the group passed the 10 million customers worldwide milestone, more than doubling in size since 2016. Overall revenue from ongoing operations leapt 37 per cent to £121m.

Mr Walsh said: "The strong platform that 2019 has given us is enabling us to look at the situation and replan and reforecast, but we think that whilst certain markets will be affected by this in the shorter term, we are pretty well positioned to come through this and emerge as a strong business in many of our core markets.

"Clearly, our revenue growth has been a highlight in 2019."

He said this year's revenue figure is likely to be hit by the current Covid-19 situation, particularly as a large percentage of revenue comes from the group's Indian business

"India is in a much more restricted lockdown period, which has just been extended to the first week in May," said Mr Walsh.

"So, we are expecting a reduction in our Indian revenues, but of course our Indian revenues come with much lower margins than the rest of the group.

"So, from a profit perspective the impact won't be anywhere near as material as we'll see at the revenue line."