Leeds-based CPP Group announces jump in revenue despite wind-down of European wing

The group said it would switch its focus to insurance technology, led by Blink Parametric, a solutions provider for the travel disruption market. It also said it would move its focus to the Indian and Turkish arms of the business.

CPP said in its latest announcement, issued to the London Stock Exchange, that despite the commencement of the wind-down and closure programme, its legacy business had recorded better renewals and lower costs than forecast.

Because of this, the group said that it expects to report earnings before interest, taxes, depreciation, and amortisation for its core and legacy business of £4.8m, ahead of market estimates of £4.2m.

The group also expects to report a 14 per cent increase in revenue, up to £183m, for both its combined core and legacy business.

Simon Pyper, CEO of CPP Group, said "We have achieved a great deal in 2023, delivering a good set of trading results, and at the same time, implementing the Change Management Programme, which is well underway, and progressing to plan.

“We remain committed to our strategy of focusing on our core businesses and exiting from those businesses and activities, such as Globiva, which are considered to be non-core. Although there is much to be pleased about and we look forward with confidence to 2024, there remains much to do as we build a business which delivers long-term value for shareholders."

The group added that the legacy closure activity will lead to “substantial” exceptional provisions in its full year results, which are expected on 26 March.

It said the Change Management Programme was broadly proceeding to plan, with only the second phase of its new IT platform for the Indian business being delayed until Spring of 2024.

In November of last year, CPP also announced that it had entered into a deal to sell its stake in Indian business process management company Globiva Services Private for around £5.1m.

CPP previously held a 51 per cent majority interest in the firm, with the other 49 per cent of the shares owned by Globiva’s three founders.