Leeds-based CPP Group boosted by performance in India as it continues to innovate with tech

Jason Walsh, CEO of CPP.
Jason Walsh, CEO of CPP.
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Financial services business CPP Group saw revenue increase by 19 per cent on a constant currency basis in the first-half of the year but profits dipped under £1m.

The Leeds-based business, which creates technology-led products for the financials services and insurance markets, reported revenue of £60.2m, up from £51.3m in the same period last year.

However, pre-tax profits reduced to £900,000, down from £1.3m in the first half of 2018 with earnings growth offset by higher depreciation charges.

Earnings grew by 44 per cent on a constant currency basis to £2.3m, while investments in business growth projects topped £1.3m.

CPP said growth in revenue was being driven by “significant” international sales growth led by India.

Jason Walsh, CEO of CPP, said: “Ultimately, our success is built on our business partner relationships which we continue to deepen.

“Importantly we are also forming new partnerships with major global brands in our strategically important markets.”

The firm said broadening global partner base including Tata Capital, American Express and Chinese giant Bank of Communications (BoCom), supported by further investment in the Group’s InsurTech capabilities are adding significant long-term value.

Mr Walsh said: “These new and existing relationships will develop further over time and fuel the continued growth in our business.

“We are investing in our technology-led capability which will continue to strengthen our partnerships and enable more nimble and cost-effective proposition delivery as well as an exceptional customer experience.”

CPP’s key growth market was India, which saw a 44 per cent constant currency increase in revenue to £40.9m.

This result was across a growing partner base and includes the delivery of a new life insurance and wellness product line, LivCare.

Globiva, CPP’s business process management company in India, is also performing ahead of expectations, expanding to three locations, two in Delhi and one in Kolkata, with over 1,400 employees.

The business said its strategic investment in innovative technology start-ups with the ability to scale and add value at pace is also seeing significant progress.

Blink, a parametric insurance technology business belonging to the group, recently signed a deal with Manulife, one of Canada’s largest travel insurers.

Delivering campaigns in Turkey and Canada through large insurance brands, further global expansion is expected in the coming months, CPP said.

The firm added that it also strengthens CPP’s ability to deliver end-to-end technology-led services for its existing business partners.

These contributed to revenue from ongoing operations increasing by 30 per cent on a constant currency basis to £51.4m, while revenue from CPP’s legacy business decreased to £8.8m.

Mr Walsh said: “We are starting to see the rewards from the assembly of our capabilities, each of which plays its part in supporting the Group’s operations.

“Blink is our InsurTech business where already over 250,000 customers have had access to its parametric insurance platform and Globiva, the start-up business process management company, is growing rapidly and now has over 1,400 billable seats and boasts global brands like Ola, American Express and Tui amongst its third party clients.

“We continue to grow our international revenues, with the strong performance that we saw in 2018 being continued through the first half of 2019.

“Our Indian market has once again been the star performer significantly growing its revenue, profitability and customer numbers.”