CPP "encouraged" by new markets

CREDIT card protection company CPP Group said today it was "encouraged" by the development of its recently launched markets, including China, India and Mexico as it predicted full year trading to be in line with expectations.

The York-based firm, whose services include credit card insurance, identity theft protection and mobile phone cover, said it continues to be strongly cash generative, with low net debt, and there has been no change in its financial position.

CPP has won a contract with Deutsche Bank to sell its Card Protection product in Italy and has also signed a deal for a retail pilot of Card Protection with Guangdong Development Bank in China.

It said that new income has continued the growth trend it reported earlier in the year and its annual renewal rate continues to reflect reduced rates in Southern Europe and the mix effect of an increasing renewal base in its newer territories.

Eric Woolley, group chief executive, said: "CPP is a cash generative, fast growing business with a proven growth strategy in the UK and internationally, and I am pleased with the progress the business has made this year.

"We are excited by the growth opportunities available to us and are encouraged by the development of our recently launched markets, including China, India and Mexico. We expect Turkey to record full-year profits for the first time since launch. CPP is well placed to keep developing attractive business opportunities with new and existing partners around the world."

He added: "Looking forward, whilst economic conditions remain challenging our outlook for the future remains unchanged and we remain on track to deliver another year of strong growth in line with expectations."

CPP will announce its 2010 full year results on March 3, 2011.