27th Sep 2018 12:09
LONDON (Alliance News) - CPPGroup PLC on Thursday said its profit halved in the first six months of 2018, but revenue grew on new customer wins and expansion in India.
The stock was down 14% on Thursday at 8.98 pence per share.
The financial assistance products provider said pretax profit declined to GBP1.3 million in the six months to June 30 compared to GBP2.3 million reported for the same period a year ago, despite revenue rising by 18% to GBP51.3 million from GBP45.3 million.
The growth in revenue was driven by strong performance in India, the company said, where revenue improved by 60% to GBP28.3 million from GBP19.2 million.
Meanwhile, Worldwide customer numbers also increased by 23% during the period to 6.7 million from 5.5 million as at the end of 2017.
Turkey is an important growth market to CPPGroup, it said, and the current economic uncertainty in the country coupled with further weakening of the pound to lira exchange rate is expected to hurt the company's financial position.
Still, in the year-to-date, Turkey's sales volumes have been strong, the company noted, and were not showing signs of being negatively impacted.
"The revenue growth that we saw in 2017 and which has continued in the first half of 2018 has laid the foundation for further growth," said Chief Executive Jason Walsh.
"We have continued to invest in expanding our product and service capability; whilst the restructuring activities that we have commenced in our EU markets demonstrate the importance we place on operating efficiently and managing our cost base," added Walsh.
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