15th May 2014 10:53
LONDON (Alliance News) - CPPGroup PLC Thursday said revenue from continuing operations has fallen by 41% in the year to date, weighed down by its UK business's poor performance, as it continues to grapple with paying redress to customers who were mis-sold insurance products.
CPPGroup, which did not provide the figures behind the 41% drop, said it remains focused on reducing costs, with the measures it outlined last year still expected to result in about GBP15.0 million in annual savings.
CPP said live policies have fallen by GBP600,000 in the year to date, mainly due to a reduction in policyholders in the UK.
"Our priority is to strengthen the group as we develop our longer-term strategy for growth and move forward with a more stable foundation. We are focused on completing the process to review claims and, where appropriate, pay redress, managing our costs and continuing to make the improvements and changes required as we rebuild, improve, modernise and evolve," Chief Executive Brent Escott said in a statement.
In November 2012, CPP was fined GBP10.5 million by UK regulators over mis-sold insurance products. CPP has set aside GBP69.8 million to pay for its part in the redress scheme, under which claims are "broadly" within expectations, it said.
CPP said it has paid GBP19.3 million in redress so far.
"The group is moving forward with a clear short-term plan and objectives and continues to make encouraging progress. As previously outlined, the group's immediate focus is to complete the scheme and the required changes to its operating environment and IT infrastructure," CPP said in a statement.
"Material uncertainties remain, however, particularly in relation to the scheme and levels of redress, liquidity, the execution and delivery of the business and operational plans. As a result, the outlook continues to reflect the significant challenges and risks ahead and performance in 2014 will continue to be constrained," the company added.
CPPGroup shares were down 2.3% at 9.53 pence per share.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Cppgroup