CPPGroup Swings To Annual Profit On Strong International Growth

15th Mar 2018 13:24

LONDON (Alliance News) - The UK based insurance company CPPGroup PLC on Thursday reported strong revenue growth for 2017, driven by "rapid" international growth, as the company swung to profit.

CPPGroup recorded revenue from continuing operations of GBP91.4 million in 2017 from GBP73.6 million the year before, and CPPGroup posted pretax profit of GBP3.4 million from a pretax loss of GBP1.9 million the previous year.

The company said the strong revenue growth was driven due to the investments implemented in India over the the last 12 to 18 months.

CPPGroup said though pretax profit has risen year-on-year, underlying operating profit has fallen to GBP3.9 million from GBP8.4 million.

"This is a result of the shift in revenue mix from high margin back book products in the UK and Spain, to primarily India where the strong trading performance comes from products which produce lower margins," the company said.

The company has a positive outlook for 2018, with a plan to grow by establishing a "simplified operating structure" that "enables us to operate more efficiently with a lower cost base and the increase in available cash," the company said.

"The transformation journey we have been on in 2017 has created the right environment for further growth. We have simplified our operating structure, been decisive with organisational change and clearly defined our strategy," Chief Executive Officer Jason Walsh said.

"The group anticipates growing revenues in 2018 through our international markets leading to improvements in underlying operating performance. Our simplified operating structure, lower cost base and available cash resources provides the capability to expand through organic product innovation, product acquisitions or new partnerships," Walsh added.

Shares in CPPGroup were up 0.2% at 12.77 pence on Thursday.

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