4th Sep 2019 11:52
(Alliance News) - Financial services and insurance firm CPPGroup PLC on Wednesday reported a 36% decline in interim profit despite solid revenue growth.
Pretax profit for the six months to June-end was GBP850,000, down 36% year-on-year, but revenue did increase by 17%, or 19% at constant currency, to GBP60.2 million. Customer numbers were up 34% year-on-year to 9.0 million.
Revenue from India, CPPGroup's core market, rose by 45% to GBP40.9 million.
Profit was hurt by a four-fold rise in depreciation and amortisation costs, as well as higher losses from a joint venture.
"We continue to grow our international revenue, with the strong performance that we saw in 2018 being continued through the first half of 2019," said CPPGroup.
"Our Indian operations have once again been the star performer significantly growing revenue, profitability and customer numbers."
Looking ahead, CPPGroup said parts of the business away from India that are currently loss-making are progressing "slower than expected", so although revenue expectations for 2019 have been increased earnings before interest, taxes, depreciation, and amortisation guidance is unchanged.
"Our success is built on our business partner relationships which we continue to deepen and importantly we are forming new partnerships with major brands in our strategically important markets. These new and existing relationships will develop over time and fuel the continued growth in our business," said Chief Executive Jason Walsh.
"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."
Shares were down 11% on Wednesday at 4.45 pence each in London.
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