Pre Close Trading Statement

RNS Number : 5740O

CPPGroup Plc

01 July 2010

 



CPPGROUP PLC

1st July 2010

PRE CLOSE TRADING STATEMENT

CPPGroup plc today publishes the following statement prior to entering its close period for the half year ended 30 June 2010.

We anticipate that Group revenue will have grown year on year in line with management expectations. The majority of the revenue growth for the half year is from Northern Europe, driven by development of the packaged accounts channel, growth of Identity Protection and continued roll out of new Card Protection and Identity Protection variants.  Recently launched markets, including India, Mexico and Turkey have also continued to develop and grow, as we take advantage of recent business partner wins.

We anticipate that this revenue growth, together with the roll out of higher priced variants of existing products and other changes in product mix, will generate growth in underlying Group Operating Profit for the half year in line with our expectations.

Eric Woolley, Group Chief Executive commented,

"CPP continues to perform well and has made good strategic and operational progress in the first half of 2010. Our addressable market continues to expand as we develop further growth channels, such as packaged accounts in the UK, and further develop our presence in key emerging markets.

The year is progressing in line with expectations, demonstrating the strength of our business model. Our key financial metrics remain on track and with strong cash generation and a robust balance sheet, we look forward to the second half of the year with confidence."

Patrick de Smedt will join the Board as a non executive director with effect from 26 August 2010. It is intended that he should chair the Remuneration Committee.

Tim Kelly has notified his intention to leave the Board, but will remain for a period to ensure a smooth transition of Remuneration Committee duties.

It is intended that Les Owen should join the Board as a non executive director with effect from 21 September 2010.

In advance of our interim results announcement, selected financial information for the half year to 30 June 2009 is set out below for comparative purposes.

Financial calendar:

Announcement of half year results                     26 August 2010

Interim dividend ex-dividend date                  15 September 2010

Interim dividend record date                         17 September 2010

Interim dividend payment                                 13 October 2010

For enquiries contact:

Eric Woolley, Group Chief Executive

Shaun Parker, Chief Financial Officer

Tel: [phone]

Tulchan Communications

John Sunnucks

David Allchurch

Tel. [phone]

Cautionary statement:

This trading statement contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of approval of the trading statement but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information. Subject to the requirements of UK Listing Authority's Disclosure and Transparency Rules and Listing Rules, CPPGroup plc undertakes no obligation to update these forward-looking statements and it will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this trading statement.

Selected financial information:

CONSOLIDATED INCOME STATEMENT FOR THE 6 MONTHS ENDED 30 JUNE 2009

	£'000
Revenue	141,216
Cost of sales	(82,035)
GROSS PROFIT	59,181
ADMINISTRATIVE EXPENSES
Legacy scheme share based payments	(5,102)
Other administrative expenses	(38,913)
TOTAL ADMINISTRATIVE EXPENSES	(44,015)
Share of loss of joint venture	(286)
OPERATING PROFIT
Operating profit before legacy scheme share based payments	19,982
Operating profit after legacy scheme share based payments	14,880
Investment revenues	455
Finance costs - derivative instruments	(879)
Finance costs - non-derivative instruments	(3,065)
PROFIT BEFORE TAXATION	11,391
Taxation	(3,600)
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY	7,791

CONSOLIDATED CASH FLOW STATEMENT FOR THE 6 MONTHS ENDED 30 JUNE 2009

	£'000
NET CASH FROM OPERATING ACTIVITIES	17,370
INVESTING ACTIVITIES
Interest received	455
Purchases of property, plant and equipment	(634)
Purchases of intangible assets	(1,557)
Investment in joint venture	(588)
NET CASH USED IN INVESTING ACTIVITIES	(2,324)
FINANCING ACTIVITIES
Repayment of bank loans	(6,863)
Interest paid	(2,320)
Cash outflows on derivative financial instruments	(1,306)
NET CASH USED IN FINANCING ACTIVITIES	(10,489)
NET INCREASE IN CASH AND CASH EQUIVALENTS	4,557
Effect of foreign exchange rate changes	(1,598)
CASH AND CASH EQUIVALENTS AT START OF PERIOD	43,241
CASH AND CASH EQUIVALENTS AT END OF PERIOD	46,200

 

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