Statement re Contract

RNS Number : 9240Z

CPPGroup Plc

13 March 2013

 



CPPGroup

13 March 2013

Contract

CPPGroup Plc ("CPP" or the "Group") announces that Santander (UK) has indicated that it does not expect to renew the Group's contract for the provision of benefits and services relating to Packaged Accounts in the UK from October 2013. This likely decision is not reflective of a competitive tender process and the Group continues to work with Santander both in the UK and its overseas markets.  

Whilst this does not have an immediate material financial impact on the Group, it is expected to result in reduced revenue from the fourth quarter of 2013 and will result in significantly lower revenue and profit for the Group's Packaged Account business in the UK in 2014 and beyond.

CPP continues to work with a number of other Business Partners as a provider of products that are offered as part of Packaged Accounts in the UK.

Paul Stobart, Chief Executive Officer, commented:

"CPP continues to enjoy a strong working relationship with Santander and whilst the likely decision is disappointing for our business in the UK, it is not reflective of our on-going, valued relationship with Santander."

For enquiries contact:

CPPGroup Plc

Helen Spivey, Head of Corporate & Investor Communications

Tel. [phone]

Tulchan Communications

John Sunnucks; Martin Robinson

Tel. [phone]

 

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