Statement re Pre-close announcement

RNS Number : 2106G

CPPGroup Plc

27 June 2012

 



CPPGROUP PLC

27 JUNE 2012                                                

PRE CLOSE ANNOUNCEMENT

CPPGroup Plc ("CPP" or the "Group") today publishes the following statement prior to entering its close period for the half year ended 30 June 2012.

Group operating performance continues to be in line with current market expectations whilst navigating the short-term challenges in the UK.

In line with the performance trends reported in our Interim Management Statement on 16 May 2012, and as expected, we anticipate modest year on year Group revenue decline for the period. This is as a result of revenue decline in Northern Europe principally from the UK where reduced Card Protection and Identity Protection sales have been partially mitigated by the continued growth of Mobile Phone Insurance and a decline in Southern Europe where challenging economic conditions continue to impact. North America and Asia Pacific revenue growth has been strong. The Group will report a net funds position in its half year results.

International operations have continued to make further good progress and a number of new Business Partners have been confirmed in the period. This demonstrates the continued relevance and consumer appeal of our products and services and longer-term opportunities for the Group.

As previously announced, the Group has agreed to conduct a Past Business Review ("PBR") under FSA supervision of direct sales of its Card Protection and Identity Protection products made since 2005, and to offer redress to customers where appropriate. The Group remains in discussions with the FSA regarding the operational details of the PBR. As noted in the Group's Annual Report, it is possible that other claims or matters may arise against the Group in connection with the FSA's investigations, which could take a number of forms and therefore have a financial effect that cannot presently be estimated. As a result, the contingent liability identified in the Group Annual Report remains. A further update will be provided in the half year results announcement.

We continue to proactively shape our culture and operating model alongside developing product and service propositions that will drive our long-term future success.

A conference call for analysts will be held on 27 June 2012 at 8:00 a.m. (BST), dial in details for which are as follows:

Dial in: [phone]

Participant ID: 663303#

For enquiries contact:

Paul Stobart, Chief Executive Officer

Shaun Parker, Chief Financial Officer

Tel. [phone]

Tulchan Communications

John Sunnucks

David Allchurch

Martin Robinson

Tel. [phone]

Note to editors

CPPGroup Plc ("CPP") is a leading international Life Assistance business with operations in 16 geographical markets in both developed and developing countries. Card Protection was the first product the Group introduced 30 years ago. Since then CPP has launched Mobile Phone Insurance, Legal Assistance and Identity Theft Protection. CPP is also prominent in the provision of Packaged Accounts where we source products and services to create a tailored 'package' for bank account customers. We also provide a range of travel support services such as translation and lost-and-found luggage services as well as access to airport lounges worldwide. Our Home 3 joint venture with Mapfre Asistencia provides assistance for plumbing, drainage, gas, electrical and other home-related emergencies.

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 the 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.

 

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