‘Challenging period’ sees York’s CPP report 39% loss in revenue

York-based CPP Group, retailer of life assistance products, has revealed an overall revenue loss of 39% after a “challenging period” particularly of the UK business.

The company’s finances throughout 2014 were in a constant struggle, which was reflected in the revenue reducing to £108.8m, compared to £178m in 2013.

Furthermore, CPP saw a substantial decrease in its overall gross profit totalling at £48m, which is a £17.9m loss from the previous year of £65.9m.

However, the company’s underlying operating performance, which excludes exceptional items, improved to a profit of £0.5 million (2013: £1.8 million loss) due to the reduction

of its cost base to align with the the company’s operational size, which along with reduced depreciation charges following the 2013 asset impairments, has seen a decrease in administrative costs of approximately £20 million in the year.

The precautions taken in 2014 will also continue to reduce the cost base in 2015.

Eric Anstee, Executive Chairman, said: “CPP has come a long way in 2014. The UK Scheme of Arrangement was a significant undertaking and its completion marked the closure of a challenging period in the Group’s history. The subsequent restructuring and substantial new investment has set the Group on a new path that I believe will bring new opportunities for this business.

“I was appointed to the Board at the end of 2014 and, despite the significant challenges that the Group traversed last year, I have been struck by the renewed energy and enthusiasm within the Company. CPP has many strengths - longstanding relationships with a broad range of Business Partners around the world, an international footprint and people that have the ability to develop important products that customers like and trust.

“These qualities are the foundations on which we will continue to build CPP’s future in the year ahead. The future will be digital-led and we have recently announced critical investment in a new IT system that will support our ambitions in this area. This is an important first step on a new path for CPP, on which we are focused on taking action to drive improved business performance and maximise value for our shareholders.”

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