Trading Statement (7447T)
2011年12月12日 - 4:00PM
RNSを含む英国規制内ニュース (英語)
TIDMCPP
RNS Number : 7447T
CPPGroup Plc
12 December 2011
CPPGROUP PLC
12 DECEMBER 2011
PRE-CLOSE ANNOUNCEMENT
CPPGroup plc ("CPP" or "the Group") today publishes the
following statement prior to entering its close period for the year
ended 31 December 2011.
The FSA investigation into certain issues surrounding the sale
of the Group's Card Protection and Identity Protection products in
the UK, and the suspension of Identity Protection sales in the
Group's UK voice channels, both of which were announced in March
2011, are continuing to have a material impact on the Group's
ability to sell its full range of products in the UK. The duration
and outcome of the FSA investigation continues to be uncertain.
As previously announced, the Group developed a new, non-insured
service product, Identity Safe, which it had hoped to introduce
into the call to confirm and card activation voice sales channels
during 2011. Following extensive discussions with the Group's
business partners it is now expected that the new Identity Safe
product will not be adopted by business partners until after the
FSA investigation is concluded.
Despite these factors and the impact of the worsening economic
situation in Southern Europe, overall trading has been robust and
the Group expects to deliver 2011 organic revenue growth of around
6% which is broadly in line with market expectations. The Group's
KPIs continue to be resilient, with renewal rates (adjusted for
changes in country mix), and underlying operating profit margin
both in line with our recent Interim Management Statement.
Total new assistance income for 2011 is expected to be up to 4%
lower than 2010. New assistance income derived from the sale of
retail products has, however, declined compared to 2010 as a result
of the suspension of Identity Protection in the UK and the economic
situation in Southern Europe. This has been partially offset by the
growth in new assistance income from the Group's packaged accounts
and wholesale activities.
As the Group looks towards 2012, there are good opportunities to
achieve improved revenue growth compared to 2011. However, the
impact of lower than expected new assistance income from retail
products in 2011 is to reduce the size of the Group's base of
renewing retail policies which means that the mix in 2012 will be
skewed towards new sales. As the accounting profit for renewing
retail policies is higher than for new sales, this mix effect has
an adverse impact which, together with increased operating costs
which are in part due to increased costs of regulatory compliance,
will reduce underlying operating profit margin. As a result it is
expected that, prior to any further adverse impacts on the business
resulting from the conclusion of the FSA investigation, underlying
Group operating profit in 2012 is likely to be significantly lower
than 2011, and weighted towards the second half of the year.
The Group continues to be strongly cash generative and is
expected to finish 2011 with net cash, with further positive cash
flow expected in 2012. There is no change in our stated dividend
policy at this time. It will be reviewed prior to the announcement
of our 2011 results in the light of progress made with the FSA
investigation and any financial impact of the outcome.
The Board remains positive about the Group's overall prospects
and its clear strategy of product, sector, sales channel and
international expansion. Whilst 2012 profitability is expected to
be adversely affected by the events seen during 2011, the Board
remains confident that future revenue growth remains sustainable
and that operating profit and margins will return to growth and
more normalised levels once the current constraints on the business
are removed. The consumer appeal of CPP's products remains strong.
Meanwhile the Group's long-term international prospects continue to
develop well, with launch in Brazil imminent and robust revenue
growth in North America and Asia Pacific, where the large bankable
populations offer significant potential for further market
penetration.
Paul Stobart, Group Chief Executive commented:
"It has been a challenging year for CPP as the business has
adjusted to the implications of the FSA's ongoing investigation
announced back in March. The transition to a new Identity
Protection product has meant lost sales opportunities and this,
combined with challenging trading conditions in Southern Europe,
will impact the business in the near term.
"Our UK business has been and will continue to be impacted by
the uncertainties created by the FSA investigation and will take
time to regain momentum. However, we are making excellent progress
in many of our international operations, including our newer
markets, such as China and India, which offer significant longer
term potential.
"We continue to work constructively with the FSA as we seek a
resolution to its investigation, and we are pleased with progress
on improving our internal processes and customer facing activities.
We remain focused on providing an excellent, market leading service
to our customers."
Conference Call
A conference call for analysts and investors will take place at
8.00am this morning, dial-in details for which are as follows:
Tel: +44 (0)20 3140 0668
Participant access code: 927906#
For enquiries contact:
Paul Stobart, Group Chief Executive
Shaun Parker, Chief Financial Officer
Tel: +44 (0)1904 544702
Tulchan Communications
John Sunnucks
David Allchurch
Tel. +44 (0)20 7353 4200
Note to editors
CPPGroup Plc ("CPP") is a leading international Life Assistance
business with operations in 15 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 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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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