CPP Group (CPP)

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FTSE AIM All-Share

 156.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 244.00
  • 52 Week Low: 122.50
  • Currency: UK Pounds
  • Shares Issued: 8.85m
  • Volume: 706
  • Market Cap: £13.80m
  • RiskGrade: 428

CPP Group offloads German card protection business

By Josh White

Date: Tuesday 18 May 2021

LONDON (ShareCast) - (Sharecast News) - Financial and insurance services company CPP Group has sold CPP Germany, its German card protection legacy business, to banking, retail and leisure value-adding specialist Mehrwerk, it announced on Tuesday.
The AIM-traded firm said total consideration was agreed at £2.3m, which, after adjustment for working capital, would result in the group receiving cash proceeds of around £2.2m before transaction costs.

It said the disposal was in line with its commitment to maximise value from its assets, and focusing on the areas of the business that had the strongest prospects for delivering sustainable and profitable medium to long-term growth.

In line with its capital allocation priorities, CPP Group said the proceeds would be used to strengthen its working capital base, provide additional financial flexibility to deliver its growth strategy, and enhance returns for shareholders.

CPP said it would retain a presence in the German market, managed through its UK operation, including the potential for further distribution arrangements via Mehrwerk.

"CPP Germany is a non-core book of card protection business that was placed in runoff, which included closure of the company's operation in Hamburg, following a strategic decision to restructure the group's EU markets in 2018," the company's board said in its statement.

The business accounted for £1.1m of the £8.1m contribution to group EBITDA from its ongoing operations in 2020.

As a result of the disposal, revenue and profit contribution from that operating segment would be reduced in the future, and as at the date of the sale, the unaudited net liabilities being disposed of totalled about £0.8m.

"The sale and purchase agreement contains warranties and indemnities by the group usual for a transaction of this nature and an agreement that the group will refrain from any activity in the card protection market that places it in competition with Mehrwerk in Germany and Austria for a period of two years," the board added.

"The group has granted Mehrwerk a five-year licence to use the CPP name for marketing and the provision of CPP Germany's existing services."

At 1454 BST, shares in CPP Group were down 1.56% at 519.25p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CPP Group Market Data

Currency UK Pounds
Share Price 156.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 244.00
52 Week Low 122.50
Volume 706
Shares Issued 8.85m
Market Cap £13.80m
RiskGrade 428

CPP Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.85% below the market average27.85% below the market average27.85% below the market average27.85% below the market average27.85% below the market average
4.44% below the sector average4.44% below the sector average4.44% below the sector average4.44% below the sector average4.44% below the sector average
Price Trend
16.46% below the market average16.46% below the market average16.46% below the market average16.46% below the market average16.46% below the market average
28.71% below the sector average28.71% below the sector average28.71% below the sector average28.71% below the sector average28.71% below the sector average
Income Not Available
Growth
2.13% below the market average2.13% below the market average2.13% below the market average2.13% below the market average2.13% below the market average
6% below the sector average6% below the sector average6% below the sector average6% below the sector average6% below the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CPP Group Dividends

  Latest Previous
  Final Interim
Ex-Div 14-Apr-22 02-Sep-21
Paid 17-May-22 24-Sep-21
Amount 7.50p 5.00p

Trades for 28-Mar-2024

Time Volume / Share Price
15:03 691 @ 152.97p
13:21 10 @ 152.97p
10:34 2 @ 156.30p
10:33 3 @ 152.97p

CPP Group Key Personnel

CEO Simon Pyper
CFO David Bowling

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