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: 5
  • Market Cap: £13.80m
  • RiskGrade: 428

CPPGroup disposes of Mexico operations for one peso

By Josh White

Date: Friday 21 Oct 2022

LONDON (ShareCast) - (Sharecast News) - Assistance and resolution specialist CPPGroup has disposed of its operations in Mexico, it announced on Friday.
The AIM-traded firm said it had completed the sale of its wholly-owned subsidiaries, Servicios de Asistencia a Tarjehabientes CPP Mexico and Profesionales en Proteccion Individual, which together comprise its legacy business in the country, to Rafael Ortiz Moran and Silvia Daniela Rodriguez Gaona for a nominal cash consideration of one Mexican peso (4.5p).

As part of the disposal, CPPGroup left cash balances of about £0.28m in CPP Mexico to cover initial working capital requirements and other committed liabilities.

Rafael Ortiz Moran is the country manager of CPP Mexico.

CPP Mexico was established to capitalise on the assumed demand for the group's legacy protection and assistance services in the market.

However, after a period of limited new business development and operating losses, CPP Mexico was, in early 2021, placed into run-off.

The board said the natural decline in the book would again see the business become unprofitable during 2023 and beyond.

As a result, and in line with its strategy announced on 19 October to withdraw from its legacy businesses, the board said it believed that an exit from the Mexican market was in the best interests of CPPGroup.

Following a review of its options in the region, the board said it concluded that a sale of the business to the buyers, rather than a closure, was the "least costly option" for CPPGroup, and the best outcome.

For the 2021 financial year, CPP Mexico contributed EBITDA of £0.1m to the group's overall EBITDA from continuing operations of £7.5m, and recorded a loss before tax of £0.3m.

The impact of the disposal would, therefore, not be material to the group.

As at 31 December last year, CPP Mexico had net liabilities of £2.6m.

"The disposal of our Mexican business is consistent with the group's recently-announced strategy to withdraw from its legacy businesses and migrate CPP to an InsurTech business, one with a clear purpose and simplified operating model," said chief executive officer Simon Pyper.

Reporting by Josh White at Sharecast.com.

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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 5
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
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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
10:34 2 @ 156.30p
10:33 3 @ 152.97p

CPP Group Key Personnel

CEO Simon Pyper
CFO David Bowling

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