LONDON (ShareCast) - (Sharecast News) - Insurance and personal protection provider CPPGroup reported a 2% improvement in group revenue in its final results on Wednesday, to £141.1m, as it announced its first dividend in a decade.

The AIM-traded firm said revenue from ongoing operations increased 5% in the year ended 31 December, to £130.1m.

Adjusted EBITDA was ahead 17% year-on-year at £10.3m, with start-up losses from the company's investment in business growth projects totalling £3.1m, down from £3.3m, resulting in a reported EBITDA of £7.2m, up from £5.4m in 2019.

Operating profit more than doubled to £3.3m, from £1.6m, while profit before tax was £2m, rising from £1.1m.

Cash balances stood at £21.9m as at 31 December, down marginally from the £22m it reported at the end of 2019.

The board announced the restart of dividends for the first time since 2011, proposing a final dividend of 25p per ordinary share.

"While we saw major disruption from Covid-19 in the second quarter, the response of our teams, resilience of our model, and improving conditions in key markets meant we were able to deliver a robust performance in the second half and solid numbers for the full year," said chief executive officer Jason Walsh.

"The business is built on the strength of its partnerships and during the year we were not only able to maintain our base, but grow it.

"This demonstrates the value large-scale firms attach to our offering as a means to enhance their competitive advantage in times of heightened economic uncertainty."

Walsh said the rate of recovery from the pandemic was varying by territory, with the company recognising the need to manage the situation "with care".

However, he said there were positive signs across CPPGroup's key markets that gave the board confidence.

"The reinstatement of the dividend is an important moment for CPP.

"After many years of reorganisation and investment, the Group is now positioned for what we expect to be a period of continued growth, underpinned by our businesses in India, Turkey, and the UK.

"With the support of a robust balance sheet and solid cash generation, the board is confident that the time is right for a stronger focus on shareholder returns in which the dividend has a key role."

While the group currently did not generate positive earnings per share, leading to an uncovered dividend on that basis, Walsh said future profit growth and progressive normalisation of the firm's tax position would allow movement towards conventional dividend cover.

"The board has thus proposed the final dividend at a level which it is confident can be grown in the years ahead."

At 1215 GMT, shares in CPPGroup were up 5.61% at 534.4p.

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