StockMarketWire.com - CPP Group said today, as expected, challenging trading conditions continue. Loss for the half-year to end-June is £2.6m (H1 2012: profit £4.4m).

o Group revenue from continuing operations of £99.7 million (H1 2012 (restated): £136.9 million)

o Underlying operating loss from continuing operations of £3.5 million (H1 2012 (restated): profit £14.0 million)

o Loss for the period from continuing and discontinued operations is £2.6 million (H1 2012: profit £4.4 million)

· Renewal rates have declined from 73.5% at the year end to 71.3%; although stabilised in recent months

· Live policy base reduced to 7.9 million (H1 2012: 10.1 million) impacted by the performance in the UK

· Net funds position of £38.8 million (H1 2012: £8.0 million) - see note 5 to highlights table for analysis of net funds

· Past business review programme through a proposed Scheme of Arrangement formalised with the FCA and certain of the Group's Business Partners

Outlook: despite the short to medium term challenges that remain, particularly until redress is completed, the Group's developing markets and focused new product development initiatives are expected to provide longer term growth prospects for the Group

Paul Stobart, CEO, commented: 'In the first half of the year, the Group has made good progress. A number of milestones have been achieved against the background of the current operating environment, which continues to affect our trading performance. We have refinanced the Group, disposed of the North American business, restructured our UK business and reduced our costs for the next phase of the Group's development.

'We are in the early stages of rebuilding the Group and although challenges and uncertainties remain, particularly in relation to the upcoming past business review programme, we are focused on moving the business forward with a view to realising the potential opportunities that will deliver our future growth.'




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