- CPPGroup has described the end of the scheme of arrangement to redress claims over direct sales as a 'significant milestone for the business'.

The value of scheme redress claims in respect of direct sales made by the group at the close date of 30 August is £32.0m.

The group says the total cost provided for customer redress and associated costs remains unchanged at £69.8m, as previously announced within the half year report on 29 August. There are no additional changes to the group's financing arrangements or financial position, which remain consistent with the half year report.

As previously disclosed on 24 April, the group's loan facilities contain covenants including an event of default where customer redress response rates leading to a successful claim under the scheme exceed 40%.

Whilst claims throughout the scheme process since February have tracked broadly within expectations, the response rate as at 30 August was c.41.5%. CPP confirms that a waiver has been agreed with the group's lenders with regard to this aspect of the group's covenants. As previously announced, the group's plans to restructure the balance sheet remain essential and options are being evaluated to strengthen the reduced capital position in order to support the group's future development.

Group chief executive Brent Escott said: "The end of the scheme represents a significant milestone for the business. Its impact, nonetheless, has been considerable and consequently, the group's financial resources and liquidity is significantly reduced. Work is progressing to restructure the group's balance sheet and to provide a stronger platform from which the business can look forward."

At 3:21pm: [LON:CPP] CPP Group PLC share price was -0.75p at 12.38p

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