StockMarketWire.com - CPPGroup's revenues increased by 18% to £41.8 million in the six months to the end of June which, it said, represented the first period of growth in over five years.

International revenues grew 52% to £30.3 million (H1 2016: grew 19% to £20.0 million) more than compensating for the further reduction in the UK renewal book which, it said, was in managed decline with revenues down 26% at £11.4 million (H1 2016: declined 30% to £15.3 million).

Reported operating profit increased 2% to £2.7 million (H1 2016: £2.6 million).

The group said underlying operating profit fell 42% to £2.1 million (H1 2016: £3.6 million) with the growth from an increasing international customer base not yet covering the decline in the higher margin UK renewal book.

It added: "In the international business we expect to see continued significant growth in revenues, led by India where we also expect the percentage margin to materially increase as higher margin products enter the mix."

Profit after tax increased 15% to £2.6 million (H1 2016: £2.3 million).

Chief executive Jason Walsh said: "I am pleased with the performance of the business during the first half of this year, which has seen a return to revenue growth for the first time in five years.

"This was the result of growth in a number of our key international markets, but particularly India, where our consumer-led products and Business Partner relationships have gone from strength to strength.

"During the half, we simplified our operating structure by devolving greater responsibility to our country leaders and acquired Blink, which is performing as intended and is helping to ensure we have the right platform for product innovation.

"These factors, along with our improved free capital position, will enable us to maximise the significant opportunities for sustainable growth that are available across the Group.

"We are continuing to deliver on our strategic plan and as we enter the second half of the year, we expect to continue this revenue growth momentum and remain confident with the outlook for the full year."


At 8:21am: [LON:CPP] CPP Group PLC share price was +0.63p at 13.63p



Story provided by StockMarketWire.com