CPPGroup Plc operates internationally across Europe, India, Asia Pac, and Latin America, working predominantly through Business Partners. This business-to-business-to-consumer (B2B2C) operating model currently serves around 5 million customers globally. The business model targets revenue growth and cash generation through sustainable renewal rates and new sources of income.
Following an FSA investigation in 2011 CPPGroup underwent a series of redress and restructuring activities over three years that left the business in a parlous state. New business activity in the UK effectively came to a halt as a result of agreed variations to the Company’s regulatory permissions. Leadership attention was wholly diverted to containing and surviving the UK situation, coupled with some related impacts of the FSA intervention internationally which triggered attention from local international regulatory bodies. Group Strategy came a poor second to keeping the wheels on the business for nearly three years.
By late 2014 it became clear that to survive and prosper the business required new capital, some leadership changes and an operating strategy for its fortunes to have any chance of being restored. In February 2015 new equity funding of £20.0 million, combined with a restructuring of the Group's liabilities including a refinancing of the Group’s debts, secured CPP’s financial position. After a period of operating losses the Company returned to profitability in 2015 reporting underlying operating profit of more than £2.0 million for the half year.
By the end of 2015 new Group Leadership will have implemented much of their strategic business plan to position the business for accelerated growth, underpinned by a tight focus on cash and expenditure, with revenue generation around new customer propositions very much in focus.
In the short-medium term, the Group’s strategic priorities are to:
- implement an enhanced market-led business model in response to customer demand;
- focus on the continued development of markets beyond the UK, while looking to resume new business propositions in the UK;
- innovate and leverage existing capacity and resource;
- optimise financial performance; and
- trade from a new improved and effective operating environment, embracing new digital technology to allow customers multi-channel access to services.
The team have also focussed on stopping activities that do not add value. The Travel Services business operating under the Airport Angel brand will cease trading at the end of 2015 and all existing commercial arrangements are subject to detailed review.
New primary market research has provided insight into various products and services with global appeal, the first of which is to be deployed in 2016 as CPP looks to continue its journey to accelerated growth and sustained profitability. With operations currently in 10 countries, the new propositions will be available in multiple languages, through multiple sales channels with a preference for ‘digital’ and ‘direct to consumer’ alongside ‘new business partner’ sales channels. The business is on the road to recovery and it’s an exciting journey, underpinned by a set of colleague derived values and a vision for the future. CPP will be the sort of business that delivers real value propositions to its customers; develops its people and attracts talent, and creates pride for everyone associated with it. Whilst relatively early in the turnaround there is real passion to perform and deliver world class customer services. We strive to be a customer led organisation, a desirable business partner with a strong brand, whilst helping people live their lives in a simpler less stressful way.