The British insurer CPPGroup has already had quite a year – its shares were suspended on 20 February, after the Financial Services Authority (FSA) raised some uncomfortable questions about the company’s selling of credit card and identity protection.
The suspension was lifted today, but the news isn’t all good. For the year ended 31 December 2011, it posted a profit of £18.05m from continuing operations, which represents a decrease of 34 per cent compared to £27.15m the previous year.
On the plus side, the group, which operates across 16 geographical markets in Europe, Latin America, North America and Asia Pacific, has reported revenue of £346.14m, up 6 per cent from £325.8m in 2010.
Paul Stobart, CEO of CPPGroup, said: “In a difficult year for the group in which we have been faced with the challenges of the FSA's investigation into our UK business, CPP has nonetheless delivered a robust financial performance in 2011 . . . The group has worked very hard to manage the business through this period of uncertainty and we continue to make important improvements to the way we engage with customers.”
Though the group has the potential to generate revenue growth in 2012, the underlying operating profit is likely to be significantly lower than 2011.
Stobart added: “In the short-term, 2012 is a very important year for us, particularly in the UK, and my first priority is to work closely and co-operatively with the FSA to resolve matters to the complete satisfaction of the regulator.”