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CPP reveals loss of 300,000 customers
YORK credit card insurer CPP Group said it was working to rebuild its reputation as it announced the loss of 300,000 UK customers.
The company, based at Holgate Park, revealed a fall in revenues of 38 per cent from last year as it released its interim statement yesterday.
For the period from June 30 to today, CPP’s insurance renewal rate had dropped 0.6 per cent to 70.7 per cent, while the number of customers on its books reduced from 7.9 million to 7.6 million.
Bosses said there may be a short-term continuation of customer decline, which they have attributed to publicity surrounding CPP’s £10.5 million fine last November from the Financial Services Authority for mis-selling payment protection insurance, and the subsequent redress scheme to compensate the victims.
In light of compensation payouts the group secured a new financing arrangement totalling £36 million in July. In the period since June 30 a further £1.8 million was provided for other redressable items, taking the total amount provided for customer redress and associated costs to £55.8 million.
Giving his first financial results statement since being appointed in September, CPP’s new chief executive, Brent Escott, said: “Our immediate priority is to strengthen the group as we enter the next phase of our development.
“We are working towards rebuilding CPP’s reputation and repositioning our business model to provide longer-term stability, continuing the improvements required to operate in a regulated environment and create a sustainable business proposition for the long term.”
As well as the appointment of Mr Escott, CPP took on a new chief financial officer, Craig Parsons, as well as new non-executive directors, a group commercial director and group IT transformation director.
Yesterday CPP announced it had appointed Lorraine Beavis as group company secretary with immediate effect. She takes over from John Titchener, who has decided to leave the business at the end of November.
In its interim statement yesterday CPP said it was “in the early stages of repositioning the business”.
It said: “Significant risks and uncertainties remain in the short to medium term. In line with previous guidance, the group’s performance for 2013 is expected to be significantly lower than 2012.”
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