YORK credit card insurer CPP has seen its underlying operating performance move out of the red following a year of "significant challenges".

Releasing its full year results, for the year ending December 31, 2014, the Holgate-based firm has reported a year of change as bosses looked to "secure and strengthen the future of the group".

CPP, which employs 550 people in York, closed two UK offices and four overseas offices, found £20 million of cost savings, raised £20 million in equity funding with a move to AIM, and removed its chief executive over the space of the year.

The changes were part of moves by the firm to rebuilding its business after being fined £10.5 million by the Financial Conduct Authority in 2012 and paying out £72.8 million compensation to customers for mis-selling insurance.

While revenue reduced to £108.8 million from £178 million the previous year, underlying operating performance, which excludes exceptional items, improved from a £1.8 million loss to a profit of £500,000.

Group exceptional items in the period were £6.3 million, which was attributed to further residual customer redress and associated costs and restructuring costs.

As a result, CPP reduced its reported operating loss to £5.8 million from £39.3 million.

The Group said it is now focused on its strategic priorities, which support its existing revenue, new income generation and growth ambitions.

It said challenges and risks "remain in the execution and delivery of the Group’s strategic plans" and further action is required before the business achieves its full potential.

Eric Anstee, executive chairman, said: "CPP has come a long way in 2014. The UK Scheme of Arrangement was a significant undertaking and its completion marked the closure of a challenging period in the group’s history.

"The subsequent restructuring and substantial new investment has set the group on a new path that I believe will bring new opportunities for this business.

"The future will be digital-led and we have recently announced critical investment in a new IT system that will support our ambitions in this area.

"This is an important first step on a new path for CPP, on which we are focused on taking action to drive improved business performance."