A RETURN to profitability at York credit card insurer CPP has been heralded as "a new beginning" by the firm as losses of almost £7 million are turned into £20.8 million profit.

The Holgate based company, which employs around 550 people in York, described the last year as one of "significant progress" with £30.9 million of net liabilities in 2014 being eradicated and replaced with net assets of £10 million.

Reporting the financial results for the year ending December 31, 2015, CPP bosses said a return to the black reflected a new beginning for the firm as it continues its turnaround after its infamous miss-selling scandal, which saw the company hit by record fines and ordered to pay millions in compensation.

While still operating under restrictions imposed by the Financial Conduct Authority (FCA), preventing it from selling to new customers in the UK, revenues at CPP dropped from £108.8 million in 2014 to £89.9 million.

CPP said it is continuing discussions with the FCA over reinstating regulatory permission, but it first must prove that management practices and shareholder influence of the past no longer exist.

Stephen Callaghan, chief executive officer at CPP, said: "We have made significant progress in 2015.

"These results reflect a new beginning for CPP. We now have the right leadership team in place, supported by over 700 great colleagues. I would like to thank them for embracing the challenges with such enthusiasm and personal commitment. It is the quality and dedication of our people that gives me such confidence in our future.

"CPP has endured a number of challenging years, particularly in the UK. In 2015 we have seen the UK business undergo many organisational, people and operational changes to fix issues that have been so damaging to our reputation.

"The financial results for 2015 are much improved. They demonstrate a return of confidence and signal significant progress at CPP."

CPP reported progress in its international markets, including Spain, Germany, Italy and Portugal, as well as the emerging markets of India, Mexico, Malaysia, Turkey and China, and revealed plans for new product launches in 2016, including its first ever 100 per cent digital product, known as Owl, which will go live in five countries by the end of the year.

The company's compensation scheme for miss-selling, is described as being "substantially complete", with the remaining customer redress provision of £1.6 million to be paid this year.

CPP chairman Roger Canham described colleagues as being "at the heart" of the company, with a "real passion", adding that developing staff and attracting new talent continues to "key priority" for the business.

The Press revealed earlier this week that CPP was looking to make 22 redundancies in its operations division.

The company is also facing calls from a group of shareholders for four directors to be replaced on the board, including Mr Callaghan and Mr Canham.

Mr Callaghan said: "Challenges remain and there continues to be work to do for the group to realise its strategy.

"Consequently, there is some uncertainty while this work is ongoing and new propositions are launched globally.

"The group remains confident in the direction it is heading and understands the importance of maintaining momentum in the delivery of our plans."