YORK credit card insurer CPP is eyeing up future growth as a move to the Alternative Investment Market brings funds to repay debts, refinance liabilities and invest in new IT.

The Holgate-based firm is 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.

AIM is the London Stock Exchange’s international market for smaller growing companies.

Last month the company’s board agreed to remove their shares from the Main Market of the Stock Exchange in favour of trading on its smaller counterpart.

Yesterday, CPP announced it had raised £20 million through the AIM listing, with a placing of 666 million new Ordinary Shares at 3p each. The proceeds of the placing, which equate to £17.9 million after expenses, will be used to repay debts and refinance liabilities with certain business partners.

The remaining proceeds will be used to invest in a “modern, cost-effective IT infrastructure” and system for the group and to provide additional capital to fund part of the group’s business transformation programme.

Chief executive Brent Escott said: “We have made significant progress over the last year to stabilise the group and continue to improve the operational environment, strengthen the group’s governance, reduce the group’s cost base and identify new growth opportunities.

“With the support of our shareholders and business partners, the move to AIM provides a springboard for future growth and enables the group to look forward with renewed confidence.”

CPP’s redress scheme closed on August 30 last year, with the total cost provided for customer compensation and associated costs put at £72.8 million. The compensation scheme came into effect on January 31 after being sanctioned by the High Court.

About seven million people were invited to apply for payouts, with the average sum received by claimants standing at around £188. The mis-selling scandal ran from 2005 to 2011, although only a proportion of the policies sold were arranged directly through CPP, which employs about 550 people in York.