These figures from life assistance company, CPP - which provides credit card, identity protection and mobile phone insurance - weren't at all bad given the ongoing FSA probe into sales of its ID protection product. It suspended sales of this offering through its UK voice channels in March and - with the UK business responsible for generating about two-thirds of group revenue - concerns had arisen over the likely impact of that.
But management has offset that in the UK to a considerable extent, helped by the group's packaged accounts business - which offers services such as mobile phone cover to bank account customers - and UK revenue grew 11 per cent in the period. Still, CPP's Northern Europe unit, which includes the UK, did suffer overall with divisional revenue growth having roughly halved in the second quarter to 8 per cent. Meanwhile, in the Southern Europe and Latin America divisions, revenue fell 8 per cent - driven by tough conditions in such countries as Spain and Portugal. However, revenues did soar 24 per cent in North America and 17 per cent in the Asia Pacific.
UBS expects full-year pre-tax profit of £45.1m, giving EPS of 18.13p (£39.8m and 16.35p in 2010).
CPP (CPP) | ||||
---|---|---|---|---|
ORD PRICE: | 138p | MARKET VALUE: | £237m | |
TOUCH: | 137-142p | 12-MONTH HIGH: | 340p | LOW: 116p |
DIVIDEND YIELD: | 5.5% | PE RATIO: | 8 | |
NET ASSET VALUE: | 16p | NET DEBT: | 26% |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 157 | 17.4 | 7.29 | 2.42 |
2011 | 172 | 23.1 | 9.34 | 2.42 |
% change | +10 | +33 | +28 | - |
Ex-div: 14 Sep Payment: 12 Oct *Includes intangible assets of £38.6m, or 22p a share |