CPP Group (LSE:CPP), the business solutions firm, rose over 11% to 155p on Monday after it met both its revenue and profit guidance for the 2023 financial year.
Revenues increased 14% to £193 million, ahead of market estimates of £177 million, largely due to better-than-expected performances from its “legacy businesses”.
This means underlying earnings are expected to reach around £4.8 million, down from 2022’s £6.9 million but higher than the market consensus of £4.2 million.
CPP Group (LSE:CPP) is currently undergoing an overhaul of the business, where it aims to wind down its legacy operations and switch focus to Indian and Turkish operations as well as Blink, its insurtech division.
Despite the planned closure, legacy operations at the company saw robust renewals and lower-than-expected costs.
For the group’s core operations, which performed in line with expectations, growth is proceeding strongly as planned, with a new IT platform for its Indian business having been added in August.
However, a second and smaller IT platform for the division has been delayed until Spring 2024.
For Blink, which provides parametric insurance products for the travel sector predominantly, progress continues well, with new clients being signed up from the UK, US, and Europe.
Additionally, 100% of clients have been renewed.
Full results and 2024 guidance are expected to be released on March 26.
Simon Pyper, chief executive officer of CPP Group (LSE:CPP), said: " We remain committed to our strategy of focusing on our core businesses and exiting from those businesses and activities, such as Globiva, which are considered to be non-core."
CPP is divesting its 51% stake in Globiva, worth around £5.1 million, over a three-year period.