Shares in CPP Group (LSE:CPP) plunged 42% to 47p after the company said it is reviewing whether to remain listed on AIM, raising the prospect of a move back into private ownership.
The update overshadowed what the board described as steady operational progress. CPP said trading in the second half of 2025 remained in line with management expectations, with its core Blink Parametric insurtech platform continuing to grow with existing partners while tightly controlling costs.
The group ended the year with £5.6 million of cash and expects to receive a further £4.6 million in 2026 and £0.5 million in 2027 from deferred proceeds linked to the sale of its India and Turkey businesses.
The board said these resources are sufficient to fund operations for at least the next 12 months.
Despite that financial cushion, directors pointed to the tough environment for UK small-cap stocks, citing persistent undervaluation, weak liquidity and the ongoing cost of maintaining a public listing.
The board said these factors mean the benefits of being quoted may no longer justify the expense for a business of CPP’s current size.
As a result, the company is assessing strategic options, including a potential cancellation of its AIM listing, subject to shareholder approval. Any such move would require the backing of at least 75% of votes cast.
CPP also announced the appointment of Brian Barter, chief executive of Blink Parametric, as an executive director.