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CPP Group trading 'largely resilient' despite ongoing Covid-19 impacts
12th Jul 2021 10:58
(Sharecast News) - Personal protection and insurance provider CPP Group said on Monday that its performance in the six months ended 30 June had been "largely resilient" despite continued disruptions caused by the Covid-19 pandemic.
CPP stated that in India, the group's largest market, recent national lockdown measures had led to "a sharp reduction" in new business activity during April and May. However, the firm added it has since seen "a robust recovery in trading" over recent few weeks, with the lifting of lockdown measures, as currently planned by Indian authorities, also expected to result in its trading performance improving in the second half of 2021.
In other territories, the AIM-listed firm said the pandemic continued to be "a source of uncertainty" amongst consumers and its business partners but noted that it was still "pleased" that renewals from its back-books remained "robust".
Whilst CPP highlighted that it had weathered "the most recent Covid-19 storms satisfactorily", it also believes it to be "sensible" to take a guarded view regarding its outlook for the remainder of the year given "the dynamic nature" of the trading background.
Chief executive Jason Walsh said: "The Covid-19 situation has had an impact on trading conditions in the first half of the year, and against that backdrop the group has performed well, with our operations in India, in particular, showing great resilience.
"The group's balance sheet and cash position remain solid and good progress has been made with the strategic review of the group's businesses instigated earlier in the year."
As of 1055 BST, CPP shares were down 1.43% at 495.30p.
CPP stated that in India, the group's largest market, recent national lockdown measures had led to "a sharp reduction" in new business activity during April and May. However, the firm added it has since seen "a robust recovery in trading" over recent few weeks, with the lifting of lockdown measures, as currently planned by Indian authorities, also expected to result in its trading performance improving in the second half of 2021.
In other territories, the AIM-listed firm said the pandemic continued to be "a source of uncertainty" amongst consumers and its business partners but noted that it was still "pleased" that renewals from its back-books remained "robust".
Whilst CPP highlighted that it had weathered "the most recent Covid-19 storms satisfactorily", it also believes it to be "sensible" to take a guarded view regarding its outlook for the remainder of the year given "the dynamic nature" of the trading background.
Chief executive Jason Walsh said: "The Covid-19 situation has had an impact on trading conditions in the first half of the year, and against that backdrop the group has performed well, with our operations in India, in particular, showing great resilience.
"The group's balance sheet and cash position remain solid and good progress has been made with the strategic review of the group's businesses instigated earlier in the year."
As of 1055 BST, CPP shares were down 1.43% at 495.30p.