CPP Group plc (CPP) AI Stock Analysis

• Market Cap: £13.06M
• Dividend Yield: N/A
• Average Volume (3M): 12.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -18.97%
• EPS Growth: N/A
• Country: UK
• Employees: 5,080
• Sector: Industrials
• Sector Strength: 83
• Industry: Specialty Business Services
• EPS (TTM): -0.30
• Shares Outstanding: 9,164,804
• 10 Day Avg. Volume: 9,845
• 30 Day Avg. Volume: 12,558
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £114.00
• Price Target Upside: -20.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: 166.00p ▲(16.49% Upside)

The overall stock score is heavily impacted by CPP Group's poor financial performance, characterized by negative margins and cash flow issues. However, strong technical momentum and positive corporate events offer some optimism. Valuation remains a concern with negative earnings. The company's strategic divestments could potentially improve its financial position and operational focus in the long term.

CPP Group plc Business Overview & Revenue Model

Company Description

CPP Group plc (CPP) is a global provider of assistance and insurance products, operating primarily in the financial services and insurance sectors. The company offers a range of services, including card protection, identity theft protection, and mobile phone insurance, tailored to enhance the value of its clients' offerings and improve customer retention for financial institutions, insurance companies, and other businesses.

How the Company Makes Money

CPP Group plc generates revenue primarily through its business-to-business (B2B) partnerships with financial institutions, insurance providers, and other corporate clients. These partnerships involve integrating CPP's assistance and insurance products into the clients' service offerings, often as value-added services to their end customers. CPP earns money from fees charged to its partners, which may be structured as upfront payments, ongoing service fees, or commissions based on customer uptake and usage of the products. Additionally, the company may receive a share of the premiums for insurance products sold through its platform. Strategic partnerships and cross-selling opportunities play a significant role in CPP's revenue generation, allowing it to expand its market reach and diversify its income streams.

CPP Group plc Financial Statement Overview

Summary

CPP Group plc faces significant financial challenges, with declining revenues, negative profitability margins, and a weak balance sheet characterized by negative equity and high leverage. The company's cash flow position is also strained, with negative operating and free cash flow. These indicators suggest that the company needs to address operational inefficiencies and improve its financial health to sustain long-term viability in the competitive specialty business services industry.

Income Statement

The company's revenue has decreased significantly by approximately 19% from the previous year. The net profit margin is negative, indicating that the company is not profitable, with a net loss reported for the year. Both the EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in covering operating expenses. The gross profit margin is approximately 13%, which indicates some ability to cover the cost of goods sold, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and overall, the company is highly leveraged. The company's equity ratio is also negative, reflecting a lack of financial stability and potential risks associated with its capital structure.

Cash Flow

The company experienced a significant decline in free cash flow, resulting in a negative free cash flow position. Operating cash flow is also negative, suggesting difficulties in generating cash from core operations. The free cash flow to net income ratio is not applicable due to both being negative, highlighting cash management challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.43M	193.04M	169.78M	143.63M	141.14M
Gross Profit	20.81M	30.95M	30.77M	32.92M	36.95M
EBITDA	699.00K	-2.89M	5.61M	7.59M	4.97M
Net Income	-3.59M	-8.65M	101.00K	518.00K	-1.60M
Balance Sheet
Total Assets	28.90M	54.20M	59.66M	53.96M	57.13M
Cash, Cash Equivalents and Short-Term Investments	9.49M	17.96M	20.98M	22.32M	21.86M
Total Debt	962.00K	3.90M	4.70M	5.82M	6.54M
Total Liabilities	28.92M	46.69M	45.18M	38.59M	41.40M
Stockholders Equity	-26.00K	5.26M	12.67M	13.82M	14.63M
Cash Flow
Free Cash Flow	-11.78M	404.00K	1.10M	2.67M	1.40M
Operating Cash Flow	-9.74M	4.29M	3.82M	4.56M	3.16M
Investing Cash Flow	1.93M	-3.89M	-3.18M	583.00K	-1.24M
Financing Cash Flow	-1.29M	-1.52M	-2.12M	-4.19M	-1.62M

CPP Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPP, the sentiment is Positive. The current price of 142.5 is above the 20-day moving average (MA) of 140.30, above the 50-day MA of 114.89, and above the 200-day MA of 102.67, indicating a bullish trend. The MACD of 9.47 indicates Positive momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CPP.

CPP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSW	78 Outperform	£14.32M	13.13	11.18%	3.02%	110.08%	1105.56%
CEPS	74 Outperform	£5.57M	9.60	23.19%	―	6.35%	4.15%
VNET	69 Neutral	£23.98M	28.60	3.15%	1.56%	-1.00%	8.46%
Sector *	66 Neutral	£2.70B	12.69	3.89%	3.23%	2.68%	-23.56%
REAT	61 Neutral	£11.94M	900.00	-3.75%	―	6.90%	-242.86%
CPP	55 Neutral	£13.06M	―	-177.83%	―	-18.97%	―
MIND	46 Neutral	£17.54M	―	-106.45%	―	-14.04%	24.84%

CPP Group plc Corporate Events

CPP Group Seeks Shareholder Approval for Strategic Divestment

CPP Group plc has announced a strategic shift by seeking shareholder approval for the sale of its subsidiary, CPP Assistance Services Private Ltd, as part of its plan to focus on its InsurTech business, Blink Parametric. This move is intended to generate capital for further investment in Blink’s growth and technology, while divesting legacy assets like CPP India and CPP Turkey. The sale is seen as a key milestone in the company’s revised strategy, with the potential to deliver superior returns for shareholders and streamline operations.

CPP Group Sells CPP India to Focus on InsurTech Platform Blink

CPP Group has announced the sale of its subsidiary, CPP India, for $21 million, marking a pivotal step in its strategic transformation into a focused parametric InsurTech business under the brand Blink. This move allows CPP Group to exit its legacy operations and concentrate on Blink, which operates in high-growth sectors like travel disruption and cybersecurity. The proceeds from the sale will be used to accelerate investment in Blink’s technology and commercial growth, restructure costs, and support working capital. The sale is expected to simplify the group’s structure and enhance its ability to deliver long-term shareholder value.

CPP Group plc Announces Change in Major Holdings

CPP Group plc has announced a change in its major holdings, with Phoenix Asset Management Partners Limited reducing its voting rights from 18.33% to 17.86% as of June 20, 2025. This adjustment in holdings may impact the company’s shareholder dynamics and influence its strategic decisions moving forward.

CPP Group plc Announces Change in Major Holdings

CPP Group plc announced a change in its major holdings, with Phoenix Asset Management Partners Limited reducing its voting rights from 19.26% to 18.33%. This adjustment in holdings could impact the company’s strategic decisions and influence its market positioning, as major stakeholders adjust their involvement.

CPP Group Shifts Focus to Blink InsurTech Platform, Divests Legacy Assets

CPP Group plc has announced a strategic shift to focus exclusively on its Blink InsurTech platform, disposing of its legacy assets including CPP Turkey and potentially CPP India. This transformation aims to streamline operations, reduce costs, and allocate capital towards Blink’s growth, which is expected to deliver superior returns due to its high-margin, scalable nature and favorable market positioning. The disposal of CPP Turkey has been completed for £4.6 million, and discussions are ongoing for the sale of CPP India. The proceeds from these disposals will be used to invest in Blink’s technology and commercial roadmap, restructure costs, and support working capital needs.

CPP Group Announces Successful AGM Outcomes

CPP Group held its Annual General Meeting on May 7, 2025, where all proposed resolutions were successfully passed. Key resolutions included the election and re-election of directors, the re-appointment of PKF Littlejohn LLP as auditor, and authorizations related to share allotment and purchase. This outcome reflects strong shareholder support and positions the company for continued strategic governance and operational stability.

CPP Group Plc Announces Successful AGM Outcomes

CPP Group Plc successfully held its Annual General Meeting on May 7, 2025, in London, where all proposed resolutions were passed. Key outcomes included the election and re-election of several directors, the re-appointment of PKF Littlejohn LLP as the company’s auditor, and authorizations related to share allotment and purchase. These decisions reinforce CPP Group’s governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.