CPPGroup offloads legacy Italy operations

14th Jun 2024 11:15

(Sharecast News) - CPPGroup, a provider of real-time, digitally delivered assistance products, announced the disposal of its legacy operations in Italy on Friday.

The AIM-traded firm said the sale of its wholly owned subsidiary, CPP Italia, to IGS EMEA for €0.5m, marked a significant step in its strategic shift.

It said the disposal aligned with its revised strategy, announced in October 2022, to withdraw from legacy operations and transform into a digitally-focussed parametric business led by Blink Parametric, with support from CPP India and CPP Turkey.

CPP Italy, considered non-core to the new strategy, contributed EBITDA of £0.2m to the group's overall EBITDA of £4.8m for the 2023 financial year, and recorded a profit before tax of £0.1m.

As of 31 December, CPP Italy had net assets of £0.1m, making the financial impact of the disposal immaterial to the group.

The board said the sale was the final step in CPPGroup's withdrawal from legacy operations, following the closure of operations in Spain and Portugal, the sale of businesses in Italy and Mexico, and the active run-off of its UK operations.

"The disposal of CPP Italy is consistent with our stated strategy and is another positive step as we simplify the group and transform to a digitally led parametric business," said group chief executive officer Simon Pyper.

Reporting by Josh White for Sharecast.com.