Suspension of shares (6875X)
February 20 2012 - 2:30AM
UK Regulatory
TIDMCPP
RNS Number : 6875X
CPPGroup Plc
20 February 2012
CPPGroup plc - suspension of shares
20 February 2012
CPPGroup plc ("CPP" or "the Group") announces that it has
applied to the UKLA for a suspension of listing of its shares with
immediate effect. Until such time as the suspension is lifted,
trading in CPP's ordinary shares on the Official List of the London
Stock Exchange will also be suspended.
The Group's application follows communications from the FSA over
the weekend concerning its investigation into certain issues
surrounding the sale of the Group's Card Protection and Identity
Protection products in the UK. The FSA has requested CPP to
undertake a review of certain past business sales and to make
certain changes to its renewals process. The request comes as a
result of the FSA's findings into CPP's sales practices.
Whilst CPP has acknowledged to the FSA that a past business
review is appropriate, the Board of CPP has informed the FSA that
its requirements are disproportionate and threaten the viability of
the business. The Board has been, and remains, absolutely committed
to working closely and cooperatively with the FSA to resolve its
issues. At the same time it has frequently emphasised the potential
threat to CPP, a business which employs 1,341 people in the UK and
1,969 people in 16 countries worldwide, of prolonged discussions.
CPP has taken significant and successful steps in recent months to
make changes, move the business forward and to adopt a more
customer centric culture. Its latest customer feedback is positive
and reaffirms the importance of, and need for, the services it
provides to CPP customers.
The FSA and CPP have agreed to continue discussions around which
a mutually agreeable review of past business sales and renewal
policy might be undertaken. The FSA has stated its view that some
form of customer review exercise will be required. There is no
certainty that these discussions will be resolved or what the scope
of any review exercise that might be acceptable to both FSA and CPP
might be. The FSA has indicated that such discussions are likely to
continue for no longer than two weeks.
CPP remains committed to achieving an outcome that is acceptable
to FSA, its customers, and its shareholders. Notwithstanding, it is
likely that any agreed outcome will have a significant adverse
financial impact on the Group, but until such outcome is determined
the Group cannot predict the scale or consequences of that impact.
Given the uncertainty as to such outcome, CPP is currently unable
to assess accurately its financial position and inform the market
accordingly, and as such considers an immediate suspension to be
appropriate. The Group expects that the suspension will remain in
force until such time as CPP is able to determine with sufficient
clarity the financial impact of such actions as are required by the
FSA to be taken, which may not be known for some time.
Further announcements will be made in due course.
Conference Call
A conference call for analysts and investors will take place at
8.00am this morning, dial-in details for which are as follows:
Tel: +44 (0)20 3140 0668
Participant access code: 474095#
Enquiries:
Paul Stobart, Group Chief Executive
Shaun Parker, Chief Financial Officer
Tel. +44 (0)20 7353 4200 (today)
Tel: +44 (0)1904 544702 (thereafter)
Tulchan Communications
John Sunnucks
David Allchurch
Martin Robinson
Tel. +44 (0)20 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
END
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