CPPGroup Preliminary Results: Blink Surges But Going Concern Warning Issued

CPPGroup results explained: Blink is growing fast, but the funding clock is ticking

CPPGroup’s 2025 results are a classic case of two stories happening at once. On one hand, Blink – the Group’s parametric InsurTech platform – is growing quickly and is now clearly the whole point of the investment case. On the other, the company has a very real funding problem after a disputed US $5.0 million payment linked to the sale of CPP India failed to arrive.

So yes, there is genuine progress here. But there is also a going concern warning, and that is the bit retail investors need to take seriously.

CPPGroup preliminary results 2025: the key numbers that matter

Metric	2025	2024
Blink revenue	£1.8 million	£1.1 million
Blink ARR	£2.4 million	£1.6 million
Group revenue from continuing operations	£2.1 million	£2.4 million
Group continuing EBITDA loss	£5.2 million	£6.6 million
Group continuing loss after tax	£7.4 million	£8.4 million
Central overheads	£2.8 million	£6.9 million
Year-end net funds	£5.6 million	£9.7 million
Current cash resources post year end	Approximately £3 million	Not disclosed

Blink revenue growth is the bright spot in the CPPGroup investment case

The good news is easy to spot. Blink revenue rose by 69% to £1.8 million, while annualised recurring revenue – or ARR, a common software metric that shows the yearly value of contracted recurring income – climbed 50% to £2.4 million.

That matters because Blink is now the core business and, in management’s own words, the sole growth platform. The company also increased Blink’s number of business partners to 32 from 28, and expanded its geographic footprint to 24 countries from 22. That is decent commercial progress for a business of this size.

There is more near-term encouragement too. In the first four months of 2026, Blink delivered revenue growth of 99% versus the prior year period. That said, the company does make an important caveat: two larger, non-recurring cyber projects helped that number, so investors should not assume all of that growth is repeatable.

CPPGroup disposals have simplified the business – and that is a real positive

CPPGroup has now completed the disposals of CPP Turkey and CPP India, which effectively finishes its move away from legacy international operations. Strategically, that is sensible. The old group structure was messy, harder to understand, and dragged management attention across too many moving parts.

After these sales, the remaining legacy and regulated entities are being run down in a controlled way. For shareholders, simplification usually helps because it makes the numbers easier to follow and puts management focus behind the one business they actually want to grow.

There was also a meaningful cost reset. Central overheads fell by £4.1 million to £2.8 million. That is one of the strongest parts of the update because it shows the restructuring was not just PowerPoint – it actually reduced the cost base.

Why group revenue fell even though Blink is growing strongly

This is the bit that can confuse people at first glance. Group revenue from continuing operations fell to £2.1 million from £2.4 million, despite Blink’s rapid growth.

The reason is straightforward: legacy revenues are disappearing as those businesses run off or are sold. In other words, Blink is growing, but the rest of the continuing business is shrinking faster. That is not necessarily bad in strategic terms, but it does mean the top line still looks weak at group level for now.

CPPGroup going concern warning: this is the big risk in the RNS

Here is the crux of it. The purchaser of CPP India has told CPPGroup it does not intend to pay the outstanding US $5.0 million deferred consideration. CPPGroup strongly disputes that position and is pursuing its rights, but right now the cash has not arrived.

That missing money has had a material impact on liquidity. The company says that, based on current cash resources of approximately £3 million and the funding needs of regulated entities in run-off, it expects to have sufficient liquidity only through to the end of the third quarter of 2026.

That is why the accounts include a material uncertainty over going concern. In plain English, a going concern warning means the directors believe the business can continue for now, but there is enough uncertainty around future funding that investors need to be clearly told about the risk.

It does not automatically mean collapse is imminent. But it does mean CPPGroup needs a funding fix, and fairly soon.

Debt free status helps, but cash burn is still the issue

To be fair, there are some balance sheet positives. The revolving credit facility was fully repaid and cancelled, leaving the group debt free at the end of 2025. Net assets also improved to £2.7 million from net liabilities of £26,000 in 2024.

But investors should not get too comfortable with the “debt free” label on its own. A business can be debt free and still run into trouble if it is loss-making and burning cash. CPPGroup’s net cash and cash equivalents fell to £5.6 million at year end from £9.7 million, and operating cash outflow was £6.2 million in 2025.

Blink is improving commercially, but profitability is not here yet

There is another important nuance. Blink is growing nicely, but it is still loss-making. Blink EBITDA loss widened to £2.5 million from £1.1 million as the group invested in people, technology and data capabilities.

Management argues this is deliberate and aimed at future scale, and there is some logic to that. Blink’s gross margin was approximately 88%, which suggests the underlying software economics could become attractive if revenue keeps building. But for now, shareholders are still funding growth rather than enjoying the rewards of it.

Refinancing, possible asset sale and what shareholders should watch next

The board says it has reviewed strategic and financing alternatives, including the potential disposal of Blink and discussions with third-party funders. It now says it is in advanced negotiations regarding a funding package, which would be put to shareholders for approval in due course if agreed.

That means the next update matters a lot more than this set of historic numbers. Investors should be watching for three things:

• whether the refinancing actually completes;
• whether any funding comes with heavy dilution for existing shareholders;
• whether Blink can keep converting momentum into recurring revenue, not just one-off project work.

My take on CPPGroup shares after these preliminary results

This is a mixed but very readable set of results. The positive case is that CPPGroup has finally simplified itself, cut central costs hard, and built a focused growth story around Blink, which is clearly gaining traction.

The negative case is just as obvious. The company is still loss-making, still consuming cash, and now faces a funding squeeze because of the disputed US $5.0 million from the India disposal. That turns this from a straightforward growth story into a financing story.

So what does it mean? Blink looks like a credible asset with genuine commercial momentum. But until the refinancing is nailed down, the balance of power sits with the funding situation, not the growth narrative. For shareholders, that makes this one interesting – but undeniably high risk.