PRELIMINARY RESULTS YEAR ENDED 31 DECEMBER 2025

Liquidity is tight, growth is real but small, and survival depends on new funding soon.

What the company is saying

CPPGroup Plc is telling investors that it has completed a major strategic overhaul by disposing of its legacy operations in Turkey and India, positioning itself as a streamlined, focused business. The company frames this as a 'material simplification' and claims it has now fully transitioned away from its international legacy, with Blink as its core and only growth platform. Management highlights strong growth in Blink’s revenue (up 69% to £1.8 million) and ARR (up 50% to £2.4 million), emphasizing these as proof points for the new strategy. The announcement is careful to stress operational improvements—such as a £4.1 million reduction in central overheads, full repayment of the revolving credit facility, and a debt-free balance sheet at year-end. However, it buries the fact that group revenue from continuing operations actually declined (from £2.4 million to £2.1 million), and that net funds fell sharply from £9.7 million to £5.6 million. The tone is measured but leans optimistic, with management projecting confidence in ongoing funding negotiations and Blink’s future prospects, while acknowledging the liquidity hit from the failed $5 million deferred payment from the CPP India sale. Notable individuals such as David Morrison (Chairman), Simon Pyper (CFO), and Brian Barter (Chief Executive of Blink) are named, but there is no evidence of outside institutional investors or high-profile backers participating in this phase. The narrative fits a classic turnaround story—legacy exit, cost cuts, and a bet on a single growth engine—yet the messaging has shifted from defensive (fixing the past) to cautiously forward-looking (growth and funding), without providing hard evidence for the next phase.

What the data suggests

The numbers show a company in transition but still under financial strain. Blink’s revenue grew 69% to £1.8 million, and ARR rose 50% to £2.4 million, which are strong relative gains but from a low base—Blink remains a small business in absolute terms. Group revenue from continuing operations actually fell from £2.4 million to £2.1 million, indicating that the overall business is shrinking even as Blink grows. The EBITDA loss improved from £6.6 million to £5.2 million, and the loss after tax narrowed from £8.4 million to £7.4 million, but these are still substantial losses relative to revenue. Net funds dropped from £9.7 million to £5.6 million, and current cash resources are now only about £3 million, reflecting both operating losses and the impact of the missing $5 million deferred payment from the CPP India sale. The company claims it can fund operations through Q3 2026, but provides no detailed cash flow projections or breakdown of funding needs, making this assertion difficult to independently verify. The improvement in EBITDA for the first four months of 2026 (loss of £0.4 million vs. £0.8 million prior year) is positive, but again, the scale is small and the business remains loss-making. An independent analyst would conclude that while operational improvements are real, the company’s financial trajectory is still negative, and survival is contingent on securing new funding soon.

Analysis

The announcement presents a balanced tone, with most headline claims supported by realised financial data, such as the completion of disposals and improvements in Blink revenue and EBITDA loss. However, there is a noticeable gap between the narrative and evidence regarding future funding and liquidity: the company references 'advanced negotiations' for a funding package and projects sufficient liquidity through Q3 2026, but provides no binding commitments or detailed cash flow projections. The language around Blink as the 'sole growth platform' and 'significant progress' in funding negotiations is aspirational and not substantiated by signed agreements or quantifiable milestones. The capital intensity flag is triggered by the need for new funding to support ongoing operations, with benefits (liquidity, growth) only expected if negotiations succeed. While some operational improvements are real, the forward-looking elements (liquidity runway, new product deployments) are not yet realised and depend on uncertain future events.

Risk flags

• ●Liquidity risk is acute: Net funds have dropped from £9.7 million to £5.6 million, and current cash is only about £3 million. The company’s own projections show it can only fund operations through Q3 2026 without new capital. If the anticipated funding package falls through or is delayed, the company could face a cash crunch.
• ●Funding risk is high: The company is in 'advanced negotiations' for a new funding package, but no terms, amounts, or counterparties are disclosed. There is no binding commitment, and the entire forward plan depends on this funding being secured on acceptable terms.
• ●Revenue concentration and scale risk: Blink is now the sole growth platform, but its revenue (£1.8 million) is small relative to group losses and overheads. If Blink underperforms or growth stalls, there is no other business line to offset the impact.
• ●Execution risk on new products: The company claims initial deployments of weather-based parametric solutions before end-2026, but provides no evidence of customer contracts or technical milestones. Delays or failures in product rollout could undermine the growth narrative.
• ●Disclosure risk: Key details are missing, including a breakdown of central overheads, cash flow projections, and specifics of the funding package. This lack of transparency makes it difficult for investors to independently assess the company’s true financial health.
• ●Pattern risk from failed asset sale proceeds: The $5 million deferred payment from the CPP India sale will not be received, materially impacting liquidity. This raises questions about counterparty risk and the reliability of management’s projections.
• ●Forward-looking risk: A significant portion of the company’s claims are projections or contingent on future events (funding, product launches), not realised facts. Investors are being asked to trust management’s ability to deliver on these forward-looking statements.
• ●Geographic and strategic risk: The company has exited Turkey and India, but the impact of these disposals on future revenue and cost structure is not fully quantified. There is a risk that the simplification narrative masks underlying weakness in the remaining business.

Bottom line

For investors, this announcement signals a company that has made real progress in simplifying its structure and cutting costs, but is still fundamentally loss-making and reliant on external funding to survive. The growth in Blink’s revenue and ARR is encouraging, but the absolute numbers are small and do not yet offset the group’s losses or declining overall revenue. The liquidity position is precarious: net funds have nearly halved year-on-year, and the loss of the $5 million deferred payment from the CPP India sale has left a material hole in cash resources. The company’s assertion that it can fund operations through Q3 2026 is not backed by detailed projections, and the promised funding package remains hypothetical until signed. No notable institutional investors or strategic partners are named as participating in the funding process, so there is no external validation of the turnaround. To change this assessment, the company would need to disclose binding funding agreements, detailed cash flow forecasts, and evidence of customer traction for new products. Key metrics to watch in the next reporting period are actual cash burn, the status of the funding package, and concrete revenue from new product deployments. This is not a signal to buy, but rather a situation to monitor closely: the company is at a financial crossroads, and the next few months will determine whether it stabilises or faces further distress. The single most important takeaway is that survival now depends on securing new funding—without it, all other improvements are moot.

Announcement summary

(AIM:CPP) CPPGroup Plc announced its audited full year results for the 12 months ended 31 December 2025, reporting the completion of the disposals of CPP Turkey and CPP India, which materially simplified the Group and completed its transition away from legacy international operations. Blink revenue increased by 69% to £1.8 million (2024: £1.1 million), and Blink Annualised Recurring Revenue (ARR) increased 50% to £2.4 million (2024: £1.6 million). Group revenue from continuing operations was £2.1 million (2024: £2.4 million), with Group continuing EBITDA loss improved to £5.2 million (2024: loss of £6.6 million) and Group continuing loss after tax for the year at £7.4 million (2024: loss of £8.4 million). Central overheads were reduced by £4.1 million, and the revolving credit facility was fully repaid and cancelled, leaving the Group debt free at year end with net funds of £5.6 million at 31 December 2025 (2024: £9.7 million). The Group was informed by the purchaser of CPP India that it does not intend to pay the outstanding US $5.0 million deferred consideration, which has had a material impact on liquidity. The company projects sufficient liquidity to support operations through to the end of the third quarter of 2026 based on current cash resources of approximately £3 million and anticipated funding requirements. The Board is in advanced negotiations regarding a funding package, which, if concluded on acceptable terms, is expected to provide a clear path forward for the Group and will be presented to shareholders for approval in due course.

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