CPPGroup intends to develop its own IT platform which will be built on its existing systems and be more relevant to customers and the group's suite of products and services and also support growth internationally.
CPP is currently redesigning its operating structure to create a more cost-effective and flexible platform that is focused on serving the future needs of the Group. This is intended to enable the Group's strategy of developing new products and services that answer customer needs and concerns and deliver them increasingly through digital and mobile channels.
As part of this, CPP recently completed an in-depth review of its current IT arrangements and likely needs over the coming years.
The change in product and service focus drives a change in the Group's IT requirements and as a consequence, CPP has informed its current IT development partner, SSP Limited (SSP), that the group intends to develop its own IT platform.
CPP says this change in IT approach will give rise to a one-time write-off of capitalised expenditure of approximately £6.5 million, together with a cash payment that is currently being finalised with SSP.
This payment will be met from the group's existing financial resources. The operating and financial benefits of this change are important to the development of the business and will accrue from 2017 and beyond.