LOST revenue from suspending over the phone sales sales of identity protection following investigation by the Financial Services Authority (FSA) will hit CPP Group's margin for the half year ended June 30, it has warned.

The York-based card and identity protection business said its half year revenue growth to June 30 would be lower than the four months to 30 April 2011, after the FSA got involved and subsequently Barclaycard suspended sales of the product to their customers through CPP's call to confirm channel.

The business said in May that it was expecting continued growth in its sales, driven by sustained growth in Northern Europe, North America and Asia Pacific, although it would be offset by a reduction in Southern Europe.

It said in a pre-closing statement to the stock exchange today that its financial position hadn't changed, with continued low net debt.

It said: "We continue to work closely with the FSA in relation to its ongoing investigation, however the timeframe to the conclusion of such discussions remains unclear.

"The board continues to believe in the ongoing relevance and consumer appeal of our products and services and we remain focused on developing our business in the UK and internationally. In the UK we continue to grow our packaged accounts channel and to work closely with our partners towards launching our non-insured identity protection product, Identity Safe. Overseas we are making continued progress in development of our new and existing markets," it said.