REG - Personal Group - Disposal of Let’s Connect

Personal groupAnnouncement

10/07/2024 07:00

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RNS Number : 8302V  Personal Group Holdings PLC  10 July 2024

10 July 2024

 

Personal Group Holdings PLC

 

(the "Company", "Personal Group", "PGH" or "Group")

 

Disposal of Let's Connect

 

Personal Group Holdings Plc (AIM: PGH), the workforce benefits and services
provider, today announces the disposal of the entire issued share capital of
the Company's technology salary sacrifice division, Lets Connect IT Solutions
Limited ("Let's Connect"), to SME HCI Limited (trading as The Perkbox Vivup
Group) (the "Acquiror"), the technology salary sacrifice provider, for a total
up front cash consideration of £2.0m (the "Disposal") on a cash-free,
debt-free basis.

 

Detailed market analysis, undertaken as part of the ongoing strategy review,
has provided the Group with a clear sense of positioning and identified the
areas of the business with the greatest opportunities to drive sustainable
long-term growth and maximise shareholder value. The analysis has validated
the strength of the Company's combined insurance and Benefits platform
offerings and the Board believes that the Disposal of Let's Connect will
simplify the Group's structure and product set and allow for a greater focus
on these core offerings, where they believe the greatest opportunities for the
Group exist.

 

As previously announced, Let's Connect has had a challenging period with the
cessation of a long-term scheme with a major client in March 2023 and, whilst
the business has performed resiliently and in line with management's
expectations, the Board believes that its long-term performance will be
optimised under the ownership of the Acquiror and that its customers will be
provided with an increased breadth of offerings. Let's Connect employees will
transition into the Acquiror's operating structure which will ensure
continuity and stability for both the workforce and business operations.

 

For the year ended 31 December 2023, Let's Connect delivered turnover of
£11.1m and £0.3m of profit before tax to the Group. The value of net assets
on disposal was c£0.7m (excluding cash balances).

 

The proceeds of the Disposal will further strengthen the Group's balance
sheet, providing additional support to ensure the Group has the offerings and
focus to exploit what is a considerable opportunity ahead.

 

Paula Constant, Chief Executive of Personal Group, commented:

 

"As previously announced, our strategy review has validated the strength of
our insurance and benefits platform offerings. This deal enables a greater
focus on these core areas of our business and we are committed to the
execution of our strategy for accelerated growth. We are delighted to have
secured such a well-suited home for the Let's Connect team and customers."

 

-ENDS-

 

This announcement contains inside information.

 

For more information please contact:

 

 Personal Group Holdings Plc
 Paula Constant (CEO) / Sarah Mace (CFO)               Via Alma

 Cavendish Capital Markets Limited
 Camilla Hume / Callum Davidson (Nomad)                +44 (0)20 7397 8900
 Jasper Berry (Sales)

 Alma Strategic Communications                         +44 (0)20 3405 0205
 Caroline Forde / Joe Pederzolli / Kinvara Verdon      personalgroup@almastrategic.com

 

 

Notes to Editors

 

Personal Group Holdings Plc (AIM: PGH) is a workforce benefits and services
provider. The Group enables employers across the UK to improve employee
engagement and support their people's physical, mental, social and financial
wellbeing. Its vision is to create a brighter future for the UK workforce.

Personal Group provides health insurance services and a broad range of
employee benefits, engagement, and wellbeing products. Its offerings can also
be delivered through its proprietary app, Hapi.

Group Clients include Airbus, Barchester Healthcare, Merseyrail, Randstad,
Royal Mail Group, The Royal Mint, the Sandwell & Birmingham NHS Trust,
Stagecoach Group plc, and The University of York.

For further information on the Group please see www.personalgroup.com
(https://url.uk.m.mimecastprotect.com/s/BUhaCDRMBCo2X9mi5kJIU?domain=personalgroup.com/)

 

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