REG - Personal Group - Interim Results
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RNS Number : 4160Z Personal Group Holdings PLC 16 September 2025
16 September 2025
PERSONAL GROUP HOLDINGS PLC
("Personal Group", "Company" or "Group")
Interim Results for the six months ended 30 June 2025
Double digit revenue growth, a 42% increase in adjusted EBITDA* and an
expanding base of recurring revenues, underpinning 26% increase in interim
dividend
Personal Group Holdings Plc (AIM: PGH), the workforce benefits and services
provider, is pleased to announce its interim results for the six months ended
30 June 2025 ("H1 2025").
The first six months of the year has seen continued financial and strategic
progress, with record insurance sales driving double digit revenue growth and
a 42% increase in adjusted EBITDA*. The Group's increasing annualised
recurring revenue streams provide confidence for the remainder of FY 2025 and
beyond and has enabled the Board to increase the dividend payout ratio going
forward.
Financial Highlights
· Revenue up 11% to £23.3m (H1 2024: £21.0m), with growth across all business
segments
· Recurring revenue streams increased 12% to £45.7m as at 30 June 2025 (30 June
2024: £40.8m), providing good visibility for the full year ("FY 2025") and
beyond:
o Insurance Annualised Premium Income ("API") increased by 12% to £38.0m (H1
2024: £33.8m)
o Benefits Platform Annual Recurring Revenue ("ARR") increased by 10% to £6.9m
(H1 2024: £6.3m)
o Pay & Reward ARR increased by 6% to £0.76m (H1 2024: £0.71m)
· Adjusted EBITDA* up 42% to £5.5m (H1 2024: £3.9m), in line with management
expectations for H1 2025
· Profit before tax up 68% to £3.8m (H1 2024: £2.3m)
· Basic EPS of 9.6p (H1 2024: 5.4p), an increase of 78%
· £4.0m of cash generated from operating activities with cash and deposits at
30 June 2025 of £26.9m (31 December 2024: £27.4m), and no debt
· Enhanced dividend payout ratio going forward, interim dividend increased by
26% to 8.2p (H1 2024: 6.5p), reflecting ongoing confidence in the Group's
performance and prospects
Operational Highlights
· Another excellent period for Insurance
o New annualised insurance sales up 6% to £7.4m (H1 2024: £6.9m), delivering
yet another record sales period
o Year on year retention rates remained strong at over 80%
o Expanding addressable employees with new client wins
· Partners bringing Benefits offerings into new markets
o Renewed and expanded partnership with Sage Group, as announced in March 2025,
with the first new region, Ireland, now live
o New Benefits partner, EB Now, secured, with customers due to go live in H2
Current Period Trading and Outlook
· Strong new insurance sales have continued at the start of H2 2025, with
retention rates remaining robust
· Trading in Q3 has remained robust and in line with management's expectations
to date. This, combined with the Group's growing recurring revenues, underpins
the Board's confidence in achieving market expectations for the full year
*Adjusted EBITDA is defined as earnings before interest, tax, depreciation,
amortisation of intangible assets, goodwill impairment, share-based payment
expenses, corporate acquisition costs and restructuring costs.
Paula Constant, Chief Executive of Personal Group, commented: "Personal Group
continues to make good progress, with the refined strategy put in place at the
end of 2024 delivering another strong set of results, with Insurance sales
going from strength to strength, growing levels of ARR and healthy cash
generation to support a strong balance sheet. New Insurance wins and
partnerships in the first half of the year have expanded our addressable
customer base and laid the foundations for continued growth.
"Underpinning the Group's success is the quality and relevance of our
offerings. The macroeconomic environment is creating a growing market need,
with employers increasingly recognising the importance of insurance cover and
for their employees. We see considerable room for growth ahead and have line
of sight to achieving our 2030 ambitions of delivering at least £100m
revenue, £30m EBTIDA and £20m SaaS ARR."
For more information please contact:
Personal Group Holdings Plc
Paula Constant / Sarah Mace +44 (0)1908 605 000
Canaccord Genuity Limited (Nominated Adviser & Broker)
Max Hartley / Harry Rees +44 (0)20 7523 8000
Alma Strategic Communications
Caroline Forde / Kinvara Verdon / Rose Docherty +44 (0)20 3405 0205
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.
The Group's growth strategy is centred around widening the footprint of the
business into the SME, talent-led & Public Sectors, thereby expanding the
addressable customer base. In addition, it aims to grow in its existing
industrial heartlands, to re-invigorate growth in insurance policyholders and
to drive the use of its SaaS offerings.
Group Clients include: Airbus, B & Q, Barchester Healthcare, British
Transport Police, 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
(http://www.personalgroup.com)
CEO STATEMENT
Personal Group entered 2025 with good momentum which has been sustained
throughout the first half, delivering growth across all areas of the business.
We are seeing the benefits of the strategic progress made in 2024 - to
simplify and strengthen the business and refine the strategy to drive
accelerated growth - with growing levels of recurring revenue and strong cash
generation.
Progressing towards our 2030 ambitions
In March 2025, we outlined our ambitions to deliver at least £100m revenue,
£30m EBITDA and £20m SaaS ARR by 2030, and put a clear strategy in place to
achieve this. We plan to deliver growth in Insurance through securing new
clients together with increasing penetration across our existing customer base
as well as expanding our offerings. For Benefits & Rewards, growth will be
delivered through securing additional partnerships alongside increased
adoption of the platform and leveraging upsell opportunities with existing
customers. I am pleased to report our underlying KPIs are tracking well
towards our end-of-year targets, with new Insurance wins, new partnerships and
new offerings all expanding our base of addressable employees.
Growing market demand
Underpinning Personal Group's success is the quality and relevance of its
offerings, and we are operating in an increasingly supportive market backdrop.
The current macroeconomic environment is stretching employers financially and
cost-of-living pressures are prompting individuals to seek financial security,
creating a growing market need for Personal Group's offerings. Moreover,
employers are increasingly recognising the importance of insurance and
benefits in the workplace to improve staff retention, reduce absenteeism and
improve employee wellbeing, and with it, productivity. In the Insurance
market, employee and employer-paid cash plans are experiencing increased
demand due to HR priorities around affordability, wellbeing and the rising
cost of private medical insurance. The Benefits market is evolving in response
to employee demand to provide more holistic and flexible offerings.
Personal Group understands its end customers and their needs. Our digital
benefits platform, powered by award-winning technology, makes our offerings
more accessible and visible to employees, and provides a flexible solution
suitable for remote and deskless workers - a large, and typically under
serviced market. Our face-to-face sales model for insurance is unique,
facilitating personal connection with users, driving conversion, and reaches
blue collar and less digitally engaged workers.
Operational review
Affordable Insurance
The Group achieved yet another record period in Insurance, with new annualised
insurance sales increasing by 6% to £7.4m (H1 2024: £6.9m), driven by the
growing market demand for our offering and the effectiveness of our
face-to-face sales model. Testament to the quality of our offering is our
strong customer retention levels of over 80% year-on-year. As a result, API
value increased 12% to £38.0m (H1 2024: £33.8m) and insurance revenue for
the period increased to £17.4m (H1 2024: £15.4m). Meanwhile claims levels in
the first half were broadly consistent year on year, as anticipated. These
combined factors resulted in a 25% increase in adjusted EBITDA contribution to
£6.6m (H1 2024: £5.3m).
The Group saw several new customer wins for Insurance in the period. This is
in part due to our reinvigorated go-to-market initiatives, including the
introduction of a more rigorous process for targeting clients and progressing
leads. Alongside this, we have significantly grown our pipeline. Each new
customer extends our footprint of addressable employees, providing an avenue
for further revenue growth acceleration.
In addition to securing new customers, the Group remains focused on increasing
its penetration of existing clients and in particular our top 100 sites
through increased field force efficiency, presentation time-to-competence and
rigorous recruitment. As a result, overall penetration increased to 13.7% as
at 30 June 25 (31 December 2024: 13.0%).
We are continuing to explore and progress our new Group Cash Plan and Digital
Insurance offerings, to enable us to expand our portfolio, increase our routes
to market, and add to our recurring revenue stream. The Group Cash Plan is
progressing well, with our first partners successfully secured and the Digital
Insurance offering is currently in the test and learn phase, receiving
positive feedback during the trial of 11 of our clients.
Benefits & Rewards
The Group's digital benefits platform, encompassing Hapi and SEB, delivered
ARR growth of 10% to £6.9m in the period (30 June 2024: £6.3m). This was in
part a reflection of the Group's focus in the prior year on the migration of
our complex client base onto the new Hapi platform. With this operational
milestone achieved, efforts in H1 were able to switch towards customer growth
and upsell. While enterprise sales cycles remain protracted, we anticipate
these efforts, alongside the addition of new partners, will drive an improved
growth rate over time. More granular KPIs have been introduced and a more
stringent commercial focus. Revenue from digital platform subscriptions and
commissions from third party benefit suppliers which sit on the platform rose
to £4.0m (H1 2024: £3.8m) with a resulting growth in EBITDA of 14% to £2.4m
(H1 2024: £2.2m).
As previously announced, in March 2025, we renewed and expanded its
partnership with Sage Group plc ("Sage"), for a minimum of three years, which
will see Sage Employee Benefits (SEB) offered across additional products and
segments in Sage's portfolio, reaching more Sage customers with the first new
region, Ireland, going live at the end of June.
In line with our strategy to extend our reach into the SMB market through
partners, the Group secured a new Benefits partner in the period, EB Now, an
employee benefits provider for the SMB market, with the first customers due to
go live in H2. Further discussions with a number of potential new Benefits
partners, intended to bring Personal Group's Benefits offerings into new
market sectors are also ongoing.
Personal Group's Pay & Reward continues to perform well, delivering
revenue of £1.2m (H1 2024: £1.2m) and EBITDA of £0.42m (H1 2024: £0.36m)
bolstered by new contracts secured with De Beers, FSCS and the British Medical
Association towards the end of H1 giving good visibility for the second half,
as well as an improvement in the value of the projects secured.
Interim Dividend and change of Dividend Policy
The Group continues to grow strongly whilst generating significant cash to
augment a very strong balance sheet. In light of this, the Board has reviewed
the dividend policy and concluded that given the continued confidence in the
Group's business model and prospects, it is appropriate to amend the dividend
policy to enhance returns to shareholders. For FY2025 and going forward, the
Group now intends to pay dividends equivalent to approximately one times basic
earnings per share for the full year, confident that a progressive dividend
can be maintained on this basis.
In accordance with the above, the Company is pleased to announce an interim
dividend for 2025 of 8.2p, representing an 26% increase on the previous year,
to be paid on 31 October 2025 to members on the register as at 26 September
2025. Shares will be marked ex-dividend on 25 September 2025.
Current trading and outlook
Personal Group continues to make good progress, with the refined strategy put
in place at the end of 2024 delivering another strong set of results, with
record Insurance sales, growing levels of ARR and healthy cash generation to
support a strong balance sheet. New Insurance wins and partnerships in the
first half of the year have expanded our addressable customer base and laid
the foundations for continued growth.
Underpinning the Group's success is the quality and relevance of our
offerings, with the macroeconomic environment creating a growing market need,
with employers increasingly recognising the importance of insurance cover and
for their employees. We see considerable room for growth ahead and have line
of sight to achieving our 2030 ambitions of delivering at least £100m
revenue, £30m EBTIDA and £20m SaaS ARR.
Pleasingly, we have seen a continuation of the strong new insurance sales into
H2 2025, with retention rates remaining robust. This combined with the Group's
growing proportion of recurring revenues underpins the Board's confidence in
achieving market expectations for the full year.
Paula Constant
Group Chief Executive
16 September 2025
Consolidated Income Statement
6 months 6 months
ended ended
30 June 2025 30 June 2024
Unaudited Unaudited
Note £'000 £'000
Insurance revenue 17,391 15,409
Employee benefits and services 5,241 4,976
Other income 45 69
Investment income 662 582
(_____) (________)
Revenue 23,339 21,036
(________) (________)
Insurance service expenses 4 (9,345) (8,670)
Net expenses from reinsurance contracts held (32) (47)
Employee benefits and services expenses (3,829) (3,987)
Other expenses (35) (35)
Group administration expenses (6,130) (5,954)
Share based payment expenses (122) (80)
Charitable donations (65) (50)
(________) (________)
Expenses (19,558) (18,823)
(________) (________)
Operating profit 3,781 2,213
Finance costs (41) (53)
Unrealised gains on equity investments 48 90
(________) (________)
Profit before tax 3,788 2,250
Tax 5 (794) (376)
(________) (________)
Profit for the period after tax from continuing operations 2,994 1,874
(________) (________)
Loss for the period from discontinued operations* - (185)
(________) (________)
Total comprehensive income for the period 2,994 1,689
(________) (________)
Earnings per share Pence Pence
Basic earnings (loss) per share
Continuing operations 9.6 6.0
Discontinued operations - (0.6)
Total 9.6 5.4
Diluted earnings (loss) per share
Continuing operations 9.2 5.9
Discontinued operations - (0.6)
Total 9.2 5.3
The total comprehensive income for the period is attributable to equity
holders of Personal Group Holdings Plc.
*Following the Group's sale of Let's Connect in 2024, revenue and expenses,
gains and losses relating to the discontinuation of this subgroup have been
eliminated from profit of loss from the Group's continuing operations and are
shown as a single line in the consolidated income statement.
Consolidated Balance Sheet
At 30 June 2025 At 31 December 2024
Unaudited Audited
Note £'000 £'000
ASSETS
Non-current assets
Goodwill 7 2,684 2,684
Intangible assets 8 5,250 4,854
Property, plant and equipment 9 4,255 4,479
(_______) (_______)
12,189 12,017
(________) (________)
Current assets
Financial assets 10 5,572 9,912
Trade and other receivables 8,720 9,994
Reinsurance contracts held 10 -
Cash and cash equivalents 23,018 19,060
Current tax assets 479 304
(________) (________)
37,799 39,270
(________) (________)
Total assets 49,988 51,287
(________) (________)
Consolidated Balance Sheet
At 30 June 2025 At 31 December 2024
Unaudited Audited
Note £'000 £'000
EQUITY
Equity attributable to equity holders of Personal Group Holdings plc
Share capital 1,563 1,562
Share premium 1,134 1,134
Capital redemption reserve 24 24
Other reserve (27) (27)
Share based payment reserve 449 495
Profit and loss reserve 31,690 31,652
(________) (________)
Total equity 34,833 34,840
(________) (________)
LIABILITIES
Non-current liabilities
Deferred tax liabilities 1,287 1,158
Trade and other payables 216 343
(________) (________)
1,503 1,501
(________) (________)
Current liabilities
Trade and other payables 12,689 14,052
Reinsurance contracts held - 5
Insurance contract liabilities 963 889
(________) (________)
13,652 14,946
(________) (________)
(________) (________)
Total liabilities 15,155 16,447
(________) (________)
( ) ( )
(________) (________)
Total equity and liabilities 49,988 51,287
(________) (________)
Consolidated Statement of Changes in Equity for the six months ended 30 June
2025
Share capital Share Premium Capital Other reserve Share Based Payment Reserve Profit & loss reserve Total equity
redemption
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 January 2025 1,562 1,134 24 (27) 495 31,652 34,840
(________) (________) (________) (________) (________) (________) (________)
Dividends - - - - - (3,124) (3,123)
Employee share-based compensation - - - - 111 11 122
Proceeds of SIP* share sales - - - - - 13 13
Cost of SIP shares sold - - - 12 - (12) -
Cost of SIP shares purchased - - - (12) - - (12)
Clearance of SBP Reserve for Lapsed Options 1 - - - (157) 156 -
(________) (________) (________) (________) (________) (________) (________)
Transactions with owners 1 - - - (46) (2,956) (3,000)
(________) (________) (________) (________) (________) (________) (________)
Profit for the period - - - - - 2,994 2,994
(________) (________) (________) (________) (________) (________) (________)
Total comprehensive income for the period - - - - - 2,994 2,994
(________) (________) (_______) (_______) (_______) (_______) (_______)
Balance as at 30 June 2024 1,563 1,134 24 (27) 449 31,690 34,833
(________) (________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Changes in Equity for the six months ended 30 June
2024
Share capital Share Premium Capital Other reserve Share Based Payment Reserve Profit & loss reserve Total equity
redemption
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 January 2024 1,562 1,134 24 (36) 513 28,798 31,995
(________) (________) (________) (________) (________) (________) (________)
Dividends - - - - (1,827) (1,827)
-
Employee share-based compensation - - - - 69 11 80
Proceeds of SIP* share sales - - - - - 76 76
Cost of SIP shares sold - - - 82 - (82) -
Cost of SIP shares purchased - - - (33) - - (33)
Purchase of new shares - - - (40) - - (40)
(________) (________) (________) (________) (________) (________) (________)
Transactions with owners - - - 9 48 (1,822) (1,744)
(________) (________) (________) (________) (________) (________) (________)
Profit for the period - - - - - 1,689 1,689
(________) (________) (________) (________) (________) (________) (________)
Total comprehensive income for the period - - - - - 1,689 1,689
(________) (________) (_______) (_______) (_______) (_______) (_______)
Balance as at 30 June 2024 1,562 1,134 24 (27) 582 28,665 31,940
(________) (________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Cash Flows from continuing operations
6 months 6 months
ended ended
30 June 2025 30 June 2024
Unaudited Unaudited
£'000 £'000
Net cash from operating activities (see opposite) 3,978 5,238
(______) (______)
Investing activities ( ) ( )
Additions to property, plant, and equipment (240) (63)
Additions to intangible assets (1,372) (1,250)
Proceeds from sale of property, plant and equipment - 54
Purchase of financial assets - -
Sale of financial assets 4,388 790
Interest received 662 582
(______) (______)
Net cash from investing activities 3,438 113
(______) (______)
Financing activities
Proceeds from issue of shares 1 -
Interest paid - -
Purchase of own shares by the SIP (14) (6)
Proceeds from disposal of own shares by the SIP 15 11
Payment of lease liabilities (336) (270)
Dividends paid (3,124) (1,827)
(______) (______)
Net cash used in financing activities (3,458) (2,092)
(______) (______)
Net change in cash and cash equivalents 3,958 3,259
Cash and cash equivalents, beginning of period 19,060 17,433
(_______) (_______)
Cash and cash equivalents, end of period 23,018 20,692
(________) (________)
Consolidated Statement of Cash Flows from continuing operations
6 months 6 months
ended ended
30 June 2025 30 June 2024
Unaudited Unaudited
£'000 £'000
Operating activities
Profit after tax 2,994 1,874
Adjustment for:
Depreciation 530 567
Amortisation of intangible assets 977 669
(Profit) / Loss on disposal of property, plant and equipment 18 (12)
Interest received (662) (582)
Realised and unrealised investment gains (48) (90)
Interest charge 41 53
Share-based payment expenses 122 80
Taxation expense recognised in income statement 794 368
Changes in working capital:
Trade and other receivables 1,270 868
Trade and other payables (1,289) 2,003
Movement in insurance liabilities 74 339
Inventories - -
Taxes paid (843) (899)
(________) (________)
Net cash from operating activities 3,978 5,238
(________) (________)
Notes to the Consolidated Financial Statements
1 General information
The principal activities of Personal Group Holdings Plc ('the Company') and
subsidiaries (together 'the Group') include transacting short-term accident
and health insurance and providing employee services in the UK.
The Company is a limited liability company incorporated and domiciled in
England. The address of its registered office is John Ormond House, 899
Silbury Boulevard, Milton Keynes, MK9 3XL.
The Company is listed on the Alternative Investment Market of the London Stock
Exchange.
The condensed consolidated financial statements do not include all the
information required for full annual financial statements and should be read
in conjunction with the consolidated financial statements of the Group for the
year ended 31 December 2024.
The financial information for the year ended 31 December 2024 set out in this
interim report does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006.The statutory financial statements for the year
ended 31 December 2024 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
These interim financial statements are unaudited and have not been reviewed by
the auditors under International Standard on Review Engagements (UK and
Ireland) 2410.
These consolidated interim financial statements have been approved for issue
by the board of directors on 16 September 2025.
2 Accounting policies
These interim consolidated financial statements of Personal Group Holdings Plc
are for the six months ended 30 June 2025. These interim financial statements
have been prepared in accordance with IAS 34 Interim Financial Reporting as
endorsed for use in the UK.
They do not include all the information required for a complete set of IFRS
financial statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an understanding of
the changes in the Group's financial position and performance since the last
annual consolidated financial statements as at and for the year ended 31
December 2024.
These financial statements have been prepared in accordance with IFRS
standards and IFRIC interpretations as adopted by the UK, issued and effective
as at 30 June 2025.
Insurance contracts
IFRS 17 sets out the classification, measurement and presentation and
disclosure requirements for insurance contracts. It requires insurance
contracts to be measured using current estimates and assumptions that reflect
the timing of cash flows and recognition of profits as insurance services are
delivered. The standard provides two main measurement models which are the
General Measurement Model ("GMM") and the Premium Allocation Approach ("PAA").
The PAA simplifies the measurement of insurance contracts for remaining
coverage in comparison to the GMM. The PAA is very similar to Personal Group's
previous accounting policies under IFRS 4 for calculating revenue, however
there are some presentation changes.
The GMM is used for the measurement of the liability for incurred claims.
PAA eligibility
Under IFRS 17, Personal Group's insurance contracts issued and are all
eligible to be measured by applying the PAA, due to meeting the following
criteria:
· Insurance contracts with coverage period of one year or less are automatically
eligible. This covers all hospital, convalescence, and death benefit insurance
contracts.
· Modelling of contracts with a coverage period greater than one year (employee
default policies) produces a measurement for the group of reinsurance
contracts that does not differ materially from that which would be produced
applying the GMM.
Level of aggregation
Personal Group manages all insurance contracts as one portfolio within the
insurance operating segment as they are subject to similar risks.
Onerous contracts
Under the PAA, it is assumed there are no contracts in the portfolio that are
onerous at initial recognition, unless there are facts and circumstances that
may indicate otherwise. Given the short-tailed nature of policies issued be
Personal Group, management do not consider there to be any material
circumstance under which policies in issue would be onerous.
Modification and derecognition
Personal Group derecognises insurance contracts when the rights and
obligations relating to the contract are extinguished (meaning discharged,
cancelled, or expired) or the contract is modified such that the modification
results in a change in the measurement model or the applicable standard for
measuring the contract.
Contract boundaries
The measurement of insurance contracts includes all future cash flows expected
to arise within the boundary of each contract. Cash flows are within the
boundary of an insurance contract if they arise from substantive rights and
obligations that exist during the reporting period in which Personal Group can
compel the policyholder to pay premiums or in which it has a substantive
obligation to provide the policyholder with services.
Personal Group assesses the contract boundary at initial recognition and at
each subsequent reporting date to include the effects of changes in
circumstances on the Group's substantive rights and obligations. The
assessment of the contract boundary, which defines the future cash flows that
are included in the measurement of the contract, requires judgement and
consideration.
Personal Group primarily issues insurance contracts which provide coverage to
policyholders in the event of hospitalisation, convalescence, or death. While
the contracts are typically weekly or monthly in their term length, the
contract boundary is assessed with consideration of the delayed timing around
claims of this nature and the timing of expected future claims payments with
reference to the covered loss event.
Measurement - Liability for remaining coverage
On initial recognition of insurance contract, the carrying amount of the
liability for remaining coverage is measured as the premiums received on
initial recognition, if any, minus any reinsurance acquisition expense cash
flows allocated to the contracts and any amounts arising from the
derecognition of the prepaid reinsurance acquisition expense cash flows asset.
Personal Group has chosen not to expense insurance acquisition expense cash
flows as incurred on its contracts as they have coverage of less than one
year.
Subsequently, at the end of each reporting period, the liability for remaining
coverage is increased by any additional premiums received in the period and
decreased for the amounts of expected premium cash flows recognised as
reinsurance revenue for the services provided in the period.
Personal Group has elected not to adjust the liability for remaining coverage
for the time value of money as its insurance contracts do not contain a
significant financing component.
3 Segment analysis
The segments used by management to review the operations of the business are
disclosed below.
1) Affordable Insurance
Personal Assurance Plc (PA), a subsidiary within the Group, is a PRA regulated
general insurance Company and is authorised to transact accident and sickness
insurance. It was established in 1984 and has been underwriting business since
1985. In 1997 Personal Group Holdings Plc (PGH) was created and became the
ultimate parent undertaking of the Group.
Personal Assurance (Guernsey) Limited (PAGL), a subsidiary within the Group,
is regulated by the Guernsey Financial Services Commission and has been
underwriting death benefit policies since March 2015.
This operating segment derives the majority of its revenue from the
underwriting by PA and PAGL of insurance policies that have been bought by
employees of host companies via bespoke benefit programmes.
2) Benefits and Reward
Revenue in this segment relates to the annual subscription income and other
related income arising from the licensing of Hapi, the Group's employee
benefit platform. This includes sales to both the large corporate and SME
sectors. This segment includes agency revenue generated from the resale of
vouchers. Revenue also includes consultancy, surveys and licence income
derived from selling digital platform subscriptions.
3) Other
This segment consists exclusively of revenue generated by Berkeley Morgan
Group (BMG) and its subsidiary undertakings along with any investment and
rental income obtained by the Group.
Discontinued Operations - Other Owned Benefits
This segment constitutes any goods or services in the benefits platform supply
chain which was owned by the Group prior to its disposal in July 2024. As
such, this segment is treated as discontinued operations within these
accounts.
The revenue and net result generated by each of the Group's continuing
operating segments are summarised as follows:
6 months 6 months
ended ended
30 June 2025 30 June 2024
Unaudited Unaudited
£'000 £'000
Revenue by Segment from continuing activities
Affordable Insurance 17,391 15,409
Benefits Platform 5,440 5,207
Platform - Group Elimination (1,425) (1,425)
Pay & Reward 1,226 1,194
Other 45 69
Investment income 662 582
Group Revenue from continuing activities 23,339 21,036
Adjusted EBITDA contribution from continuing activities by segment
Affordable Insurance 6,589 5,291
Benefits and Reward 2,837 2,508
Other 720 623
Group admin and central costs (4,593) (4,510)
Charitable donations (65) (50)
Adjusted EBITDA from continuing activities 5,488 3,862
Depreciation (530) (567)
Amortisation (976) (669)
Interest (41) (52)
Share based payments expenses (122) (80)
Exceptionals (31) (244)
Profit before tax from continuing activities 3,788 2,250
The revenue and net result generated by the Group's discontinued operating
segment is summarised as follows:
6 months 6 months
ended ended
30 June 2025 30 June 2024
Unaudited Unaudited
£'000 £'000
Revenue by Segment from discontinued activities
Other Owned Benefits - 2,489
Group Revenue from discontinued activities - 2,489
Adjusted EBITDA contribution from discontinued activities
Other Owned Benefits - (200)
Adjusted EBITDA from discontinued activities - (200)
Depreciation - (34)
Amortisation - (14)
Interest - (1)
Profit before tax from discontinuing activities - (249)
All income was derived from customers that are based in the UK.
4 Insurance service expenses
6 months ended 30 June 2025 6 months ended 30 June 2024
£'000 £'000
Claims incurred 5,217 5,028
Insurance operating expenses 4,128 3,642
(________) (________)
9,345 8,670
(________) (________)
5. Taxation
The tax expense recognised is based on the weighted average annual tax rate
expected for the full financial year multiplied by management's best estimate
of the taxable profit of the interim reporting period.
The Group's consolidated effective tax rate in respect of continuing
operations for the six-month period ended 30 June 2025 was 20.9% (six-month
period ended 30 June 2024: 16.7%).
6. Earnings per share and dividends
The weighted average numbers of outstanding shares used for basic and diluted
earnings per share are as follows:
6 months ended EPS 6 months ended EPS
30 June 2025 Pence 30 June 2024 Pence
Basic 31,243,994 9.6 31,223,218 5.4
Diluted 32,677,720 9.2 31,950,931 5.3
During the first six months of 2025 Personal Group Holdings Plc paid dividends
of £3,124,000 to its equity shareholders (2024: £1,827,000). This represents
a payment of 10.00p per share (2023: 5.85p).
6 months ended 6 months ended
30 June 2025 30 June 2024
£'000 £'000
Dividends paid or provided for during the period 3,124 1,827
( _____) ( _____)
7. Goodwill
Pay & Reward Total
£'000 £'000
Cost
At 1 January 2025 2,684 2,684
Additions in the period - -
Disposals in the period - -
(________) (________)
At 30 June 2025 2,684 2,684
(________) _________ (________)
Amortisation and impairment
At 1 January 2025 - -
Impairment charge for period - -
Disposals in period - -
(________) (________)
At 30 June 2025 - -
(________) (________)
Net book value at 30 June 2025 2,684 2,684
(________) (________)
Net book value at 31 December 2024 2,684 2,684
(________) (________)
8. Intangible assets
Pay & Reward customer book and trade name Innecto Technology Computer software and development Internally Generated Computer Software WIP Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2025 1,063 298 7,657 506 278 9,802
Transfers - - - - - -
Additions - - - - 1,372 1,372
Disposals - - - (506) - (506)
(________) (________) (________) (________) (________) (________)
At 30 June 2025 1,063 298 7,657 - 1,650 10,668
(________) (________) (________) (________) (________) (________)
Amortisation
At 1 January 2025 895 298 3,249 506 - 4,948
Amortisation charge for the year 34 - 942 - - 976
Disposals in the period - - - (506) - (506)
(________) (________) (________) (________) (________) (________)
At 30 June 2025 929 298 4,191 - - 5,418
(________) (________) (________) (________) (________) (________)
Net book amount at 30 June 2025 134 - 3,466 - 1,650 5,250
(________) (________) (________) (________) (________) (________)
Net book amount at 31 December 2024 168 - 4,408 - 278 4,854
(________) (________) (________) (________) (________) (________)
9. Property, plant and equipment
Freehold Motor vehicles Computer Furniture fixtures & fittings Right of use Assets Total
land and properties equipment
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2025 5,037 - 1,343 2,212 1,830 10,421
Additions - - 223 17 84 324
Disposals - - (1) - (84) (85)
(______) (______) (______) (______) (______) (______)
At 30 June 2025 5,037 - 1,565 2,229 1,830 10,660
(______) (______) (______) (______) (______) (______)
Depreciation
At 1 January 2025 2,086 - 1,192 1,710 954 5,942
Provided in the period 43 - 87 74 326 530
Disposals - - (1) - (67) (68)
(______) (______) (______) (______) (______) (______)
At 30 June 2025 2,129 - 1,278 1,785 1,213 6,404
(______) (______) (______) (______) (______) (______)
Net book amount at 2,908 - 287 444 617 4,256
30 June 2025
(______) (______) (______) (______) (______) (______)
Net book amount at 2,951 - 151 501 876 4,479
31 December 2024
(______) (______) (______) (______) (______) (______)
10. Financial Investments
At 30 June 2025 At 31 December 2024
Unaudited Audited
£'000 £'000
Bank deposits 3,931 8,319
Equity investments 1,641 1,593
(________) (________)
5,572 9,912
(_________) (_________)
IFRS 13 Fair Value Measurement establishes a fair value hierarchy that
categorises into three levels the inputs to valuation techniques used to
measure fair value. The fair value hierarchy gives the highest priority to
quoted prices (unadjusted) in active markets for identical assets or
liabilities (Level 1 inputs) and the lowest priority to unobservable inputs
(Level 3 inputs):
· Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities
· Level 2: inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices)
· Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable input).
Bank deposits, held at amortised cost, are due within 6 months and the
amortised cost is a reasonable approximation of the fair value. These would be
included within Level 2 of the fair value hierarchy.
Equity Investments are held at fair value and are considered Level 1 financial
assets.
11. Long Term Incentive Plan (LTIP)
During the period, the Remuneration Committee granted share awards under the
existing LTIP Scheme approved on 6 April 2021. Further details of the award
can be found in the RNS announcement from 09 April 2025.
Under the scheme share options of Personal Group Holdings Plc are granted to
senior executives with an Exercise Price of 5p (nominal value of the shares).
The share options have various market and non-market performance conditions
which are required to be achieved for the options to vest. The options also
contain service conditions that require option holders to remain in employment
of the Group. The market and non-market performance conditions are set out
below.
Total Shareholder Return (Market condition)
50% of the awards vest under this condition. Subject to Compound Annual Growth
Rate (CAGR) of the Total Shareholder Return (TSR) over the Performance Period.
EBITDA Targets (Non-market condition)
50% of the awards vest under this condition. Subject to cumulative EBITDA over
the Performance Period.
The fair value of the of the share options is estimated at the grant date
using a Monte-Carlo binomial option pricing model for the market conditions,
and a Black-Scholes pricing model for non-market conditions.
However, the above performance condition is only considered in determining the
number of instruments that will ultimately vest.
There are no cash settlements alternatives. The Group does not have a past
practice of cash settlement for these share options. The Group accounts for
the LTIP as an equity-settled plan.
In total, £111,000 of employee share-based compensation has been included in
the consolidated income statement to 30 June 2024 (2024: £69,000). The
corresponding credit is taken to equity. No liabilities were recognised from
share-based transactions. The remaining £11,000 (2024: £11,000) of
share-based compensation expense relates to the Company Share Option Plan
(CSOP).
12. Financial calendar for the year ending 31 December 2025
The Company announces the following dates in its financial calendar for the
year ending 31 December 2025:
· Preliminary results for the year ending 31 December
2025
- March 2026
· Publication of Report and Accounts for
2025
- March 2026
·
AGM
- April/May 2026
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