REG - Personal Group - Trading Update and Notice of Results

Personal groupAnnouncement

26/07/2022 07:00

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RNS Number : 6831T  Personal Group Holdings PLC  26 July 2022

     26 July 2022

 

Personal Group Holdings plc

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

 

Trading Update and Notice of Results

 

Trading in line with managements' expectations for first half and continued
confidence in full year outlook

 

Personal Group Holdings Plc (AIM: PGH), the workforce benefits and services
provider, is pleased to provide the following update on trading for the
six-month period ending 30 June 2022 (HY22).

 

The Company expects to publish its interim results for HY 22 on 27 September
2022.

 

Trading

 

The Group has enjoyed positive trading for the first half of 2022, delivering
both revenue and adjusted EBITDA in line with management's expectations for
the period and achieving continued progress against the Board's key strategic
objectives.

 

In particular, good momentum was seen across the business' two largest
divisions - Affordable Insurance and Benefits Platform.

 

The ability to carry out face-to-face sales continued to benefit the Group's
insurance division, with June 2022 recording the highest amount of new
business signed in a single month since November 2018, helping to drive the
Annualised Premium Income value up to £26.2m (December 2021: £24.4m). The
level of claims in Q1 was higher than anticipated albeit this has subsequently
started to return towards projected levels. Encouragingly, retention levels
remain above the Group's historical average demonstrating the continued
relevance of the Group's insurance products in these challenging economic
times.

 

The relationship with Sage continues to strengthen with Annualised Recurring
Revenue increasing to £2.1m at the end of the period (December 21: £1.6m)
providing a large contribution towards the growth in the Benefits Platform
division's ARR to £3.8m (December 21: £3.2m).

 

Meanwhile Pay & Reward and Other Owned Benefits (Let's Connect) were in
line with management expectations, although, due to normal seasonality,
significant contribution from the latter will be delivered in the second half
of the year, subject to continued supply chain availability.

 

The Board was delighted to complete the acquisition of Quintige Consulting
Group Limited at the end of the period, adding not only scale to the Group's
Pay & Reward division, but helping to consolidate the Group's position as
a leading provider of employee services in the UK.

 

Outlook

 

Notwithstanding the backdrop of the changing and challenging macro
environment, the strength of trading in H1, strong retention levels and the
Group's growing Annual Premium Income and Annual Recurring Revenue provide the
Board with assurance in achieving market expectations for the full year. The
Board continues to look to the future with confidence.

 

Deborah Frost, Chief Executive of Personal Group, commented:

 

"Personal Group is, I believe, well positioned within a growing market with an
increasingly relevant offering. We are now putting the impact of previous
pandemic lockdowns firmly behind us and with the current momentum and
increasing scale of the business, we are on course to deliver revenue and
EBITDA growth for the full year, in line with expectations.

 

As a Board, we remain continually mindful of the external pressures that we
are all facing and know that no one is exempt from the uncertainty that
prevails. However, past experience shows in challenging times our products
continue to strongly resonate with our customers, as demonstrated by our
insurance retention rates remaining above our historical average.

 

I believe we are now building on foundations laid to enable healthy progress
in the future. Our focus is on accelerating our growth trajectory in line with
our stated strategy to become 'a winning team creating a brighter future for
the UK workforce.'"

 

-ENDS-

 

 

For more information please contact:

 

 Personal Group Holdings Plc
 Deborah Frost (CEO) / Sarah Mace (CFO)      Via Alma PR

 Cenkos Securities Plc
 Camilla Hume / Callum Davidson (Nomad)      +44 (0)20 7397 8900
 Russell Kerr (Sales)

 Alma PR                                     +44 (0)20 3405 0205
 Caroline Forde / Lily Soares Smith          personalgroup@almapr.co.uk (mailto:personalgroup@almapr.co.uk)

 

 

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, and the recently developed
extension to the platform, Hapiflex.

 

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, 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.
34% of clients are served by two or more group companies.

 

For further information on the Group please see www.personalgroup.com
(http://www.personalgroup.com)

 

 

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