REG - Personal Group - Trading Update & Notice of Full Year Results

Personal groupAnnouncement

28/01/2025 07:00

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RNS Number : 8651U  Personal Group Holdings PLC  28 January 2025

28 January 2025

 

PERSONAL GROUP HOLDINGS PLC

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

 

Trading Update & Notice of Full Year Results

Strategic execution delivering recurring revenue growth with EBITDA ahead of
market expectations

Personal Group Holdings Plc (AIM: PGH), the workforce benefits and health
insurance provider, is pleased to provide the following update for the
financial year ended 31 December 2024 ("FY 2024") and confirms that the
Company expects to publish its results for FY 2024, together with notification
of its final dividend, on 25 March 2025.

 

Financial Highlights

 

·    Revenue from Continuing Operations* of approximately £43.8m (2023:
£38.6m), with c.90% deriving from recurring revenue sources

·    Adjusted EBITDA** from Continuing Operations* of approximately £9.9m
(2023: £7.8m), ahead of market expectations

·    Continued growth in recurring revenues, providing good visibility
into 2025

o  Insurance Annualised Premium Income ("API") increased by c.14% to £36.0m
(2023: £31.6m)

o  Benefits Platform Annual Recurring Revenue ("ARR") increased c.10% to
£6.7m (2023: £6.1m)

·    Record new insurance sales of £13.9m API, up 18% on previous year
(2023: £11.8m)

·    Strong balance sheet and liquidity with a cash position of
approximately £27.4m as at 31 December 2024 (30 June 2024: £23.1m) and no
debt

 

* Continuing operations excludes the results of Let's Connect, which was
disposed of on 9 July 2024

**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.

 

Operational Highlights

 

During FY 2024, the Group continued to make strategic progress with further
growth across both its Affordable Insurance and Benefits & Reward
divisions, driven by our clear strategy, in a climate where it is more
important now than ever for businesses to support their employees to help get
them back to work. The business is now more streamlined and better positioned
to capture the significant opportunity in our large, growing and
underpenetrated market.

 

Affordable Insurance

 

It was another strong period for insurance sales, with a further record month
in September contributing to a record year, resulting in new annualised
insurance sales growth of 18% to £13.9m (2023: £11.8m). Annualised Premium
Income increased 14% to £36.0m as at 31 December 2024 (31 December 2023:
£31.6m), supported by strong retention levels of over 80% year-on-year.
Claims levels in the second half of the year fell slightly, as anticipated.

 

Our strong performance in insurance is testament to the relevance of our
offerings in our target markets. Increasing financial pressure and the
decreasing health of the population make the provision of accessible and
affordable health insurance and employee benefits a growing priority for
company management teams and HR Directors. We continue to benefit from our
unique face-to-face sales model, with the majority of Enterprises preferring
face-to-face engagement.

 

Benefits & Reward

 

There has been an increased uptake of the Group's digital benefits platform,
Hapi and Sage Employee Benefits, its SME-focused offering in partnership with
Sage, resulting in ARR of £6.7m as at 31 December 2024 (31 December 2023:
£6.1m). We have materially completed the migration of our customers onto the
next generation platform, Hapi 2.0, which has received positive feedback from
customers on the improved employee and employer user experience.

 

The Group's Pay & Reward division continued its positive first half
performance, benefitting from the significant contract signed with a global
airline earlier in the year, with ARR increasing to £0.71m as at 31 December
2024 (31 December 2023: £0.67m).

 

Outlook

 

Personal Group has entered 2025 a stronger, more focused business, with a
simplified structure and strengthened senior management team. We continue to
see the benefits of a strong balance sheet and high levels of recurring
revenues, providing visibility through 2025 and beyond.

 

The positive trading performance in the first few weeks of 2025 provides
confidence in the delivery of further growth in 2025 and the Board looks to
the future with confidence.

 

Paula Constant, Chief Executive of Personal Group, commented: "I'm pleased
with all that has been accomplished in 2024 to strengthen the business whilst
delivering revenue growth across all divisions. We have materially completed
the migration of our customers onto our next generation Benefits platform;
divested of Let's Connect; streamlined our organisation; and increased the
efficiency and effectiveness of our sales organisation.

 

"2025 will see us focus on sales execution, product innovation and brand
awareness, as we seek to make Personal Group the go to company for workplace
benefits and health insurance, while continuing our growth. We remain positive
our 2030 aspirations of delivering revenue in excess of £100m, EBITDA of
£30m, and SaaS ARR of at least £20m, are achievable, and we have entered the
new year very much on the front foot, with increasing confidence in the
Group's prospects."

 

Board update

 

The Company also announces that it has been informed by Bob Head,
Non-Executive Director of the Company, and Chair of the Audit and Risk &
Compliance Committee, that he does not intend to seek re-election at the
Annual General Meeting to be held in May 2025, following 8 years of service.
The Board has begun a process to identify a suitable replacement, and a
further announcement will be made in due course.

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

 

For more information please contact:

 Personal Group Holdings Plc
 Paula Constant / Sarah Mace                                  via Alma

 Canaccord Genuity Limited (Nominated Adviser & Broker)
 Max Hartley / Harry Rees                                     +44 (0)20 7523 8000

 Alma Strategic Communications
 Caroline Forde / Joe Pederzolli / Kinvara Verdon             +44 (0)20 3405 0205

                                                              personalgroup@almastrategic.com

 

Notes to Editors

 

Personal Group Holdings Plc (AIM: PGH) is a workforce benefits and health
insurance provider. Its vision is to be the champion of affordable and
accessible insurance and benefits, keeping businesses and their employees
happy, healthy and protected. The Group is proud to support the health and
wellbeing of c. 1.25 million UK employees.

 

The Group's insurance provides employees with access to affordable, individual
policies for hospital (https://www.hapi.co.uk/insurance/hospital-cash-plan)
, recovery (https://www.hapi.co.uk/insurance/convalescence-plan)  and death
benefit (https://www.hapi.co.uk/insurance/death-benefit-plan)  plans. The
Group's award-winning benefits platform, Hapi, brings together extensive
employee benefits, discounts and rewards, in one responsive platform. As well
as being sold direct to employers, the Hapi platform supports Sage's Employee
Benefits offerings for SMEs.

 

This comprehensive range of offerings, powerful platform and unique sales
model of face-to-face, one-to-one engagement with employees, provides Personal
Group with a strong market position from which to grow.

 

Head-quartered in Milton Keynes, the Group has built an extensive blue-chip
customer list over its 40-year history, including Airtanker, B & Q,
Barchester Healthcare, British Transport Police, Merseyrail, Office of
National Statistics, Randstad, Royal Mail Group, The Royal Mint, Stagecoach
Group plc, and The University of York

 

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

 

 

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