TIDMPGH
RNS Number : 7105A
Personal Group Holdings PLC
27 September 2022
27 September 2022
PERSONAL GROUP HOLDINGS PLC
("Personal Group", "Company" or "Group")
Interim Results & Interim Dividend for the six months ended
30 June 2022
Underlying growth, a strong balance sheet, and products that
resonate in a challenging market for both employers and their
employees, positions the Group well for future uplift in EBITDA. On
track to meet full year market expectations.
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 2022.
Financial Highlights
-- Group revenue increased 5.8% to GBP34.7m (H1 2021: GBP32.8m)
-- Annualised Premium Income for the Group's largest division,
Affordable Insurance, rebuilding post-pandemic, up 7% to GBP26.2m,
providing a strong basis for future growth
-- Adjusted EBITDA* of GBP1.5m (H1 2021: GBP4.1m), in line with
management expectations reflecting the anticipated reduced
contribution from insurance due to investment in policyholder
acquisition and increased claims costs, offset by strong growth
from other divisions
-- Profit before tax of GBP0.5m (H1 2021: GBP3.2m) in line with adjusted EBITDA
-- Basic EPS of 1.7p (H1 2021: 8.4p)
-- Strong balance sheet and liquidity with cash and deposits at
period end of GBP21.8m (Dec 2021: GBP22.9m), and debt free
-- Interim dividend of 5.3p (H1 2021: 5.3p) to be paid,
reflecting continued confidence in the Group's business model and
prospects
Operational Highlights
-- 52 new client wins secured in the period including Vinci, Renfrewshire Council and BSI Group
-- Strong retention and new insurance sales across Affordable
Insurance segment, successfully building back towards pre-pandemic
levels
-- Continued substantial increase in contribution from SME
channel via Sage Employee Benefits; Annual Recurring Revenue of
GBP2.1m at 30 June 22 (GBP1.6m at 31 December 21, GBP1.2m at June
21)
-- Hapi platform subscriptions showing growth; ARR of GBP1.7m at
30 June 22 (GBP1.5m at 31 December 21), with significant investment
into the platform, driving immediate and ongoing cost savings
-- Strong organic growth in Pay & Reward
Post-Period Trading and Outlook
-- New client gains continue with notable wins with Secure Trust
Bank and Aston University choosing HapiFlex as their benefit
platform
-- Insurance sales and retention rates in H2 to date remain
positive despite the macroeconomic environment and cost of living
crisis, demonstrating the continued relevance of the Group's
product offering in the current economic environment
-- Strategic acquisition of Quintige Consulting Group ("QCG")
post period end brings new clients to the Group with cross-sell
opportunities for Hapi, Insurance and Innecto Digital products
-- Trading remains in line to meet market's full year expectations
-- Board is confident in longer-term outlook for the business
* 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.
Deborah Frost, Chief Executive of Personal Group, commented:
"These half-year results are a demonstration of the resilience
of our business model and product offering. We have made
significant progress in executing our strategy and meeting the
goals we set ourselves in the first six months of the year and we
are starting to see new sales driving future growth.
Despite the challenges in the economic environment the Group has
continued to successfully rebuild the Affordable Insurance side of
the business, which will drive growth in a weighted second half,
underpinning our confidence in meeting full-year targets for FY
2022.
Our relationship with Sage has gathered further momentum and
gives us access to the previously untapped market of the UK's SME
sector. We have also maintained significant investment into the
business to support further innovation across our offering,
including the new and improved Hapi 2.0 which, once launched, we
expect will add significant value for clients and their
employees.
Whilst we are cognisant of the macro environment and potential
challenges it may bring, we believe that our products are valued by
customers, as evidenced by the retention rates we've seen so far,
across all of our product set, and which assures us that the
million-plus employees using them share our views. We are seeing
growth across the breadth of the business, which reinforces our
belief in the relevance and importance of our product in these
difficult times. These results are a credit to the hard work of our
dedicated team and the Board is excited to see what we can achieve
over the next twelve months."
An overview of the interim results from Deborah Frost, Chief
Executive, is available to watch here:
www.fmp-tv.co.uk/2022/09/27/personal-group-interim-results-tv-interview/
Personal Group Holdings will be hosting a webinar for private
investors on Friday 30 September at 12.00. If you would like to
register for the webinar, please follow this link:
https://www.investormeetcompany.com/personal-group-holdings-plc/register-investor
-S-
For more information please contact:
Personal Group Holdings Plc
Deborah Frost / Sarah Mace +44 (0)1908 605 000
Cenkos Securities Plc
Camilla Hume / Callum Davidson
(Nominated Adviser) +44 (0)20 7397 8900
Russell Kerr (Sales)
Alma PR
Caroline Forde / Lily Soares +44 (0)20 3405 0205
Smith / personalgroup@almapr.co.uk
Joe Pederzolli
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, B & Q, Barchester Healthcare,
British Transport Police, The Prince's Trust, 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
CEO STATEMENT
I am pleased to report that over the first six months we have
seen all our underlying growth drivers moving in the right
direction and we reflect on a period of good momentum and clear
strategic progress.
As anticipated, year-on-year profit comparison is lower,
reflecting the lagged impact of the pandemic and 17 months of
lockdowns on the insurance business. However this comparison masks
the underlying growth and important achievements, at an operational
level, across the Group and which will underpin future profitable
growth.
Over the period I am particularly pleased to have seen the
insurance book re-building substantially, a very strong period for
Pay & Reward, and acceleration in our offering to the small and
mid-sized business market. All of this reflects the continued high
demand for workforce benefits and services and the relevance of our
product offering.
With workers throughout the country becoming increasingly
exposed to challenging macroeconomic trends, such as the
cost-of-living crisis, the value of our offering has never been
more apparent as is demonstrated by new client wins and positive
insurance sales and retention rates during the period. We continue
to enable employers across the UK to improve employee engagement
and support their people's physical, mental, social and financial
wellbeing, priorities which have all become more important in times
of uncertainty.
Performance against Growth Strategy
Our overarching strategy is to build workforce resilience for
clients, helping employees thrive in work and in life. With our
preliminary results, I announced our refreshed strategy, focusing
on three core pillars:
-- Driving insurance
-- Transforming Reward & Benefits
-- Accelerating our SME offer
In H1 we've made clear progress against each of these pillars.
Our insurance book continues to build back towards pre-Pandemic
levels, with Annualised Premium Income seeing real growth from the
end of last year. Subscriptions for our market-leading employee
engagement platform, Hapi, also grew across the first six months of
the year, and we are planning significant investment into the
platform. This investment into 'Hapi 2.0' is expected to further
drive growth, with immediate and ongoing savings across the
platform and a better user experience for clients. The acquisition
of QCG, alongside organic growth for Innecto, strengthens our
strategic reward offer and allows for cross-sell of Innecto Digital
products and other benefit products. Our strategic development into
the SME sector continues to show significant growth in terms of
Annualised Recurring Revenue.
Divisional H1 Segmental Analysis
Affordable Insurance
Our traditional face-to-face insurance sales' model was
significantly affected by the series of lockdowns seen in 2020 and
2021 and we have witnessed the expected lagged impact of this over
the past few reporting periods. However, with the field sales team
now up to full strength, we continue to successfully rebuild the
insurance book and in June 2022 we recorded the highest amount of
new business signed in a single month since November 2018. This,
combined with retention rates remaining above the Group's
historical averages, has helped to drive the Annualised Premium
Income (API) value up to GBP26.2m (December 2021: GBP24.4m).
The level of claims in H1, and particularly in Q1, was higher
than anticipated, although this has subsequently returned to
projected levels. This, in combination with a smaller insurance
book and the increased policy-holder acquisition costs associated
with having a full sales team out in the field, resulted in an
adjusted EBITDA contribution of GBP4.0m (H1 2021: GBP6.5m), which
should now continue to build in line with our increasing API.
Pay and Reward
(Innecto)
Pay & Reward delivered strong organic growth during the
period with overall revenue up 73%, consultancy fee income up 93%
and annual subscription income from Innecto Digital products up 24%
versus H1 2021. The acquisition of QCG and early wins achieved in
H2 are anticipated to drive growth throughout the remainder of the
year.
Benefits platform
Organic growth was seen in the period across the Company's
Benefits Platform with the combined Annualised Recurring Revenue
(ARR) standing at GBP3.8m as of June 2022 (December 2021: GBP3.2m).
This growth was largely driven by the substantial contribution from
the Group's partnership with Sage, where ARR via Sage Employee
Benefits increased to GBP2.1m at the end of the period (December
2021: GBP1.6m), and where we continue to see good momentum. We are
now also exploring further routes to market including reaching SMEs
directly, as well as through other potential partnerships.
Other Owned Benefits
(Let's Connect)
Revenue for Let's Connect is down year-on-year, largely due to
comparison with a strong H1 2021, where schemes were deferred from
2020. The division proves to be a popular benefit for employees,
with order numbers up 10% on H1 2021, and one that we expect to
remain highly relevant against the current macro backdrop as it
moves into its peak period in Q4.
Interim Dividend
The Company is pleased to announce that an interim dividend for
2022 of 5.3p will be paid on 15 November 2022 to members on the
register as at 7 October 2022 (the record date). Shares will be
marked ex-dividend on 6 October 2022. The last day for elections
will be on 25 October 2022. The Board has considered the level of
dividend in the context of the full year results, reflecting
continued confidence in the Group's business model and
prospects.
Board Changes
As detailed in the RNS dated 1 June 2022, Liam McGrath stepped
down from the Board, and left the Company, on 30 August 2022.
Current Trading and Outlook
Trading into July and August has remained robust, and in line
with management's expectations, giving the Board confidence in
meeting market expectations for the full year.
Operationally, the Company is full of activity, with the core
business delivering well and new opportunities being driven forward
by an energised workforce.
Despite the confidence and positivity that currently surrounds
the business we are very aware of the difficult and uncertain
macro-environment in which we are all living. Whilst we continually
monitor our lead indicators for signs of impact to the business, we
are pleased that, to date, all indicators remain positive thereby
supporting the Board's current confidence in the full year outcome.
We are mindful, too, of industrial action by unions which could
become more widespread and affect our client base and will also
continue to monitor this. That said, our insurance offer is good
value and gives peace of mind, qualities which are highly sought
after in the current challenging climate and our Benefits and Pay
& Reward products are becoming ever more important as employers
look at how they can best remunerate teams against an inflationary
backdrop.
We will continue to monitor events carefully and remain
committed to executing on our growth strategy and look forward to
delivering for shareholders going forward.
Deborah Frost
Group Chief Executive
27 September 2022
Consolidated Income Statement
Restated*
6 months 6 months
ended ended
30 June 2022 30 June 2021
Unaudited Unaudited
Note GBP'000 GBP'000
Gross premiums written 12,360 12,752
Outward reinsurance premiums (70) (79)
Change in unearned premiums (59) (186)
Change in reinsurers' share of
unearned premiums (7) (8)
(________) (________)
Earned premiums net of reinsurance 12,224 12,479
Employee benefits and services 8,436 8,108
Voucher resale income 13,848 12,082
Other income 128 135
Investment income 29 13
(________) (________)
Revenue 34,665 32,817
(________) (________)
Claims incurred (3,663) (2,713)
Insurance operating expenses (3,227) (1,888)
Employee benefits and services
expenses (8,268) (8,417)
Voucher resale expenses (13,872) (12,135)
Other expenses (38) 119
Group administration expenses (4,679) (4,410)
Share based payment expenses (152) (81)
Charitable donations (50) (35)
(________) (________)
Expenses (33,949) (29,560)
(________) (________)
Operating profit 716 3,257
Finance costs (13) (17)
Loss on equity investments (244) -
(________) (________)
Profit before tax 459 3,240
Tax 4 73 (602)
(________) (________)
Profit for the period after tax 532 2,638
(________) (________)
Total comprehensive income for
the period 532 2,638
(________) (________)
Earnings per share Pence Pence
Basic 1.7 8.4
Diluted 1.7 8.4
The total comprehensive income for the period is attributable to
equity holders of Personal Group Holdings Plc.
*While the results remain unchanged, the presentation of the
prior year has been restated to add clarity to the reader. For
further details on the nature and rationale of the restatement,
please refer to the consolidated financial statements of the Group
for the year ended 31 December 2021.
Consolidated Balance Sheet
At 30 June 2022 At 31 Dec 2021
Unaudited Audited
Note GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 6 12,696 12,696
Intangible assets 7 1,746 1,637
Property, plant and equipment 8 4,988 5,033
(_______) (_______)
19,430 19,366
(________) (________)
Current assets
Financial assets 9 2,989 2,596
Trade and other receivables 8,361 14,035
Reinsurance assets 107 108
Inventories 1,059 898
Cash and cash equivalents 20,102 20,291
Current tax assets 441 310
(________) (________)
33,059 38,238
(________) (________)
Total assets 52,489 57,604
(________) (________)
Consolidated Balance Sheet
At 30 June 2022 At 31 Dec 2021
Unaudited Audited
Note GBP'000 GBP'000
EQUITY
Equity attributable to equity
holders of Personal Group Holdings
plc
Share capital 1,562 1,561
Share premium 1,134 1,134
Capital redemption reserve 24 24
Other reserve (61) (32)
Share based payment reserve 247 158
Profit and loss reserve 37,379 38,436
(________) (________)
Total equity 40,285 41,281
(________) (________)
LIABILITIES
Non-current liabilities
Deferred tax liabilities 455 478
Trade and other payables 254 402
(________) (________)
709 880
(________) (________)
Current liabilities
Trade and other payables 8,272 12,356
Insurance contract liabilities 3,223 3,087
(________) (________)
11,495 15,443
(________) (________)
(________) (________)
Total liabilities 12,204 16,323
(________) (________)
(________) (________)
Total equity and liabilities 52,489 57,604
(________) (________)
Consolidated Statement of Changes in Equity for the six months
ended 30 June 2022
Share Share Capital Other Share Profit Total
capital Premium redemption reserve Based & loss equity
reserve Payment reserve
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 January
2022 1,561 1,134 24 (32) 158 38,436 41,281
(________) (________) (________) (________) (________) (________) (________)
Dividends - - - - - (1,654) (1,654)
Employee
share-based
compensation - - - - 152 - 152
Proceeds of
SIP*
share sales - - - - - 11 11
Cost of SIP
shares
sold - - - 9 - (9) -
Cost of SIP
shares
purchased - - - (18) - - (18)
Purchase of
New
shares - - (20) - - (20)
Shares issued
in year -
LTIP
exercise 1 - - - (63) 63 1
(________) (________) (________) (________) (________) (________) (________)
Transactions
with owners 1 - - (29) 89 (1,589) (1,528)
(________) (________) (________) (________) (________) (________) (________)
Profit for the
period - - - - - 532 532
(________) (________) (________) (________) (________) (________) (________)
Total
comprehensive
income for
the
period - - - - - 532 532
(________) (________) (_______) (_______) (_______) (_______) (_______)
Balance as at
30 June 2022 1,562 1,134 24 (61) 247 37,379 40,285
(________) (________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Changes in Equity for the six months
ended 30 June 2021
Share
Capital Based Profit
Share Share redemption Other Payment & loss Total
capital Premium reserve reserve Reserve reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 January 2021 1,561 1,134 24 (21) - 38,076 40,774
(________) (________) (________) (________) (________) (________) (________)
Dividends - - - - - (1,592) (1,592)
Employee share-based
compensation - - - - 76 5 81
Proceeds of SIP*
share sales - - - - - 19 19
Cost of SIP shares
sold - - - 13 - (13) -
Cost of SIP shares
purchased - - - (24) - - (24)
(________) (________) (________) (________) (________) (________) (________)
Transactions
with owners - - - (11) 76 (1,581) (1,516)
(________) (________) (________) (________) (________) (________) (________)
Profit for the
period - - - - - 2,638 2,638
(________) (________) (________) (________) (________) (________) (________)
Total comprehensive
income for the
period - - - - - 2,638 2,638
(________) (________) (_______) (_______) (_______) (_______) (_______)
Balance as at
30 June 2021 1,561 1,134 24 (32) 76 39,133 41,896
(________) (________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Cash Flows
6 months
6 months ended
ended 30 June 2021
30 June 2022 Unaudited
Unaudited
GBP'000 GBP'000
Net cash from operating activities (see
opposite) 3,023 3,930
(______) (______)
Investing activities
Additions to property, plant and equipment (222) (69)
Additions to intangible assets (473) (122)
Purchase of financial assets (1,509) (1)
Sale of financial assets 871 -
Interest received 29 13
(______) (______)
Net cash from investing activities (1,304) (179)
(______) (______)
Financing activities
Proceeds from issue of shares 1 -
Purchase of own shares by the SIP (31) (16)
Proceeds from disposal of own shares
by the SIP 6 8
Interest paid (4) (2)
Payment of lease liabilities (226) (233)
Dividends paid (1,654) (1,592)
(______) (______)
Net cash used in financing activities (1,908) (1,835)
(______) (______)
Net change in cash and cash equivalents (189) 1,916
Cash and cash equivalents, beginning
of period 20,291 17,589
(_______) (_______)
Cash and cash equivalents, end of period 20,102 19,505
(________) (________)
Consolidated Statement of Cash Flows
6 months
6 months ended
ended 30 June 2021
30 June 2022 Unaudited
Unaudited
GBP'000 GBP'000
Operating activities
Profit after tax 532 2,638
Adjustment for:
Depreciation 493 480
Amortisation of intangible assets 364 266
Loss on disposal of property, plant and equipment 24 -
Interest received (29) (13)
Realised and unrealised investment losses 244 -
Interest charge 13 17
Share-based payment expenses 152 81
Taxation expense recognised in income statement (73) 602
Changes in working capital:
Trade and other receivables 5,675 4,658
Trade and other payables (4,129) (4,420)
Inventories (161) 64
Taxes paid (82) (443)
(________) (________)
Net cash from operating activities 3,023 3,930
(________) (________)
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 2021.
The financial information for the year ended 31 December 2021
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 2021
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 27 September
2022.
2 Accounting policies
These June 2022 interim consolidated financial statements of
Personal Group Holdings Plc are for the six months ended 30 June
2022. These interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting.
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 2021.
These financial statements have been prepared in accordance with
IFRS standards and IFRIC interpretations as adopted by the EU,
issued and effective as at 30 June 2022.
The principal accounting policies remain unchanged from the year
ended 31 December 2021. No new standards have become applicable for
accounting periods commencing on or after 1 January 2022.
Notes to the Consolidated Financial Statements
3 Segment analysis
The format of the segmental analysis was changed in for the year
ended 31 December 2022 and a full explanation of this change can be
found in those financial statements. 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. During 2020 PAGL began underwriting employee default
insurance for a proportion of LC customers.
2) Other Owned Benefits
This segment constitutes any goods or services in the benefits
platform supply chain which are owned by the Group. At present this
is made up of a technology salary sacrifice business trading as PG
Let's Connect, purchased by the Group in 2014.
3) Benefits Platform
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.
4) Pay and Reward
Pay and Reward refers to the trade of Innecto, a pay and reward
consultancy Company purchased in 2019. Revenue in this segment
relates to consultancy and license income derived from selling
Innecto digital platform subscriptions.
5) Other
The other operating segment includes revenue generated from the
resale of vouchers. This segment also consists of revenue generated
by Berkeley Morgan Group (BMG) and its subsidiary undertakings
along with any investment and rental income obtained by the
Group.
Notes to the Consolidated Financial Statements
The revenue and net result generated by each of the Group's
operating segments are summarised as follows,
6 months 6 months
ended ended
30 June 2022 30 June 2021
Unaudited Unaudited
GBP'000 GBP'000
Revenue by Segment
---------------------------------------- ------------- -------------
Insurance (Earned Premium) 12,224 12,477
IT Salary Sacrifice 5,387 6,203
Benefits Platform 3,574 2,759
Platform - Group Elimination (1,425) (1,374)
Pay & Reward 900 520
---------------------------------------- ------------- -------------
Other Income:
Voucher resale 13,848 12,082
Other 128 135
Investment income 29 13
---------------------------------------- ------------- -------------
Group Revenue 34,665 32,815
---------------------------------------- ------------- -------------
Adjusted EBITDA contribution by segment
---------------------------------------- ------------- -------------
Insurance (Earned Premium) 3,970 6,514
IT Salary Sacrifice (32) (40)
Benefits Platform 1,298 1,003
Pay & Reward 282 107
---------------------------------------- ------------- -------------
Other (149) 214
Administrative Expenses (3,798) (3,683)
Charitable donations (50) (35)
---------------------------------------- ------------- -------------
Adjusted EBITDA 1,521 4,080
---------------------------------------- ------------- -------------
Depreciation (493) (479)
Amortisation (364) (266)
Interest (13) (17)
Share Based Payments Expenses (152) (81)
---------------------------------------- ------------- -------------
Acquisition Costs (Note 11) (40) -
---------------------------------------- ------------- -------------
Profit before tax 459 3,237
---------------------------------------- ------------- -------------
All 2022 income was derived from customers that are based in the
UK.
Notes to the Consolidated Financial Statements
4 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 2022
was a credit of 15.9% (six-month period ended 30 June 2021: 18.6%
charge). The tax income recognised in the period is mostly as a
result of the application of the super-deduction capital allowances
tax relief, eligible until 31 March 2023.
5 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 2022 Pence 30 June 2021 Pence
Basic 31,210,686 1.7 31,213,128 8.4
-------------- ------ -------------- ------
Diluted 31,218,953 1.7 31,214,981 8.4
-------------- ------ -------------- ------
During the first six months of 2022 Personal Group Holdings Plc
paid dividends of GBP1,654,000 to its equity shareholders (2021:
GBP1,592,000). This represents a payment of 5.30p per share (2021:
5.10p).
6 months ended 6 months ended
30 June 2022 30 June 2021
GBP'000 GBP'000
Dividends paid or provided for
during the period 1,654 1,592
(_____) (_____)
6 Goodwill
PG Let's Innecto Total
Connect
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2022 10,575 2,121 12,696
Additions in the year - - -
(________) (________)
_________ _______ (________)
At 30 June 2022 10,575 2,121 12,696
(________) (________)
_________ _________ (________)
Amortisation and impairment
At 1 January 2022 - - -
Impairment charge for year - - -
(________) (________) (________)
_________ _________ _________
At 30 June 2022 - - -
(________) (________) (________)
Net book value at 30 June 2022 10,575 2,121 12,696
(________) (________) (________)
Net book value at 31 December 2021 10,575 2,121 12,696
(________) (________) (________)
Notes to the Consolidated Financial Statements
7 Intangible assets
Customer Computer Innecto Internally Work Total
Value software Technology Generated in Progress
and development Computer
Software
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2022 2,374 2,287 298 506 198 5,663
Transfers - - - - - -
Additions - 191 - - 282 473
Disposals - - - - - -
(________) (________) (________) (________) (________) (________)
At 30 June 2022 2,374 2,478 298 506 480 6,136
(________) (________) (________) (________) (________) (________)
Amortisation
At 1 January 2021 2,059 1,293 170 504 - 4,026
Amortisation charge
for the year 73 259 30 2 - 364
Provided in the - - - - - -
period
Disposals in the - - - - - -
period
(________) (________) (________) (________) (________) (________)
At 30 June 2022 2,132 1,552 200 506 - 4,390
(________) (________) (________) (________) (________) (________)
Net book amount
at 30 June 2022 242 926 98 - 480 1,746
(________) (________) (________) (________) (________) (________)
Net book amount
at 31 December
2021 315 994 128 2 198 1,637
(________) (________) (________) (________) (________) (________)
8 Property, plant and equipment
Freehold Motor vehicles Computer Furniture Leasehold Right of Total
land and equipment fixtures improve- use Assets
properties & fittings ments
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2022 5,037 157 1,112 2,310 38 1,204 9,858
Additions - - 221 1 - 250 472
Disposals - - - - - (36) (36)
(______) (______) (______) (______) (______) (______) (______)
At 30 June 2022 5,037 157 1,333 2,311 38 1,418 10,294
(______) (______) (______) (______) (______) (______) (______)
Depreciation
At 1 January 2022 1,828 125 786 1,265 37 784 4,825
Provided in the
period 43 5 131 108 1 205 493
Disposals - - - - - (12) (12)
(______) (______) (______) (______) (______) (______) (______)
At 30 June 2022 1,871 130 917 1,373 38 977 5,306
(______) (______) (______) (______) (______) (______) (______)
Net book amount
at
30 June 2022 3,166 27 416 938 - 441 4,988
(______) (______) (______) (______) (______) (______) (______)
Net book amount
at
31 December 2021 3,209 32 326 1,045 1 420 5,033
(______) (______) (______) (______) (______) (______) (______)
Notes to the Consolidated Financial Statements
9 Financial Investments
At 30 June At 31 December
2022 2021
Unaudited Audited
GBP'000 GBP'000
Bank deposits 1,733 2,596
Equity Investments 1,256 -
(________) (________)
2,989 2,596
(_________) (_________)
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.
10 Long Term Incentive Plan (LTIP)
LTIP 2021
During the period, the Remuneration Committee approved a second
tranche of share awards under the existing LTIP approved on 6 April
2021. Further details of the award can be found in the RNS
announcement from 20 April 2022.
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)
35% of the awards vest under this condition. Subject to
cumulative EBITDA over the Performance Period.
Environmental, social and governance targets ("ESG") Targets
(Non-market condition)
Up to 15% of the awards vest under this condition. The awards
shall vest upon the Remuneration Committee determining that all ESG
targets have been met.
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.
Notes to the Consolidated Financial Statements
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, GBP142,000 of employee share-based compensation has
been included in the consolidated income statement to 30 June 2022
(2021: GBP76,000). The corresponding credit is taken to equity. No
liabilities were recognised from share-based transactions. The
remaining GBP10,000 of share-based compensation expense relates to
the Company Share Option Plan (CSOP).
11 Post balance sheet events
On 1(st) July 2022 Personal Group Holdings Plc acquired 100% of
Quintige Consulting Group Limited ("QCG") for GBP965,652.
Included within the half year financial statements are GBP40,000
of acquisition costs incurred in the purchase of QCG.
12 Financial calendar for the year ending 31 December 2022
The Company announces the following dates in its financial
calendar for the year ending 31 December 2022:
-- Preliminary results for the year ending 31 December 2022 -
March 2023
-- Publication of Report and Accounts for 2022 - March 2023
-- AGM
- April/May 2023
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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END
IR EAPNKAFFAEFA
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