TIDMPGH
RNS Number : 4368G
Personal Group Holdings PLC
19 July 2023
19 July 2023
Personal Group Holdings plc
("the Company", "Personal Group" or "Group")
Trading Update and Update on CEO Transition
Positive first half trading resulting in significant YOY EBITDA
growth alongside continued growth in recurring revenues
Personal Group (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 2023 (HY23).
Highlights
-- Total revenue for the six months to 30 June 2023 increased
34% to GBP46.4m (HY22: GBP34.7m), driven primarily by voucher
resales through the benefits platform of GBP24.6m (HY22: GBP13.8m),
demonstrating the value placed on it by our clients and their
employees;
-- Adjusted EBITDA increased 75% to GBP2.7m (HY22: GBP1.5m);
-- Strong balance sheet and liquidity with a cash position of
GBP22.6m as at 30 June 2023 (31 Dec 2022: GBP18.7m) and no
debt;
-- The Group continues to benefit from an increasing proportion
of recurring revenues, providing high levels of visibility for the
second half of 2023 and into 2024:
o Insurance Annualised Premium Income ("API") increased by c.6%
to GBP29.6m (31 Dec 2022: GBP28.0m)
o Benefits Platform Annual Recurring Revenue ("ARR") increased
c. 6%. to GBP5.3m (31 Dec 2022: GBP5.0m)
o Pay & Reward ARR increased c.4% to GBP0.57m (31 Dec 2022:
GBP0.54m)
Operational Highlights
Growth of the Group's client base continued in the first half,
with 52 new client wins (HY22: 52) and the award of a place on the
Crown Commercial Services framework, alongside high levels of
retention of existing clients. Continued progress against the
Board's key strategic objectives was also made; in particular,
positive momentum across the business' largest division -
Affordable Insurance.
Affordable Insurance
Strong insurance sales in the first half resulted in 34% growth
in new annualised insurance sales to GBP5.8m for the period (2022:
GBP4.3m). This, alongside strong retention levels, which remain
above pre-pandemic averages, helped to drive up the API value to
GBP29.6m (31 Dec 2022: GBP28.0m). As anticipated, claims levels for
the first half remained higher than historic norms on Hospital
Cashplans, as activity continued at an increased rate, in an
attempt to address NHS backlogs.
Benefits Platform
Continued growth was seen in HY23, across both Enterprise
clients, taking Hapi, and Sage Employee Benefits, ending the half
year with ARR of GBP2.2m and GBP3.3m respectively (31 Dec 2022:
GBP2.0m and GBP3.0m).
The contribution from Pay & Reward, comprising Innecto and
Quintige Consulting Group, has remained steady. This division has
shown resilience despite the attention of their normal audience of
HR Directors being diverted to the tactical focus of dealing with
the cost-of-living crisis for their employees and growth in the
pipeline towards the end of the period gives confidence for
improved performance in H2.
Contribution from Other Owned Benefits (Let's Connect) was in
line with management's expectations post cessation of the long-term
scheme with a major client in March 2023, as previously
announced.
Outlook
It is pleasing to achieve this level of financial growth in the
context of the current cost-of-living crisis. The need for
organisations to look after their people has never been more
important and Personal Group's offering remains extremely relevant
in a growing market.
The Group's financial performance in the first half has
reinforced management's belief in a return to a growth trajectory
and provides the Company with a solid foundation from which to grow
further. While continuing to focus on strategic execution in H2,
the Company is well-placed to capitalise on opportunities and is
strengthened by a strong balance sheet, a quality customer base and
leading technology platform. The Group's continued growth of
recurring revenues, and the level of visibility which it provides,
enables the Board to remain confident that trading for the full
financial year remains in line with market expectations.
Update on CEO transition
Further to the Company's announcement on 4 May 2023 with respect
to the Company's CEO succession, the Board is pleased to announce
that, following the expedited completion of the sale of the
underlying businesses of the Woven Group Solutions Limited, Paula
Constant will assume the role of CEO Designate with immediate
effect. Following an orderly transition period, Deborah Frost will
step down from the role of CEO and from the Board with effect from
1 August 2023, and will remain an employee of the Company until 31
December 2023 to support a smooth and effective handover.
Deborah Frost, Chief Executive of Personal Group, commented:
"Personal Group is well positioned to serve and capitalise upon
a growing market for employee engagement. Whilst cognisant that
2023 is set to be another challenging year for the economy, our
product offerings are particularly valuable to customers in times
of economic pressure. This is evident with our high levels of
customer retention and new client wins.
Despite economic headwinds, I am very pleased with the strategic
progress made by the Group, and we are on track to meet market
expectations of growth for the full year. We look to the future
with confidence and excitement for the opportunities that lie
ahead.
While my time at Personal Group is coming to an end, I remain
highly confident in the prospects for the business which is
well-positioned to continue delivering strong financial results and
wish Paula and the whole Personal Group team well for the
future."
-ENDS-
For more information please contact:
Personal Group Holdings Plc
Deborah Frost (CEO) / Sarah Mace Via Alma PR
(CFO)
Cenkos Securities Plc
Camilla Hume / Callum Davidson
(Nomad) +44 (0)20 7397 8900
Jasper Berry (Sales)
Alma PR +44 (0)20 3405 0205
Caroline Forde / Joe Pederzolli personalgroup@almapr.co.uk
/ Kinvara Verdon
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.
For further information on the Group please see
www.personalgroup.com
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END
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