Personal Group Holding
(the “Company”, “Personal Group”, “PGH” or “Group”)
Personal Group PLC, a leading provider of employee services in the UK, provides the following trading update post the half-year end on 30 June 2017.
The performance of the Group during the first half of the year was in line with management expectations. The core insurance business continued to deliver solid results, driven by the performance of the sales team, which saw an increase in its daily productivity in the period. Let’s Connect also had an encouraging start to the year, partly due to clients taking advantage of expiring tax exemptions on mobile phone products.
With the ratification of the Finance Bill in April this year, the HMRC treatment for Salary Sacrifice Technology is now certified and much simpler. Any uncertainties around tax treatment of the product offer have also now been clarified. The systems and product offerings have been adjusted to reflect these changes ahead of second half trading. Customers have welcomed this new operating environment, which has given them the comfort they needed to support the offer to their employees.
The Company’s partnership with Sage to deliver Sage Employee Benefits (“SEB”) to their extensive SME customer base continues to make good progress. The strategy has now been expanded to embed a version of SEB, which doesn’t have the insurance products, into a standard payroll ‘bundled’ product. This additional initiative is a ‘land and expand’ strategy, where every ‘bundle’ has a portion of SEB licences included. The approach supports the upsell of additional licences to cover all employees.
In line with the Company’s commitment to improve its overall client offer, by introducing select third party services into the product range, Personal Group added a financial wellbeing product during the period. The product is aimed at helping client employees manage their day-to-day finances, through affordable loans, financial education and savings products. Personal Group has partnered with Neyber and SalaryFinance to provide these offers.
Mark Scanlon, Chief Executive of Personal Group, commented:
“We’re pleased with the progress the Company has made during the first half, in what has been a solid start to the year. The core insurance product has continued to underpin our business and we are seeing our Salary Sacrifice Technology income line regain momentum, with the uncertainties that division suffered from last year now behind it. The opportunity to develop our offer into the SME market through Sage continues to progress, with the SEB product now embedded into the Sage product. This approach reflects the strategic importance of SEB to Sage and its continued commitment to what is an innovative product for them. The Company is well positioned to continue its growth and we are confident about making further progress in 2017.”
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For more information please contact:
Personal Group Holdings Plc
Mark Scanlon / Mike Dugdale +44 (0)1908 605 000
Philip Dennis (Investor Relations) +44 (0)7947 868 206
Cenkos Securities Plc
Max Hartley / Stephen Keys (Nomad) +44 (0)20 7397 8900
Russell Kerr (Sales)
Nick Lyon / Sophie Lister / Lucy Wollam +44 (0)20 7796 4133