Interim Results
25 September 2006
Enquiries:
Personal Group Holdings Plc Tel: 0207 367 8888(on 25/9/06)
Christopher Johnston, Chairman 01908 605000 ext 235 (thereafter)
Ken Rooney, Managing Director
John Barber, Finance Director
Bankside Consultants
Simon Rothschild Tel: 0207 367 8888
Personal Group Holdings Plc
Interim statement for the six months to 30 June 2006
Personal Group Holdings Plc is one of the UK's leading providers of employee
benefits insurance and consultancy.
- Trading income ahead 5.8% at £11.78m
- Headline EBITDA up by 5.7% at £4.63m
- Profit on ordinary activities before tax up by 11.4% at £3.70m
- The directors have today declared a dividend of 2.3p per share (2005: 2.2p)
payable on 24 October 2006 to shareholders on the register at the close of
business on 6 October 2006. Shares will be marked ex-dividend on 4 October
2006
HIGHLIGHTS
2006 2005 %
£m £m
Trading income * 11.78 11.13 + 5.8
Headline EBITDA** 4.63 4.38 + 5.7
Pre-tax profit 3.70 3.32 +11.4
EBITDA per share 15.4p 14.5p + 6.2
Earnings per share (basic) 7.9p 7.2p + 9.7
Dividends per share paid in 2006 8.8p 8.4p + 4.8
Dividend per share payable October 2006 2.3p 2.2p + 4.5
* Trading income comprises earned premiums net of claims, claims handling and
other income from the ongoing business representing commission and fees
earned on financial products and other related services.
** EBITDA is defined as earnings before interest, tax, depreciation and
amortisation.
Ken Rooney, Chief Executive, commented:
"During the first half of 2006 we arranged 9 new benefit programmes including
those for L'Oreal, Adams and Coventry Building Society. In addition, renewal
programmes for several existing customers continue generating significant
opportunities for our employee benefits divisions as anticipated. The
activity in other areas of the business continues to expand."
CHAIRMAN'S STATEMENT
The result for the first half of 2006 reflects the momentum created in 2005.
However new business premiums during the year to date have been below what was
achieved last year, which will have an impact on growth in the second half of
this year and the first half of 2007.
Trading income has increased by approximately 5.8% and, due in part to the
control of expenses,profit before taxation increased by £0.38m to £3.70m (2005:
£3.32m), an increase of 11.4%, and earnings before interest, tax, depreciation
and amortisation (EBITDA) increased by £0.25m to £4.63m (2005: £4.38m), an
increase of 5.7%. Headline EBITDA per share are 15.4p, an increase of 6.2%
compared with 30 June 2005. Basic earnings per share are 7.9p, an increase of
9.7%, compared with 30 June 2005.
After provision for taxation there is a surplus for the period of £2.4m (2005:
£2.2m) which has been added to reserves. Shareholders' funds at 30 June 2006
were £20,462,000 (67p per share) and include net cash balances of approximately
£9,034,000 in addition to £3,000,000 of 4% Treasury Loan Stock 2009 (market
value £2,940,000 at 30 June 2006).
In July we completed the sale to management of our small fee based financial
advisory company R.E. Gee & Co. This former Berkeley Morgan group company had
become less relevant to the operations of the financial advisory business of
the group.
Jon Pardoe, the founder of Berkeley Morgan, resigned his directorship of
Personal Group Holdings plc in August 2006; we will miss him and wish him well.
Jon's departure has accelerated the process of integrating the group's Milton
Keynes and Blackburn office operations to create a wider range of insurance
products and enhanced employee benefit services.
In September 2006 we reduced our debt incurred on the acquisition of Berkeley
Morgan Group Plc by a further £2,000,000 to £6,000,000.
As I mentioned earlier, new business production from our work site team has not
reached the record levels experienced in 2005. Renewals continue as expected
and other divisions, particularly our employer paid employee benefit business,
have done well, keeping current trading in line with directors' expectations.
The directors have today declared a dividend of 2.3p per share (2005: 2.2p)
payable on 24 October 2006 to shareholders on the register at the close of
business on 6 October 2006.
My thanks to all employees, agents, consultants and brokers for their
contribution to our continuing success.
Christopher W T Johnston, Chairman
25 September 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the 6 months ended 30 June 2006
6 months ended 6 months ended 12 months ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
£000 £000 £000 £000 £000 £000
TECHNICAL ACCOUNT
GENERAL BUSINESS
Gross premiums written 7,854 7,524 15,638
Change in the gross 148 (47) (191)
provision for unearned
premiums
Earned premiums, net 8,002 7,477 15,447
of reinsurance
Claims paid (1,557) (1,472) (2,941)
Change in the (111) (255) 121
provision for claims
Claims incurred (1,668) (1,727) (2,820)
Net operating
expenses:
Other (3,700) (3,429) (7,314)
Balance on the 2,634 2,321 5,313
technical account for
general business
CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)
for the 6 months ended 30 June 2006
6 months 6 months 12 months
ended ended ended
30 June 2006 30 June 2005 31 December
2005
Unaudited Unaudited Audited
Note £000 £000 £000 £000 £000 £000
NON-TECHNICAL ACCOUNT
Balance on the general 2,634 2,321 5,313
business technical
account
Investment income 440 442 967
Unrealised (losses)/ (84) 147 107
gains on investments
Investment expenses (10) (28) (36)
and charges
Net investment return 346 561 1,038
Other income 5,450 5,375 11,617
Other charges (4,663) (4,901) (10,182)
Charitable donations (70) (38) (126)
Profit on ordinary 4,223 3,866 8,739
activities before tax
- Before goodwill
amortisation
- Goodwill (526) (548) (1,079)
amortisation
Total 3,697 3,318 7,660
Tax on profit on 1 (1,309) (1,141) (2,557)
ordinary activities
Profit for the period 2,388 2,177 5,103
Earnings per share
Basic 2 7.9p 7.2p 16.9p
Diluted 2 7.9p 7.2p 16.8p
There are no recognised gains or losses for the period other than the profit
for the financial period.
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006
At 30 June 2006 At 30 June 2005 At 31 December
2005
Unaudited Unaudited Audited
Note £000 £000 £000 £000 £000 £000
Assets
Intangible assets
Goodwill 8,732 9,837 9,247
Investments
Investments in joint
venture
Share of gross assets 2,207 2,200 2,214
Share of gross liabilities (2,228) (2,215) (2,250)
Net investment (21) (15) (36)
Other financial investments 8,390 8,771 8,564
Debtors
Debtors arising out of 1,129 1,167 1,501
direct insurance operations
Other debtors due within 1,156 819 1,196
one year
2,285 1,986 2,697
Other assets
Tangible assets 6,551 6,720 6,638
Cash at bank and in hand 9,034 7,044 8,564
15,585 13,764 15,202
Prepayments and accrued
income
Accrued interest and rent 43 47 48
Deferred acquisition costs 75 19 75
Other prepayments and 1,233 1,743 1,554
accrued income
1,351 1,809 1,677
Total assets 36,322 36,152 37,351
CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006 (CONTINUED)
At 30 June At 30 June At 31 December
2006 2005 2005
Unaudited Unaudited Audited
Note £000 £000 £000 £000 £000 £000
Liabilities
Capital and reserves
Called up share capital 1,528 1,528 1,528
Shares to be issued 309 277 298
Other reserve (650) (753) (763)
Profit and loss account 19,275 17,199 19,498
Equity shareholders' funds 3 20,462 18,251 20,561
Technical provisions
Provision for unearned 268 273 417
premiums
Claims outstanding 1,093 1,359 982
1,361 1,632 1,399
Provision for other risks and 381 540 422
charges
Creditors
Current taxation 1,322 1,179 1,452
Other creditors including 1,275 867 867
other taxation and social
security
Bank loan 8,331 10,469 8,435
10,928 12,515 10,754
Accruals and deferred income 3,190 3,214 4,215
Total liabilities 36,322 36,152 37,351
CONSOLIDATED CASH FLOW STATEMENT
for the 6 months ended 30 June 2006
6 months ended 6 months ended 12 months ended
30 June 2006 30 June 2005 31 December 2005
Unaudited Unaudited Audited
£000 £000 £000 £000 £000 £000
Net cash inflow from 4,732 4,557 10,177
operating activities
Loan interest paid (119) (323) (605)
(including arrangement
fees)
Taxation paid (1,439) (1,248) (2,441)
Capital expenditure
Purchase of fixed assets (141) (124) (237)
Sale of fixed assets 27 46 71
Purchase of own shares (4) (234) (243)
Sale of own shares 31 21 38
(87) (291) (371)
Acquisitions
Acquisitions (net of cash - (10,788) (10,795)
acquired)
Equity dividends paid (2,652) (2,528) (3,191)
Financing
Additions to bank loans 4 12,234 12,243
Repayment of bank loans (108) (2,068) (4,111)
(104) 10,166 8,132
Net cash flows 331 (455) 906
Cash flows were invested
as follows:
Increase/(decrease) in 470 (1,892) (372)
cash holdings
Net portfolio investment
Ordinary shares, loans, (139) 1,437 1,278
finance leases, treasury
loan stock
Net investment of cash 331 (455) 906
flows
PERSONAL GROUP HOLDINGS PLC
Notes
1. Taxation comprises United Kingdom corporation tax of £1,309,000 (30 June
2005: £1,141,000, 31 December 2005: £2,582,000), and deferred taxation
credit of £nil (30 June 2005: nil, 31 December 2005: £25,000).
2. The calculations of basic and diluted earnings per share are based on the
following:
30 June 30 June 31 December
2006 2005 2005
Earnings - basic and diluted £2,388,000 £2,177,000 £5,103,000
Weighted average number of
shares
Basic 30,172,248 30,219,190 30,185,071
Diluted 30,393,591 30,388,783 30,377,285
3. Reconciliation of movement in shareholders' funds.
30 June 30 June 31 December
2006 2005 2005
£000 £000 £000
Profit for the period 2,388 2,177 5,103
Dividends paid in period (2,652) (2,528) (3,191)
(264) (351) 1,912
Shares to be issued 11 30 51
Profit on allocation of AESOP 41 18 36
shares
Purchase of AESOP shares (4) (234) (243)
Allocation and sale of AESOP shares 31 21 38
FRS 20 charge 86 - -
(Decrease)/increase in (99) (516) 1,794
shareholders' funds
Shareholders' funds brought forward 20,561 18,767 18,767
Shareholders' funds carried forward 20,462 18,251 20,561
The interim results, which have not been audited, have been prepared on the
same basis and using the same accounting policies as those used in the
preparation of the full year's accounts to 31 December 2005, except for the
application of FRS 20 with effect from 1 January 2006. Prior period results
have not been restated as the effect is not material.
The interim statement, which was approved by the Board on 22 September 2006, is
not the Company's statutory accounts. The statutory accounts for each of the
two years to 31 December 2004 and 31 December 2005 received audit reports,
which were unqualified and did not contain statements under section 237 (2) or
(3) of the Companies Act 1985. The 2004 and 2005 accounts have been filed with
the Registrar of Companies.
Financial calendar for the year ending 31 December 2006
The Company announces the following dates in its financial calendar for the
year ending 31 December 2006:
- Payment of next dividend 24 October 2006
- Preliminary results for the year ending 31 December 2006 March 2007
- Publication of Report and Accounts for 2006 March 2007
- AGM April 2007
Tuesday, 1st October 2024
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