Final Results

Personal Group Holdings PLC
27 March 2002

                          PERSONAL GROUP HOLDINGS PLC
                      PRELIMINARY ANNOUNCEMENT OF RESULTS

The Board of Directors of Personal Group Holdings Plc are pleased to announce
the group's results for the year ended 31 December 2001 as follows:

•         Pre-tax profits rose by 28 per cent to £4.6m (2000: £3.6m).

•         Earnings per share rose by 36 per cent. to 10.6p.

•         Trading income (trading income comprises earned premiums, net of
          claims and reinsurance premiums, and other income from the on-going 
          business representing commission and fees earned on financial products
          and services) rose by 11 per cent to £11.3m (2000: £10.2m).

•         Property management business was disposed of at a profit and this
          eliminated all goodwill from the balance sheet.

•         Dividends increased by approximately 40 per cent.  Having paid a
          second interim dividend of 3.3p in March 2002, the directors are 
          recommending a final dividend of 2.05p (2000: 1.65p) which will be 
          payable on 1 May 2002 to shareholders on the register at the close of 
          business on 12 April 2002.



CHAIRMAN'S STATEMENT

In his statement on the results for the year and the company's activities, Mr
John Swarbrick, Chairman of Personal Group Holdings Plc, says:

'I am pleased to report that the Group has produced another profitable year.
During 2001 our profit before tax increased by £1,025,000 to £4,646,000.

This year's bottom line result was reached after taking into account:

•         Realised losses of £365,000 and unrealised losses of £139,000 on
          investments.

•         Providing for a £79,000 levy payable to Financial Services
          Compensation Scheme Limited.

•         Release of £202,000 from our provision in respect of our old offices,
          which are now fully sub-let.

•         A profit of £224,000 on the disposal of our property management
          business.

During 2001 new 'All Employee' flexible benefit programmes were launched, among
others, for Federal Express, T&S Stores, Peacocks and DeVere Hotels.

Our Financial Services subsidiary increased revenues by £153,000 to £581,000 and
is targeted to make a positive contribution to group results.

We are currently negotiating a lease for our surplus space on the second floor
of John Ormond House.  It is anticipated that this will start generating income
from June 2002 onwards.

The directors propose a final dividend of 2.05p per share, which increases the
total dividends for the year by approximately 40% to £2,101,000.  After
provision for taxation and dividends there is a surplus of £1,088,000 which has
been added to reserves.  Shareholders funds now stand at a record total of
£12,319,000 (40p per share). Current trading is in line with directors'
expectations.

Your Company continues to take a positive view of the opportunities in its
chosen market place and is well placed to grow the business in its customary
prudent and profitable manner, giving due weight to the shareholders'
expectations of an appropriate share of the earnings generated.

On your behalf, I would like to extend our thanks to all our employees for their
loyal service to the Group during 2001.'

John Swarbrick
Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2001
                                                                               2001                       2000
TECHNICAL ACCOUNT - GENERAL BUSINESS                                £000       £000            £000       £000

Gross premiums written                                                       11,067                     10,645
Reinsurance premiums                                                            (1)                        (2)
Net premiums written                                                         11,066                     10,643

Change in the gross provision for unearned premiums                              14                      (120)
Earned premiums, net of reinsurance                                          11,080                     10,523

Claims paid
Gross amount                                                     (2,444)                    (2,342)
Reinsurers' share                                                      -                          -
Net of reinsurance                                               (2,444)                    (2,342)

Change in the provision for claims
Gross amount                                                          70                       (31)
Reinsurers' share                                                      -                          -
Net of reinsurance                                                    70                       (31)

Claims incurred, net of reinsurance                                         (2,374)                    (2,373)

Net operating expenses:
Financial reinsurance costs                                         (31)                       (50)
Other                                                            (4,894)                    (4,830)
                                                                            (4,925)                    (4,880)
Balance on the technical account for general business                         3,781                      3,270

NON-TECHNICAL ACCOUNT
Balance on the general business technical account                             3,781                      3,270

Investment income                                                    533                        931
Unrealised losses on investments                                   (139)                      (587)
Investment expenses and charges                                    (488)                      (123)
Net investment return                                                          (94)                        221

Other income
- normal                                                  1        2,830                      2,666
- exceptional                                             2          426                          -
                                                                              3,256                      2,666
Other charges
- normal                                                  1      (2,232)                    (1,971)
- exceptional                                                          -                      (515)
                                                                            (2,232)                    (2,486)
Charitable donations                                                           (65)                       (50)

Profit on ordinary activities before tax                                      4,646                      3,621
Tax on profit on ordinary activities                      3                 (1,457)                    (1,249)
Profit for the financial year                                                 3,189                      2,372

Dividends                                                 4                 (2,101)                    (1,503)

Profits retained                                                              1,088                        869

Earnings per share
Basic & diluted                                           5                   10.6p                       7.8p

During the year, in respect of the discontinued business, the group received
income of £226,000 (2000: £656,000) and paid expenses of £290,000 (2000:
£712,000).

There are no recognised gains or losses for the period other than the profit for
the financial period.


CONSOLIDATED BALANCE SHEET
for the year ended 31 December 2001
                                                                              2001                     2000
                                                                    £000      £000           £000      £000
Assets

Intangible assets
Goodwill                                                                         -                       94

Investments
Other financial investments                                                  4,869                    3,609
                                                                             4,869                    3,703

Debtors

Debtors arising out of direct insurance
operations                                                         1,162                    1,090
Debtors arising out of direct reinsurance operations                  29                       30
Other debtors due within one year                                    405                      282
                                                                             1,596                    1,402

Other assets

Tangible assets                                                    6,111                    5,991
Cash at bank and in hand                                           4,512                    4,926
Investment in own shares                                             402                      402
                                                                            11,025                   11,319

Prepayments and accrued income
Accrued interest and rent                                             21                       54
Deferred acquisition costs                                            46                       48
Other prepayments and accrued income                                  29                       34
                                                                                96                      136
Total assets                                                                17,586                   16,560

Liabilities

Capital and reserves
Called up share capital                                            1,528                    1,528
Profit and loss account                                           10,791                    9,703
Shareholders' funds                                                         12,319                   11,231

Technical provisions
Provision for unearned premiums                                      305                      319
Claims outstanding                                                   821                      891
                                                                             1,126                    1,210

Provision for other risks and charges                                           60                      368

Creditors
Arising out of reinsurance operations                                 14                       28
Current taxation                                                     877                      998
Other creditors including other taxation and social security         421                      940
Bank loan                                                            384                      417
Proposed dividend                                                  1,606                      495
                                                                             3,302                    2,878

Accruals and deferred income                                                   779                      873
Total liabilities                                                           17,586                   16,560


CONSOLIDATED CASHFLOW STATEMENT
FOR THEYEAR ENDED 31 DECEMBER 2001
                                                                              2001           2000
                                                                    £000      £000           £000      £000

Net cash inflow from operating activities                                    3,957                    4,826

Taxation paid                                                              (1,606)                  (1,359)

Capital expenditure
Purchase of fixed assets                                           (721)                    (539)
Sale of fixed assets                                                 144                      196
Purchase of own shares                                                 -                    (402)
                                                                             (577)                    (745)

Acquisitions and disposals
Acquisitions                                                           -                  (4,928)
Disposal of trade and goodwill                                       318                        -
                                                                               318                  (4,928)

Equity dividends paid                                                        (990)                  (1,008)

Financing
Receipt of loan                                                        -                      417
Repayment of loan                                                   (33)                        -
                                                                              (33)                      417
Net cashflows                                                                1,069                  (2,797)

Cashflows were invested as follows:
Increase/(decrease) in cash holdings                                         (414)                  (2,506)
Bank loan                                                                       33                    (417)
Net portfolio investment
Ordinary shares, loans, finance leases, treasury loan stock                  1,450                      126
Net investment of cash flows                                                 1,069                  (2,797)

The prior year figures have been restated to reclassify certain elements of the
cash flow statement.

NOTES:

1.        Other income comprises insurance related business £2,338,000 (2000:
£1,911,000) and residential property and other business £492,000 (2000:
£755,000). Other expenditure comprises insurance related business £1,156,000
(2000: £1,077,000) and residential property and other business £1,076,000 (2000:
£894,000).

2.        Exceptional other income relates to the disposal of the Group's
residential property rental contracts and the partial release of the provision
for the onerous lease on a vacated property as follows:
                                                                                             2001         2000
                                                                                             £000         £000

Disposal of property rental contracts
Sale proceeds                                                                                 329            -
Less costs:
Goodwill                                                                                     (94)            -
Professional fees and other costs                                                            (11)            -
                                                                                              224            -

Partial release of provision for onerous lease on vacated property                            202            -
                                                                                              426            -

3.        Taxation comprises United Kingdom corporation tax of £1,457,000 (2000:
£1,414,000), and deferred taxation of nil, (2000: £165,000 credit).

4.        The directors have recommended a final dividend of 2.05p (2000: 1.65p)
per share payable on 1 May 2002 to shareholders on the register at the close of
business on 12 April 2002.  The total dividend for the year, including the
interim dividends of 4.95p (2000: 3.3p) amounts to £2,101,000 (2000:
£1,503,000), which is equivalent to 7.00p (2000: 4.95p) per share.

5.        The basic and diluted earnings per share are based on the profit for
the financial year of £3,189,000 (2000: £2,372,000) and on 30,014,943 basic,
30,053,236 diluted ordinary shares (2000: basic and diluted, 30,521,727 ordinary
shares), the weighted average number of shares in issue during the year.

6.     The preliminary statement which has been agreed with the auditors and
approved by the Board on 26 March 2002 is not the Company's statutory accounts.
The statutory accounts for each of the two years to 31 December 2000 and 31
December 2001 received audit reports, which were unqualified and did not contain
statements under section 237 (2) or (3) of the Companies Act 1985.  The 2000
accounts have been filed with the Registrar of Companies but the 2001 accounts
are not yet filed.

For further information, contact:

Mr C W T Johnston, Chief Executive, Personal Group Holdings Plc, 
Tel: [phone]

Mr Barrie Newton, Managing Director, Rowan Dartington & Co. Limited, 
Tel: [phone]

                      This information is provided by RNS
            The company news service from the London Stock Exchange