Final Results

Personal Group Holdings PLC 24 March 2005 24 March 2005 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 2004 as follows: HIGHLIGHTS 2004 2003 % £m £m Trading income* 14.2 13.7 +3 Pre-tax profit before goodwill write off 6.5 6.3 +3 Pre-tax profit 6.2 6.3 -2 Earnings per share (basic) 14.0p 14.9p -6 Earnings per share (diluted) 13.9p 14.7p -5 Final dividend per share** 3.15p 3.00p +5 Total dividend per share** 10.50p 10.00p +5 * Trading income comprises earned premiums, net of claims, claims handling and reinsurance expenses, and other income from the on-going business representing commission and fees earned on financial products and other related services. ** The directors have recommended a final dividend of 3.15p (2003: 3.00p) per share payable on 9 May 2005 to shareholders on the register at the close of business on 8 April 2005. Shares will be marked ex-dividend on 6 April 2005. The final dividend is subject to shareholder approval at the AGM to be held on 26 April 2005. Ken Rooney, Chief Executive commented: 'The early part of 2004 saw a substantial re-organisation of our sales team to facilitate the anticipated growth in new business sales for the second half of 2004. I am pleased to say that this strategy paid dividends with a strong second half of the year. Our pipeline of new programmes remained a feature in 2004 with new accounts for St Gobain, Poundstretcher/Instore and Specsaver launched amongst others during the second half of the year. So far in 2005 we have launched new programmes for Thorntons, Blue Arrow Group, MHA Care Group and Richmond Ice Cream Ltd, as well as renewing schemes for Wolseley, Brakes Bros and Bibby Distribution. With a strengthened infrastructure and an encouraging start to the year, I look forward to the remainder of 2005 with confidence.' CHAIRMAN'S STATEMENT I am pleased to report that the Group has produced another profitable year. After goodwill written off amounting to £277,000 (2003: nil) the profit before tax was £6,179,000 (2003: £6,305,000), a result achieved after significant growth of 28 per cent in new business sales volume during the year and consequently of total sales costs, which were up 8.4 per cent. It is anticipated that the increase in new business sales volume achieved in 2004 will feed profits into 2005 and beyond. This increase in sales followed a re-organisation of our sales force at the beginning of 2004. During the first half of the year new employee benefit programmes were launched for Brakes Bros, Game Stores, Universal Music, 118 118 The Number, De Vere Hotels and Exel. The second half saw the launch of new programmes for, amongst others, Specsaver, Wolverhampton & Dudley Breweries Plc, Poundstretcher/Instore, Palletline Plc, St Gobain, Bisley Office Supplies and A H Marks and Company Ltd. The directors propose a final dividend of 3.15p (2003: 3.00p) per share. This brings the total dividend payable for the year to £3,171,000. After provision for taxation and dividends there is a surplus of £1,038,000 which has been added to reserves. Shareholders' funds now stand at £16.2m (2003: £14.5m), which is 53p (2003: 48p) per share. The performance of our investments including investment income, realised and unrealised gains and losses and related expenses improved from a net income of £380,000 in 2003 to a net income of £625,000. At 31 December 2004 our Government fixed interest securities and cash deposits amounted to £11,880,000. The Group's joint venture with Abbeygate Developments Limited, to build additional office space and 24 residential units on the site adjacent to John Ormond House is now nearly complete. Advanced negotiations are taking place with prospective tenants for the residential units and the office space not being occupied by the Group. The total investment will amount to approximately £5 million. In January 2005 the Group completed the purchase of Berkeley Morgan Group Plc (BMG) for approximately £13 million including costs. This was financed through a combination of Personal Group's existing cash resources and a new loan facility. Jon Pardoe, the founder and managing director of BMG continues to lead this innovative and profitable business as a separate profit centre. I would like to extend my thanks to all our employees for their loyal service to the Group during 2004. Christopher W T Johnston Chairman 23 March 2005 Enquiries: Christopher Johnston, Chairman Ken Rooney, Chief Executive John Barber, Finance Director Mobile: 07773 392822 (24 March only) Personal Group Holdings Plc 01908 605000 Grant Harrison, Head of Corporate Broking, Corporate Finance Jonathan Retter, Associate Director, Corporate Finance Durlacher 0207 459 3600 Simon Rothschild Bankside 0207 444 4140 PERSONAL GROUP HOLDINGS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 £000 £000 £000 £000 TECHNICAL ACCOUNT - GENERAL BUSINESS Gross premiums written 13,518 12,911 Reinsurance premiums - - _________ _________ Net premiums written 13,518 12,911 Change in the gross provision for unearned premiums 46 14 _________ _________ Earned premiums, net of reinsurance 13,564 12,925 Claims paid Gross amount (2,850) (2,628) Reinsurers' share - - _________ _________ Net of reinsurance (2,850) (2,628) _________ _________ Change in the provision for claims Gross amount (239) 4 Reinsurers' share - - _________ _________ Net of reinsurance (239) 4 _________ _________ Claims incurred, net of reinsurance (3,089) (2,624) Net operating expenses: Other (5,555) (5,381) _________ _________ Balance on the technical account for general business 4,920 4,920 _________ _________ 2004 2003 Note £000 £000 £000 £000 NON-TECHNICAL ACCOUNT Balance on the general business technical account 4,920 4,920 Investment income 681 512 Unrealised gains/(losses) on investments 67 (45) Investment expenses and charges (123) (87) _________ _________ Net investment return 625 380 Other income 1 3,703 3,387 Other charges 1 (2,984) (2,297) Charitable donations (85) (85) _________ _________ Profit on ordinary activities before tax 6,179 6,305 Tax on profit on ordinary activities 2 (1,970) (1,857) _________ _________ Profit for the financial year 4,209 4,448 Dividends 3 (3,171) (2,985) _________ _________ Profit retained 1,038 1,463 _________ _________ Earnings per share (basic) 4 14.0p 14.9p Earnings per share (diluted) 4 13.9p 14.7p Dividend per share 3 10.5p 10.0p There are no recognised gains or losses for the period other than the profit for the financial year. PERSONAL GROUP HOLDINGS PLC CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2004 2004 2003 £000 £000 £000 £000 Assets Investments Investment in joint venture Share of gross assets 1,707 - Share of gross liabilities (1,707) - __________ __________ Net investment - - Other financial investments 6,952 7,233 Debtors Debtors arising out of direct insurance operations 1,185 1,282 Other debtors due within one year 659 614 __________ __________ 1,844 1,896 Other assets Tangible assets 5,654 5,933 Cash at bank and in hand 8,936 6,242 __________ __________ 14,590 12,175 Prepayments and accrued income Accrued interest and rent 55 58 Deferred acquisition costs 19 34 Other prepayments and accrued income 149 162 __________ __________ 223 254 __________ __________ Total assets 23,609 21,558 __________ __________ 2004 2003 £000 £000 £000 £000 Liabilities Capital and reserves Called up share capital 1,528 1,528 Shares to be issued 247 - Other reserve (558) (917) Profit and loss account 15,022 13,928 __________ __________ Shareholders' funds 16,239 14,539 Technical provisions Provision for unearned premiums 226 272 Claims outstanding 1,105 862 __________ __________ 1,331 1,134 Provision for liabilities and charges 254 201 Creditors Current taxation 1,058 924 Other creditors including other taxation and social security 474 435 Bank loan 303 783 Payable and proposed dividends 2,528 2,380 __________ __________ 4,363 4,522 Accruals and deferred income 1,422 1,162 __________ __________ Total liabilities 23,609 21,558 __________ __________ PERSONAL GROUP HOLDINGS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 £000 £000 £000 £000 Net cash inflow from operating activities 7,318 7,060 Loan interest paid (26) (16) Taxation paid (1,783) (1,813) Capital expenditure Purchase of fixed assets (218) (599) Sale of fixed assets 256 221 Purchase of own shares (4) (578) Sale of own shares 363 63 __________ __________ 397 (893) Acquisitions and disposals (Acquisition)/disposal of trade and goodwill (6) 77 Equity dividends paid (3,023) (2,466) Financing Addition to bank loan 4 578 Repayment of bank loan (484) (102) __________ __________ (480) 476 __________ __________ Net cash flows 2,397 2,425 __________ __________ Cash flows were invested as follows: Increase/(decrease) in cash holdings 2,686 (216) Net portfolio investment Ordinary shares, loans, finance leases, treasury loan stock (289) 2,641 __________ __________ Net investment of cash flows 2,397 2,425 __________ __________ Notes 1. Other income comprises insurance related business £2,745,000 (2003: £2,707,000) and other business £958,000 (2003: £680,000). Other charges comprises insurance related business £1,178,000 (2003: £1,048,000) and other business £1,806,000 (2003: £1,249,000). 2. Taxation comprises United Kingdom corporation tax of £1,917,000 (2003: £1,836,000), and deferred taxation of £53,000 (2003: £21,000). 3. The directors have recommended a final dividend of 3.15p (2003: 3.00p) per share payable on 9 May 2005 to shareholders on the register at the close of business on 8 April 2005. Shares will be marked ex-dividend on 6 April 2005. The final dividend is subject to shareholder approval at the AGM to be held on 26 April 2005. The total dividend for the year, including the interim dividends of 7.35p (2003: 7.00p) amounts to £3,171,000 (2003: £2,985,000), which is equivalent to 10.50p (2003: 10.00p) per share. 4. The basic and diluted earnings per share are based on the profit for the financial year of £4,209,000 (2003: £4,448,000) and on 30,120,002 basic (2003: 29,925,332), 30,218,539 diluted (2003: 30,170,478) ordinary shares, the weighted average number of shares in issue during the year. 5. The preliminary statement which has been agreed with the auditors and approved by the Board on 23 March 2005 is not the Company's statutory accounts. The statutory accounts for each of the two years to 31 December 2003 and 31 December 2004 received audit reports, which were unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985. The 2003 accounts have been filed with the Registrar of Companies but the 2004 accounts are not yet filed. This information is provided by RNS The company news service from the London Stock Exchange

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