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.
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