Interim Results

Personal Group Holdings PLC 29 September 2003 29 September 2003 Enquiries: Christopher Johnston, Chairman & Chief Executive John Barber, Finance Director Personal Group Holdings Plc Tel: 01908 605000 ext. 235 Chris Steele/Trevor Phillips Holborn Tel: 020 7929 5599 Grant Harrison/Jonathan Retter Durlacher Limited Tel: 0207 459 3600 Personal Group Holdings Plc Interim Statement for the six months to 30 June 2003 The directors of Personal Group Holdings Plc, employee benefit insurers and consultants, are pleased to announce the Group's interim results as follows: HIGHLIGHTS 2003 2002 £m £m % Underwriting income* 6.31 5.97 Up 6 Pre-tax profit 2.92 2.65 Up 10 Earnings per share 6.6p 5.9p Up 12 First interim dividend per share 2.0p 1.8p Up 11 * comprising premiums earned net of non-financial reinsurance by Personal Assurance Plc • Major employee programmes launched for Northern Foods, Vinci, Westminster Health Care, Priory Clinics, Honeywell, New Wave Logistics, Solway Foods, Maintrain and Bournemouth Airport. • During the second half of 2003 further employee programmes are being launched for LivingWell, bonmarche, Eaton, De Vere, FedEx, Tibbett & Britten and Starbucks. Our strategy is based on: • personal contact • affordable benefits that are easy to own • consistency of price and service This has produced another record first half year's results. CHAIRMAN'S STATEMENT I am pleased to report that the Group has produced another profitable period. During the first half of 2003 our profit before tax increased by 10 per cent, to £2,922,000. Earnings per share were up 12 per cent, to 6.6p. In view of this continuing successful period of trading, the directors have declared a first interim dividend of 2p (2002: 1.8p) per share, an increase of 11 per cent, payable on 29 October 2003 to shareholders on the register at the close of business on 8 October 2003. After provision for taxation and dividends, there is a surplus for the period of £1,384,000 (2002: £1,238,000) which has been added to reserves. Shareholders' funds now stand at a total of £15,342,000 (50p per share) and include net cash balances of £6,817,000 in addition to £4,259,000 of Treasury loan stock. In the first half of the year major employee benefit programmes were launched for Northern Foods, Vinci, Westminster Health Care, Priory Clinics, Honeywell, New Wave Logistics, Solway Foods, Maintrain and Bournemouth Airport. During the second half of 2003 further employee programmes are being launched for LivingWell, bonmarche, Eaton, De Vere, FedEx, Tibbett & Britten and Starbucks. Personal Assurance Plc continues to steadily build its reputation. 2003 is the 18th consecutive year without any premium price increase for existing policyholders. We may be unique among health insurance companies in not having levied price increases on our customers' policies over so many years, when general price inflation has been more than 80 per cent. Our premium growth has come exclusively from new customers joining our hospital plans and existing members increasing their coverage. The balance sheet is strong, and the business continues to record good organic growth in its core operations. Current trading is in line with directors' expectations. Our continuing success is wholly due to the enthusiasm, commitment and professionalism of the Personal team. My thanks to everyone involved. Christopher W T Johnston, Chairman 26 September 2003 PERSONAL GROUP HOLDINGS PLC Consolidated profit and loss account for the 6 months ended 30 June 2003 6 months ended 6 months ended 12 months ended 30 June 2003 30 June 2002 31 December 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 TECHNICAL ACCOUNT - GENERAL BUSINESS Gross premiums written 6,363 6,012 12,195 Change in the gross provision for unearned premiums (48) (39) 19 Earned premiums, net of 6,315 5,973 12,214 reinsurance Claims paid Gross amount (1,290) (1,290) (2,566) Reinsurers' share - - - Net of reinsurance (1,290) (1,290) (2,566) Change in the provision for claims Gross amount (98) 4 (41) Reinsurers' share - - - Net of reinsurance (98) 4 (41) Claims incurred, net of (1,388) (1,286) (2,607) reinsurance Net operating expenses: Financial reinsurance costs - (129) (129) Other (2,770) (2,644) (5,094) (2,770) (2,773) (5,223) Balance on the technical account for general business 2,157 1,914 4,384 PERSONAL GROUP HOLDINGS PLC Consolidated profit and loss account (continued) for the 6 months ended 30 June 2003 6 months ended 6 months ended 12 months ended 30 June 2003 30 June 2002 31 December 2002 Unaudited Unaudited Audited Note £000 £000 £000 £000 £000 £000 NON-TECHNICAL ACCOUNT Balance on the general business technical account 2,157 1,914 4,384 Investment income 250 259 433 Unrealised gains/(losses) on 9 (63) (87) investments Investment expenses - (34) (60) and charges Net investment return 259 162 286 Other income 1,661 1,727 3,434 Other charges (1,123) (1,125) (2,425) Charitable donations (32) (30) (65) Profit on ordinary activities before tax 2,922 2,648 5,614 Tax on profit on ordinary activities 1 (940) (870) (1,636) Profit for the period 1,982 1,778 3,978 Dividends 2 (598) (540) (2,404) Profit retained 1,384 1,238 1,574 Earnings per share Basic & diluted 3 6.6p 5.9p 13.2p There are no recognised gains or losses for the period other than the profit for the financial period. PERSONAL GROUP HOLDINGS PLC Consolidated balance sheet at 30 June 2003 At 30 June 2003 At 30 June 2002 At 31 December 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Assets Investments Other financial investments 4,721 4,819 4,711 Debtors Debtors arising out of direct insurance operations 1,138 1,172 1,140 Other debtors due within one year 539 741 728 1,677 1,913 1,868 Other assets Tangible assets 6,149 6,006 6,004 Cash at bank and in hand 6,817 5,066 6,458 Investment in own shares 447 402 402 13,413 11,474 12,864 Prepayments and accrued income Accrued interest and rent 20 31 42 Deferred acquisition costs 38 46 38 Other prepayments and accrued income 111 46 72 169 123 152 Total assets 19,980 18,329 19,595 PERSONAL GROUP HOLDINGS PLC Consolidated balance sheet at 30 June 2003 (continued) At 30 June 2003 At 30 June 2002 At 31 December 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Liabilities Capital and reserves Called up share capital 1,528 1,528 1,528 Profit and loss account 13,814 12,029 12,430 Equity shareholders' funds 15,342 13,557 13,958 Technical provisions Provision for unearned premiums 334 344 286 Claims outstanding 965 816 865 1,299 1,160 1,151 Provison for other risks and charges 202 238 180 Creditors Arising out of reinsurance operations - 100 - Current taxation 880 988 901 Other creditors including other taxation and social security 433 500 514 Bank loan 340 338 307 Proposed dividend 600 540 1,861 2,253 2,466 3,583 Accruals and deferred income 884 908 723 Total liabilities 19,980 18,329 19,595 PERSONAL GROUP HOLDINGS PLC Consolidated cash flow statement for the 6 months ended 30 June 2003 6 months ended 6 months ended 12 months ended 30 June 2003 30 June 2002 31 December 2002 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Net cash inflow from operating activities 3,575 2,859 5,931 Loan interest paid (8) (9) (18) Taxation paid (939) (581) (1,492) Capital expenditure Purchase of fixed assets (406) (139) (348) Sale of fixed assets 29 64 86 Purchase of own shares (94) - - Sale of own shares 28 - - (443) (75) (262) Equity dividends paid (1,859) (1,606) (2,149) Financing Addition to bank loan 94 - - Repayment of bank loan (61) (46) (77) 33 (46) (77) Net cash flows 359 542 1,933 Cash flows were invested as follows: Increase in cash holdings 359 554 1,946 Net portfolio investment Ordinary shares, loans, finance leases, treasury loan stock - (12) (13) Net investment of cash flows 359 542 1,933 PERSONAL GROUP HOLDINGS PLC Notes 1. Taxation comprises United Kingdom corporation tax of £918,000 (30 June 2002: £692,000, 31 December 2002: £1,516,000), and deferred taxation charge of £22,000 (30 June 2002: £178,000, 31 December 2002: £120,000). 2. The directors have declared a dividend of 2.0p (30 June 2002: 1.80p, 31 December 2002) per share payable on 29 October 2003 to shareholders on the register at the close of business on 8 October 2003. Shares will be marked ex-dividend on 6 October 2003. 3. The calculations of basic and diluted earnings per share are based on the following: 30 June 2003 30 June 2002 31 December 2002 Earnings - basic and diluted £1,982,000 £1,778,000 £3,978,000 Weighted average number of shares Basic 29,969,819 30,014,943 30,014,943 Diluted 30,162,413 30,129,691 30,143,974 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 years accounts to 31 December 2002 and the interim accounts for the 6 months ended 30 June 2002. The interim statement, which was approved by the Board on 26 September 2003, is not the Company's statutory accounts. The statutory accounts for each of the two years to 31 December 2001 and 31 December 2002 received audit reports, which were unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985. The 2001 and 2002 accounts have been filed with the Registrar of Companies. Financial calendar for the year ending 31 December 2003 The Company announces the following dates in its financial calendar for the year ending 31st December 2003: • Payment of 1st interim dividend - 29 October 2003 • Preliminary results for the year ending 31st December 2003 - March 2004 • Publication of Report and Accounts for 2003 - March 2004 • Payment of 2nd interim dividend - March 2004 • AGM - April 2004 • Payment of final dividend - May 2004 This information is provided by RNS The company news service from the London Stock Exchange

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