Trading Update

RNS Number : 6343G

Personal Group Holdings PLC

25 July 2019

 

Personal Group Holdings plc

("the Company")

Trading Update

Personal Group Holdings Plc (AIM: PGH), a technology-enabled employee services provider, is pleased to provide the following update for the six months ended 30 June 2019.

The Company had a solid start to the year, with trading in line with management's expectations.

The core insurance business continued to perform well, although new sales have been slower than expected in the first half as we continue to grow the insurance sales team, having exited 2018 with fewer people in the field. PG Let's Connect, the technology salary sacrifice business, had a strong start to the year with revenue ahead of last year but remains a Q4 oriented business. SaaS continued to benefit from sales of third-party products via the Company's proprietary digital platform, Hapi. We are also beginning to see the benefits of the recent Innecto acquisition, including opening a number of new and cross-selling opportunities within their client base.

Preparations for the full launch of the next product version of Sage Employee Benefits (SEB) are complete and we remain encouraged by the response to the soft launch that took place. The full launch is later than planned, due to Sage's focus on Making Tax Digital which represented an immediate market opportunity for them. Sage remains a natural channel partner and we now look forward to progressing our partnership.

As we continue through 2019, the market for employee benefits remains strong, with continued pressure on companies across the UK in being able to attract and retain the right staff to drive and support improved productivity. The Board remains confident in the long-term outlook for the Company and will, as planned, provide an update on strategy during the half year results in September.

Deborah Frost, Chief Executive of Personal Group, commented:

"Personal Group has performed in line with management's expectations during the first half of the year. Recent market testing of our proposition, following my appointment as Chief Executive, has confirmed that our offering strongly resonates. This, combined with the Company's solid foundation, provides me with additional comfort for the future growth of the business. The Board remains confident in the long-term outlook for the Company and will, as planned, provide an update on strategy at the time of the announcement of the half year results in September."

-ENDS-

For more information please contact:

Personal Group Holdings Plc
Mike Dugdale - Chief Financial Officer	[phone]
Philip Dennis - Investor Relations	[phone]

Cenkos Securities Plc
Max Hartley / Callum Davidson (Nomad)	[phone]
Russell Kerr (Sales)

Media enquiries:

Hudson Sandler
Nick Lyon / Lucy Wollam	[phone]
[e-mail]

Notes to Editors:

Personal Group Holdings Plc (AIM: PGH) is a technology enabled employee services business, working with employers to drive productivity though better employee engagement and a more motivated workforce. With over 30 years' experience, the Company provides employee benefits and services to over 2 million employees across the UK.

Personal Group's offer comprises in-house services, including employee insurance products (hospital, convalescence plans and death benefit), the provision of home technology via salary sacrifice (iPads, computers, laptops, smart phones and smart TVs), and pay and reward consulting via Innecto, the leading independent UK consultancy acquired in 2019. Third party services include retail discounts, e-payslips, employee assistance programmes, wellbeing programmes and salary sacrifice cars and bikes.

The product offer is provided via the Company's proprietary technology platform, Hapi. The platform is intuitive, designed primarily for app deployment and also accessible via web and tablet, driving better engagement, communication and value recognition. Hapi is flexible and can quickly integrate additional services, such as existing employee services and partner platforms. Hapi is a digital Saas product.

Through technology and select acquisitions, the Company has grown its addressable market from 6m to over 27m UK employees; including 15.6m SME employees targeted via its partnership with Sage, the UK's largest software company.  

Personal Group's innovative approach to using technology to deliver its programmes, combined with its face-to-face method of communicating with employees, makes its offer compelling to blue chip clients across the UK as a way of attracting, retaining and motivating employees.  The acquisition of Innecto in February 2019 allows Personal Group to engage with clients earlier in their thinking around Pay and Reward, and to interact with a new base of blue-chip and fast growth clients typically at HR Director and CEO level.

Personal Group has a strong client base across a range of sectors including passenger transport, healthcare, logistics and food manufacturing. Clients include: Stagecoach, Four Seasons Health Care, Priory Group, Spire Healthcare, Bibby, 2 Sisters Food Group and Young's Seafood.   

For further information, please see www.personalgroup.com

 

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