Trading Update

RNS Number : 7269M

Personal Group Holdings PLC

10 January 2019

 

Personal Group Holdings PLC

(the "Company", "Personal Group", "PGH" or "Group")

Trading Update

Personal Group PLC, a leading provider of employee services in the UK, provides the following trading update following its financial year ended on 31 December 2018 ("FY 2018").

The Company has continued to see good progress across its three business segments. Overall trading for FY 2018 was ahead of the previous year and results are expected to be broadly in line with market expectations.

This performance reflects the continued strength of the core insurance business, which saw new sales   perform well despite facing market challenges such as GDPR legislation changes which temporarily delayed new client signings. The Company was also required to address a data security issue resulting from a third-party supplier which impacted client relationships.

During FY 2018, PG Let's Connect significantly improved its year-on-year performance and is showing clear signs of recovery as expected, although it saw a small number of key clients defer running the Let's Connect offer to their employees until 2019 for their own logistical reasons.

The SaaS revenue performed well. The Company's SME SaaS product is aimed at the Sage customer base; Sage Employee Benefits ('SEB'), was launched by Sage to its wider client base in November of 2018.  Though started later than expected, the sales focus has now broadened beyond Sage's payroll clients to its entire customer base.  A dedicated Sage team together with Personal Group personnel have been onsite supporting the launch. The early indications are positive as Sage seeks to take this product to all of their customers.

The data security issues experienced by the Company within its third-party supply chain necessitated an acceleration of a planned rationalisation of the Group's supply chain. Although this initiative needed an increased and early investment, it brings forward benefits of reduced supply chain risk and improving the quality of the client experience.

Though the Company has broadly traded in line with expectations in 2018, the challenges experienced by each if its divisions, combined with the wider economic uncertainty related to the UK's withdrawal from the EU, have led the board to adopt a more conservative outlook in regard to the Let's Connect and Insurance Business in 2019. As a consequence, profitability is unlikely to grow materially from 2018.

Personal Group remains in a robust position as it enters 2019, with a market leading offer and a proven team to support it. The market for employee benefits also remains strong, with continued pressure on businesses to improve productivity and staff retention in a tight labour market.

Mark Scanlon, Chief Executive of Personal Group, commented:

 "Despite challenges in 2018 the Company has traded broadly in line with expectations. While the current economic and political conditions inevitably bring a greater level of business uncertainty, which we have seen evidenced through slower decision making on the part of our customers, the Board remains cautiously optimistic that we can continue to progress our business in the year ahead. Our search for my successor is progressing well and we hope to make further communications soon."

-ENDS-

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For more information please contact:

Personal Group Holdings Plc
Mark Scanlon / Mike Dugdale	[phone]
Philip Dennis (Investor Relations)	[phone]
Cenkos Securities Plc
Max Hartley / Callum Davidson (Nomad)	[phone]
Russell Kerr (Sales)
Hudson Sandler
Nick Lyon / Sophie Lister / Lucy Wollam	[phone]

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 8,000 in-house and third-party products and services, from c.60 supply lines. In-house services include employee insurance products (hospital, convalescence plans and death benefit) and the provision of home technology via salary sacrifice (iPads, computers, laptops, smart phones and smart TVs). Third party services include retail discounts, e-payslips, employee assistance programmes, wellbeing programmes and salary sacrifice cars and bikes.

The 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 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. 

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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