TIDMPGH
RNS Number : 3797M
Personal Group Holdings PLC
21 September 2021
21 September 2021
PERSONAL GROUP HOLDINGS PLC
("Personal Group", "Company" or "Group")
Interim Results & Interim Dividend for the six months ended
30 June 2021
Personal Group Holdings Plc, a digitally enabled workforce
benefits and services provider, announces its interim results for
the six months ended 30 June 2021.
It has been a positive first half across all divisions with the
Company trading in-line with management expectations
notwithstanding the impact of the Covid-19 related restrictions
during the period. Positive momentum has built incrementally across
the six months as restrictions eased and this has accelerated
further into the current trading period such that we look to the
second half of the year with increased confidence.
Financial highlights
-- Group revenue rose 12.2% to GBP34.2m (2020: GBP30.4m), driven
primarily by increased pass-through transactional spend via the
Hapi platform of GBP13.4m (2020: GBP8.5m);
-- Adjusted EBITDA* declined 17.7% to GBP4.1m as anticipated
(2020: GBP5.0m), reflecting the change in revenue mix driven by
Covid-19 related restrictions on face-to-face insurance sales over
the last 18 months;
-- Profit before tax decreased 22.6% to GBP3.2m (2020: GBP4.2m);
-- Basic EPS of 8.4p (2020: 11.0p), in line with Covid-related profit impact;
-- Balance sheet remains strong with cash and deposits of GBP22.1m and no debt; and
-- Interim dividend of 5.3p per share to be paid 5 November 2021.
Operational highlights
-- 40 new client wins secured, including home goods retailer
Homebase, University of York and The Royal Mint;
-- Accessible potential policyholder employee pool remains strong, underpinning future growth;
-- New insurance policyholder conversion rates equalling or
exceeding pre-Covid levels where face-to-face meetings have
recommenced, whilst retention rates for existing policyholders
remain strong;
-- Claims ratio in insurance business remains stable at 22.5% (2020: 23.0%); and
-- Pleasing levels of trial Sage Employee Benefits users (SME
employees) converting to the paid offering.
Current trading and Outlook
-- Positive first half performance alongside current trading
gives increased confidence in full year trading;
-- Group well placed to capitalise on opportunities that are
emerging from an increased awareness and focus on employee health
and wellbeing;
-- Face-to-face sales meetings for insurance products booked until the end of FY21
-- New Benefit Management System technology 'HapiFlex'
successfully launched with University of York;
-- Healthy pipeline of new business opportunities building across all divisions; and
-- As at 1 September 2021 Sage Employee Benefits was generating
over GBP1.5m gross annualised recurring revenues, with c1,100
paying companies, up 50% vs 1 March 2021.
* Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation of intangible assets, goodwill
impairment, share-based expense payment and corporate acquisition
costs. This definition applies to all references to Adjusted EBITDA
within these interim results. A reconciliation from PBT to this
Adjusted EBITDA has been included in Note 3.
Deborah Frost, Chief Executive of Personal Group, commented:
"We have made good strategic progress across all divisions in
the first half of the year. We have achieved a number of key
contract wins, made good progress with our Sage partnership and
developed our offering significantly. Towards the end of the
period, we were able to recommence face-to-face insurance sales,
and have recorded great results so far, with our teams booked for
the remainder of the year. This represents an important inflection
point for our Group as we begin to re-build our insurance book.
Alongside the progress made against our strategic initiatives,
demand for our offering has never been stronger, as we have seen
more and more people appreciating the risks of living without
health and life insurance and wanting peace of mind in these
uncertain times. Additionally, the impact of wage inflation and the
competitive market for talent means employers need to consider what
their holistic proposition offers to their workforces more
carefully than they have previously.
As businesses from all sectors increasingly acknowledge their
responsibility to support their employees and address their needs,
we believe that our unique offering, combining insurance and other
employee wellbeing support and benefits, will continue to resonate
with the market and our clients' employees alike. Notwithstanding
the ongoing impact of lower insurance sales last year, as in-person
meetings were halted in line with pandemic restrictions, I am
extremely encouraged by the progress we have made in the first half
of 2021 and post-period end. I look to the future with
confidence."
An overview of the interim results from Deborah Frost, Chief
Executive, is available to watch here:
https://youtu.be/Hx60-Vptg_8
Personal Group Holdings will be hosting a webinar for private
investors on Friday 24 September at 14.00. If you would like to
register for the webinar, please follow this link:
https://bit.ly/PGH_H121
-S -
For more information please contact:
Personal Group Holdings Plc
Deborah Frost / Sarah Mace +44 (0)1908 605 000
Cenkos Securities Plc
Camilla Hume / Callum Davidson (Nominated Adviser) +44 (0)20 7397 8900
Russell Kerr (Sales)
Alma PR
Susie Hudson/Caroline Forde/Harriet Jackson +44 (0)20 3405 0205
personalgroup@almapr.co.uk
Notes to Editors
Personal Group Holdings Plc (AIM: PGH) is a digitally enabled
workforce benefits and services provider. The Group enables
employers across the UK to improve employee engagement and support
their people's physical, mental, social, and financial wellbeing.
Its vision is to create a brighter future for the UK workforce.
Personal Group provides health insurance services and a broad
range of employee benefits, engagement, and wellbeing products.
Many of these services are delivered through its proprietary app,
Hapi.
The Group's growth strategy is centred around widening the
footprint of the business into the SME, talent-led & Public
Sectors, thereby expanding the addressable customer base. In
addition, it aims to grow in its existing industrial heartlands, to
re-invigorate growth in insurance policyholders and to drive the
use of its SaaS offerings.
Group Clients include: Arsenal FC, Barchester Healthcare, DHL
Supply Chain Limited, Merseyrail, Randstad, Royal Mail Group, the
Sandwell & Birmingham NHS trust and Stagecoach Group plc. c.40%
of clients are served by two or more Personal Group companies.
For further information, please see www.personalgroup.com
Interim Results Statement
I am pleased to report on a period where we have seen strategic
progress across all the Group's divisions.
Whilst our top line financials reflect the impact of Covid-19
restrictions over the last 18 months, and will continue to do so
into FY22, the underlying business is progressing well. We are
profitable and in a strong financial position with an excellent
team and quality technology. We are now also seeing many of our
growth initiatives beginning to flourish.
The marketplace in which we operate is expanding with workforce
benefits and services a substantial growth area for the UK.
Employees are expecting more from their employers, and with wage
inflation, increases to National Insurance costs and a shortage of
talent, employers are having to be more flexible and imaginative in
their provision of benefits. Supporting health and wellbeing is
increasingly understood to be a vital offering, with health issues
that may once have been considered a distant future possibility
brought to the forefront of young adults' minds, with a realisation
that such events could happen 'any day'.
Our proposition has never been more relevant, and we are seeing
this reflected in our increasing new business pipeline.
Sales and Operational review
In our Insurance benefits business, whilst we remained unable to
conduct face-to-face sales meeting with potential policyholders for
the majority of the first half, retention rates for existing
policyholders remained strong and pleasingly claims ratios
(including COVID-19 related) were broadly in line with previous
years. As in 2020, this reflected a slightly higher claims ratio
for our death benefit plan offset by a lower claims ratio for our
hospital plan, in comparison to pre-Covid levels. We anticipate
seeing the balance on this start to swing back as the NHS starts to
address its well-publicised waiting lists. Premium income declined
to GBP12.5m, and the number of policies reduced to 236,000 as at 30
June 2021, as expected, primarily a result of the restrictions
placed on face-to-face meetings. However, with the resumption of
face-to-face, the Insurance benefits business has reached an
inflection point and from July we have started to see growth in our
policyholder numbers. We expect the re-building of our insurance
book to continue into the second half and into 2022.
Our SaaS employee engagement and benefits products have been in
demand during the period. P ass-through transactional spend through
the Hapi platform on products such as e-vouchers and reloadable
cards was particularly strong in H1, up 41.9% on the same period in
2020, reflecting increased usage of the platform by registered card
users. Recurring revenue from platform subscriptions has remained
stable. Sage Employee Benefits has also continued to generate
revenues with growth particularly notable post-period end when the
latest round of free trials converted to paid.
Innecto, our reward consultancy, delivered a strong H1
performance with retention rates of 92% on their digital products
and several new clients signed in the period including Avanti West
Coast, Newcastle University and Norfolk Care Association. This,
together with an upward trend in consultancy income, supports our
expectation that momentum will continue into the second half of the
year.
Let's Connect, our salary sacrifice consumer technology benefits
business, has also performed well, with revenue up significantly on
the previous year helped by schemes deferred from 2020 and
continued strong sales from Royal Mail Group's 'always on' scheme.
The employee penetration rate of schemes at end of H1 was also
ahead of H1 2020, although margin continues to be impacted by
supply chain disruption, in particular the global computer chip
shortage.
Financial summary
Our adjusted EBITDA performance in the period reflects the
impact of our inability to conduct face-to-face sales of insurance
products over the majority of the first half and most of the prior
year, which has resulted in reduced premium income levels. This
decline has been partly offset by continued insurance acquisition
cost savings together with growth in adjusted EBITDA across the
Group's other divisions.
We maintain a strong balance sheet with cash and deposits of
GBP22.1m and no debt.
Dividend
In line with the Group's updated dividend payment profile
announced on 5 November 2020, the Company announces that an interim
dividend for 2021 of 5.3p will be paid on 5 November 2021 to
members on the register as at 1 October 2021 (the record date).
Shares will be marked ex-dividend on 30 September 2021. The last
day for elections will be on 15 October 2020.
Performance against growth strategy
Our growth strategy is focused on widening our footprint across
a broader range of industries as part of our vision to create a
brighter future for the UK workforce.
We aim to ensure the insurance, employee benefits and wellbeing
services we provide can be delivered in an appropriate,
easy-to-access and cost effective medium. To this end we are
pursuing the greater use of technology across the business,
including through our proprietary platform and app, Hapi. This
means that the Group will increasingly benefit from a growing level
of recurring revenue and high margins. We also intend to accelerate
cross-selling across the Group.
Driving insurance sales through existing and new channels
We have seen success in further increasing our pipeline of
employees to sell to in future, with new contract wins in the
period, including home goods retailer Homebase, and significant
extensions of our reach with existing clients such as
Cranswick.
In addition, since we have been able to restart our face-to-face
activity towards the end of H1 2021, we have seen face-to-face
conversion rates equalling or exceeding pre-COVID levels and a
change in the mix of demand for our products with death benefit
sales up from 22% to 31% as a proportion of total sales. We believe
this is due to the pandemic having brought health risks into focus
which will, in turn, drive incremental growth.
Our insurance sales team is now booked with face-to-face
meetings until the end of FY21, and in some cases beyond. We have
started to add new members to the team in the first half and
anticipate hiring further in the second half to help satisfy the
strong demand in the market. We continue to supplement our
face-to-face meetings with virtual visits and telesales channels
and also have digital insurance solution trials underway.
Scaling up the SME offer
Sage Employee Benefits ('SEB'), the Group's workforce engagement
platform for SMEs created and sold in partnership with Sage,
continued to gain traction in the period with to p line
contribution starting to increase as conversions became more
significant at the end of H1. This has built further post-period
end and as at 1 September 2021 SEB was generating over GBP1.5m
gross annualised recurring revenues with c1,100 companies now
paying, a c50% increase from six months earlier.
Given the success of this offering, the Sage client acquisition
process is now in full operation with free trial client recruitment
having re-started in March 2021. The Group anticipates revenue
generated by the division will grow steadily across the second
half.
Maximising return on Hapi through client and end-user
monetisation
The Group's employee engagement app 'Hapi' is a core part of the
product offering. It differs from competitors' products through the
strength of the technology, in particular in relation to its mobile
App, and the breadth of its capabilities.
We have been focused on improving the offering in the first
half, building our new Benefit Management System, HapiFlex, an
enhanced proposition which will allow us to compete in a broader
range of industries as well as providing services and products to
employees with more disposable income. This has now been
successfully launched with the University of York and we believe
the Benefit Management System will open doors in key public-sector
frameworks as well as private sector companies. Going forward, we
will continue to invest in this offering.
New client acquisition activity increased with new clients
onboarded including ATS Euromaster, Royal Mint, B Braun, Screwfix,
B&Q, Homebase and The Caravan Club. In addition, a new
partnership with The Retail Trust has been signed, providing access
to over half a million retail workers.
Activated employees across Hapi and SEB grew to 489,000 as at 30
June 2021 (31 Dec 2020: 488,000).
Current trading and Outlook
Trading post-period end has continued to build momentum and
supports our confidence going forward.
Looking ahead, our focus will be on three key strategic
priorities:
-- Maximising the opportunity for our insurance products;
-- Accelerating the digital transformation of our offering across all divisions; and
-- Driving growth of our enhanced SaaS offer across all sectors.
Whilst the financial impact of 18 months of Covid-restrictions
will continue to flow through in H2 2021 and into 2022 our pipeline
of new business, not only in insurance but across all the Group's
divisions, is growing and underpins our positive medium-term
outlook.
With our strong balance sheet, we are well-placed to invest for
growth, whilst capitalising on market demand and the increased
focus by employers on their employees' health and financial
wellbeing. We are looking forward to executing on our strategy
across the second half and beyond, building our business and
creating a brighter future for the UK workforce.
Martin Bennett Deborah Frost
Non-Executive Chairman Chief Executive
21 September 2021
Consolidated Income Statement
6 months 6 months
ended ended
30 June 2021 30 June 2020
Unaudited Unaudited
Note GBP'000 GBP'000
Gross premiums written 12,752 15,132
Outward reinsurance premiums (79) (89)
Change in unearned premiums (186) (168)
Change in reinsurers' share of
unearned premiums (8) (9)
(________) (________)
Earned premiums net of reinsurance 12,479 14,866
Other insurance related income 85 74
IT salary sacrifice income 6,203 5,241
SaaS income 15,326 10,147
Other non-insurance income 50 49
Investment income 13 57
(________) (________)
Revenue 34,156 30,434
(________) (________)
Claims incurred (2,810) (3,341)
Insurance operating expenses (6,765) (7,210)
Other insurance related expenses 115 (62)
IT salary sacrifice expenses (6,291) (5,535)
SaaS costs (14,766) (9,782)
Share-based payment expenses (81) (6)
Charitable donations (35) (50)
Amortisation of intangible assets (266) (216)
(________) (________)
Expenses (30,899) (26,202)
(________) (________)
Operating profit 3,257 4,232
Finance costs (17) (44)
(________) (________)
Profit before tax 3,240 4,188
Tax 4 (602) (756)
(________) (________)
Profit for the period after tax 2,638 3,432
(________) (________)
Total comprehensive income for
the period 2,638 3,432
(________) (________)
Earnings per share Pence Pence
Basic 8.4 11.0
Diluted 8.4 11.0
The total comprehensive income for the period is attributable to
equity holders of Personal Group Holdings Plc.
Consolidated Balance Sheet
At 30 June 2021 At 31 Dec 2020
Unaudited Audited
Note GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 6 12,696 12,696
Intangible assets 7 1,110 1,254
Property, plant and equipment 8 5,242 5,456
(_______) (_______)
19,048 19,406
(________) (________)
Current assets
Financial assets 9 2,587 2,587
Trade and other receivables 13,705 18,346
Reinsurance assets 61 78
Inventories 797 861
Cash and cash equivalents 19,505 17,589
Current tax assets - 55
(________) (________)
36,655 39,516
(________) (________)
Total assets 55,703 58,922
(________) (________)
Consolidated Balance Sheet
At 30 June 2021 At 31 Dec 2020
Unaudited Audited
Note GBP'000 GBP'000
EQUITY
Equity attributable to equity holders
of Personal Group Holdings plc
Share capital 1,561 1,561
Share premium 1,134 1,134
Capital redemption reserve 24 24
Other reserve (32) (21)
Share based payment reserve 10 76 -
Profit and loss reserve 39,133 38,076
(________) (________)
Total equity 41,896 40,774
(________) (________)
LIABILITIES
Non-current liabilities
Deferred tax liabilities 349 399
Trade and other payables 254 352
(________) (________)
603 751
(________) (________)
Current liabilities
Trade and other payables 10,320 14,274
Insurance contract liabilities 2,728 3,123
Current tax liabilities 156 -
(________) (________)
13,204 17,397
(________) (________)
(________) (________)
Total liabilities 13,807 18,148
(________) (________)
(________) (________)
Total equity and liabilities 55,703 58,922
(________) (________)
Consolidated Statement of Changes in Equity for the six months
ended 30 June 2021
Share
Capital Based Profit
Share redemption Other Payment & loss Total
capital Share Premium reserve reserve Reserve reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 January 2021 1,561 1,134 24 (21) - 38,076 40,774
(________) (________) (________) (________) (________) (________) (________)
Dividends - - - - - (1,592) (1,592)
Employee share-based
compensation - - - - 76 5 81
Proceeds of SIP*
share sales - - - - - 19 19
Cost of SIP shares
sold - - - 13 - (13) -
Cost of SIP shares
purchased - - - (24) - - (24)
(________) (________) (________) (________) (________) (________) (________)
Transactions
with owners - - - (11) 76 (1,581) (1,516)
(________) (________) (________) (________) (________) (________) (________)
Profit for the
period - - - - - 2,638 2,638
(________) (________) (________) (________) (________) (________) (________)
Total comprehensive
income for the
period - - - - - 2,638 2,638
(________) (________) (_______) (_______) (_______) (_______) (_______)
Balance as at
30 June 2021 1,561 1,134 24 (32) 76 39,133 41,896
(________) (________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Changes in Equity for the six months
ended 30 June 2020
Capital Profit
Share Share redemption Other & loss Total
capital Premium reserve reserve reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January
2020 1,561 1,134 24 (230) 35,526 38,015
(________) (________) (________) (________) (________) (________)
Dividends - - - - (2,307) (2,307)
Employee share-based
compensation - - - - 6 6
Proceeds of SIP* share
sales - - - - 3 3
Cost of SIP shares
sold - - - 14 (14) -
Cost of SIP shares
purchased - - - (4) - (4)
(________) (________) (________) (________) (________) (________)
Transactions with
owners - - - 10 (2,312) (2,302)
(________) (________) (________) (________) (________) (________)
Profit for the period - - - - 3,432 3,432
(________) (________) (________) (________) (________) (________)
Total comprehensive
income for the period - - - - 3,432 3,432
(________) (________) (_______) (_______) (_______) (_______)
Balance as at 30 June
2020 1,561 1,134 24 (220) 36,646 39,145
(________) (________) (________) (________) (________) (________)
* PG Share Ownership Plan (SIP)
Consolidated Statement of Cash Flows
6 months 6 months
ended ended
30 June 2021 30 June 2020
Unaudited Unaudited
GBP'000 GBP'000
Net cash from operating activities (see
opposite) 3,930 4,564
(______) (______)
Investing activities
Additions to property, plant and equipment (69) (197)
Additions to intangible assets (122) (205)
Proceeds from disposal of property, plant
and equipment - 336
Purchase of financial assets (1) (503)
Interest received 13 42
(______) (______)
Net cash from investing activities (179) (527)
(______) (______)
Financing activities
Purchase of own shares by the SIP (16) (2)
Proceeds from disposal of own shares
by the SIP 8 11
Interest paid (2) (1)
Payment of lease liabilities (233) (275)
Dividends paid (1,592) (2,307)
(______) (______)
Net cash used in financing activities (1,835) (2,574)
(______) (______)
Net change in cash and cash equivalents 1,916 1,463
Cash and cash equivalents, beginning
of period 17,589 14,476
(_______) (_______)
Cash and cash equivalents, end of period 19,505 15,939
(________) (________)
Consolidated Statement of Cash Flows
6 months 6 months
ended ended
30 June 2021 30 June 2020
Unaudited Unaudited
GBP'000 GBP'000
Operating activities
Profit after tax 2,638 3,432
Adjustment for:
Depreciation 480 509
Amortisation of intangible assets 266 216
(Profit)/Loss on disposal of property, plant
and equipment - (130)
Interest received (13) (42)
Interest charge 17 44
Share-based payment expenses 81 6
Taxation expense recognised in income statement 602 756
Changes in working capital:
Trade and other receivables 4,658 8,288
Trade and other payables (4,420) (6,969)
Inventories 64 (149)
Taxes paid (443) (1,397)
(________) (________)
Net cash from operating activities 3,930 4,564
(________) (________)
Notes to the Consolidated Financial Statements
1 General information
The principal activities of Personal Group Holdings Plc ('the
Company') and subsidiaries (together 'the Group') include
transacting short-term accident and health insurance and providing
employee services in the UK.
The Company is a limited liability company incorporated and
domiciled in England. The address of its registered office is John
Ormond House, 899 Silbury Boulevard, Milton Keynes, MK9 3XL.
The Company is listed on the Alternative Investment Market of
the London Stock Exchange.
The condensed consolidated financial statements do not include
all the information required for full annual financial statements
and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2020.
The financial information for the year ended 31 December 2020
set out in this interim report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The
statutory financial statements for the year ended 31 December 2020
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified and did not
contain a statement under Section 498 (2) or (3) of the Companies
Act 2006.
These interim financial statements are unaudited and have not
been reviewed by the auditors under International Standard on
Review Engagements (UK and Ireland) 2410.
These consolidated interim financial statements have been
approved for issue by the board of directors on 21 September
2021.
2 Accounting policies
These June 2021 interim consolidated financial statements of
Personal Group Holdings Plc are for the six months ended 30 June
2021. These interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting.
They do not include all the information required for a complete
set of IFRS financial statements. However, selected explanatory
notes are included to explain events and transactions that are
significant to an understanding of the changes in the Group's
financial position and performance since the last annual
consolidated financial statements as at and for the year ended 31
December 2020.
These financial statements have been prepared in accordance with
IFRS standards and IFRIC interpretations as adopted by the EU,
issued and effective as at 30 June 2021.
The principal accounting policies remain unchanged from the year
ended 31 December 2020. No new standards have become applicable for
accounting periods commencing on or after 1 January 2021.
3 Segment analysis
The segments used by management to review the operations of the
business are disclosed below.
1) Core Insurance
Personal Assurance Plc (PA), a subsidiary within the Group, is a
PRA regulated general insurance Company and is authorised to
transact accident and sickness insurance. It was established in
1984 and has been underwriting business since 1985. In 1997
Personal Group Holdings Plc (PGH) was created and became the
ultimate parent undertaking of the Group.
Personal Assurance (Guernsey) Limited (PAGL), a subsidiary
within the Group, is regulated by the Guernsey Financial Services
Commission and has been underwriting death benefit policies since
March 2015.
This operating segment derives the majority of its revenue from
the underwriting by PA and PAGL of insurance policies that have
been bought by employees of host companies via bespoke benefit
programmes. During 2020 PAGL began underwriting employee default
insurance for a proportion of LC customers.
2) IT Salary Sacrifice
IT salary sacrifice refers to the trade of PG Let's Connect, a
salary-sacrifice technology company purchased in 2014.
3) SaaS
Revenue in this segment relates to the annual subscription
income and other related income arising from the licensing of Hapi,
the Group's employee benefit platform. This includes sales to both
the large corporate and SME sectors. Also included in this segment,
from 1 March 2020, is consultancy and license income derived from
selling Innecto digital platform subscriptions.
4) Other
The other operating segment consists exclusively of revenue
generated by Berkeley Morgan Group (BMG) and its subsidiary
undertakings along with any investment and rental income obtained
by the Group.
The revenue and net result generated by each of the Group's
operating segments are summarised as follows,
Operating segments IT Salary
Core Insurance Sacrifice SaaS Other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months to June 2021
Earned premiums net of reinsurance 12,479 - - - 12,479
Other insurance related income - - - 85 85
Non-insurance related income -
IT Salary Sacrifice - 6,203 - - 6,203
Non-insurance related income -
Platform - - 1,905 - 1,905
Non-insurance related income -
Transactional and commission - - 13,421 - 13,421
Non-insurance related income -
Other - - - 50 50
Investment income - - - 13 13
(_________) (_________) (_________) (_________) (_________)
12,479 6,203 15,326 148 34,156
Total revenue (_________) (_________) (_________) (_________) (_________)
Net result for period before tax 2,773 (122) 443 146 3,240
Innecto - amortisation of intangibles - - 103 - 103
Interest 12 2 3 - 17
Share-based payment expenses - - - 81 81
Depreciation 266 49 160 5 480
Amortisation (other) 125 32 6 - 163
Adjusted EBITDA 3,176 (39) 715 232 4,084
(_________) (_________) (_________) (_________) (_________)
Segment assets 28,964 7,092 5,214 14,433 55,703
(_________) (_________) (_________) (_________) (_________)
Segment liabilities 7,078 2,113 4,651 5 13,807
(_________) (_________) (_________) (_________) (_________)
Depreciation and amortisation 391 81 269 5 746
(_________) (_________) (_________) (_________) (_________)
All 2021 income was derived from customers that are based in the
UK.
Notes to the Consolidated Financial Statements
Operating segments IT Salary
Core Insurance Sacrifice SaaS Other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months to June 2020
Earned premiums net of reinsurance 14,863 - 3 - 14,866
Other insurance related income - - - 74 74
Non-insurance related income -
IT Salary Sacrifice - 5,241 - - 5,241
Non-insurance related income -
Platform - - 1,646 - 1,646
Non-insurance related income -
Transactional and commission - - 8,501 - 8,501
Non-insurance related income -
Other - - - 49 49
Investment income - - - 57 57
(_________) (_________) (_________) (_________) (_________)
14,863 5,241 10,150 180 30,434
Total revenue (_________) (_________) (_________) (_________) (_________)
Net result for period before tax 4,083 (333) 247 191 4,188
Innecto- amortisation of intangibles - - 103 - 103
Interest 30 8 6 - 44
Share-based payment expenses - - - 6 6
Depreciation 280 55 169 5 509
Amortisation (other) 70 30 13 - 113
Adjusted EBITDA 4,463 (240) 538 202 4,963
(_________) (_________) (_________) (_________) (_________)
Segment assets 27,367 6,173 1,648 14,562 49,780
(_________) (_________) (_________) (_________) (_________)
Segment liabilities 6,867 2,577 1,185 6 10,635
(_________) (_________) (_________) (_________) (_________)
Depreciation and amortisation 350 85 285 5 725
(_________) (_________) (_________) (_________) (_________)
4 Taxation
The tax expense recognised is based on the weighted average
annual tax rate expected for the full financial year multiplied by
management's best estimate of the taxable profit of the interim
reporting period.
The Group's consolidated effective tax rate in respect of
continuing operations for the six-month period ended 30 June 2021
was 18.6% (six-month period ended 30 June 2020: 18.1%).
5 Earnings per share and dividends
The weighted average numbers of outstanding shares used for
basic and diluted earnings per share are as follows:
6 months ended EPS 6 months ended EPS
30 June 2021 Pence 30 June 2020 Pence
Basic 31,213,128 8.4 31,171,543 11.0
-------------- ------ -------------- ------
Diluted 31,214,981 8.4 31,171,543 11.0
-------------- ------ -------------- ------
During the first six months of 2021 Personal Group Holdings Plc
paid dividends of GBP1,592,000 to its equity shareholders (2020:
GBP2,307,000). This represents a payment of 5.10p per share (2020:
7.40p).
6 months ended 6 months ended
30 June 2021 30 June 2020
GBP'000 GBP'000
Dividends paid or provided for
during the period 1,592 2,307
(_____) (_____)
6 Goodwill
PG Let's Innecto Total
Connect
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 10,575 2,121 12,696
Additions in the year - - -
(________) (________)
_________ _______ (________)
At 30 June 2021 10,575 2,121 12,696
(________) (________)
_________ _________ (________)
Amortisation and impairment
At 1 January 2021 - - -
Impairment charge for year - - -
(________) (________) (________)
_________ _________ _________
At 30 June 2021 - - -
(________) (________) (________)
Net book value at 30 June 2021 10,575 2,121 12,696
(________) (________) (________)
Net book value at 31 December 2020 10,575 2,121 12,696
(________) (________) (________)
7 Intangible assets
Internally
Computer Generated
Customer software Innecto Computer
Value and development Technology Software Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 2,374 1,520 298 506 4,698
Transfers - - - - -
Additions - 122 - - 122
Disposals - - - - -
(________) (________) (________) (________) (________)
At 30 June 2021 2,374 1,642 298 506 4,820
(________) (________) (________) (________) (________)
Amortisation
At 1 January 2021 1,914 922 110 498 3,444
Amortisation charge for
the year 73 151 30 12 266
Provided in the period - - - - -
Disposals in the period - - - - -
(________) (________) (________) (________) (________)
At 30 June 2021 1,987 1,073 140 510 3,710
(________) (________) (________) (________) (________)
Net book amount at 30
June 2021 387 569 158 4 1,110
(________) (________) (________) (________) (________)
Net book amount at 31
December 2020 460 598 188 8 1,254
(________) (________) (________) (________) (________)
8 Property, plant and equipment
Freehold Motor vehicles Computer Furniture Leasehold Right of Total
land and equipment fixtures improve- use Assets
properties & fittings ments
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 5,037 157 1,085 2,303 38 1,459 10,079
Additions - - 51 18 - 197 266
Disposals - - (180) (20) - (438) (638)
(______) (______) (______) (______) (______) (______) (______)
At 30 June 2021 5,037 157 956 2,301 38 1,218 9,707
(______) (______) (______) (______) (______) (______) (______)
Depreciation
At 1 January 2021 1,742 102 774 1,064 34 907 4,623
Provided in the
period 43 14 93 112 2 216 480
Disposals - - (180) (20) - (438) (638)
(______) (______) (______) (______) (______) (______) (______)
At 30 June 2021 1,785 116 687 1,156 36 685 4,465
(______) (______) (______) (______) (______) (______) (______)
Net book amount
at
30 June 2021 3,252 41 269 1,145 2 533 5,242
(______) (______) (______) (______) (______) (______) (______)
Net book amount
at
31 December 2020 3,295 55 311 1,239 4 552 5,456
(______) (______) (______) (______) (______) (______) (______)
9 Financial Investments
At 30 June At 31 December
2021 2020
Unaudited Audited
GBP'000 GBP'000
Bank deposits 2,587 3,067
(________) (________)
2,587 3,067
(_________) (_________)
IFRS 13 Fair Value Measurement establishes a fair value
hierarchy that categorises into three levels the inputs to
valuation techniques used to measure fair value. The fair value
hierarchy gives the highest priority to quoted prices (unadjusted)
in active markets for identical assets or liabilities (Level 1
inputs) and the lowest priority to unobservable inputs (Level 3
inputs)
-- Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities
-- Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices)
-- Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable
input).
Bank deposits, held at amortised cost, are due within 6 months
and the amortised cost is a reasonable approximation of the fair
value. These would be included within Level 2 of the fair value
hierarchy.
10 Long Term Incentive Plan (LTIP)
LTIP2021
The Remuneration Committee approved a new LTIP on 6 April 2021.
Under the scheme share options of Personal Group Holdings Plc are
granted to senior executives with an Exercise Price of 5p (nominal
value of the shares). The share options have various market and
non-market performance conditions which are required to be achieved
for the options to vest. The options also contain service
conditions that require option holders to remain in employment of
the Group. The market and non-market performance conditions are set
out below:
Total Shareholder Return (Market condition)
50% of the awards vest under this condition. Subject to Compound
Annual Growth Rate (CAGR) of the Total Shareholder Return (TSR)
over the Performance Period.
EBITDA Targets (Non-market condition)
35% of the awards vest under this condition. Subject to
cumulative EBITDA over the Performance Period.
Environmental, social and governance targets ("ESG") Targets
(Non-market condition)
Up to 15% of the awards vest under this condition. The awards
shall vest upon the Remuneration Committee determining that all ESG
targets have been met.
The fair value of the of the share options is estimated at the
grant date using a Monte-Carlo binomial option pricing model for
the market conditions, and a Black-Scholes pricing model for
non-market conditions. However, the above performance condition is
only considered in determining the number of instruments that will
ultimately vest.
There are no cash settlements alternatives. The Group does not
have a past practice of cash settlement for these share options.
The Group accounts for the LTIP as an equity-settled plan.
On 23 July 2020 the Remuneration Committee approved the grant of
a one-off share award of GBP75,000 to the Chief Executive in
recognition of the fact that no LTIP had been made available to her
since joining the Group. This award was issued under the new LTIP
mechanism introduced on 6 April 2021 and will be subject to
forfeiture up to March 2022 but does not have performance
conditions attached.
In total, GBP76,000 of employee share-based compensation has
been included in the consolidated income statement to 30 June 2021
(2020: GBPnil). The corresponding credit is taken to equity. No
liabilities were recognised from share-based transactions. The
remaining GBP5,000 of share-based compensation expense relates to
the Company Share Option Plan (CSOP).
11 Financial calendar for the year ending 31 December 2021
The Company announces the following dates in its financial
calendar for the year ending 31 December 2021:
-- Preliminary results for the year ending 31 December 2021 -
March 2022
-- Publication of Report and Accounts for 2021 - March 2022
-- AGM - April/May 2022
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END
IR PPUQGBUPGGBU
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