Interim Results & Interim Dividend for the six months ended 30 June 2024

Positive first half performance, driven by growth across all business lines

On track to meet market expectations for the full year

Personal Group Holdings Plc (AIM: PGH), the workforce benefits and health insurance provider, is pleased to announce its interim results for the six months ended 30 June 2024.

The last six months have seen a strong performance across the business with the evolution of a clear strategy to capture a significant market opportunity. The Company has delivered double digit revenue growth across all areas of the business and notable EBITDA growth in excess of 30%.

Financial Highlights

• Revenue from Continuing Operations* up 14% to £21.0m (H1 2023: £18.4m), with growth across all areas
• Recurring revenue now 81% of total, up from 76% in H1 2023
• Adjusted EBITDA** from Continuing Operations* up 31% to £3.9m (H1 2023: £3.0m)
• Profit before tax from Continuing Operations* up 14% to £2.3m (H1 2023: £2.0m)
• Basic EPS of 5.4p (H1 2023: 4.5p)
• Recurring revenue continues to increase across the Group, providing high levels of visibility for the second half of FY24 and beyond:
  • Insurance Annualised Premium Income (“API”) increased by c.14% to £33.8m (H1 2023: £29.6m)
  • Benefits Platform Annual Recurring Revenue (“ARR”) increased c.15% to £6.3m (H1 2023: £5.5m)
  • Pay & Reward ARR increased c.6% to £0.7m (H1 2023: £0.6m)
• £5.2m of cash generated from operations, with cash and deposits at 30 June 2024 of £23.1m (31 December 2023: £20.1m), and debt free
• Interim dividend increased by 11% to 6.5p (H1 2023: 5.85p), reflecting the Board’s continued confidence in the Group’s performance and prospects

Operational Highlights

• New annualised insurance sales up 21% to £6.9m (H1 2023: £5.8m), a result of improved productivity alongside the growth in the size of the field sales team
• Disposal of Let’s Connect post the period-end has resulted in a simplified Group structure, enabling greater focus on core areas of the business
• Remaining business now has c.80% of recurring revenues and is no longer impacted by the seasonality of Let’s Connect
• 36 new client wins in the period (H1 2023: 36)
• Year on year retention rates for insurance remained strong at over 80%
• 100% of Sage Employee Benefits clients and c.40% of the Hapi Enterprise client base migrated across to next generation Hapi 2.0 platform, with full migration anticipated by the end of the year

Post-Period Trading and Outlook

• Strong new insurance sales have continued at the start of H2 2024, with retention rates remaining robust
• Trading in Q3 2024 continues to be in line with management’s expectations. This combined with the Group’s growing proportion of recurring revenues underpins the Board’s confidence in achieving market expectations for the full year

*Continuing Operations excludes the results of Let’s Connect, which was disposed of on 9 July 2024

**Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation of intangible assets, goodwill impairment, share-based payment expenses, corporate acquisition costs and restructuring costs; this definition remains unchanged from previous periods

Paula Constant, Chief Executive of Personal Group, commented:

“We are pleased to be reporting another set of strong results, showing continued growth, an increasing base of recurring revenue with high customer retention and strong cash generation. In the light of our strong performance to date in 2024, I am pleased to announce an increased interim dividend of 6.5 pence.

Our aspiration is to be the champion of affordable and accessible benefits, keeping businesses and their employees happy, healthy and protected. Never has this been more important. The ongoing cost-of-living pressures, increased sick leave and long NHS waiting lists are combining to put considerable pressure on UK businesses and their employees. We are focused on providing them with the offerings they need to mitigate these challenges.

We have an excellent platform from which to grow. The work in my first year as CEO to crystalise the strategy and simplify our products, processes and organisation puts us in a strong position to accelerate growth through both organic and inorganic channels, delivering further value to all our stakeholders.”

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