AIM-listed Personal Group (AIM: PGH), the workforce benefits and services provider, has this morning announced its full year results for the 12 month period ending 31 December 2022. CEO Deborah Frost has described the period as a “planned year of investment” though revenues in the period grew to over £86.7m. The final dividend was 5.3p, making a total dividend for the year of 10.6p per share.

In the TV clip below Deborah Frost, Personal Group’s Chief Executive pinpoints the major operational and financial highlights from the period. 

The Group’s revenue increased by 16% to £86.7m ($119m) compared to £74.5m ($102m) in 2021. Adjusted EBITDA was £6m ($8.3m), in line with market expectations, showing significant half on half EBITDA growth, with H2 2022 adjusted EBITDA of approximately £4.5m ($6.2m) and H1 2022 at £1.5m ($2.1m). Despite recording a statutory loss before tax of £6.8m ($9.4m) due to a £10.6m ($14.6m) goodwill impairment of Let’s Connect, Personal Group Holdings has reported an adjusted profit before tax of £3.8m ($5.2m), with an adjusted basic EPS of 10.6p ($0.15) and a statutory basic EPS of (23.1)p ($0.32).

The company reported growth in the number of clients, securing significant new contracts with 101 new clients, including Secure Trust Bank, Telford & Wrekin Council, and the National Trust. Additionally, Personal Group’s customer base grew to 1.4 million employees in the UK with access to one or more of its services, up from 1.2 million in 2021.

The increased sales of Affordable Insurance provide the basis for future growth, with annualized premium income up by 15% to £28m ($38.4m), and new insurance sales reaching £9.5m ($13.1m), up 157% compared to 2021, at the highest level seen since 2018. Personal Group’s sales team’s investments helped boost the sales figure. However, the claims ratio increased to 27.7%, higher than historic norms, due to increased hospital admissions and visits following the COVID-19 pandemic’s lockdowns. The Group anticipates this to continue in the short to medium term, as the National Health Service (NHS) addresses long waiting lists.

Personal Group’s enterprise platform, Hapi, experienced an increase in subscriptions, with annualized recurring revenue increasing by 29% to £2m ($2.7m), up from £1.6m ($2.2m) in 2021. The Group also continued to expand its SME market, with Sage Employee Benefits, its SME proposition, achieving gross ARR of £3m ($4.1m) by the end of 2022, up from £1.6m ($2.2m) in 2021, and 50,000 paying employees on the platform.

Let’s Connect, the Group’s consumer technology benefits business, faced challenges during H2, impacting its major client due to industrial action, compounding the existing supply chain availability and impacting its peak trading period, leading to a goodwill impairment. However, other clients performed well, emphasizing the cost-of-living benefit for employees in being able to spread the cost of technology purchases without interest charges and credit checks they face on the High Street.

The acquisition of Quintige Consulting Group in July 2022 added to Personal Group’s Pay & Reward division footprint, providing opportunities for cross-selling and adding new clients. The Group’s growth in its insurance book and increased levels of ARR provide high levels of visibility of revenues for 2023. Personal Group’s investments in the development of the Hapi platform and expansion of its Pay and Reward offering provide