Personal Group reveals preliminary results for full year 2023

Firm touts double-digit growth in key areas

Personal Group reveals preliminary results for full year 2023

Insurance News

By Kenneth Araullo

Workforce benefits provider Personal Group Holdings has announced its preliminary financial outcomes for the year 2023.

The announcement highlighted an uptick in the group’s KPIs, with an expansion in total client numbers and growth in recurring revenue sectors.

This performance in the latter half of the year has also solidified the board's view that Personal Group is on a growth path, set to harvest benefits from recent investments in offerings and team enhancements.

Financially, the company saw its revenue increase in all segments except for Let’s Connect, maintaining a steady group revenue of £49.7 million, nearly mirroring the previous year's figure. Excluding Let’s Connect, revenue saw a 17% increase to £38.6 million from £33.0 million, with recurring revenue up by 14% to £38.3 million.

Adjusted EBITDA rose by 35% to £8.1 million, aligning with market predictions, and adjusted profit before tax was reported at £5.3 million, up from the previous year’s £3.8 million when excluding goodwill impairment.

The company also has £20.1 million in cash and deposits at year-end, without any debt, and announced a final dividend of 5.85p per share for 2023, totalling an 11.7p dividend for the year, to be paid on May 8, 2024.

The year also set a record for insurance sales, with new annualised insurance sales hitting £11.8 million and an annualised premium income increase of 13% to £31.6 million.

The claims ratio remained stable, and the company's benefits platform saw significant growth, adding new clients and launching the next generation of its employee benefits platform, Hapi 2.0, with favourable initial feedback.

Personal Group outlook for 2024

Looking forward, Personal Group expressed confidence for the rest of the year, underpinned by a strong balance sheet and a growing portion of recurring revenue.

The company has noted positive trading in the first quarter, including renewing a contract with Royal Mail Group and securing a significant new contract in its Pay & Reward division with a global airline.

Paula Constant, CEO of Personal Group, reflected on the year as a period of significant change and achievement.

“We are now focusing on building the detail of our strategy and product portfolio, in addition to simplifying the business’ processes to deliver more effectively for customers, capitalise on our opportunities and maximise value for shareholders. I look forward to updating the market on our progress in due course,” Constant said.

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