Personal Group Holdings PLC Update on Trading, PGM and Investment (5933D)
08 July 2016 - 12:22AM
UK Regulatory
TIDMPGH
RNS Number : 5933D
Personal Group Holdings PLC
07 July 2016
Press Release 7 July 2016
This announcement contains price sensitive information
Personal Group Holdings Plc
("the Company" or "the Group")
Update on Trading, PGM and Investment
The Company provides an update on trading for the six month
period to 30 June 2016. The Group's core businesses of Insurance
and PG Tech, its salary sacrifice technology business, have traded
strongly over the first six months. The insurance business achieved
record new sales of GBP6.2m (H1 2015: GBP5.5m) exceeding last
year's record. We remain on target to launch Royal Mail as a PG
Tech customer with a rollout currently being planned for September
this year. All contractual elements have now been agreed and are
expected to be signed in the coming weeks.
Following a review of PG Mobile, the Company's Mobile Virtual
Network Operator ("MVNO"), the Company has concluded that the
market conditions have changed and will not allow for the expected
run rate to be achieved. Wholesale pricing available to the
business is not keeping pace with the fast moving market and uptake
in salary sacrifice for mobiles is not meeting expectations. It is
the Company's view that resources could be better deployed to other
parts of the business and the Group therefore intends to close down
PG Mobile by the end of the year. This decision will see the
Company take a one off additional cost of GBP1m in the current
financial year to allow for the carefully managed wind down of the
activity. The Company has a full plan in place to manage its
customers through the wind down.
As previously announced, the Company have signed a Letter of
Intent with Sage (UK) Ltd ("Sage") for the development of a Sage
Employee Benefits product and platform. The development is
progressing well and the product is expected to be launched during
the fourth quarter of this year, conditional on certain regulatory
approvals.
Following launch, the product is intended to be offered through
Sage's payroll business, in the UK and Ireland. It is the intention
to eventually widen the offering to Sage's entire UK and Ireland
customer base. To achieve this, the investment required in this
financial year is approximately GBP1 million which will fund the
business and the board believes it is expected to payback within
the next financial year once operational.
- ENDS -
For more information please contact:
Personal Group Holdings
Plc
Mike Dugdale - Chief
Financial Officer +44 (0)1908 605 000
Cenkos Securities Plc
Max Hartley / Stephen
Keys (Nomad) +44 (0)20 7397 8900
Russell Kerr (Sales)
Media enquiries:
Abchurch Communications
Alex Shaw / Nessyah
Hart / Julian Bosdet +44 (0)20 7398 7700
Personalgp@abchurch-group.com www.abchurch-group.com
Notes to Editors
With over 30 years' experience of looking after its customers'
employees, Personal Group Holdings Plc (AIM: PGH) is a leading
provider of employee benefits and employee related insurance
products, offering benefits programmes to over 2 million employees
across the UK.
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 offering compelling to blue
chip clients across the UK as a way of attracting, retaining and
motivating employees. The Group tailors its packages to include
insurance products such as hospital and convalescence plans, death
benefit and income protection plans, as well as lifestyle benefits
such as holiday and retail discounts, health and wellbeing benefits
and a range of tax efficient benefits.
Personal Group can also supply home technology via salary
sacrifice through its subsidiary Let's Connect. Offering the latest
iPads and other tablets, home computers and laptops, smart phones
and smart TVs is a highly engaging benefit from which both the
employer and employee can profit. In April 2015 the Group
established its own Mobile Virtual Network Operator (MVNO) called
Personal Group Mobile Ltd. which was achieved through the
acquisition of the assets of shebang Technologies Ltd. This means
that home technology, including handsets and airtime, can be
provided via salary sacrifice with a reduction of c10-47% on costs
to its client's employees.
Personal Group has a strong client base across a range of
sectors including transport, where it works with the likes of
Network Rail, Stagecoach and EYMS Group Ltd, and healthcare, where
clients include Four Seasons Health Care, Priory Group and Spire
Healthcare. The Group also covers logistics, with companies such as
TNT Express and Bibby, and motoring with Manheim and JCT600 as
clients. In addition the Group also has a strong presence in food
manufacturing and service and clients include 2 Sisters Food Group
and Young's Seafood.
With over 520 clients the Group has grown considerably and
provides engaging and effective benefits packages across a breadth
of sectors.
For further information, go to www.personal-group.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
July 07, 2016 10:22 ET (14:22 GMT)