Workforce benefits and health insurance provider Personal Group Holdings has reported its interim results for the six months ending June 30, 2024. The company highlighted a period of revenue and profit growth, underpinned by its strategy to capture market opportunities.
Revenue from continuing operations rose 14% to £21 million, compared to £18.4 million in the first half of 2023. The company reported growth across all areas of its business, with recurring revenue now making up 81% of total income, an increase from 76% in H1 2023.
Adjusted EBITDA from continuing operations also saw a 31% increase, reaching £3.9 million, compared to £3 million in the previous period. Profit before tax similarly rose by 14%, from £2 million to £2.3 million.
The company’s annualised premium income for its insurance division increased by 14% to £33.8 million while its benefits platform’s annual recurring revenue grew by 15% to £6.3 million. Additionally, Personal Group’s Pay & Reward platform saw a 6% rise in annual recurring revenue, reaching £0.7 million.
Personal Group remains debt-free, with £5.2 million of cash generated from operations during the first half of 2024, bringing the company’s total cash and deposits to £23.1 million, up from £20.1 million at the end of December 2023. The company also announced an 11% increase in its interim dividend to 6.5p per share, citing confidence in future performance.
Operationally, the company recorded a 21% rise in new annualised insurance sales, reaching £6.9 million. This increase is attributed to higher productivity and a larger field sales team. Additionally, 36 new clients were signed during the period, matching the number from H1 2023. Insurance retention rates remained above 80%.
Following the sale of its Let’s Connect division in July 2024, Personal Group has simplified its structure and will now focus on core business areas, with about 80% of its revenues now recurring. The company also reported progress in migrating its client base to its Hapi 2.0 platform, with full migration expected by the year-end.
Looking ahead, Personal Group reports that new insurance sales remained strong at the beginning of the second half of 2024, with retention rates holding steady. Trading in the third quarter is said to be in line with management’s expectations, supported by the company’s growing recurring revenue base.
Chief executive Paula Constant (pictured above) stated that the company continues to deliver growth, driven by recurring revenue and strong cash generation. She also confirmed the increase in the interim dividend to 6.5p per share.
Constant emphasised Personal Group’s focus on providing benefits solutions to help businesses and employees navigate challenges, including rising living costs, sick leave, and long NHS waiting lists.
“We have an excellent platform from which to grow,” she said. “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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