Personal Group (PGH) specialises in providing clients such as Network Rail and Stagecoach with a range of services including employee benefits packages, and now provides such services to over 2m employees in the UK. But as well as notching up a record year for generating new business in the core insurance division, recent acquisitions and product launches pushed operating profit higher still.
The 2014 acquisition of Lets Connect has provided the Aim-traded group with a salary sacrifice scheme whereby employees can buy iPads, computers and smart televisions. Lets Connect revenue for the year was up by a half. And establishing its own mobile virtual network operator after the acquisition of assets from Shebang Technologies, means that Personal Group's clients' employees can make savings of up to 47 per cent on phone and airtime costs.
A new technology platform called Hapi was introduced to 26 of its clients. This easy-to-navigate system allows end-users to review products such as hospital and convalescence plans, death benefits and income protection.
Analysts at Cenkos expect adjusted 2016 pre-tax profit of £10.5m and EPS of 25.6p, from £11.1m and 27.2p in 2015.
| PERSONAL GROUP (PGH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 565p | MARKET VALUE: | £172m | |
| TOUCH: | 555-575p | 12-MONTH HIGH: | 620p | LOW: 500p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 105p* | NET CASH: | £5.6m | |
| Year to 31 Dec | Gross premiums (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 20.6 | 10.0 | 24.8 | 17.4 |
| 2012 | 22.3 | 8.3 | 20.2 | 17.8 |
| 2013 | 23.0 | 3.7 | 7.0 | 18.6 |
| 2014 | 24.2 | 9.2 | 25.1 | 19.6 |
| 2015 | 29.5 | 10.4 | 30.8 | 20.9** |
| % change | +22 | +14 | +23 | +7 |
*Includes intangible assets of £11.9m, or 39p a share **Dividends paid quarterly; fourth interim paid on 17 December | ||||
