Personal Group (PGH) delivered a robust performance for the year to December 2017, despite significant headwinds that delayed the roll-out of its salary sacrifice scheme. That delay was caused by a review by the tax authorities that prompted a number of major clients to delay signing up to the benefits package.
However, with a green light from HMRC, last year’s pain should be this year’s gain, with Royal Mail taking up the Let’s Connect offering, whereby employees can save towards buying items such as iPads and computers. And in February Let’s Connect was appointed to the Crown Commercial Service Framework, which brings on board several major government departments including HMRC.
Meanwhile, the core insurance business notched up its fifth consecutive year of record sales, although revenue was lower following a decision to absorb the increase in insurance premium tax, and a transfer of revenues from the sale of its private medical insurance business to Axa.
The partnership with accountancy software provider Sage is set to expand, with the Sage employee benefit plan to be offered to a wider client base, including accounting and enterprise division customers, adding a potential 1.2m new customers.
Analysts at Cenkos are forecasting adjusted pre-tax profits for the year to December 2018 of £10.6m and EPS of 27.5p (from £10m and 26p in 2017).
| PERSONAL GROUP (PGH) | ||||
| ORD PRICE: | 387p | MARKET VALUE: | £119m | |
| TOUCH: | 382-392p | 12-MONTH HIGH: | 501p | LOW: 272p |
| DIVIDEND YIELD: | 5.9% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 110p* | NET CASH: | £16.2m | |
| Year to 31 Dec | Gross premiums (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 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 |
| 2016 | 31.4 | 10.5 | 29.7 | 22 |
| 2017 | 30.7 | 9.5 | 26.1 | 22.7 |
| % change | -2 | -10 | -12 | +3 |
| Ex-div: | 15 Feb | |||
| Payment: | 23 Mar | |||
| *Includes intangible assets of £11.6m, or 38p a share. Dividends paid quarterly, XD and pay dates refer to first quarterly dividend for 2018 of 5.75p a share | ||||
