Personal Group Holdings Plc (AIM: PGH), a technology-enabled employee services provider, is pleased to provide the following update for the six months ended 30 June 2019.
The Company had a solid start to the year, with trading in line with management’s expectations.
The core insurance business continued to perform well, although new sales have been slower than expected in the first half as we continue to grow the insurance sales team, having exited 2018 with fewer people in the field. PG Let’s Connect, the technology salary sacrifice business, had a strong start to the year with revenue ahead of last year but remains a Q4 oriented business. SaaS continued to benefit from sales of third-party products via the Company’s proprietary digital platform, Hapi. We are also beginning to see the benefits of the recent Innecto acquisition, including opening a number of new and cross-selling opportunities within their client base.
Preparations for the full launch of the next product version of Sage Employee Benefits (SEB) are complete and we remain encouraged by the response to the soft launch that took place. The full launch is later than planned, due to Sage’s focus on Making Tax Digital which represented an immediate market opportunity for them. Sage remains a natural channel partner and we now look forward to progressing our partnership.
As we continue through 2019, the market for employee benefits remains strong, with continued pressure on companies across the UK in being able to attract and retain the right staff to drive and support improved productivity. The Board remains confident in the long-term outlook for the Company and will, as planned, provide an update on strategy during the half year results in September.
Deborah Frost, Chief Executive of Personal Group, commented:
“Personal Group has performed in line with management’s expectations during the first half of the year. Recent market testing of our proposition, following my appointment as Chief Executive, has confirmed that our offering strongly resonates. This, combined with the Company’s solid foundation, provides me with additional comfort for the future growth of the business. The Board remains confident in the long-term outlook for the Company and will, as planned, provide an update on strategy at the time of the announcement of the half year results in September.”