Final Results

Personal Group Holdings PLC
31 March 2004

31 March 2004



PERSONAL GROUP HOLDINGS PLC

PRELIMINARY ANNOUNCEMENT OF RESULTS



The Board of Directors of Personal Group Holdings Plc providers of employee
benefits and related business, are pleased to announce the Group's results for
the year ended 31 December 2003 as follows:

                                   HIGHLIGHTS
                                                                        2003          2002           %


Trading income*                                                        £13.7m        £12.8m        Up 7
Pre-tax profit                                                          £6.3m         £5.6m        Up 12
Earnings per share (Basic)                                              14.9p         13.2p        Up 13
Final dividend per share **                                             3.00p         2.35p        Up 27
Dividends per share                                                    10.00p         8.00p        Up 25



*    Trading income comprises earned premiums net of claims, claims handling
and reinsurance expenses, and other income from the on-going business
representing commission and fees earned on financial products and other related
services.

**   The directors have recommended a final dividend of 3.00p (2002: 2.35p) per
share payable on 11 May 2004 to shareholders on the register at the close of
business on 23 April 2004.  Shares will be marked ex-dividend on 21 April 2004.
The final dividend is subject to shareholder approval at the AGM to be held on
27 April 2004.

•    During the second half of 2003 major employee programmes were
launched for Tibbett & Britten, Living Well, Travis Perkins, Starbucks, The
Telegraph Group and Highfield Care.  So far in 2004 we have launched new
programmes for Brake Brothers, Christian Salvesen, Travelodge and Little Chef.



Ken Rooney, Chief Executive commented:

'The Group has had an exceptionally good year and is in an excellent position to
further invest in the business to extend and develop the opportunities at hand.

I am pleased to announce that the Group has today entered into a joint venture
agreement with Abbeygate Developments Limited, a leading property development
company in Milton Keynes, to build on the site adjacent to John Ormond House.
This project to build additional office space and 24 residential units will
involve an investment of approximately £4.5m and is expected to be completed by
the end of 2005.  Milton Keynes is a very successful retail and business centre
and we are glad to be offered the opportunity of taking part in this project.'


CHAIRMAN'S STATEMENT


I am pleased to report that the Group has produced another profitable year.
During 2003, our profit before tax increased by £691,000 to £6,305,000.


The directors propose a final dividend of 3.00p (2002: 2.35p) per share, which
increases the total dividends for the year by 25% to £2,985,000.   After
provision for taxation and dividends there is a surplus of £1,463,000, which has
been added to reserves.  Shareholders' funds now stand at £14.5m (2002: £13.6m),
which is 48p (2002: 44p) per share.


The performance of our investments including investment income, realised and
unrealised gains and losses and related expenses improved from a net income of
£286,000 in 2002 to a net income of £380,000.  By the end of 2003 our Government
fixed interest securities and cash deposits had increased by £2,150,000 to
£12,883,000.


During the second half of 2003, new benefit programmes were launched for, among
others, Tibbett & Britten, Living Well, Travis Perkins, Starbucks, The Telegraph
Group and Highfield Care.


Current trading is in line with directors' expectations.


In February 2004 we completed the purchase of ParTake Services Limited, giving
us ownership of what we consider to be very useful intellectual property and the
services of their talented team of IT professionals.  Our Perflex benefits
software customers now have improved access to our back-up team and we have a
much greater ability to develop our position in the internet-related benefits
market.  The property-related, multiple listing services pioneered by ParTake
will be subject to the appropriate level of investment to establish this as
another source of revenue for the Group.


As mentioned in last year's Chairman's statement Ken Rooney will take up his
role as Chief Executive from 30 March 2004.  He takes on this important
responsibility with all my good wishes and ongoing support as Executive
Chairman.


I would like to extend my thanks to all our employees for their loyal service to
the Group during 2003.


Christopher W T Johnston
Chairman
30 March 2004


Enquiries:


Christopher Johnston, Executive Chairman
John Barber, Finance Director
Ken Rooney, Chief Executive
Personal Group Holdings Plc                              01908 605000

0207 444 4140 on 31st March 2004
01908 605000 thereafter

Grant Harrison, Executive Director, Corporate Finance
Durlacher                                                020 7459 3600

Simon Rothschild/Ian Seaton
Bankside                                                 020 7444 4140



PERSONAL GROUP HOLDINGS PLC


CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2003



                                                                                                                        
                                                                                                                        
                                                                       
                                     2003                     2002    
                          £000       £000           £000      £000    
  TECHNICAL ACCOUNT                                                   
  GENERAL BUSINESS                                                    

  Gross premiums                  12,911                    12,195    
  written                                                             
  Reinsurance                           -                        -    
  premiums                                                            
                                                                      
  Net premiums                    12,911                    12,195    
  written                                                             
                                                                      
  Change in the                                                       
  gross provision                                                     
  for unearned                        14                        19    
  premiums                                                            

  Earned premiums,                12,925                    12,214    
  net of                                                              
  reinsurance                                                         
                                                                      
  Claims paid                                                         
  Gross amount         (2,628)                   (2,566)              
  Reinsurers' share      -                         -                  

  Net of reinsurance   (2,628)                   (2,566)              
                                                                      
  Change in the                                                       
  provision for                                                       
  claims                                                              
  Gross amount              4                       (41)              
  Reinsurers' share         -                         -                  

  Net of reinsurance        4                       (41)              

  Claims incurred,                (2,624)                  (2,607)    
  net of                                                              
  reinsurance                                                         

  Net operating                                                       
  expenses:                                                           

  Financial                  -                     (129)              
  reinsurance costs                                                   
  Other                (5,381)                   (5,094)              

                                  (5,381)                  (5,223)    

  Balance on the                   4,920                     4,384    
  technical account                                                   
  for general                                                         
  business                                                            
                                                                      

                                                                      
  PERSONAL GROUP HOLDINGS PLC                                                        
                                                                      
  CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)                                                         
  FOR THE YEAR ENDED 31 DECEMBER 2003                                                       
                                                                      
                                      2003                    2002    
                     Note   £000      £000          £000      £000    
  NON-TECHNICAL                                                       
  ACCOUNT                                                             

  Balance on the                                                      
  general business                                                    
  technical account                 4,920                    4,384    
                                                                      
  Investment income         512                      433              
  Unrealised                (45)                    (87)              
  losses on                                                           
  investments                                                         
  Investment                (87)                    (60)              
  expenses and                                                        
  charges                                                             
  Net investment                      380                      286    
  return                                                              
                                                                      
  Other income         1            3,387                    3,434    
                                                                      
  Other charges        1           (2,297)                 (2,425)    
  Charitable                          (85)                    (65)    
  donations                                                           
  Profit on                                                           
  ordinary                                                            
  activities                                                          
  before tax                        6,305                    5,614    
                                                                      
  Tax on profit on                                                    
  ordinary                                                            
  activities           2           (1,857)                 (1,636)    
  Profit for the                    4,448                    3,978    
  financial year                                                      
                                                                      
  Dividends            3           (2,985)                 (2,404)    
                                                                      
  Profit retained                   1,463                    1,574    
                                                                      
  Earnings per                                                        
  share                                                               
  Basic                4             14.9p                   13.2p    
  Diluted              4             14.7p                   13.2p    
  Dividends per        3             10.0p                    8.0p    
  share                                                               

  STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                      
  FOR THE YEAR ENDED 31 DECEMBER 2003                                                       
                                                   2003       2002    
                                                   £000       £000    
                                                                      
  Profit for the                                  1,463     1,574     
  financial year                                                      
  Total recognised gains                          1,463     1,574     
  and losses for the year                                             
  Prior year         5                            (402)               
  adjustment                                                          
  Total gains and losses recognised since         1,061               
  last financial statements                                           
 

                                                                      
  PERSONAL GROUP HOLDINGS PLC                                                        
                                                                      
  CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003                                                       
                                                                      
                                    2003                      2002    
                                                        (Restated)    
                         £000       £000         £000         £000    
  Assets                                                              
  Investments                                                         
                                                                      
  Other financial                 7,233                      4,711    
  investments                                                         
  Debtors                                                             
                                                                      
  Debtors arising                                                     
  out of direct                                                       
  insurance                                                           
  operations           1,282                    1,140                 
  Other debtors due      614                      728                 
  within one year                                                     
                                                                      
                                  1,896                      1,868    
  Other assets                                                        
                                                                      
  Tangible assets      5,933                    6,004                 
  Cash at bank and     6,242                    6,458                 
  in hand                                                             
                                                                      
                                                                      
                                 12,175                     12,462    
                                                                      
  Prepayments and                                                     
  accrued income                                                      
                                                                      
  Accrued interest         58                      42                 
  and rent                                                            
  Deferred                 34                      38                 
  acquisition costs                                                   
  Other prepayments       162                      72                 
  and accrued income                                                  
                                                                      
                                     254                       152    

  Total assets                    21,558                    19,193    
 

                                                                      
  PERSONAL GROUP HOLDINGS PLC                                                        
                                                                      
  CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003 (CONTINUED)                                                    
                                                                      
                                   2003                       2002    
                                                        (Restated)    
                        £000       £000          £000         £000    
  Liabilities                                                         
  Capital and                                                         
  reserves                                                            
                                                                      
  Called up share     1,528                     1,528                 
  capital                                                             
  Other reserve        (917)                    (402)                 
  Profit and loss    13,928                    12,430                 
  account                                                             
                                                                      
  Shareholders'                 14,539                      13,556    
  funds                                                               
                                                                      
  Technical                                                           
  provisions                                                          
                                                                      
  Provision for         272                       286                 
  unearned                                                            
  premiums                                                            
  Claims                862                       865                 
  outstanding                                                         
                                                                      
                                 1,134                       1,151    
                                                                      
  Provision for                    201                         180    
  other risks and                                                     
  charges                                                             
                                                                      
  Creditors                                                           
                                                                      
  Current taxation      924         -             901                 
  Other creditors                                                     
  including other                                                     
  taxation                                                            
  and social            435         -             514                 
  security                                                            
  Bank loan             783         -             307                 
  Proposed            2,380         -           1,861                 
  dividend                                                            
                                 4,522                      3,583          
                                                                      
  Accruals and                   1,162                        723            
  deferred income                                                     
                                                                      
  Total                         21,558                     19,193         
  liabilities                                                         
                                                                      
 


                                                                      
  PERSONAL GROUP HOLDINGS PLC                                                        

  CONSOLIDATED CASH FLOW STATEMENT                                                      

  FOR THE YEAR ENDED 31 DECEMBER 2003                                                       
                                                                      
                                       2003                   2002    
                            £000       £000         £000      £000    
                                                                      
  Net cash inflow from               7,060                   5,946    
  operating activities                                                
                                                                      
  Loan interest paid                   (16)                   (18)    
                                                                      
  Taxation paid                     (1,813)                (1,492)    
                                                                      
  Capital expenditure                                                 
  Purchase of fixed        (599)                   (348)              
  assets                                                              
  Sale of fixed assets      221                       86              
  Purchase of own shares   (578)                       -              
  Sale of own shares         63                        -              
                                      (893)                  (262)    
                                                                      
  Acquisitions and                                                    
  disposals                                                           
  Disposal of trade and                 77                    (15)    
  goodwill                                                            
                                                                      
  Equity dividends paid             (2,466)                (2,149)    

  Financing                                                           
  Addition to bank loan     578                        -              
  Repayment of bank loan   (102)                    (77)              
                                       476                    (77)    
                                                                      
  Net cash flows                     2,425                   1,933    
                                                                      
  Cash flows were                                                     
  invested as follows:                                                
                                                                      
  (Decrease)/increase                 (216)                  1,946    
  in cash holdings                                                    
                                                                      
  Net portfolio                                                       
  investment                                                          
  Ordinary shares,                   2,641                    (13)    
  loans, and treasury                                                 
  loan stock                                                          
                                                                      
  Net investment of                  2,425                   1,933    
  cash flows                                                          
                                                                      
                                                                      
  The prior year figures have been restated to reclassify certain     
  elements of the cash flow statement.                                
                                                                      

Notes

 
1. Other income comprises insurance related business £2,707,000
(2002: £2,897,000) and other business £680,000 (2002: £537,000).
Other expenditure comprises insurance related business £1,048,000
(2002: £1,370,000) and other business £1,249,000 (2002: £1,055,000).

 
2. Taxation comprises United Kingdom corporation tax of £1,836,000
(2002: £1,516,000), and deferred taxation of £21,000 (2002: £120,000).

 
3. The directors have recommended a final dividend of 3.00p (2002:
2.35p) per share payable on 11 May 2004 to shareholders on the
register at the close of business on 23 April 2004. Shares will be
marked ex-dividend on 21 April 2004. The total dividend for the year,
including the interim dividends of 7.00p (2002: 5.65p) amounts to
£2,985,000 (2002: £2,404,000), which is equivalent to 10.00p (2002:
8.00p) per share.

 
4. The basic and diluted earnings per share are based on the profit
for the financial year of £4,448,000 (2002: £3,978,000) and on
29,925,332 basic (2002: 30,014,943), 30,170,478 diluted (2002:
30,143,974) ordinary shares, the weighted average number of shares in
issue during the year.


5. The change in accounting policy in respect of accounting for
AESOP trusts where UITF Abstract 38 has been adopted has resulted in
a prior year adjustment for both the group and the company. For the
group and company shareholders' funds at 1 January 2003 have been
reduced by £402,000. Group and company shareholders' funds at 31
December 2003 have been reduced by £917,000 as a result of the change
in accounting policy. There has been no effect on group or company
profit in either year.

 
6. The preliminary statement which has been agreed with the
auditors and approved by the Board on 30 March 2004 is not the
Company's statutory accounts. The statutory accounts for each of the
two years to 31 December 2002 and 31 December 2003 received audit
reports, which were unqualified and did not contain statements under
section 237 (2) or (3) of the Companies Act 1985. The 2002 accounts
have been filed with the Registrar of Companies but the 2003 accounts
are not yet filed.


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