Interim Results

Personal Group Holdings PLC 27 September 2004 27 September 2004 Enquiries: Personal Group Holdings Plc Tel: 0207 444 4140 (on 27/09/04) Christopher Johnston, Chairman 01908 605000 ext 235 (thereafter) Ken Rooney, Chief Executive John Barber, Finance Director Bankside Consultants Simon Rothschild Tel: 0207 444 4153 Personal Group Holdings Plc Interim statement for the six months to 30 June 2004 Personal Group Holdings Plc is one of the UK's leading providers of employee benefit insurance and consultancy. HIGHLIGHTS 2004 2003 % £m £m Trading income* 6.81 6.59 +3.3 Pre-tax profit 2.82 2.92 -3.4 Earnings per share 6.6p 6.6p - First interim dividend per share ** 2.1p 2.0p +5.0 * 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 first interim dividend of 2.1p (2003: 2.0p) per share payable on 25 October 2004 to shareholders on the register at the close of business on 8 October 2004. Shares will be marked ex-dividend on 6 October 2004. Ken Rooney, Chief Executive, commented: 'Fourteen new benefit programmes have been launched during the first half of 2004 compared with nineteen for the whole of 2003. Whilst not all new programmes offer the same revenue earning opportunities some, such as Exel Logistics with more than 25,000 employees and Brake Bros with 7,000 employees, have been particularly welcome, promising high volumes and repeat income. This rise is partly due to the reorganisation of our sales team and the appointment of a sales director for Personal Group Benefits at the beginning of the year. Under new leadership this team is going from strength to strength. Our decision to create an alliance with the Lighthouse Group has meant we can give Perflex, our web integrated benefits programme, a further boost. It also allows the Group to maintain a smaller team of our own independent financial advisers, whilst Lighthouse Corporate Benefits are able to follow up the financial services enquiries now being generated from employees of our client companies throughout the UK.' CHAIRMAN'S STATEMENT The first half of 2004 has proved to be one of our best for both new insurance sales and new benefit programme wins. New business acquisition costs and claims incurred have increased by £124,000 and £223,000 respectively compared with the corresponding period for the prior year. As a result of the above profit before tax for the period ended 30 June 2004 decreased by £103,000 to £2,819,000 whilst earnings per share remained at 6.6p. In view of our continuing profitable trading, the directors have declared a first interim dividend of 2.1p per share (2003: 2.0p) payable on 25 October 2004 to shareholders on the register at the close of business on 8 October 2004. After provision for taxation and dividends, there is a surplus for the period of £1,361,000 (2003: £1,384,000) which has been added to reserves. Shareholders' funds now stand at a total of £16,515,000 (54p per share) and include net cash balances of approximately £8,917,000 in addition to £3,000,000 of 4% 2009 Treasury Loan Stock (market value £2,869,000 on 30 June 2004). During the period net unrealised investment losses of £32,000 (2003: gains £9,000) have been recorded, mostly due to the effect of the rise in interest rates on the current market value of our Treasury Loan Stock. In the first half of the year employee benefit programmes were launched for Brake Bros, Travelodge & Little Chef, Game Stores, Universal Music, 118 118 The Number, De Vere Hotels, Exel Logistics and seven other employers. Revenue related to our flexible benefits software package Perflex continues to grow with the addition so far during 2004 of contracts with Land Securities Trillium and Granta Housing. Our recent strategic alliance with the Lighthouse Group offers more opportunities to bring Perflex to a wider market. Our joint venture property development adjacent to John Ormond House commenced in April and is on schedule for practical completion in April 2005. On 25 February 2004 the Group announced the acquisition of ParTake Services Limited. This company developed the Perflex software and other software systems serving the property market. The multiple listing service operated by ParTake is currently being piloted in Milton Keynes. The balance sheet is strong, and the business continues to generate excellent profits. Current trading is in line with directors' expectations. Our continuing success is wholly due to the enthusiasm, commitment and professionalism of the Personal team. My thanks to everyone involved. Christopher W T Johnston, Chairman 24 September 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT for the 6 months ended 30 June 2004 6 months ended 6 months ended 12 months ended 30 June 2004 30 June 2003 31 December 2003 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 TECHNICAL ACCOUNT - GENERAL BUSINESS Gross premiums written 6,638 6,363 12,911 Change in the gross provision for unearned premiums (25) (48) 14 Earned premiums, net of reinsurance 6,613 6,315 12,925 Claims paid Gross amount (1,445) (1,290) (2,628) Reinsurers' share - - - Net of reinsurance (1,445) (1,290) (2,628) Change in the provision for claims Gross amount (166) (98) 4 Reinsurers' share - - - Net of reinsurance (166) (98) 4 Claims incurred, net of reinsurance (1,611) (1,388) (2,624) Net operating expenses: Other (2,875) (2,770) (5,381) Balance on the technical account for general business 2,127 2,157 4,920 CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED) for the 6 months ended 30 June 2004 6 months ended 6 months ended 12 months ended 30 June 2004 30 June 2003 31 December 2003 Unaudited Unaudited Audited Note £000 £000 £000 £000 £000 £000 NON-TECHNICAL ACCOUNT Balance on the general business technical account 2,127 2,157 4,920 Investment income 312 250 512 Unrealised (losses)/ gains on investments (32) 9 (45) Investment expenses and (87) charges (68) - Net investment return 212 259 380 Other income 1,812 1,661 3,387 Other charges (1,298) (1,123) (2,297) Charitable donations (34) (32) (85) Profit on ordinary activities before tax 2,819 2,922 6,305 Tax on profit on ordinary activities 1 (825) (940) (1,857) Profit for the period 1,994 1,982 4,448 Dividends 2 (633) (598) (2,985) Profits retained 1,361 1,384 1,463 Earnings per share Basic 3 6.6p 6.6p 14.9p Diluted 3 6.6p 6.6p 14.7p There are no recognised gains or losses for the period other than the profit for the financial period. CONSOLIDATED BALANCE SHEET AT 30 JUNE 2004 At 30 June 2004 At 30 June 2003 At 31 December 2003 Unaudited Unaudited Audited (Restated) Note £000 £000 £000 £000 £000 £000 Assets Intangible assets Goodwill 4 233 - - Investments Investment in joint venture Share of gross assets 585 - - Share of gross liabilities (585) - - Net investment - - - Other financial investments 4,690 4,721 7,233 Debtors Debtors arising out of direct insurance operations 1,073 1,138 1,282 Other debtors due within one year 697 539 614 1,770 1,677 1,896 Other assets Tangible assets 5,846 6,149 5,933 Cash at bank and in hand 8,917 6,817 6,242 14,763 12,966 12,175 Prepayments and accrued income Accrued interest and rent 49 20 58 Deferred acquisition costs 34 38 34 Other prepayments and accrued income 103 111 162 186 169 254 Total assets 21,642 19,533 21,558 CONSOLIDATED BALANCE SHEET AT 30 JUNE 2004 (CONTINUED) At 30 June 2004 At 30 June 2003 At 31 December 2003 Unaudited Unaudited Audited (Restated) Note £000 £000 £000 £000 £000 £000 Liabilities Capital and reserves Called up share capital 1,528 1,528 1,528 Shares to be issued 4 228 - - Other reserve (574) (447) (917) Profit and loss account 15,333 13,814 13,928 Equity shareholders' funds 16,515 14,895 14,539 Technical provisions Provision for unearned premiums 297 334 272 Claims outstanding 1,028 965 862 1,325 1,299 1,134 Provision for other risks and charges 201 202 201 Creditors Current taxation 845 880 924 Other creditors including other taxation and social security 504 433 435 Bank loan 337 340 783 Proposed dividend 633 600 2,380 2,319 2,253 4,522 Accruals and deferred income 1,282 884 1,162 Total liabilities 21,642 19,533 21,558 CONSOLIDATED CASH FLOW STATEMENT for the 6 months ended 30 June 2004 6 months ended 6 months ended 12 months ended 30 June 2004 30 June 2003 31 December 2003 Unaudited Unaudited Audited £000 £000 £000 £000 £000 £000 Net cash inflow from operating activities 3,699 3,575 7,060 Loan interest paid (17) (8) (16) Taxation paid (904) (939) (1,813) Capital expenditure Purchase of fixed assets (126) (406) (599) Sale of fixed assets 68 29 221 Purchase of own shares - (94) (578) Sale of own shares 343 28 63 285 (443) (893) Acquisitions and disposals (Acquisition)/disposal (30) - 77 Equity dividends paid (2,380) (1,859) (2,466) Financing Addition to bank loan - 94 578 Repayment of loan (446) (61) (102) (446) 33 476 Net cash flows 207 359 2,425 Cash flows were invested as follows: Increase/(decrease) in cash holdings 2,675 359 (216) Net portfolio investment Ordinary shares, loans, finance leases, treasury loan stock (2,468) - 2,641 Net investment of cash flows 207 359 2,425 PERSONAL GROUP HOLDINGS PLC Notes 1. Taxation comprises United Kingdom corporation tax of £825,000 (30 June 2003: £918,000, 31 December 2003: £1,836,000), and deferred taxation charge of £nil (30 June 2003: £22,000, 31 December 2003: £21,000). 2. The directors have declared a dividend of 2.1p (30 June 2003: 2.0p, 31 December 2003 10.0p) per share payable on 25 October 2004 to shareholders on the register at the close of business on 8 October 2004. Shares will be marked ex-dividend on 6 October 2004. 3. The calculations of basic and diluted earnings per share are based on the following: 30 June 2004 30 June 2003 31 December 2003 Earnings - basic and diluted £1,994,000 £1,982,000 £4,448,000 Weighted average number of shares Basic 30,029,221 29,969,819 29,925,332 Diluted 30,151,442 30,162,413 30,170,478 4. The consideration for the acquisition of ParTake Services Limited is to be satisfied by £30,000 in cash and the issue of 122,221 ordinary shares in Personal Group to the vendors, provided certain key employees of ParTake remain with Personal Group Holdings for 3 years following the acquisition. Additionally a further 138,888 shares are payable, contingent on ParTake achieving profits before tax of £100,000 in the year to 31 December 2006. The maximum consideration, excluding the value of future dividends on the shares, is £517,000 based on the average mid market closing share price of 186.5p at 30 June 2004. The consideration to be satisfied in shares may be from a new issue or from shares currently held by Personal Group Trustees Limited, or a combination of both. It is reasonable to assume that the key employees will remain with the Group for three years and therefore the fair value of the acquisition has been estimated and stated at £258,000. Goodwill is being amortised over five years. The interim results, which have not been audited, have been prepared on the same basis and using the same accounting policies as those used in the preparation of the full year's accounts to 31 December 2003. The interim accounts for the six months ended 30 June 2003 have been restated as a result of the change in accounting policy in respect of accounting for AESOP trusts where UITF Abstract 38 was adopted at 31 December 2003. Shareholders' funds at 30 June 2003 have been reduced by £447,000 as a result of the change in accounting policy. There has been no effect on group profit in that period. The interim statement, which was approved by the Board on 24 September 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 and 2003 accounts have been filed with the Registrar of Companies. Financial calendar for the year ending 31 December 2004 The Company announces the following dates in its financial calendar for the year ending 31st December 2004: • Payment of 1st interim dividend - 25 October 2004 • Preliminary results for the year ending 31st December 2004 - March 2005 • Publication of Report and Accounts for 2004 - March 2005 • Payment of 2nd interim dividend - March 2005 • AGM - April 2005 • Payment of final dividend - May 2005 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Personal Group Holdings (PGH)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today