Trading update and Customer Changes
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Press Release |
18 February 2016 |
Personal Group Holdings PLC
("the Company", "Personal Group" or "PGH")
Trading update and Customer Changes
General Trading update
The business continues to perform well with growth in new sales, top line revenue and bottom line profit. In addition, Let's Connect, a leader in the home technology salary sacrifice market which operates alongside and complements the Company's core insurance business, has seen significant growth in sales and profit in 2015 following its acquisition in 2014.
Overall the Group performance in 2015 was in line with expectations.
Customer Changes
The Company also announces that they have been informed by Royal Mail Group ("RMG") that it intends to change its customer relationship with Personal Group. RMG is consolidating its medical plan provision to its workforce from April 2016 and this change will affect the Company.
From March 2016, the Company will no longer make its core insurance products available to RMG employees. Continuity of cover for existing policyholders will be ensured with RMG continuing to collect PGH policyholders' premiums as normal through payroll deduction. This will cease by the 31 March 2017. Through this period, Personal Group will work with RMG to effect an orderly transfer of premium collection from payroll to direct debit collection for policyholders that choose to continue with their cover.
At the same time, the Company announces that it is in advanced stages of negotiating an additional trading relationship with RMG through its Let's Connect Technology Salary Exchange division. Following a successful competitive tender process, this contract will offer eligible RMG employees PGH's Salary Exchange Technology programme. This initial contract is expected to have a duration of four years.
Mark Scanlon, Chief Executive of Personal Group commented: "Royal Mail employees are some of our longest and most loyal insurance customers going back more than 25 years and for that we are very grateful. Whilst our relationship will change and we will no longer be offering our insurance products to future RMG employees, we are delighted to be in the process of securing an additional trading relationship with RMG through PGH's Let's Connect business."
-ENDS-
For more information please contact:
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Personal Group Holdings Plc |
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Mike Dugdale - Chief Financial Officer |
+44 (0)1908 605 000 |
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Cenkos Securities Plc |
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Max Hartley / Stephen Keys (Nomad) |
+44 (0)20 7397 8900 |
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Russell Kerr (Sales) |
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Media enquiries:
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Abchurch Communications |
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Quincy Allan / Alex Shaw |
+44 (0)20 7398 7700 |
Notes to Editors
With over 30 years' experience of looking after its customers' employees, Personal Group Holdings Plc (AIM: PGH) is a leading provider of employee benefits and employee related insurance products, offering benefits programmes to over 2 million employees across the UK.
Personal Group's innovative approach to using technology to deliver its programmes, combined with its face-to-face method of communicating with employees, makes its offering compelling to blue chip clients across the UK as a way of attracting, retaining and motivating employees. The Group tailors its packages to include insurance products such as hospital and convalescence plans, death benefit and income protection plans, as well as lifestyle benefits such as holiday and retail discounts, health and wellbeing benefits and a range of tax efficient benefits.
Personal Group can also supply home technology via salary sacrifice through its subsidiary Let's Connect. Offering the latest iPads and other tablets, home computers and laptops, smart phones and smart TVs is a highly engaging benefit from which both the employer and employee can profit. In April 2015 the Group established its own Mobile Virtual Network Operator (MVNO) called Personal Group Mobile Ltd. which was achieved through the acquisition of the assets of shebang Technologies Ltd. This means that home technology, including handsets and airtime, can be provided via salary sacrifice with a reduction of c10-47% on costs to its client's employees.
Personal Group has a strong client base across a range of sectors including transport, where it works with the likes of Network Rail, Stagecoach and EYMS Group Ltd, and healthcare, where clients include Four Seasons Health Care, Priory Group and Spire Healthcare. The Group also covers logistics, with companies such as TNT Express and Bibby, and motoring with Manheim and JCT600 as clients. In addition the Group also has a strong presence in food manufacturing and service and clients include 2 Sisters Food Group and Young's Seafood.
With over 520 clients the Group has grown considerably and provides engaging and effective benefits packages across a breadth of sectors.
For further information, go to www.personal-group.com.
This information is provided by RNS
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