Advertisement

Personal Group Holdings unveils annual profit fall

Personal Group Holdings Chief Executive Officer Mark Scanlon said 2012 was a significant year of investment as earnings and revenues decreased.

Personal Group Holdings Chief Executive Officer Mark Scanlon said 2012 was a significant year of investment as earnings and revenues decreased.

The UK employee benefits company reported annual earnings before interest tax, depreciation and amortisation (EBITDA of £9.9m, a fall from the prior year's £10.2m, in line with expectations.

Revenue also met forecasts at £27.4m, down from £27.5m in 2011, due to the group's decision to cease accepting new investment business into its financial services division Berkeley Morgan from last April.

Advertisement - Article continues below

Pre-tax profits dropped to £9.4m from £10m.

Scanlon said the results reflected costs associated with growing its online offering and increasing its recruitment, including the appointment of Chief Financial Officer Mike Dugdale and Commercial Director David Walker, along with the expansion of the sales team to meet demand.

During the year, the firm launched a new iPad application to provide management with key information on clients and make services more readily available to customers.

Scanlon expects the addition of new employees and the new iPad application will facilitate progress in 2013.

Based on this confident outlook, the company proposed a 4.5% increase in the dividend of 4.65p per share.

On the macro-economic front, Scanlon said the rise in the unemployment rate and the tough financial climate did little to hurt the business as the firm continued to benefit from its "loyalty to customers".

"The amount of times we go out and meet our customers personally has gone up over the years," he told Sharecast.

"We settled over 80% of claims within 24 hours. We want to have a good reputation."

Key sectors for the company include logistics, health care, hospitality and food services while retail remains the biggest challenge due to a high turnover of staff.

Looking ahead, Scanlon said the company has a strong pipeline of projects and partnerships in the pipeline including its "second biggest contract win" in history which will be announced in due course. However, Personal Group will be taking a cautious approach to acquisitions this year, he added.

The updated forecast for 2013 earnings is revenue of £28.7m, EBITDA of £10.5m and pre-tax profit of £10m.

RD

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/gold/601444/these-seven-charts-show-exactly-why-you-must-own-gold-today
Gold

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020
Visit/investments/stockmarkets/601460/disease-rioting-and-mass-unemployment-so-why-are-markets-soaring
Stockmarkets

Disease, rioting and mass unemployment – so why are markets soaring?

Despite some pretty strong headwinds in the last year, America’s S&P 500 stock index is close to all-time highs. John Stepek explains why markets seem…
4 Jun 2020
Visit/economy/eu-economy/601463/why-a-stronger-euro-is-good-news-for-investors
EU Economy

Why a stronger euro is good news for investors

The fragile state of the eurozone has for a long time brought the threat of deflation. But the ECB’s latest moves have dampened those fears. John Step…
5 Jun 2020