20th Sep 2016 08:29
LONDON (Alliance News) - Employee benefits provider Personal Group Holdings PLC on Tuesday said costs related to setting up its PG Mobile business hit profit in the first half, though revenue increased and the firm hiked its dividend payout.
Personal Group said it made a pretax profit of GBP1.9 million in the half to the end of June, down from GBP2.9 million a year prior. The decline was driven by costs related to the setting up and running of PG Mobile, Personal's mobile virtual network operator, and by investments made in setting up an employee benefits platform for accounting software giant Sage Group PLC.
Personal announced in early July that it will wind down the PG Mobile business by the end of the year due to poor market conditions. Personal Group said PG Mobile, which provides smartphones and airtime on a salary sacrifice basis, is no longer viable in the current market.
A full 12 months of trading from PG Mobile helped revenue for the group increase 10% year-on-year to GBP21.0 million from GBP19.0 million. This was mostly driven by a 13% rise in earned premiums net of reinsurance in the half, plus a contribution from its Let's Connect, the group's home technology salary-sacrifice unit.
New insurance business generation increased 13% in the half, with new contract wins secured with the likes of car dealer Pendragon PLC and food distributor Samworth Brothers and with a slew of healthcare companies.
Personal Group declared dividends in the half totalling 11.0 pence per share, up from 10.45p a year prior.
Personal Group shares were down 3.0% at 463.00p on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Personal Group