24th Sep 2014 10:46
LONDON (Alliance News) - Personal Group Holdings PLC Wednesday reported a higher first-half profit boosted by strong revenue growth, new business wins, and its recent acquisition of the Lets Connect business.
The company recorded a pretax profit of GBP3.5 million for the six months to June 30, a 4.4% increased on the GBP3.3 million profit in reported in the first half of 2013.
Revenue in the first half rose almost 25% to GBP17.4 million, up from GBP13.9 million a year earlier, boosted by new business wins, but largely on the back of a 9.9% increase in earned premiums net of reinsurance and revenue contribution from Lets Connect.
The company acquired Lets Connect in March. The business is focused on large enterprises in the private and public sector.
Personal said overall trading remains in line with expectations.
"2014 is a year in which we expect to see the positive results of our extensive investment and change programs over the past two years...Return on the investment is coming through in top line as well as bottom line growth. Our new business sales continue to accelerate whilst at the same time the group is achieving cost efficiencies," said Chief Executive Mark Scanlon in a statement.
Signalling its confidence, the company declared a 5.4% increase in its interim dividend to 9.8 pence per share.
Personal said it secured several major contract wins during the first half, including contracts with Four Seasons Health Care, Translink and Oak Furniture Land.
"We continue to execute against our stated strategy and our recent acquisition of Lets Connect is now integrated and operating ahead of our expectations. Our core business is in a strong position and we have a firm platform upon which to continue to grow and expand the group," said Scanlon.
Personal shares were trading 1.4% lower before midday Wednesday, at 525.30 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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