27th Mar 2014 12:14
LONDON (Alliance News) - Personal Group Holdings PLC Thursday said its pretax profit more than halved in 2013, as its on-going investment programme more than offset strong revenue growth in its employee benefits business.
Personal Group, which provides employee benefits, insurance products and other financial services in the UK, said it made a GBP3.7 million pretax profit in 2013, compared with GBP8.3 million in 2012. Revenue increased by GBP1.2 million to GBP28.4 million, but expenses increased by GBP5.9 million to GBP24.8 million.
An investment programme outlined in 2012 had pointed towards 2013 being a year of investment for Personal Group, as it sought to boost sales. However, an increase in claims has also weighed on the group's expenses.
Earnings before interest, tax, depreciation and amortisation dipped to GBP8.8 million from GBP9.9 million.
In a telephone interview with Alliance News Thursday, Chief Executive Mike Scanlon said the GBP11.0 million EBITDA forecast for 2014 by company broker Cenkos Securities is "sensible".
Personal Group has won several notable contracts in the past year, including Network Rail, 2Sisters and last week's Four Season's Healthcare.
On March 10, the company acquired Lets Connect IT Solutions Ltd in a deal worth up to GBP12 million that adds to its presence in the home-technology salary-sacrifice market.
Personal Group has a made a strong start to the year, with first-quarter trading so far ahead of expectations, Scanlon told Alliance News.
Scanlon said the company's three-pronged strategy of organic growth, complemented by potential acquisitions and investments in technology, will continue in 2014. Although funding the Lets Connect deal with cash, Scanlon told Alliance News he feels that Personal Group could raise funds on the markets for future acquisitions if desired.
Scanlon added: "2013 was the second successive year in the implementation of our strategic plan, in which an emphasis was placed on delivering our major investment programme. As planned this impacted on our profit for the year, but the business is now set fair to increase its profit levels and to deliver against its potential, as it is now doing."
Non-Executive Chairman Chris Curling said in a statement that Personal Group will continue to invest in technology in 2014, but said the company's focus is on "starting to deliver the enhanced profits of which this business is capable."
Personal Group increased its full-year dividend to 18.6 pence from 17.8 pence.
Personal Group shares were Thursday quoted at 470.19 pence, down 1.6%
By Samuel Agini; [email protected]; @samuelagini
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