Personal Group Holdings PLC · LSE:PGH
Personal — FY2019 Earnings Presentation
32 slides from Personal's earnings presentation, April 2020
Slide 1: Preliminary Statement for the year ended 31 December 2019
PRELIMINARY STATEMENT For the year ended 31 December 2019 DEBORAH FROST | CHIEF EXECUTIVE MIKE DUGDALE | CHIEF FINANCIAL OFFICER APRIL 2020
Slide 2: Financial Highlights 2019
FINANCIAL HIGHLIGHTS 2019 Group revenue of £70.9m (2018: £55.3m) h 28% o Includes £18.4m transactional spend and commission on Hapi (2018: £6.9m) EBITDA of £11.0m (2018 : £11.4m) i 4% Profit before tax of £10.5m (2018 : £10.2m) h 3% Basic EPS of 28.4p (2018 : 27.2p) h 4% Balance sheet remains strong
Slide 3: COVID-19 Impact
COVID-19 IMPACT Our purpose in protecting workforces in essential roles is more important today than ever We have responded to the crisis by; Making claims easier and on-line GP available for all Developing emergency plans for employers Furloughed 22% of staff (c50 employees) We have assessed our cl
Slide 4: COVID-19 Financial Testing
COVID-19 FINANCIAL TESTING We have performed a number of different modelling scenarios and stress tests to understand the potential impact from COVID-19 on the business Balance sheet and cash flow The company has a strong balance sheet with no debt and cash and deposits of £17m The company has no ex
Slide 5: Personal Group - Lead Indicator Focus
PERSONAL GROUP - LEAD INDICATOR FOCUS Retain key client Increase number of relationships PG Let’s Connect NHS ‘live’ Insurance clients client growth Innecto Digital client Increase policyholder New/new employees seen acquisition annually by field sales numbers Drive towards 1m Hapi Build talent to d
Slide 6: Operational Highlights 2019
OPERATIONAL HIGHLIGHTS 2019 PG Let’s Connect revenue up 26% to Group’s refined strategy proving effective £18.8m with adjusted EBITDA up 43% to £1.7m without any headcount increase Accessed new insurance markets, enabling people on contingent worker basis to SaaS revenue of £21.5m is up 146% fuelled
Slide 7: Financial Performance
FINANCIAL PERFORMANCE For the year ended 31 December 2019 11
Slide 8: Group Results
GROUP RESULTS Dec-19 Dec-18 Growth £000 £000 % Revenue * 70,889 55,347 28 EBITDA** 10,982 11,437 (4) Operating profit 9,350 9,548 (2) Profit before tax 10,487 10,210 3 Tax 1,649 1,819 - Profit for the period 8,838 8,391 5 * Includes £18.4m transactional spend and commission on Hapi (2018: £6.9m) **
Slide 9: Segmental Analysis
SEGMENTAL ANALYSIS Dec-19 Dec-18 Growth £000 £000 % Total Revenue Insurance 30,208 31,210 (3) Let's Connect 18,794 14,970 26 SaaS 21,468 8,742 146 Other 419 425 (1) Total 70,889 55,347 28 EBITDA Insurance 8,283 9,777 (15) Let's Connect 1,748 1,226 43 SaaS 596 196 204 Other 355 238 49 Total 10,982 11
Slide 10: Insurance
INSURANCE Earned premium of £30.2m 3% down on prior year (2018: £31.2m) as expected New insurance sales of £9.0m (2018: £10.5m) reduced due to the slowing down of new business wins over last 12 months (highlighted at the half year). This will impact earned premium into 2020 and 2021; however potenti
Slide 11: SaaS
SaaS Sage Employee Innecto Hapi Benefits Successful acquisition Taking more control of the (completed 28th February) and supply chain in house has Strong revenue integration into Personal Group proven successful, improving SEB launch delayed due to - the security and customer growth of 146% to Total
Slide 12: PG Let's Connect
PG LET’S CONNECT Strong performance with revenue up 26% to £18.8m (2018: £15.0m) EBITDA increased 43% to £1.7m (2018: £1.2m) without any increase in headcount Early new business wins confirmed in 2020 are promising New Hapi NHS product due to go live with two Trusts in April Digital and telemarketin
Slide 13: Significant Shareholders
SIGNIFICANT SHAREHOLDERS % Christopher Johnston 37.4 Miton Asset Management Limited 13.4 Investec Wealth & Investment Limited 6.4 Royal London Asset Management Ltd 5.6 Chelverton Asset Management Ltd 5.3 Other directors, staff and SIP Trust 1.5 Source: NASDAQ (as at 31st March 2020) 17
Slide 14: Summary
SUMMARY Solid year, with trading slightly ahead of City guidance Strong performance across the business with the exception of insurance where there are plans in place to reverse the decline in premium and policyholder numbers Successful acquisition of Innecto in Q1 producing benefits from a more int
Slide 15: Appendices
Personal ee Group APP ENDIC
Slide 16: Summary Income Statement
SUMMARY INCOME STATEMENT Dec-19 Dec-18 Variance £000 £000 £000 Net premiums earned 30,214 31,232 (1,018) Less: claims incurred (6,670) (7,175) 505 Insurance underwriting profit 23,544 24,057 (513) Other income 290 332 (42) Salary Sacrifice profit 1,637 1,119 518 SAAS profit 529 168 361 Other expense
Slide 17: Earned Premium £m
EARNED PREMIUM £m 35.0 30.0 25.0 20.0 H2 £M H1 15.0 10.0 5.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 21
Slide 18: New Business Insurance Sales Ratios
NEW BUSINESS INSURANCE SALES RATIOS 2019 2018 2017 2016 2015 Enrolled to presented % 52% 52% 52% 51% 54% Acquisition cost of £100 API £93 £76 £69 £72 £72 Av API per employee enrolled £267 £256 £237 £232 £210 Group account exec average daily API £1,131 £1,169 £1,207 £1,145 £1,100 * Annualised Premium
Slide 19: Earned Premium and Claims
EARNED PREMIUM AND CLAIMS Dec-19 Dec-18 PHP DB Other Total PHP DB Other Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Earned premium 23,555 6,498 161 30,214 24,480 6,554 198 31,232 Claims (4,917) (1,044) (709) (6,670) (5,465) (1,004) (706) (7,175) 18,638 5,454 (548) 23,544 19,015 5,550 (508)
Slide 20: EBITDA Reconciliation
EBITDA RECONCILIATION Dec-19 Dec-18 £000 £000 Continuing Operations Profit before tax 10,487 10,210 Interest costs 131 148 Amortisation - Intangibles 224 330 Share-based payments 19 117 Depreciation 970 797 Amortisation (other) 265 331 Corporate acquisition costs 145 150 PG Let's Connect - release o
Slide 21: Summary Balance Sheet
SUMMARY BALANCE SHEET Increase / Dec-19 Dec-18 (Reduction) £000 £000 £000 Tangible fixed assets (buildings, cars, computer, FF&F) 5,984 6,040 (56) Intangible fixed assets (computer software) 1,301 500 801 Investment properties 0 129 (129) Equity - accounted investee 0 50 (50) Financial assets 2,564
Slide 22: Capital Management
CAPITAL MANAGEMENT The Group maintains sufficient capital to safeguard the Group’s ability to continue as a going concern The Group regularly reviews its solvency requirements as part of its Own Risk Solvency Assessment (ORSA) in line with the current strategy and risk appetite The Group has no debt
Slide 23: Dividend Record 2008 - 2019
DIVIDEND RECORD 2008 - 2019 23.50 22.50 21.50 20.50 19.50 18.50 17.50 16.50 15.50 14.50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * First quarterly dividend of 5.9p paid on 27 March 2020 Continuation of progressive dividend 27
Slide 24: Personal Group at a Glance - Our Markets
PERSONAL GROUP AT A GLANCE - OUR MARKETS 28
Slide 25: Wellbeing at Work
WELLBEING AT WORK Hapi, our employee experience platform Hapiis our fully customisable employee experience platform which enables HR departments to streamline processes, connect with their employees and effectively communicate their employee benefits. Flexible and easy to use, Hapi allows businesses
Slide 26: Our Business Model
OUR BUSINESS MODEL How we make our money Revenue Adjusted EBITDA Insurance PG Let’s Connect SaaS Mm «Other Connect > Protect > Engage > Reward
Slide 27: Insurance
INSURANCE 1-2-1 Presentations Claims handled 54,000 52,000 50,000 80,000 48,000 60,000 40,000 46,000 20,000 44,000 0 42,000 Present Present Enrolled 40,000 benefits Insurance insurance 1 employer products products purchased 2014 2015 2016 2017 2018 2019 Claims ratio Policies in force 30.0% 400,000 2
Slide 28: Let's Connect
LET’S CONNECT 25 Revenue 2.0 Op Profit Millions Millions 20 2016 2016 1.5 15 2017 2017 1.0 10 2018 2018 5 0.5 2019 2019 - 0.0 35% 30% Sales Seasonality 40,000 25% Shipments 2016 30,000 20% 2017 15% 20,000 2018 10% 10,000 2019 5% 0 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 32
Slide 29: Senior Management Team
SENIOR MANAGEMENT TEAM Deborah Frost * Mike Dugdale * Andy Lothian * Group Chief Executive Chief Financial Officer Managing Director PGB Sales Appointed Date Appointed Date Appointed Date September 2015 (Appointed CEO 28 January 2013 July 2017 (employee since 1998) February 2019) Experience Experien
Slide 30: Senior Management Team
SENIOR MANAGEMENT TEAM Sarah Mace * Dr Lee Williams Ashley Doody Rebekah Tapping Group Financial Controller and Chief Commercial Officer Chief Information Officer Group HR Director Company Secretary Appointed Date Appointed Date Appointed Date Appointed May 2019 May 2013 January 2015 January 2014 Ex
Slide 31: Board Biographies
BOARD BIOGRAPHIES Mark Winlow Maria Darby-Walker Ken Rooney Bob Head Non Executive Chairman Non Executive Director Non Executive Director and Deputy Non Executive Director Chairman Appointed Date Appointed Date June 2019 Appointed Date May 2016 (Non Executive October 2013) Appointed Date November 20
Slide 32: Our History
OUR HISTORY MosprTaL PLAN LAUNCHED Personal Group coment Molding’s Pie (i DEATH enerit EMPLOYEE ssunusnee Cl etawtauncso a) BENEFITS anetcnlretme — LAUNCHED STEER be Ey Pe FIRST OFF ” Q 5) CONVALESCENCE Aim PLAN LAUNCHED MOVED % z 100,000 KEN fim as fH meauust ~~, Posty omic on uae 30 YEARS The Futu
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