Workplace benefits and health insurance provider Personal Group (PGH:AIM) is a relative market minnow but chief executive Paula Constant and chief financial officer Sarah Mace have big ambitions for the business. We think these ambitions are worth backing for investors, particularly with the valuation looking undemanding. Consensus forecasts put the shares on 11.6 times 2026 earnings and have them offering a yield of 6.9% based on next year’s dividend.
The duo aim to achieve £100 million of revenue by 2030, more than twice what it made in 2024. The hope is this will translate into £30 million of EBITDA (earnings before interest, tax, depreciation and amortisation) or three times what it made last year.
As well as lifting revenue 13% and EBITDA 29%, the firm won multiple industry awards in 2025. Significantly it also built on its existing relationship with FTSE 100 accounting and financial software firm Sage (SGE) and delivered the best ever months of leads in November and December.
That momentum has carried through into the current year. Paula Constant says the firm is ‘on a great organic trajectory’, with its offering really chiming with customers.
‘We are completely focused on winning new partnerships, maximising the value of our Sage relationship and winning new insurance business,’ says Constant.
Among the roster of existing staff benefit partners are B&Q, British Airways, DHL, Mitie (MTO), Ocado Retail and Royal Mail. Personal Group also counts universities and museums among its clients.
The Sage Employee Benefit scheme for SMEs boosted annual recurring revenue by 10% last year and increased insurance sales by 18%. A customer retention rate running above 80% shows how much the client base values the service.
Behind the scenes there has been some tangible progress too. There has been a real emphasis on securing recurring revenue streams and reducing the seasonality in the business while, at the same time, together with making the balance sheet more robust.
The full-year dividend was hiked 41% to 16.5p – ahead of the 32% increase in basic EPS (earnings per share) from operations. There should be capacity to increase the amount it doles out to shareholders from here too. As at the end of December the firm had cash and bank deposits of more than £25 million and zero debt.
Dividends are likely to come before M&A in the list of priorities. Constant says any potential transaction ‘would have to be absolutely right’ to justify the effort, the money and the drain on the executive team’s time and resources. The size of the existing addressable market and the significant potential to grow the business organically are clearly at front of mind for management.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
magazine
