When we recommended workplace benefit and health insurance provider Personal Group (PGH:AIM) just over a month ago little did we think it would have gained quite so much in quite so little time.
The stock price is now back to the highs of 2022, which is a great achievement and a ringing endorsement of chief executive Paula Constant and chief financial officer Sarah Mace’s ambitions for the business.
WHAT HAS HAPPENED SINCE WE SAID TO BUY?
Just days after we flagged the shares, Personal Group published a trading update for the six months to June showing an 11% increase in revenue to £23.3 million and a 41% jump in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to £5.5 million.
More than 90% of revenue came from recurring sources, providing good visibility for the full year and the group enjoyed high retention rates across all areas of the business.
As a reminder, the firm offers affordable insurance, with first-half annualised premium income up 12% to £38 million, and digital benefits and rewards programmes, where annual recurring revenue increased by 10% in the first half to £6.9 million.
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.
WHAT SHOULD INVESTORS DO NOW?
Momentum is clearly building for the group’s strong proposition, with new client wins including the BMA and the FSCS, with very little churn, while new product offerings and partner programmes are being developed all the time.
We would sit back and let the team do what they do best, which is focus on growing the business towards their medium-term targets of £100 million of annual revenue and £30 million of EBITDA.
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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.
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