Personal Group expects lower FY revenue, maintains profit guidance
Source - SMW
In today's trading statement, Personal Group said that, while revenue for the current year is now expected to be lower than reported for 2016, it expects to meet full year EBITDA profit expectations.
The Company added:
"The Company's core insurance business continues to perform well, having made an encouraging start to the second half of the year. The SME offer, through the partnership with Sage, is exceeding management's expectations and other SaaS sales of the Hapi platform remain strongly up on last year, including an additional 14,000 SaaS licences since June this year. The Company's new financial wellbeing product, including affordable loans, has also made an encouraging start.
"The Company's salary sacrifice business continues to benefit from the recent clarity and greater simplicity of tax treatment as a result of the Finance Bill earlier this year. However, a key salary sacrifice customer has informed the Company that for its own short term operational reasons, it, like a few other customers, will now delay the planned offering to its employees into next year. The salary sacrifice revenue from these customers is expected to be unchanged in the next six months with the delay only affecting the timing and not the value of the proposition."
Mark Scanlon, Chief Executive of Personal Group, commented:
"Despite this short-term revenue impact, the underlying business is in a strong position, giving us confidence that the Group will meet full year EBITDA profit expectations. The Group offer is better placed than ever as we enter 2018. The core insurance business continues to deliver and we look forward to seeing continued growth from our SaaS offer, both in SME and beyond."
At 1:16pm: (LON:PGH) Personal Group Holdings PLC share price was -26.5p at 396p