(Alliance News) - Personal Group PLC on Monday said it expected its revenue in 2022 to have grown compared to 2021, helped by growth in insurance annualised premium income and a surge in benefits platform annual recurring revenue.
However, the Milton Keynes-based employee benefits and services provider said its second half performance was weakened by International Distributions Services PLC's Royal Mail workers striking.
Personal said it expects an annual revenue of GBP85 million, up 13% from GBP75 million a year prior. This was boosted by insurance annualised premium income climbing 15% annually to GBP28.0 million in 2022 from GBP24.4 million in 2021. Benefits platform annual recurring revenue jumped 56% to GBP5.0 million from GBP3.2 million.
Personal highlighted "strong retention levels across all areas," noting that insurance retention levels were above pre-Covid averages. However, it said industrial action in key clients such as Royal Mail in the second half of 2022 dampened the expected trading performance of its Let's Connect business during the peak period. "The impact of the aforementioned industrial action resulted in a divisional performance broadly in line with 2021 but down on management expectations," Personal explained. Let's Connect is the company's technology employee benefits provider.
The company said it looks into 2023 confidently, aiming to deliver profitable growth. "Whilst we have planned for 2023 to be another difficult year for the economy and wider macro environment, the strength of the company's trading in 2022, strong retention levels across all areas and the group's growing annualised premium income and annualised recurring revenue continue to provide the board with confidence in the future opportunity for the business," it said.
The company expects to release its 2022 results on March 28.
Personal shares were 5.6% higher at 213.34 pence each in London on Monday afternoon.
By Tom Budszus, Alliance News reporter
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Personal Group (PGH)
International Distributions Services (IDS)