Personal Group Regulatory News (PGH)

27 Mar 2006 07:00

Personal Group Holdings PLC27 March 2006 PERSONAL GROUP HOLDINGS PLC PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 The board of directors of Personal Group Holdings Plc providers of employeebenefits, insurance and consultancy, are pleased to announce the group's resultsas follows: HIGHLIGHTS 2005 2004 % £m £mTrading income* 24.2 14.2 + 70Headline EBITDA ** 9.7 6.8 + 43Pre-tax profit 7.7 6.2 + 24EBITDA per share 32.1p 22.6p + 42Earnings per share (basic) 16.9p 14.0p + 21Dividends per share paid in 2005 10.6p 10.1p + 5.0Dividend per share payable May 2006 3.30p 3.15p + 4.8 * Trading income comprises earned premiums, net of claims and claims handlingexpenses and other income from the on- going business representing commissionand fees earned on financial products and other related services. Other incomeincluded in the 2005 trading income in respect of an acquisition totalled£7,859,000. ** Headline EBITDA is defined as earnings before interest, tax, depreciation andamortisation. • The directors have declared a dividend of 3.3p (2004: 3.15p) per share payable on 2 May 2006 to shareholders on the register at the close of business on 7 April 2006. Shares will be marked ex-dividend on 5 April 2006. The AGM will be held on 25 April 2006. Ken Rooney, Chief Executive commented: •The group has had its most profitable year ever, even allowing for the Berkeley Morgan Group (BMG) contribution. During 2005 our profit before tax increased by 24% to £7.66m. This excellent performance has been achieved by the continuing development of our opportunities to market our health and protection products through worksite marketing and the successful integration of BMG following its acquisition in January 2005. •The integration of BMG has been carefully managed with Accounts, IT and HR now being centrally controlled, and the Personal Assurance Financial Services team having been merged into BMG to form a single FSA regulated division. Further carefully considered amalgamation will continue to take place in 2006. •Our ongoing review of the regulated activities throughout the group has lead to some rationalisation, and the further strengthening of the compliance team. This will continue in 2006. •During 2005 we launched 19 new benefit programmes with all new programmes being incorporated on the Perflex employee benefit software platform where employers now have use of one or more of the modules available. We currently have 15 companies using the system and it is available to 41,000 employees. CHAIRMAN'S STATEMENT I am pleased to report that the group achieved good progress during the year.Profit before tax increased by £1.48m to £7.66m (2004: £6.18m) and earningsbefore interest, tax, depreciation and amortisation (EBITDA) increased by £2.86mto £9.68m (2004: £6.82m). Headline EBITDA per share are 32.1p, an increase of42%, compared with 31 December 2004. Basic earnings per share are 16.9p, anincrease of 21%, compared with 31 December 2004. As anticipated, the strong growth in new business seen during the latter part of2004 was maintained during 2005. This growth, in addition to improved claimsexperience at Personal Assurance and the integration of Berkeley Morgan GroupPlc (BMG), generated increased profits. After provision for taxation, there was a surplus of £5.10m which was taken toreserves. Shareholders' funds stood at £20.56m at 31 December 2005 (2004:£18.77m), which is 67p per share (2004: 61p). The directors have today declareda dividend of 3.3p per share. In previous years this dividend, and the one paidin March 2006, would have been accrued in the financial statements at thebalance sheet date. As a result of a change in financial reporting standards,these dividends can no longer be charged to the year ended 31 December 2005 asthey had not been declared at the balance sheet date. Dividends paid in 2005totalled 10.6p per share, an increase of 5% on the corresponding 2004 figure. Investment performance (incorporating investment income, realised/unrealisedgains and losses and related expenses) improved from a net income of £0.63m in2004 to £1.04m at 31 December 2005. At the end of 2005 our Government fixedinterest securities and cash deposits amounted to £11.55m (2004: £11.88m).Having borrowed £12m to help fund our £13m acquisition of BMG in January 2005 wehad, by 31 December 2005, reduced the net debt to £8m. The cost of servicing thedebt related to the BMG acquisition amounted to £0.54m and our goodwillamortisation charge for the year was £1.03m. I am delighted to be able to report that the performance of BMG, having beensuccessfully integrated into Personal Group, has exceeded expectations. Duringthe financial year BMG companies contributed £1.68m of pre-tax profit, beforeamortisation of goodwill, representing over 17% of group EBITDA. The group's joint venture with Abbeygate Developments Limited, to buildadditional office space and residential units on the site adjacent to JohnOrmond House, was completed in early 2005. It is fully occupied and generatingsufficient net income to cover our interest charge. Current trading is in line with directors' expectations. I give my thanks to all our employees and associates for their individualcontributions that taken together made this our most successful year to date. Christopher W T JohnstonChairman 27 March 2006 Enquiries: Personal Group Holdings Plc Tel: 0207 367 8888 (on 27/3/06).Christopher Johnston, Chairman 01908 605000 ext 235 (thereafter)Ken Rooney, Chief ExecutiveJohn Barber, Finance Director Bankside ConsultantsSimon Rothschild Tel: 0207 367 8871 PERSONAL GROUP HOLDINGS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005 2005 2004 £000 £000 £000 £000 TECHNICAL ACCOUNT -GENERAL BUSINESS Premiums written 15,638 13,518 Change in the gross provision forunearned premiums (191) 46 _________ ________Earned premiums 15,447 13,564 Claims paid (2,941) (2,850)Change in the provision for claims 121 (239) ________ ________ Claims incurred (2,820) (3,089) Net operating expenses (7,314) (5,555) ________ ________Balance on the technical account forgeneral business 5,313 4,920 ________ ________ ________ ________ PERSONAL GROUP HOLDINGS PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2005 2005 2004 (Restated) Note £000 £000 £000 £000 NON-TECHNICAL ACCOUNT Balance on the general businesstechnical account 5,313 4,920 Investment income 967 681Unrealised gains on investments 107 67Investment expenses and charges (36) (123) _______ _______Net investment return 1,038 625 Other income 1 11,617 3,703 Other charges 1 (10,182) (2,984) Charitable donations (126) (85) _______ _______Profit on ordinary activities before tax 2 7,660 6,179 Tax on profit on ordinary activities (2,557) (1,970) _______ _______Profit for the financial year 5,103 4,209 ________ ________ ________ ________ Earnings per share (basic) 3 16.9p 14.0pEarnings per share (diluted) 3 16.8p 13.9p There are no recognised gains or losses for the period other than the profit forthe financial year. Included within Other income is £7,859,000 (31 December 2004: £53,000), Othercharges is £6,400,000 (31 December 2004: £273,000), Investment income is£225,000 (31 December 2004: nil) and Tax on profit on ordinary activities is£381,000 (31 December 2004: nil) relating to acquisitions in the year. PERSONAL GROUP HOLDINGS PLC CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2005 2005 2004 £000 £000 £000 £000 Assets Intangible assets Goodwill 9,247 - Investments Investment in joint ventureShare of gross assets 2,214 1,707Share of gross liabilities (2,250) (1,707) ________ ________Net investment (36) -Other financial investments 8,564 6,952 Debtors Debtors arising out of directinsurance operations 1,501 1,185 Other debtors due within one year 1,196 659 ________ ________ 2,697 1,844 Other assets Tangible assets 6,638 5,654Cash at bank and in hand 8,564 8,936 ________ ________ 15,202 14,590 Prepayments and accrued income Accrued interest and rent 48 55Deferred acquisition costs 75 19Other prepayments and accrued income 1,554 149 ________ ________ 1,677 223 _________ _________Total assets 37,351 23,609 _________ _________ ___________ ___________ PERSONAL GROUP HOLDINGS PLC CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2005 (CONTINUED) 2005 2004 (Restated) £000 £000 £000 £000 Liabilities Capital and reserves Called up share capital 1,528 1,528Shares to be issued 298 247Other reserve (763) (558)Profit and loss account 19,498 17,550 ________ ________ Shareholders' funds 20,561 18,767 Technical provisions Provision for unearned premiums 417 226Claims outstanding 982 1,105 _______ _______ 1,399 1,331 Provisions for liabilities and charges 422 254 Creditors Current taxation 1,452 1,058Other creditors including other 867 474taxation andsocial securityBank loans 8,435 303 _______ _______ 10,754 1,835 Accruals and deferred income 4,215 1,422 _________ _________Total liabilities 37,351 23,609 ________ ________ ________ ________ PERSONAL GROUP HOLDINGS PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 2005 2004 £000 £000 £000 £000 Net cash inflow from operating activities 10,177 7,318 Loan interest paid (605) (26) Taxation paid (2,441) (1,783) Capital expenditurePurchase of fixed assets (237) (218)Sale of fixed assets 71 256Purchase of own shares (220) (4)Sale of own shares 15 363 _______ _______ (371) 397 Acquisitions and disposalsAcquisition (net of cash acquired) (10,795) (6) Equity dividends paid (3,191) (3,023) FinancingAdditions to bank loans 12,243 4Repayments of bank loans (4,111) (484) _______ _______ 8,132 (480) _______ _______Net cash flows 906 2,397 ________ ________ ________ ________Cash flows were invested as follows: (Decrease)/increase in cash holdings (372) 2,686 Net portfolio investmentOrdinary shares, loans, finance leases,treasury loan stock 1,278 (289) _______ _______Net investment of cash flows 906 2,397 ________ ________ ________ ________ Notes 1. Other income comprises insurance related business £10,606,000 (2004: £2,745,000) and other business £1,011,000 (2004: £958,000). Other charges comprises insurance related business £8,232,000 (2004: £1,178,000) and other business £1,950,000 (2004: £1,806,000). 2. Taxation comprises United Kingdom corporation tax of £2,582,000 (2004: £1,917,000), and deferred taxation credit of £25,000 (2004: charge £53,000). 3. The directors have declared a dividend of 3.3p (2004: 3.15p) per share payable on 2 May 2006 to share holders on the register at the close of business on 7 April 2006. Shares will be marked ex-dividend on 5 April 2006. The total dividend paid in the year was £3,191,000 (2004: £3,027,000), which is equivalent to 10.6p (2004: 10.1p) per share. 4. The basic and diluted earnings per share are based on the profit for the financial year of £5,103,000 (2004: £4,209,000) and on 30,185,071 basic (2004: 30,120,002), 30,377,285 diluted (2004: 30,218,539) ordinary shares, the weighted average number of shares in issue during the year. The EBITDA per share are based on the earnings before interest, tax, depreciation and amortisation for the financial year of £9,679,000 (2004: £6,821,000). The preliminary statement which has been agreed with the auditors and approvedby the Board on 24 March 2006 is not the Company's statutory accounts. Thestatutory accounts for each of the two years to 31 December 2004 and 31 December2005 received audit reports, which were unqualified and did not containstatements under section 237 (2) or (3) of the Companies Act 1985. The 2004accounts have been filed with the Registrar of Companies but the 2005 accountsare not yet filed. 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