Personal Group Regulatory News (PGH)

07 February 2022

Reach

Personal Group Holdings Plc

("Personal Group" or the "Group")

Five-year contract extension signed with Sage Group plc ("Sage")

Sage Employee Benefits software platform to continue to roll out the offer to Sage's millions of small and mid-sized customers

Personal Group Holdings Plc (AIM: PGH), the digitally-enabled employee benefits and services provider, is delighted to announce it has extended its existing agreement with Sage, the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs), with a new five-year contract.

Sage Employee Benefits ('SEB') is the Group's digital workforce engagement platform for SMBs created and sold in partnership with Sage. The venture provides Personal Group with the opportunity to substantially increase its footprint within the SMB sector with potential access to Sage's significant UK customer base whilst allowing Sage to expand its customer offering to include a best-in-class benefits and engagement solution.

The new contract builds on the success of Personal Group and Sage's partnership over the past year and will see the two companies continue to take this best-of-breed market proposition to more customers. Following its establishment several years ago, momentum in small to medium businesses using the SEB platform has picked up significantly in 2021 growing from 30 SMB users at the start of 2021 to c. 1,500 by the end of the year generating an increased gross Annual Recurring Revenue of £1.6m.

The extension of the relationship with Sage is an example of the Personal Group's continued execution and delivery of its growth strategy, extending its influence across multiple channels and markets. The contract demonstrates the growing opportunity and demand for wellbeing and benefits services within the SMB sector.

Deborah Frost, Chief Executive of Personal Group, commented:

"We are delighted to announce that we have extended our contract with Sage for an additional five years, building on the fruitful relationship we have had so far. Our shared belief in the importance of creating a happier, healthier and more productive workforce continues to drive our focus and enables us to act in the most valuable way to achieve growth across both businesses.

"Sage has an extensive SMB customer base and through our partnership with SEB we are now able to reach a significant number of smaller companies in the UK. The size of the market opportunity and the fact, to date, we have only scratched the surface in terms of the potential opportunity is incredibly exciting for Personal Group and we look forward to working with SEB to further develop and capitalise on our relationship for the mutual benefit of both parties.

"We are proud to be supporting SMBs by allowing them to access essential employee benefits and wellbeing support more easily, at a time when demand is at an all-time high."

Paul Struthers, MD, UKI, Sage, added:

"A quarter of UK employees - the equivalent of 7 million people - are paid via Sage, so we have a responsibility to provide the right solutions that add value to their working lives. Employee wellbeing is a focus for many more businesses given the challenges they have faced in the past two years.

"Driving employee engagement helps to drive greater productivity and at Sage we're focused on providing the right technology, with the right partners, to help do just that."

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Notes to Editors

Personal Group Holdings Plc (AIM: PGH) is an employee benefits and services provider. The Group enables employers across the UK to improve employee engagement and support their people's physical, mental, social and financial wellbeing. Its vision is to create a brighter future for the UK workforce.

Personal Group provides health insurance services and a broad range of employee benefits, engagement, and wellbeing products. Its offerings can also be delivered through its proprietary app, Hapi, and the recently developed extension to the platform, Hapiflex.

The Group's growth strategy is centred around widening the footprint of the business into the SMB, talent-led & Public Sectors, thereby expanding the addressable customer base. In addition, it aims to grow in its existing industrial heartlands, to re-invigorate growth in insurance policyholders and to drive the use of its SaaS offerings.

Clients include: Arsenal FC, Barchester Healthcare, Merseyrail, Randstad, Royal Mail Group, The Royal Mint, the Sandwell & Birmingham NHS Trust, Stagecoach Group plc., and The University of York. c.40% of clients are served by two or more group companies.

For further information on the Group please see www.personalgroup.com