Personal Group expects 2022 revenue growth as insurance income climbs

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(Alliance News) – Personal Group PLC on Monday said it expected its revenue in 2022 to grow compared to 2021, helped by growth in annualized insurance premium income and an increase in annual recurring income. of the benefits platform.

However, the Milton Keynes-based provider of employee benefits and services said its second-half performance was weakened by the strike by International Distributions Services PLC’s Royal Mail workers.

Personal said it expects annual revenue of GBP85 million, up 13% from GBP75 million a year earlier. This was boosted by annual insurance premium income rising 15% annually to GBP28.0 million in 2022 from GBP24.4 million in 2021. The benefits platform’s 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 higher than pre-Covid averages. However, it said industrial action at key customers such as Royal Mail in the second half of 2022 had reduced 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 below management’s expectations,” explained Personal. Let’s Connect is the company’s technology employee benefits provider.

The company said it looks to 2023 with confidence, aiming to deliver profitable growth. “While we have projected 2023 to be another difficult year for the economy and the wider macro environment, the strength of the company’s trading in 2022, strong retention levels across all areas and growing annual premium income and the group’s annual recurring income continue to provide the board with confidence in the future opportunity for the business,” he 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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