Personal Group PLC (LON:PGH) saw a flat first half as the market adjusted to changes to salary sacrifice schemes announced by the government last year. Salary sacrifice schemes (or benefits at work) are when an employee exchanges part of their salary for a car, IT products, bikes and such like. Companies benefit through lower national income costs but the government clamped down last year, causing some upheaval in the market though Personal said Let’s Connect, its salary sacrifice arm, has now stabilised following the tax changes. Elsewhere, the group insurance business saw a slight dip in premiums to £15mln while revenues from its online employee benefits platform Hapi rose to £949,000 from £749,000.
In line with expectations
Overall, group revenues dropped to £19.6mln from £19.8mln in the half year to June, which was in line with management's expectations, said Mark Scanlon, chief executive. Profits from the ongoing businesses were £3mln (£3.1mln). “The insurance and Let's Connect businesses have performed well and we have had an encouraging start to the SME offer as part of continuing relationship with Sage. “Looking beyond 2017, Personal is in a strong position to make continued solid progress,” Scanlon added. The interim dividend rises by 3.2% to 11.35p.