Personal Group announced a dividend increase following a major technological upgrade.
- The transition to Hapi 2.0 platform reached 40% completion with full migration expected.
- Revenues rose by 14% and pre-tax profits increased by 14% in the first half of the year.
- CEO Paula Constant highlighted the scalable and adaptable nature of Hapi 2.0.
- The company plans to pursue acquisitions to expand digital capabilities.
Personal Group has reported an increase in its dividend, a decision made in light of the company’s successful migration to a new digital benefits platform, Hapi 2.0. This strategic upgrade has already seen 40% of clients transitioned, with a complete migration anticipated by year-end, facilitating further growth potential as the product enters the market.
The company has raised its interim dividend by 11% to 6.5p, aligning with impressive financial performance. Revenues have seen a 14% increase, reaching £21 million in the first half of the year. Additionally, the platform’s annual recurring revenues have grown by 15%. Pre-tax profit rose to £2.3 million, marking a 14% rise.
CEO Paula Constant elaborated on the platform’s design, stating that the modular tiers allow for customisation to specific client needs and scalability. She emphasised that, “We are not a Sellotape and string version of a benefits platform and this new upgrade will help us scale our growth.”
Moreover, Constant expressed optimism about future acquisitions to bolster the company’s digital offerings. “We’re looking for some really interesting integrations that supplement our benefits systems, including support for children and childcare,” she stated, acknowledging the increasing demand for digital tools despite the importance of face-to-face models.
The market’s response to these developments has been positive, as reflected in the 3.1% increase in Personal Group’s share price, now at 168p. Notably, in July, the company divested its technology salary sacrifice division, Let’s Connect, following the loss of a significant client, in a deal worth £2 million.
Personal Group’s strategic steps towards technological advancement and expansion underscore its commitment to growth and market adaptation.
