Personal Share Discussion Threads

[tnt99] 15/4/2024 21:03

This share price still has covid all over it but results are on the way up

[topvest] 05/4/2024 12:32

Well, I think the Chair has been good for the company. The turnaround seems to have stemmed from him joining. Be nice if he doubled-down on his underwater share purchase though! Maybe he is the real strategic thinker and the CEO and CFO are delivering. No doubt the aged Christopher Johnston has the biggest say with his 36% shareholding though.

There is good momentum on the 2 main business streams. Insurance customer numbers have increased to 97k from 95k and premiums themselves have also increased. They will hopefully be back to £100k this year. If they can better target the sales team this will be very positive. I think the previous CEO didn't really understand the insurance business and was really an HR consultant.

On client numbers they started the year with 502 gained 133 and ended with 555 which indicates they lost 80. Retention on insurance 82.5% and on Hapi 95%...both pretty good. Previous CEO received a £185k pay off, so indicates the Chair / Board / Mr Johnston wanted somebody new.

[dartron] 25/3/2024 12:14

Presentation was a little lacking I felt. After 7 months, still working on strategy. Seems very little momentum left by last CEO. Nothing major announced, their still thinking about it. Perhaps reading in between the lines, last CEO left little in the way of a positive legacy, and new CEO has been dealing with that. I did pick up on a few comments hinting at that. I am happy to give her more time to prove herself, but still not fully convinced much is going to change here. Ideally I would like some tangible strategy announced for growth, and to see some commitment from the board in terms of share buys. To be fair to CFO & CCO, they have been buying through the share plan and probably are under water. However CEO was granted best part of 500k options on joining which doesn't feel like much skin in the game. Having looked through the last annual report, the previous board were expensive for what they delivered. Lets hope Paula can deliver some growth here. I specifically mention growth as I think the business can tick along under its own steam, as last CEO has proved. I shall collect the income for now, but really I am looking for some growth, and or possibly a take out noting the founder still owns 30%.
Sound quality was poor, should have read out each question regardless of whether she thought she had answered it, suggest CEO watching a few other investor meets to see what works. THRL was very polished recently or TIG did a nice Q&A.

[topvest] 22/3/2024 14:25

Agreed - group admin costs are up sharply with 2022 but not so much with 2021. I thought the presentation was OK. New CEO gave the impression of being hands on. CFO similarly. Not that charismatic, but maybe good at delivering and getting things done which is what you want. Be nice if they had the Chair on, as I suspect he is driving quite a bit of the strategy leadership. All they need to do is keep growing insurance at 5-10% per year and the returns will be very good. That depends on keeping their salesforce happy and targeting them at the right markets...which is what they appear to be doing. Hapi and Sage are a bonus, and don't really make that much difference at this point! Anyway, this is an absolute bargain if insurance grows. Not so, if it doesn't. Didn't seem to be any real concerns raised on Consumer Duty which is good. Might be tempted for one more top-up on weakness. Still zero interest.

[c3479z] 22/3/2024 13:14

central costs rising according to the presentation due to one-off cost of a new CEO, and wage inflation, cost of claims Let's connect has to improve.
wonder also how much the management consultants charged?

[topvest] 19/3/2024 16:09

Yes, I was very pleased with todays results. I doubled up at the start of the year. The key is insurance and that is doing really well. If they keep growing the book then profitability will expand dramatically back to 20p+. There is no interest in this stock, so its been a good time to buy before any re-rating happens.

[flc] 19/3/2024 13:47

Certainly a very realistic TP given fundamentals and current trading. Insurance premium income will always be the jewel in the crown but good to see contract wins outside of the core offering.

[quepassa] 19/3/2024 12:31

House-broker, Cavendish Financial issue Company Flash update this morning, headed:-

"Now to capitalise on significant opportunity".

Cavendish maintain their TARGET PRICE of 240p , representing 45% UPSIDE from yesterday's closing price.

all imo. dyor.
qp

[quepassa] 19/3/2024 10:15

dunno.

certainly fits the bill of description. your hypothesis may well be right.

and if so, what a great new customer.

[carcosa] 19/3/2024 09:42

QuePassa,

Is it not British Airways given that it's the first time they have mentioned the company by name?

[tradersof2003] 19/3/2024 09:11

@quepassa

So price eps ratio goes to just 7.2 for a business that just grew revenues 17% adj.

[balcony] 19/3/2024 09:11

And a 10 percent dividend over the next 14 months if the dividend stays the same.

[quepassa] 19/3/2024 09:08

Market cap today £55m

Cash as at 31/12/23 £20m.

The market cap is 34% cash-backed.

all imo. dyor.
qp

[quepassa] 19/3/2024 09:01

The Innecto website makes good viewing.

Some very impressive customers.

hXXps://www.innecto.com/who-we-help/our-clients


Was hoping to see the mystery new airline customer.

I guess/hope they'll update website soon.

all imo. dyor.
qp

[tradersof2003] 19/3/2024 08:27

growing revenues 14%
20m of 50m value in cash
16p eps forecast 11x

extremely GARPy any way you cut it

[pireric] 19/3/2024 07:48

I totally agree in principle. Although I'm not going to blame PGH as almost every company in the world uses management consultants, hence why the MC industry is so huge

Eric

[1c3479z] 19/3/2024 07:42

generally very positive, but why employ management consultant to review their business, managers should know their business and marketplace better than any external agency?
other than that, positive outlook.

[quepassa] 19/3/2024 07:32

Good results with a very upbeat/buoyant outlook.

Increase in dividend of c. 10% this year which is significant.


Great airline contract announcement by subsidiary, Innecto.


all imo. dyor.
qp

[pireric] 19/3/2024 07:21

Good results, small Innecto division with a meaningful contract win. Adj. EBITDA £8.1m vs. approx £8m from the trading update. 11.7p dividend for the overall year. Ex dividend for 5.85p is next Thursday

I think what investors need to cotton onto is the growth in the business excluding Let's Connect in the year, which had the contract loss that drops out as a headwind this year. Revenues were up 17% on this basis.

I think it's entirely possible 2024 growth could at bare minimum be 7-8% come the end of the year. >£20m net cash balance as per usual (well in excess of any required solvency thresholds but is a huge chunk of the EV).

Trough P/E multiple (and 6x ex cash) completely at odds of where the business is at. I suspect this will mark the start of a meaningful share price recovery

"Confidence across the Group is high for 2024 and the Group is well-placed to deliver further growth with an increasing proportion of recurring revenue and a strong balance sheet.

Trading has continued positively into the first quarter, reinforced by the renewal of the contract with Royal Mail Group, securing the provision of insurance cash plans via face-to-face road show visits, and the signing of a significant contract for the Pay & Reward division with a global airline."

Eric

[brianblu] 19/3/2024 07:10

Fantastic effort very good results

[pireric] 15/3/2024 10:40

Results next Tuesday. InvestorMeetCompany presentation on Friday at 1pm

Eric

[pireric] 01/3/2024 14:08

I wonder if Paula will decide to jettison Let's Connect into the long grass as part of her initial review.

If we look at the first half, it made £3.56m of revenue, but a £0.287m EBITDA loss, which offset about 10% of the group adjusted EBITDA in the first half. It does have a seasonal H2 weighting, but I'm not sure it would have even made break-even in 2023. So may be some profit benefits to shuttering it and stripping back that cost

I'm convinced the equity here is far too cheap.

Eric

[linton5] 01/3/2024 13:47

Lol it’s only where it was yesterday very undervalued share not a lot of stock floating about

[quepassa] 01/3/2024 09:50

Welcome jump in share price today.


Just for the record, in its recent 25/1/24 Company Flash Update house broker Cavendish gave a Target price of 240p for PG.

That's pointing to approx. 50% upside from today's price.


Personal's burgeoning insurance business is not to be underestimated.


ALL IMO. DYOR.
QP

[brianblu] 27/2/2024 10:13

On my watchlist Pgh good update but gets cheaper mmm nice divi also