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Personal Group Holdings Plc
Annual R
eport and A
ccounts 2021
Personal Group Holdings Plc
Annual R
eport and A
ccounts 2021
Personal
Gr
oup Holdings Plc
Annual R
epor
t and Ac
c
oun
ts 2021
THE
UK
W
ORKF
ORCE
IS CHANGING
.
SO ARE
WE.
S
UPPORTING THE U
K W
ORKF
ORCE
THROUGH OUR BRO
AD OF
FE
RING
O
F
EMP
L
O
Y
EE
WEL
L
B
EI
N
G
AN
D
EN
G
A
G
EM
EN
T
SERV
I
CE
S
.
Sign
ific
ant n
ew contr
act
s
sec
ured
w
ith 8
6 new cl
ient
s,
including goods retailer
Hom
eba
se, Un
ivers
it
y of Y
ork
and T
he Royal M
int, re
sulti
ng in
a record n
umb
er of new cl
ient
s
sign
ed acro
ss th
e Group i
n
one year
.
202
1 res
ults i
mpac
ted
, as
ant
icipa
ted, by a r
educ
tio
n to
ins
uran
ce incom
e
as a dire
ct
cons
eque
nce of 15 mo
nths of
CO
VID
-
19 lock
downs.
Face
-to-fa
ce insu
rance
produc
t
sal
es re
comm
ence
d
in July wit
h
st
rong a
ct
ivit
y t
hrough
out H2 a
nd
high co
nversio
n rates f
or new
polic
yholders.
Cont
inue
d exp
ansi
on into P
ubli
c
Sec
tor
wi
th six n
ew publ
ic s
ect
or
contr
ac
ts s
ecure
d and t
he Gro
up
bei
ng accepte
d onto th
ree key
Gove
rnm
ent fr
amewo
rk
s.
Launched Hapiflex
, a more
comp
lex ver
sion of o
ur ben
ef
it
s
pl
atfo
rm su
ita
ble for e
nterp
ris
e
clients
, winning
significant clients
wit
hin t
he f
irs
t few mont
hs.
Of
fer
ing to t
he SME s
ec
tor
wit
h
th
e Sag
e par
t
ner
ship cont
inuin
g to
show
s
trong
momentum.
20
21 HIGHLIGHTS
GROUP REVENUE
£
74
.
5
m
(2020: £71.
5m)
Financial Highlights
Operat
ional Highlight
s
BASIC EPS
11.
5p
(2020: 22.
1p)
ADJUSTED EBITD
A
£6.
1m
(2020
: £10.1m)
CASH & DEPOSITS
£2
2.
9
m
(2020: £20.2m)
PROFIT
BEFORE T
A
X
£
4.3
m
(2020: £8.6m)
DIVIDEND PER
SHARE
10
.
6p
(202
0: 18.4p
)
ST
A
YING
BETTER
CONNE
CTED
Read more |
page 6
KEEPING A
PERSONAL
T
OUCH
Read more |
page 8
BIG BENEFITS F
OR
SMALL
COMP
ANIES
Read more |
page 10
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
CONTENTS
See more online at
https:/
/www.personalgroup.c
om
GROUP
CHIEF
EXECUTIVE
’S
ST
A
TEMENT
Read more |
page 14
BO
ARD OF
DIRECT
ORS
AND SENIOR
LEADERSHIP
TEAM
Read more |
page 50-52
RESPONSIBLE
BUSINESS
Read more |
page 38
OUR
STRA
TEG
Y
Read more |
page 24
Overview
02
Why Inve
st in P
er
son
al Gro
up?
04
Wh
at W
e Do
06
O
ur Pur
po
se in Ac
tio
n
12
Chai
rma
n’s State
ment
14
Gro
up Chi
ef E
xecut
ive’s St
atem
ent
Gove
rn
ance
46
Corporate Gov
ernance
48
Bo
ard Ac
tiv
it
y in 20
21
50
Bo
ard of D
irec
tor
s
52
Senior Leadershi
p T
eam
53
Ri
sk and
Compliance Committee Report
54
Audit Committee Report
57
Nominations Committee Report
60
Remuneration Committee R
epor
t
64
Directors’ Report
65
St
atem
ent of Di
rec
tor
s’ Res
pons
ibil
it
ies
Finan
cial Statement
s
66
Independent Auditor’
s Report
74
Consolidated
Income Statemen
t
75
Consolidat
ed Balance
Sheet
7
7
Co
mp
any Ba
lan
ce She
et
78
Con
sol
idate
d Stat
eme
nt of Chan
ges in Eq
uit
y
79
Co
mpa
ny State
ment of C
hang
es in Equ
it
y
80
Con
sol
idat
ed Ca
sh Flow St
atem
ent
82
Comp
any C
ash Flow St
atem
ent
83
Note
s to th
e Fin
anci
al State
ment
s
115
Company
Informa
tion
Strategi
c Report
18
Our Markets
20
Launch Of Hapi
flex
22
O
ur
Business
Model
24
O
ur St
ra
te
gy
26
Strategic Progress
28
K
ey Performance I
ndicators
30
Q&
A w
ith L
iam M
cGr
ath
, Chie
f Ope
rat
ing O
ff
ice
r
32
Chie
f Fin
ancia
l Of
f
icer
’s Stat
ement
36
Risk Managemen
t
38
Envir
onmental
, Social
and Governanc
e
44
Se
ct
ion 1
72 Stat
eme
nt
01
Strategic Report
Overview
Governance
Financial Statements
WHY
INVEST
IN PERSONAL
GROUP?
A
PROGRE
SSIVE,
PROFIT
ABLE
BUSINE
SS ADDRE
SSING A
RAPIDL
Y
GRO
WING MARKET
.
Of
fe
rin
g a bro
ad mar
ket pro
po
sit
ion sp
ann
ing
rewar
d con
sultancy,
employee benefits and
ins
ura
nce. T
his en
d-to
-en
d sol
ut
ion ma
kes
Pe
rso
nal G
rou
p more a
tt
rac
t
ive to cl
ient
s a
nd
inc
reasi
ngly m
ore re
sil
ient to m
arke
t force
s.
Hig
h rete
ntio
n rate
s on in
sur
ance p
rod
uct
s
,
st
ron
g revenu
e vis
ibil
it
y th
ank
s to re
cur
rin
g
reven
ues f
rom S
aaS l
ice
nces a
nd s
tro
ng rep
eat
bus
ine
ss on p
rovisi
on of h
ome t
echn
olo
gy s
al
ar
y
sa
cri
fi
ce pro
duc
t
s.
De
man
d for ou
r se
rv
ice
s has ne
ver be
en gre
ater a
s
em
ployer
s pu
t an in
creas
ed fo
cus o
n imp
rovin
g
their emplo
yee
value pr
op
ositions.
Employers
inc
reasi
ngly s
ee em
ploye
e ben
ef
it
s an
d well
be
ing
se
rv
ice
s as ess
ent
ial fo
r rec
rui
tin
g and re
tai
nin
g
st
af
f in a co
mpe
tit
ive t
ale
nt mar
ket.
Po
st
-
pan
dem
ic, we
’re se
eing s
ust
ain
ed d
ema
nd
for o
ur af
for
dab
le ins
uran
ce pro
duc
t
s, b
oth fr
om
em
ployer
s lo
oki
ng to ma
ke the
ir wor
kf
orce m
ore
res
ili
ent
, and e
mploye
es w
ho wa
nt som
e fi
nan
cial
se
cur
it
y in ca
se of il
l hea
lth o
r deat
h.
A dig
it
al so
lut
ion t
hat al
lows e
mpl
oyees t
o acce
ss
a weal
th of f
ina
ncia
l, p
hysic
al
, me
ntal a
nd s
ocia
l
be
nef
it
s t
hrou
gh an ea
sy to u
se pl
at
for
m and a
pp.
Eas
y for n
ew of
fer
ing
s and b
usin
ess l
ine
s to b
e
integrated into
the plat
form.
An
nual re
cur
ri
ng reven
ue ac
ross t
he G
roup
’s
dig
it
al pl
at
for
ms now s
ta
nds at £
3.6m
. We are
imp
rovi
ng and a
ddi
ng to ou
r dig
ita
l pl
at
for
ms all
th
e tim
e – se
e p. 20-2
1 for t
he su
ccess
fu
l la
unch
of th
e la
tes
t ite
rat
ion
, Hap
ifl
ex.
3
4%
OF O
UR C
LIE
NT
S TAKE A
DVAN
T
AG
E OF T
WO O
R MO
RE
OF OUR
SEGMENTS
41
%
OF E
MP
LOY
EE
S WOR
LDW
ID
E PL
A
N TO L
EAV
E
TH
EI
R JO
BS TH
IS Y
E
AR*
* Mi
cros
of
t st
ud
y
5
3
9
,0
51
AC
TI
VA
T
ED U
SE
RS O
N HA
PI A
ND S
AGE
EMPLO
YEE BENEFI
TS
Group Chief
Executive’s Statement|
page 14
Our Mark
ets |
page 18
Our Business Model
|
page 22
A
DIVERSE AND
ROBUST
BUSINESS
ADDRESSING A
RAPIDL
Y
GRO
WING MARKET
DIGIT
ALL
Y
LED MODEL
WITH PROPRIET
AR
Y
SOFTW
ARE
PLA
TFORM A
T
THE CENTRE
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
02
Cash generativ
e with regular income
generated
fro
m insu
ran
ce pre
mium
s coll
ec
ted by o
ur cl
ient
s
through payroll
deduct
ion and
annual digital
subscriptions paid in advance.
Th
is tog
eth
er wi
th s
tro
ng f
ina
ncia
ls u
nde
rp
ins a
lon
gst
an
din
g pol
ic
y of pay
ing a si
gnif
ic
ant le
vel of
prof
it
s as a d
ivi
den
d as wel
l as prov
idi
ng f
irep
ower
for g
row
th.
Bo
ard an
d se
nior l
ead
er
ship h
ave a dee
p
und
er
st
and
ing of t
he b
usin
ess
, and a p
roven
tr
ack re
cord i
n sca
lin
g-u
p busi
nes
ses
. We util
is
e a
com
bine
d weal
th of k
nowl
edg
e and e
xpe
rie
nce to
hel
p t
he bus
ine
ss ach
ieve su
cces
s and kee
p it
moving
forward.
Ou
r sen
ior l
ead
ers
hip com
pr
ise
s a mix
tu
re of
recen
t experienced
external appointments and
th
ose w
it
h a hist
ori
c und
er
st
and
ing of o
ur
business.
We have out
li
ned a cl
ear s
tr
ateg
y to dr
ive
significant growth and momentum is
building
wi
th 86 n
ew cl
ient
s se
cur
ed acr
oss t
he G
roup i
n
202
1 and f
ur
t
her p
rogr
essi
on ma
de on
partnerships
.
We are dive
rsi
f
ying c
ust
ome
r bas
es an
d cha
nne
ls
to ma
rket to f
utu
re-
proo
f our gr
owt
h an
d our
foc
us for t
he n
ex
t few yea
rs w
ill b
e on dr
ivi
ng
ins
ura
nce, t
ran
sfo
rmi
ng rewa
rd and b
en
ef
it
s and
acce
ler
atin
g our S
ME of
fer.
£2
2.
9
m
C
AS
H AN
D DE
PO
SI
TS W
ITH N
O
DE
BT A
S AT 31DE
CE
MB
ER 202
1
180+ yrs
COMBINED
E
XPERIENCE
IN THE
INDUSTRY
>
1.
5m
reach
AMBITION
TO S
UPPORT O
VER 1
.5M EMPLO
YEES
WITH
OUR PROD
UCTS AND SERVIC
ES
CFO statemen
t |
page 32
Meet our Boar
d |
page 50
Our Str
ategy
|
page 24
CASH
GENERA
TIVE,
DEB
T
FREE AND A
STRONG B
ALANCE SHEET
EXPERIENCED
MANA
GEMENT
TEAM
AMBITIOUS PLANS
WITH
A
CLEAR RO
ADMAP
T
O GRO
WTH
WHY
INVEST
IN PERSONAL
GROUP?
03
Strategic Report
Overview
Governance
Financial Statements
WHA
T WE DO
WE PRO
TE
CT
THE UNPRO
TECTED
AND
C
ONNECT
THE UNC
ONNECTED
HELPING
EMPL
O
YEE
S
THRIVE
IN
W
ORK
AND IN LIFE
.
OUR PURPOSE
T
o Protect the
Unprotected and Connect
the Unconnected.
OUR VISION
A
winning team crea
ting a brighter
future for the UK workforc
e.
P
AY
&
REW
ARD
Consultancy
and
software solutions
BENEFITS
PLA
TFORM
Delivered to employ
ers
directly
and through
channel partners
AFF
ORDABLE
INSURANCE
On w
eekly or
monthly
rolling contracts
O
THER
O
WNED
BENEFITS
Acc
ess to consumer
technology
What w
e do
Provid
e ben
ef
it
s and s
er
vice
s focus
ed on im
provin
g employe
e healt
h, wel
lbe
ing an
d engag
eme
nt. A
s a soci
ally resp
onsib
le
busi
ness
, we ensure t
hat ou
r offe
ring
s acros
s the G
roup are f
air
, reas
onab
le and a
ccessib
le to al
l corne
rs of so
ciet
y
.
Our b
usine
ss has fo
ur core fo
cuse
s:
Where w
e want to get t
o
Inne
cto
– Inn
ec
to of
fers e
xpe
r
t
consult
an
cy on al
l thi
ngs pay a
nd
reward
, along w
ith a s
uite of
cloud
-based
Saas t
ools.
Cli
ent
s can ch
oos
e a besp
oke
solution to
hel
p them
dev
elop
and implemen
t fair
, c
onsisten
t
and b
es
t fit r
eward pro
gram
mes
.
Hapi
– A market l
eadin
g, ful
ly
customisable, employ
ee
eng
agem
ent pl
atfo
rm an
d app.
Hapiflex, offer
ing flexible
ben
ef
it
s, is al
s
o avail
able fo
r
more co
mplex re
quirem
ent
s.
Sa
ge Emp
loyee Be
nef
it
s
– An
employ
ee engagement product
des
igne
d for th
e SME mar
ket.
Insurance
– Hospi
tal pl
an
,
convale
scen
ce pla
n, and d
eath
benefit policies, under
written by
Group subsidiaries.
Simp
le pl
ans th
at are se
cured fo
r
th
e lifet
ime of t
he po
lic
y
,
provi
ding pe
opl
e wit
h peace of
min
d if the u
nexp
ec
ted ha
ppe
ns.
Let’s Conne
ct
– Enables
emp
loyers to p
rovide a b
ene
fi
t
sch
eme t
hat allow
s the
ir
emp
loyees to a
ccess th
e lat
est
consu
mer te
chnol
ogy a
nd othe
r
high e
nd pro
duc
ts f
rom le
ading
manufacturers and spread the
cost e
ith
er by sa
la
r
y sacr
if
ice or
net p
ay ar
ran
gem
ent
s.
Read about Innecto’s
work |
page 8
Read about insurance |
page 30
Read the case study
|
page 6
Read about Hapiflex |
page 20
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
04
OUR STRA
TEG
Y
Our gr
owth strategy
is focused on
widening our foo
tprint across a broader
range of industries.
Read more about Our
Strategy |
page 24
OUR V
AL
UES
Our c
ore values ensur
e that e
veryone understands, and is aligned
with, who
we are
and how we w
ant
to operate.
How w
e’r
e goin
g to get ther
e
Driving insuranc
e
sales thr
ough
ne
w
and existing channels
T
ransf
orming rew
ard
and benefits
Ac
celerating our
SME off
er
Engaging
Genuine, approachable
and p
assio
nate, e
nsuri
ng
people feel comfortable
and c
onfident
when
ta
lki
ng to us.
Exp
er
t
Profes
sional
, pre
cise,
knowledgeable, learning
all t
he t
ime to ma
ke sure
we ar
e delivering viable,
qual
it
y so
luti
ons to ou
r
cli
ent
s.
Solid
T
ru
st
wor
thy, respec
ted
and dependable.
We k
eep
our p
romis
es and g
et it
rig
ht the f
ir
st ti
me – ever
y
time.
D
ri
ven
Moti
vated
, ambi
tiou
s and
determined, de
livering
what o
ur cli
ent
s and
cus
tome
rs ne
ed in an
ever
-changing la
ndscape.
WHA
T WE DO
05
Strategic Report
Overview
Governance
Financial Statements
£
4
8
1k
EMPLOYEE SPEND
ON LET’S C
ONNEC
T
202
1
OUR PURPOSE IN
ACTION
S
T
AY
I
N
G
B
E
TT
E
R
C
O
NNE
C
T
E
D
OPPORTUNITY
Hy
wel Dd
a is a healt
h
board that supports the
heal
th of
West
Wa
les,
acro
ss the co
untie
s
of Carmarthenshire,
Ceredigion and
Pembrokesh
ire.
They e
mploy 1
3,00
0 staf
f.
SOLUTION
Hap
i provid
es a qui
ck and si
mple w
ay for Hy
wel Dd
a to
conn
ect w
ith ever
y em
ployee
.
Hy
wel Dd
a init
ially im
plem
ented t
he Ha
pi pl
atfo
rm to sh
owcase
th
e wide r
ange of b
ene
fi
ts t
hey of
fer to t
hei
r amazin
g work
force.
Provid
ing be
nefi
ts tha
t employee
s want and u
se
Hap
i offe
rs acce
ss to hun
dreds of h
igh st
reet a
nd onl
ine re
tail
disco
unt
s, incl
uding re
st
aur
ant
s, days ou
t, a
nd cine
ma sch
eme
s,
whi
ch have proved po
pul
ar acro
ss th
e organ
isat
ion. W
it
h inst
ant
e-v
ouchers downloaded straigh
t to emplo
yees’ smartphones,
it’s e
asy to sh
op an
d save. Loc
al of
fer
s will n
ow be ad
ded to
br
ing wid
er comm
unit
y be
nef
it
s aro
und th
eir ma
in loc
atio
ns.
Empl
oyees ca
n al
so s
ave with s
al
ar
y sa
crif
ice s
chem
es, r
unnin
g
t
wice a year
. T
hey c
an save mo
ney on a n
ew bike via a C
ycle to
W
or
k sc
heme, encou
raging a
h
eal
t
hier
, greener c
ommute.
Empl
oyees al
so h
ave access to t
he l
ates
t home t
echn
olog
y
thr
ough te
ch ben
ef
it provi
der Le
t’s Conn
ec
t – so far H
ywe
l Dda
has ac
hieved e
mployer s
avings of a
n es
timat
ed £1m w
ith over
3,
50
0 st
aff e
nrol
led in t
he sch
eme si
nce it b
egan
.
Lo
oking f
or
ward
, Hy
wel Dda a
re al
so excite
d about u
sing
Hapi to
expand their
wellbeing offer
.
Like oth
er he
althc
are org
anis
ation
s, th
ey face
d huge ch
alle
nges
throughout
the CO
VID-19
pandemic. It’
s impor
tant t
o suppor
t
th
eir st
af
f
’s ment
al and p
hysica
l well
nes
s so th
ey can co
ntinu
e
to pe
rf
orm at t
heir b
es
t. By m
aking i
t eas
y to access h
ealt
h and
well
be
ing be
nef
it
s, t
he orga
nisat
ion h
ope
s to improve r
ates of
sick
ness a
bse
nce and s
taf
f tu
rnover
, l
eadi
ng to bet
te
r outcom
es
for t
heir s
er
vice us
er
s.
OUTC
OME
Hy
wel Dd
a are real
ly pleas
ed wi
th
how Ha
pi has he
lpe
d to del
iver a
win
ning be
nef
it
s of
fer to eve
r
y
emp
loyee, wi
th cons
equ
ent gains
for eng
agement
and productivit
y
.
Wi
th Hap
i, st
af
f can m
ake the m
ost
of th
eir be
nef
it
s, w
herever a
nd
wheneve
r is
conven
ient
for them.
Hy
wel Dd
a al
so now ha
s a direc
t li
ne
of comm
unic
ation v
ia push
noti
fic
atio
ns so ever
yo
ne has a
ccess
to relev
ant infor
mati
on, even h
ard to
reach
frontline emplo
yees.
A final w
ord from th
e client:
“H
ywel D
da are wel
l on t
he way to
creat
ing and d
el
iverin
g a ben
ef
it
s
pa
ckage t
hat wil
l hel
p us recr
uit a
nd
ret
ain our a
mazin
g work
force. We’ve
don
e great wor
k in creat
ing a cult
ure
of coll
ab
orat
ion b
etwe
en HR
,
mana
gem
ent and f
rontl
ine s
taf
f
,
whi
ch in tur
n gene
rate
s greater s
t
aff
engagement and satisfac
tion.
Read more online |
www.personalgroup.c
om/casestudies
HY
WE
L DD
A UNIVE
R
SIT
Y HE
AL
TH BO
ARD
Our work
with Hywel Dda emphasises the
relevance
of technology benefit t
o the public
sec
tor
. Let’s Connect hav
e a
par
tic
ular d
ept
h of expe
rien
ce with N
HS Tru
sts
, and w
hen com
bine
d with a Ha
pi pl
atfo
rm sal
e so emp
loyees c
an acces
s thei
r
entire benefits offer in one
place, the impact on enga
gement across the
org
anisation
is remarkable.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
06
“The organisation has historicall
y
struggled with engagement with
certain groups o
f
staff
but Hapi
integrates our
entire benefits offering
into a single app and deliv
ers push
notific
ations, making it accessible for
all
emplo
yees spread acr
oss our
large
organisation and not just
those who
hav
e easy
access
to a computer”
Rob Blake*
Head of Cul
ture and
Workf
orce Experience at Hyw
el Dda Univ
ersity Health Boar
d
OUR PURPOSE IN
ACTION
*Pic
tur
e pose
d by mod
el
INVEST
OR ANGLE
Let’s C
onne
ct ha
s a par
t
icul
ar de
pth of
exp
eri
ence wi
th NH
S T
rus
t
s and it
s wor
k
wit
h Hy
wel Dd
a emph
asise
s the re
levance
of tech
nolo
gy be
nef
it to t
he pu
bli
c sec
tor
.
Wh
en combi
ned w
ith a Ha
pi pl
at
form s
ale
so em
ployee
s can acce
ss th
eir ent
ire
ben
ef
it
s of
fer in on
e pl
ace, th
e imp
act o
n
eng
agem
ent acros
s the o
rganis
ati
on is
remarkable.
07
Strategic Report
Overview
Governance
Financial Statements
OPPORTUNITY
Bou
ght By Ma
ny is a fast-
growing organisation
sca
ling at p
ace and t
hus
recognise the
imp
ortance
of ensuring the
right roles
are in p
lace a
t the rig
ht
level to s
uppo
rt g
rowt
h.
Th
ey want to en
sure th
at thei
r
emp
loyee dea
l is ef
fec
tive at
at
tra
ct
ing and re
tai
ning t
alent
in a comp
eti
tive ma
rket.
SOLUTION
It was i
mportant that any sol
ution wou
ld support
the agility and gro
w
th aspirati
ons of Bought
By
Many
, balancing rigour
with flexibili
ty.
Inn
ect
o worked clo
sely wi
th th
e peo
ple te
am and t
he
Sen
ior Le
ader
ship T
e
am to f
irs
tly imp
leme
nt a job
evalu
atio
n fram
ework t
o size roles a
nd und
ers
ta
nd th
e
orga
nisat
ion sh
ape of t
he busi
ness
. Evaluate™ is a
robu
st jo
b evaluat
ion s
chem
e, del
ivere
d via Inn
ec
to’s
prop
riet
ar
y s
of
twa
re. It provi
des an a
naly
tic
al
framework
which
pro
vides the rigou
r without a
len
gthy eva
luati
on pro
cess th
at would wor
k agai
nst a
fast
-moving business.
Th
e secon
d phas
e to th
e proje
ct wa
s to ben
chmar
k
th
eir role
s to und
ers
ta
nd how t
he Bo
ught By Ma
ny
emp
loyee dea
l compa
res wi
th th
e ex
ter
nal mar
ket. T
he
output
s w
ere delivered thr
ough Pa
yL
ab
, our c
loud-
bas
ed pay i
nsight
s too
l. T
his bro
ught th
e infor
matio
n
to li
fe, pre
sent
ing it in a v
isual way w
hich was e
asier to
abs
orb a
nd ena
bled t
he se
nior t
eam to eas
ily share th
e
out
comes w
ith t
heir t
eam.
Th
e job eval
uati
on fra
mewor
k and t
he ex
ter
nal
ben
chma
rkin
g the
n fed into t
he pay rev
iew pro
cess
,
giv
ing conf
ide
nce to th
e Sen
ior Lea
der
ship T
e
am and
emp
loyees t
hat pay de
cisio
ns were fai
r
, co
nsiste
nt, an
d
rout
ed in dat
a.
OUTC
OME
The project pr
ovided a strong
foun
dati
on on wh
ich Bo
ught By
Many cou
ld bas
e reward de
cisio
ns
goi
ng for
ward
. Thro
ugh t
he
comb
inati
on of Evaluate an
d PayLa
b,
Bou
ght By Ma
ny have the sof
t
ware
to ensu
re fut
ure role
s are sized
obj
ect
ively an
d that p
ay is set in l
ine
wit
h the m
arket an
d the
ir pay
st
ance
. Both Evaluate a
nd PayL
ab
can b
e easily up
dated a
s the b
usine
ss
gro
ws theref
ore s
upport
ing
t
he
nee
d to recr
uit at p
ace in l
ine wi
th
th
e ambi
tiou
s grow
th aspi
rati
ons.
The additional
insi
ght
pro
vided b
y
E
valuate into organi
sational shape
and d
esign w
ill he
lp B
ought By M
any
to th
ink th
rough w
hat th
eir
orga
nisat
iona
l st
ruc
ture n
eeds t
o
loo
k like bot
h now and i
n the f
uture
as th
e busin
ess grow
s.
Read more online |
www.personalgroup.c
om/casestudies
BOUGHT B
Y MAN
Y
Inn
ovative ins
ur
tech bu
sine
ss Bou
ght By Ma
ny sell
s pet i
nsura
nce pol
icies
. Wit
h impr
essi
ve grow
th over the l
ast f
our year
s
and no plans to
slow do
wn
, the
company
needed to implement robust
reward arch
itecture that w
ould enable them to k
ee
p
att
ract
ing and r
eta
ining t
alen
ted em
ployees
, whil
st fl
exin
g to accomm
odate t
heir fa
st-g
rowing b
usin
ess.
OUR PURPOSE IN
ACTION
c
ontinued
K
EEP
I
N
G
A
PE
R
SO
N
AL
TO
U
C
H
76
%
UK MANA
G
ERS
HA
VE NAMED
WELLBE
ING AS A
TOP PRIORI
T
Y
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
08
*Pic
tur
e pose
d by mod
el
“It was importan
t that an
y
solution
would support
the agility
and gro
wth
aspirations of
Bought By
Many
,
balancing rigour
with flexibility
.
Julia Ingall*
Chief People Offic
er at Bough
t By Many
OUR PURPOSE IN
ACTION
c
ontinued
INVEST
OR ANGLE
Inn
ect
o’s enviabl
e clie
nt lis
t inclu
des m
any
hou
seho
ld nam
es wit
hin ret
ail
, f
inan
cial
ser
vic
es, no
t
-for
-profit, pro
fessiona
l
ser
v
ices
, spor
t an
d med
ia. A
s a form
er
st
ar
t
-up, B
ought B
y Many is a go
od
exam
ple of a fa
st
-g
rowing b
usine
ss using
Inn
ect
o’s expe
r
tise a
nd digi
tal a
naly
tic
s to
se
cure a rob
ust p
ay infras
tr
uc
ture wh
ich
wil
l unde
rpin t
hei
r futu
re grow
th.
09
Strategic Report
Overview
Governance
Financial Statements
OUR PURPOSE IN
ACTION
c
ontinued
BIG BE
NE
FITS F
OR
SMAL
L
C
O
MP
ANI
E
S
1m
NUMBER OF
UK
SMES USING S
AGE
OPPORTUNITY
Clinisupplies provide medical
devices
for the con
t
inenc
e,
urolo
gy
, and wo
und
closu
re mar
kets. T
hey a
re
hea
dqua
r
tered i
n W
atf
ord
wit
h 120 st
af
f spl
it be
twe
en
th
e UK and I
ndia.
Cli
nisupp
lie
s wante
d to pul
l
tog
ethe
r the
ir emp
loyee
ben
ef
it of
fer
ings into a
cohe
sive and e
asy to a
ccess
pa
ckage
, as well as s
aving H
R
tim
e and re
source by
mana
ging t
hem in o
ne pl
ace.
Th
e compa
ny has a
long-standing culture of
recog
nising e
xcelle
nce via
reward a
nd reco
gnit
ion, b
ut
wante
d to centr
alis
e the
ir
sch
emes a
nd make t
hem
easie
r to adm
inis
ter
. Th
ey al
so
wante
d to provid
e well
bei
ng
res
ources fo
r st
af
f
, he
lpin
g
th
em st
ay hea
lthy and
pro
duc
tive even i
n dif
fi
cult
circumsta
nces.
SOLUTION
Rewar
d & Recogn
ition
His
tori
cal
ly
, Cli
nisupp
lie
s had a va
riet
y of rewa
rd and re
cognit
ion
sch
emes
. Sa
ge Empl
oyee Ben
ef
it
s enab
led t
hem to cent
ral
ise an
d
exp
and t
heir rew
ard and re
cogni
tio
n off
erin
gs, usin
g it to mot
ivate
emp
loyees an
d celeb
rate t
heir ha
rd work
.
Now, wheneve
r empl
oyees rece
ive an award o
r are reco
gnise
d for
th
eir ef
for
t
s, t
hey c
an qui
ckly and eas
ily redee
m the
ir award
thr
ough S
age Em
ployee Be
nef
it
s fro
m the
ir choi
ce of reta
iler
s.
2020
’s conferen
ce was he
ld vir
tu
ally be
caus
e of COVID-19
res
tri
ct
ions
, but Cl
inisu
ppl
ies se
nt empl
oyees vou
cher
s to buy f
ood
and d
rink to e
njoy at ho
me, as wel
l as £5
0 in Amazon vo
uche
rs – al
l
adm
inist
ered t
hroug
h Sag
e Employe
e Bene
fi
ts
. So fa
r over £43,0
00
has b
een ap
proved in awa
rds!
Per
so
nal Gro
up worked w
ith t
he cl
ient to p
ers
onal
ise t
hes
e awards
to make t
hem as ea
sy as p
ossib
le to issu
e and ma
nage. Cl
inis
uppl
ies
al
so re
gul
arly us
e e-c
ards pe
er to p
eer to s
ay tha
nk you or
rec
ognise
excell
ence
.
W
ellbeing
Sa
ge Empl
oyee Ben
ef
it
s allow
s Clin
isuppl
ies t
o hos
t the m
ajor
it
y
ofth
eir hea
lth an
d well
bein
g ben
efi
ts i
n one pl
ace
. The E
AP si
ts
alon
gside a we
ekly new
slet
ter of
fer
ing ad
vice on h
ealthy l
ifes
t
yle
choi
ces. Em
ployees c
an al
so a
ccess 24/
7 GP a
ppoi
ntme
nts fo
r
themselv
es and their fa
milies via
video or phone call.
Cli
nisupp
lie
s’ well
bei
ng of
feri
ng fi
ts w
ith t
hei
r compa
ny etho
s of
supp
or
ti
ng hea
lth and t
he res
ource
s were par
t
icul
ar
ly welcome in
th
e age of COVID
-
19. Havi
ng it al
l in one pl
ace m
akes it eas
y for s
ta
ff
to acces
s and HR t
eams to a
dminis
ter
.
OUTC
OME
95% of Cl
inisup
pli
es’ emp
loyees a
re
ac
tiv
ated on S
age Em
ployee
Ben
ef
it
s. Af
ter t
akin
g up a six-mo
nth
free t
ria
l, t
hey have t
ransi
tion
ed to a
pai
d subs
cript
ion for s
evera
l reaso
ns:
Pl
atfo
rm prov
ided w
hat th
ey were
loo
king fo
r and m
ore
Simp
lici
ty o
f having ma
ny ben
ef
it
s
in one
place
Saves H
R teams
’ time a
nd res
ource
and is e
asy to a
dmini
ster
Scal
able to
f
uture
needs
Flex
ibil
it
y to ad
d or ta
ke away
li
cence
s mont
h by mont
h
Read more online |
www.personalgroup.c
om/casestudies
CLINISUPPL
IE
S
Clinisupplies are
a great
example of an
S
ME usin
g acc
e
ss t
o Personal Group benefits through our
par
tnership with Sage t
o
give th
em an e
dge in th
e war fo
r tale
nt. T
he UK’s S
ME sec
tor i
s vast b
ut fragm
ented – t
he bu
sines
s we’ve devel
ope
d with S
age
give
s us access t
o this p
revio
usly unt
app
ed mar
ket. O
ur grow
th th
is year is o
nly the s
tar
t of our S
ME sto
r
y
, a
s we improve th
e
attraction, retention and li
fetime value of
our clients.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
10
“Sage Emplo
yee Benefits has
v
ery
quickl
y
become part of
our
process.
W
e’v
e had excellen
t
feedback in our
emplo
yee surv
ey
s
about
the platform – it supports
positiv
e engagement and mak
es
it simple for
emplo
yees
to acc
ess
their
benefits”
Amanda Cass*
HR Director
at Clinisupplies
OUR PURPOSE IN
ACTION
c
ontinued
*Pic
tur
e pose
d by mod
el
INVEST
OR ANGLE
Cli
nisupp
lie
s is a great ex
ampl
e of an SME
using a
ccess to P
ers
onal G
roup b
enef
it
s
thr
ough ou
r par
t
ner
ship wi
th S
age to gi
ve
th
em an ed
ge in th
e war fo
r tal
ent. T
he
UK’s S
ME se
cto
r is vast b
ut fr
agme
nted –
th
e par
t
ner
ship we’ve d
evelop
ed wit
h Sa
ge
gives u
s access to t
his pre
viously unt
ap
ped
mar
ket. O
ur grow
th t
his year is on
ly the
st
ar
t of ou
r SME st
or
y
, as we i
mprove th
e
at
tra
ct
ion, re
tenti
on and l
ifet
ime va
lue of
our clients.
11
Strategic Report
Overview
Governance
Financial Statements
CHAIRMAN’S
ST
A
TEMENT
“SUC
CE
SSFULL
Y
SUPPOR
TING
THE
UK
W
ORKF
ORCE WHEN
IT
W
AS
NEEDED MOST
.
In th
is, my f
irs
t st
atem
ent as Chai
rma
n of
Per
so
nal Gro
up, I am del
ighte
d to repo
r
t on a year
of excel
lent st
rate
gic pro
gres
s for th
e busin
ess
.
De
spite a l
onge
r
-t
han-
expe
ct
ed loc
kdown in
H1 and some challenging conditions throughout,
th
e team ac
hieved a gre
at deal i
n 2021
,
accele
rati
ng us toward
s a str
ong retu
rn to
grow
th in t
he year
s ahe
ad.
As a t
ruly p
urp
ose
-led bu
sines
s the m
ost
imp
or
ta
nt achie
vement to n
ote is the s
uppo
r
t
we’ve cont
inue
d to provi
de to emp
loyees al
l over
th
e countr
y. In what has b
een a ver
y d
if
fic
ult tim
e
for ma
ny we have continu
ed to p
ay out cl
aims i
n
full
, supplied inva
luable wellbeing suppor
t,
imp
roved live
s wit
h access to b
ene
fi
ts of a
ll
var
ieti
es, an
d provid
ed th
e mea
ns to keep
scattered colleagues connected.
We have touche
d the l
ives of m
ore th
an a mil
lio
n
pe
ople in s
ome w
ay this year
, a p
roud a
chievem
ent
in l
ine wi
th our g
uidin
g visio
n: to create a br
ighter
fut
ure for t
he UK wo
rk
force.
I would l
ike to ta
ke this op
por
tu
nit
y to sin
cerely
tha
nk ever
y me
mbe
r of the P
ers
onal G
roup t
eam
who h
as mad
e this ha
ppe
n, all o
ur pa
rt
ner
s, cl
ient
s
and of co
urs
e our sup
por
t
ive share
hold
ers
.
Foc
used on gro
w
th
Whi
ls
t our re
sult
s for t
he 202
1 were imp
ac
ted, a
s
anti
cipate
d, by a red
uc
tion t
o our insu
ran
ce
incom
e as a dire
ct con
seq
uence of 15 m
onth
s of
COVID
-
1
9 lockdown
s, we have del
ivere
d goo
d
grow
th in m
any othe
r key metr
ics – tot
al uni
que
cli
ent num
ber
s and ac
ti
vated b
ene
fit
s pl
at
for
m
use
rs, fo
r exam
ple. T
his de
mons
trat
es th
e
und
erlyin
g healt
h and opt
imism i
n the b
usine
ss.
Loo
king b
eyond t
he day-to-d
ay
, retu
rnin
g to and
del
iver
ing lon
g-term g
rowt
h has b
een at t
he
fore
front of ou
r minds
. W
e are th
erefo
re del
ighte
d
to have won 8
6 new cli
ent
s acros
s the G
roup in
202
1 – more t
han ever b
efore
. W
e h
ave broad
ene
d
our of
fer
ing sig
nif
ica
ntly and f
ur
the
r def
ine
d our
st
rate
gy in pu
rsui
t of that a
mbit
ion wi
th ne
w
ta
rget
s for 20
25. H
aving ex
per
ience
d a redu
ct
ion
in th
e size of our ins
uran
ce boo
k as a result of
CO
VID
-
19, w
e have
now rec
ommenced f
ace-
to-
face s
ale
s in ear
nes
t and are d
eter
mine
d to not
only bu
ild ba
ck to his
tori
c pol
icy
hold
er num
ber
s,
but t
o surp
ass th
em.
Provid
ing broader suppor
t,
widening o
ur footpri
nt
Our p
rogre
ss th
is year out
si
de of insur
ance ha
s
be
en dri
ven by t
wo eleme
nts i
n par
t
icul
ar
. T
he
f
irs
t of the
se is t
he bro
aden
ing of our of
fe
ring
.
Over t
he year we have int
rodu
ced a ho
st of new
ben
ef
it
s and di
str
ibu
tion c
hann
el
s. We’ve al
so
develo
ped H
apif
lex
, a more m
ultif
aceted ve
rsio
n
of our b
ene
fit
s pl
at
for
m Hapi
, to addre
ss th
e
nee
ds of t
alent
-
drive
n organ
isat
ions. I
t has be
en
ver
y wel
l receive
d. Th
is work b
uilds on o
ur uni
que
sel
lin
g point
: hou
sing a ver
y b
road r
ange of
reward
, ben
ef
it
s and ins
uran
ce solu
tio
ns wit
hin
one G
roup.
Th
e secon
d dri
ver has b
een su
ccess in ex
pan
ding
into new i
ndus
tr
ies. I
n the p
ubl
ic sec
tor we
’ve won
six ne
w contra
ct
s an
d bee
n accepted o
nto thre
e
key Gover
nment f
ram
ework
s. O
ur par
t
ner
ship
wit
h Sa
ge has al
so p
rogre
sse
d fur
t
her – we
cur
rently provi
de 20,00
0 em
ployees w
ith S
age
Empl
oyee Ben
ef
it
s and have acce
ss to th
e 7m UK
emp
loyees covere
d by Sag
e sof
tw
are. In ad
dit
ion,
we have mad
e impo
r
tant i
nroad
s into ta
lent
-
dri
ven busi
ness
es wi
th mo
re comp
anies t
ak
ing up
Inn
ect
o’s ser
vi
ces and e
arly win
s secu
red for o
ur
Hapiflex product
.
“The gro
wth in the mark
et
underpins our
prospects
as a business.
Martin Bennett
Non-Executiv
e Chair
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
12
A winning team
Suppor
ting, communicating with and rewarding
our ow
n peo
ple has b
een a key fo
cus thi
s year
. We
impl
eme
nted a f
lexib
le hybr
id wor
king p
oli
cy to
cate
r for a bro
ad var
iet
y of pe
rso
nal pre
feren
ces
and sp
ent ti
me reaf
f
irm
ing our co
re value
s as a
team
. Kn
owing we are al
l al
igne
d with a c
lear
pur
pos
e to ser
ve un
der
pins o
ur abil
it
y to del
iver
sus
tai
nable g
rowt
h goi
ng for
ward
.
Th
e seni
or tea
m was bol
s
tere
d by a numb
er of
new op
erat
ion
al-lead ap
poi
ntment
s
. Pleasi
ngly
,
th
ese were a m
ix
ture of ex
per
ien
ced ex
ter
nal
appointm
ents alongside several internal
prom
otio
ns. A
s a lead
ersh
ip team we a
re always
ple
ased to re
ward our p
eop
le and p
rovide c
aree
r
progression oppor
tunities.
At Boa
rd level
, I was hon
oure
d to ste
p into th
e
Chai
rman ro
le in May
. It is a great t
eam to b
e par
t
of and I wo
uld li
ke to take th
is opp
or
tuni
ty t
o again
tha
nk Mar
k Win
low for his s
er
vice to t
he bu
sines
s
for many
years.
Progression on ESG
I have be
en great
ly encour
aged by t
he s
tri
des
mad
e in this i
mpo
r
tant ar
ea of the b
usine
ss, o
ne
that is a p
rio
rit
y at B
oard leve
l.
Over t
he cour
se of t
he year
, we have ma
de
goo
d pro
gress ag
ains
t a numb
er of ini
tiat
ives to
redu
ce our c
arb
on foot
print
, fos
ter an i
nclusi
ve,
prog
ressi
ve and di
verse wo
rki
ng enviro
nme
nt
and to e
nsure a ro
bust co
rpo
rate gove
rnan
ce
fra
mewor
k, al
l enha
ncing o
ur wid
er
Enviro
nment
al
, Soc
ial and G
overna
nce
(ES
G) st
rateg
y
.
Key high
light
s in 20
21 in
clude
d inst
al
ling s
ol
ar
pan
el
s at our h
eadq
uar
ter
s, e
st
abl
ishing a
Nom
inati
on Com
mit
tee
, progre
ss fro
m our
diver
sit
y an
d inclus
ion wor
king g
roup an
d a
conti
nuati
on of our l
ong-
est
abl
ishe
d commi
tme
nt
to th
e wide
r commu
nit
y th
rough ou
r work w
ith
par
t
ner c
hari
tie
s P
AC
T and T
he Mem
usi
Foundation.
We have an excelle
nt found
atio
n on whic
h we can
conti
nue to bu
ild, an
d wil
l drive m
eanin
gful ch
ange
acros
s our b
usine
ss goin
g for
ward
.
A mark
et in growth
Par
t of t
he reas
on I joi
ned Pe
rs
onal G
roup a year
ago wa
s the G
roup’s re
mark
able grow
t
h
opp
or
tun
it
y
. Du
ring 2
021 t
he mar
ket accele
rated
fur
t
her – i
t has never b
een m
ore imp
or
t
ant for
orga
nisat
ions t
o look af
te
r the
ir pe
ople. W
het
her it
is due t
o the wa
r for t
alent
, wage i
nfl
atio
n, th
e
imp
ac
ts of B
rexi
t or a hos
t of othe
r fac
tor
s,
comp
anie
s ever
y
wher
e are fi
ghtin
g to reta
in the
ir
ta
lent an
d appre
ciate t
hat car
ing for e
mploye
es’
hea
lth, wel
lb
eing
, and bu
ilding a s
ens
e of
communi
ty has become
a non-negotiable
.
Th
e grow
th in t
he mar
ket unde
rpin
s our pro
spec
t
s
as a busi
nes
s. We have a fir
st
-cl
as
s, proven an
d
bro
ad of
feri
ng to cate
r to this g
rowing d
eman
d
and we lo
ok for
w
ard to ca
pit
alisi
ng on t
he
oppor
tunity
.
Dividend
I am pl
ease
d to anno
unce t
hat the B
oar
d has
recom
men
ded a f
inal o
rdina
r
y divi
dend of 5
.3
pen
ce per sh
are whi
ch wil
l be pa
id to share
hold
ers
on 20 May. This ma
kes a total o
rdinar
y d
ivid
end
for 20
21 of 10.6 p
ence pe
r share a
nd whil
s
t this
div
iden
d refl
ec
ts o
ur redu
ced prof
it
s for t
he year i
t
doe
s st
ill re
pres
ent a signi
fic
ant pro
por
t
ion of ou
r
ear
nings p
er sha
re as the B
oard s
eek
s to cont
inue
our d
ivid
end p
ayment
s in l
ine wi
th his
tor
ic
pay-o
ut rat
ios.
Outlook
Not
wit
hst
and
ing th
e increa
sed ma
cro po
lit
ical a
nd
economic uncert
ainty
, including the ongoing
conf
lic
t in Uk
rain
e, whi
ch we will co
ntinu
e to
mon
itor clo
sely to e
nable u
s to take ap
prop
riate
ste
ps to ma
nage any i
mpa
ct t
his has on t
he G
roup,
loo
king a
head
, as a pred
omin
ately pe
ople
-bas
ed
UK bu
sines
s, th
e Bo
ard and I a
re conf
ident ab
out
th
e Group’s p
rospe
ct
s
. Our ma
rket has ne
ver bee
n
more re
levant
; we have a st
rong an
d dri
ven team
in pl
ace an
d a clear s
tr
ategy d
riv
ing us towa
rds
grow
th
. W
e l
ook fo
rw
ard to cont
inuin
g to provid
e
more s
uppo
r
t to more p
eop
le in th
e UK over t
he
comin
g year
, hel
pin
g the
m to thr
ive both i
n work
and i
n life.
Martin Bennett
Non-E
x
ecutive Chair
28 March 2
022
EM
PLOY
EE
S WI
TH ACC
ES
S TO ON
E OR M
OR
E
OF OUR
SERVICES
1
.
2m
(2020 1.
1m)
DIVIDEND PER
SHARE
10
.
6p
(2020 13.3p)
EMPLO
YEE ENGAGEMENT SC
ORE
72%
(2020 76%
)
Further information
KEY
PERFORMANCE INDICAT
ORS
T
rack how
we measured up on KPIs.
Read more |
page 28
ESG
Our progr
ess on Environmental, Social and
Governance goals.
Read more |
page 38
CHAIRMAN’S
ST
A
TEMENT
13
Strategic Report
Overview
Governance
Financial Statements
202
1 saw th
e pan
demi
c-rel
ated lo
ckdown
continue un
til mid-July
, which had a significant
ef
fec
t on ou
r
, a
nd our cl
ient
s’, busine
ss ope
rati
ons.
As a re
sult
, and as p
revious
ly identi
fi
ed, ou
r prof
it
s
were im
pac
ted co
mpare
d wit
h pre-
pan
demi
c
level
s. P
leasin
gly tho
ugh, w
hile we wil
l conti
nue
to se
e the i
mpac
t on o
ur insur
ance b
usine
ss
prem
ium inco
me into 20
22, we have now
enter
ed th
e recover
y pha
se and e
xpe
ct to s
ee
Group earnings re
turn to y
ear
-o
n-
year gr
ow
th
from F
Y2
2.
Th
e pan
demi
c has al
so b
rought into eve
n shar
per
focu
s the im
per
ative to b
uild towa
rds our key
st
rate
gic go
al
s of wid
ening o
ur of
fer an
d makin
g it
more re
levant to m
ore se
cto
rs an
d sizes of
busi
ness – we’re b
uildi
ng signi
fic
antly bi
gger
grow
th p
rospe
ct
s in t
he me
dium-te
rm and I a
m
del
ighte
d to repo
r
t on th
e subs
ta
ntial p
rogres
s
we’ve ma
de th
is year
.
I am pa
r
ticu
lar
ly pleas
ed by t
he re-b
uildi
ng of th
e
insur
ance b
ook
, whic
h having b
een h
eld ba
ck by
res
tri
ct
ions fo
r 15 mont
hs, b
egan i
n July 202
1, an
d
th
e grow
th and d
evelop
ment of ou
r smal
l and
med
ium-si
zed busin
ess (SME
) of
fer
. Work
ing
tog
ethe
r wit
h Sag
e, we have grown f
rom 30 to
1,
50
0 clie
nts p
aying fo
r the S
age Em
ployee
Ben
ef
it
s pl
atfo
rm t
his year
, rea
ching c
.20,00
0
GROUP
CHIEF EXE
CUTIVE’S ST
A
TEMENT
“PERSONAL
GROUP
IS
A
PURPOSE
-LED
BUSINE
SS –
WE’
RE A
WINNING TEAM
CREA
TING
A
BRIGHTER
FUTURE
F
OR THE
UK
W
ORKF
ORCE.
Further information
HAPIFLEX
Our fle
xible benefits solution for talent
-driven
organisations.
Read more |
page 20
CFO ST
A
TEMENT
From Personal
Group CFO Sarah Mace.
Read more |
page 32
INSURANCE BUSINESS
Read interview
with COO Liam
McGrath on our
ambitious growth plan.
Read more |
page 30
emp
loyees an
d wit
h a fi
rm for
mul
a now
es
tab
lish
ed for s
cal
ing t
he busi
ness b
et
ween us
.
Dur
ing t
he pa
ndem
ic, we be
cam
e clos
er to our
cli
ent
s, and by l
ist
ening t
o our HR D
irec
tor ma
rket,
we have dri
ven develo
pme
nt of our pro
duc
t
s and
ser
v
ices in l
ine w
ith t
heir n
eeds
, and n
ow have
comp
ell
ing of
fer
s for SM
E, pub
lic s
ec
tor
,
enter
pr
ise and t
ale
nt
-
dri
ven orga
nisat
ions
. We
st
and o
ut in t
he work
for
ce bene
fi
ts m
arket du
e to
th
e bread
th of ou
r offe
ring
, whi
ch inclu
des a
reward
consultancy cap
ability
, marke
t
-leading
tech
nolo
gy pl
at
form
s, emp
loyee-
paid i
nsura
nces
and Le
t’s Con
nec
t, o
ur busi
ness p
rovidin
g access
to consu
mer te
chno
logy t
hrou
gh sal
ar
y s
acr
if
ice.
As a re
sult of how we are e
volving as a b
usine
ss,
we have revis
ed th
e way we repo
r
t our se
gme
ntal
result
s
, which is d
escr
ibe
d in mor
e det
ail in th
e
CFO st
atem
ent on p
age 3
4.
Whi
le COVID
-
1
9 impa
cte
d our b
usine
ss in th
e
shor
t
-term by affecting our tradi
tional face-
to-
face in
suran
ce sal
es mo
del
, at th
e sam
e tim
e it has
brou
ght a welcom
e long-te
rm fo
cus for
emp
loyers o
n the im
por
t
ance of s
uppo
r
ting t
he
resil
ien
ce of empl
oyees. N
ever has t
he imp
or
t
ance
of supp
or
t
ing your te
am, im
plem
entin
g ef
fec
tive
remu
nerat
ion s
chem
es an
d ensur
ing th
ey have
acces
s to imp
act
fu
l bene
fi
ts b
een m
ore ap
pare
nt.
Th
is is driv
ing in
crease
d dem
and for o
ur of
feri
ng
and underpin
s our
con
fidence for
t
he futu
re.
Sale
s and Op
erational review
Pay
and Reward: Innecto
Cli
ent
s oft
en st
ar
t wor
kin
g with u
s as the
y
evalu
ate how ef
fe
ct
ive the
ir overal
l pay an
d
reward s
tr
ategy i
s, eng
aging t
hroug
h Inne
cto, o
ur
cons
ultancy bus
iness. Innecto
delivered
a strong
per
fo
rma
nce in 202
1, as d
eman
d retur
ned q
uickly
pos
t
-pa
nde
mic an
d we drove sale
s of consult
anc
y
ser
v
ices up tow
ards 201
9 level
s.
It was al
s
o pleas
ing to se
e that o
ur digi
tal a
naly
tic
s
too
ls n
ow gene
rate an A
nnua
lis
ed Recu
rri
ng
Revenu
e (ARR) of c
450
k, ref
le
ct
ing th
e high
valu
e clie
nts p
la
ce on det
aile
d pay an
alysis and
ben
chma
rkin
g. Inn
ec
to won wor
k from 49 new
cli
ent
s thro
ugh th
e year
, de
mons
tr
ating t
hat our
mar
ket prop
osit
ion is s
trong
ly reson
ating w
ith o
ur
ta
rget ma
rket. T
his year a
s well as g
ener
al pay an
d
reward p
rodu
ct
s, we’
ve see
n clie
nts im
plem
enti
ng
resp
onsib
le reward s
tr
ategie
s, lo
okin
g hard at
gen
der an
d eth
nicit
y p
ay gaps an
d using o
ur tool
s
to help them map progress
year
-on-year
.
Loo
king fo
r
ward, t
here is a s
tro
ng dri
ve towards
consid
eri
ng the ‘
S
ocial’ el
ement of E
SG me
tri
cs in
managing pay fairl
y
. The robust relationships
we’ve bu
ilt wit
h key decisi
on-ma
kers wh
o retur
n
for ad
vice yea
r aft
er year al
lows us to a
ls
o
cross-s
ell wi
der G
roup pr
opos
itio
ns and we
anti
cipate a ye
ar of conti
nued g
rowt
h in pay a
nd
reward i
n 2022, e
spe
cially as e
mployee t
urn
over
ac
tiv
it
y and p
ay infl
ati
on dr
ives mo
re focus o
n
at
tra
ct
ing, rew
arding a
nd ret
ainin
g the wo
rk
force .
Benefits platforms
We are at the fo
refront of t
he in
creasin
g
awaren
ess of t
he ‘b
ene
fit
s of b
enef
it
s’
. G
on
e are
th
e tra
diti
onal d
ays of pens
ion an
d car
s for a
sel
ec
t few; to
day clie
nts a
re work
ing wi
th us to
f
ind mo
re innovat
ive sol
uti
ons to im
prove the
well
be
ing of th
eir em
ployees
, recog
nising t
hat th
e
pan
dem
ic has bro
ught cha
nging p
att
erns of
working
from home
for the majority of thei
r
of
fi
ce-ba
sed s
taf
f
. E
mployee co
mmuni
cati
on
chan
nel
s have sign
ifi
cant
ly increas
ed in
imp
or
ta
nce in rea
ching e
mployee
s whe
rever th
ey
are, a
nd our b
enef
it
s pl
at
for
m is frequ
ently us
ed
as pa
r
t of the e
mployee co
mmuni
cati
ons to
olk
it
for direct
-to-employee messaging.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
14
Hapi and Hapi
flex
We were del
ighted to b
ring t
he ne
x
t gene
rati
on of
our ‘
Hapi
’ pl
atfo
rm – our f
lex
ible b
ene
fi
ts s
olut
ion
,
Hap
ifle
x – to mar
ket in Septe
mbe
r 2021
, wit
h a
num
ber of cl
ient wi
ns alre
ady s
ecure
d in Q4
.
Hap
ifle
x is a uniq
ue pl
atf
orm t
hat del
iver
s a ran
ge
of fl
exib
le ben
ef
it
s direc
tly to e
mployee
s via a
mob
ile an
d desk
top a
pp. It bui
lds on t
he
fun
ct
iona
lit
y of t
he Hap
i app wh
ile put
t
ing th
e
dec
ision-
maki
ng proce
ss f
irmly into t
he ha
nds of
emp
loyees
, maki
ng it eas
y to bui
ld a ben
ef
it
s
pa
ckage t
hat sui
ts t
heir i
ndiv
idual n
eed
s. Hap
ifle
x
all
ows us to t
arget a n
ew mar
ket sec
tor
:
orga
nisat
ions l
ook
ing to of
fer t
heir e
mployee
s a
more co
mple
x ben
ef
it
s offe
r
. The
se te
nd to be
ta
lent
-d
riven o
rganis
ati
ons, w
ith gr
eater aver
age
earnings per employee than our
traditio
nal
‘enter
pris
e’ cus
tome
r
. Y
ou c
an read m
ore ab
out
Hap
ifle
x on pa
ge 20. Mea
nwhile we s
aw 20 Hap
i
pl
atfo
rm s
ales i
n 2021
, proo
f that ou
r empl
oyee
eng
agem
ent pl
atfo
rm is com
pet
iti
ve in the ma
rket
and m
eet
ing th
e nee
ds of new cl
ient
s.
Sage Em
ployee Be
nef
its
Th
e SME bus
ines
s we’ve devel
oped w
ith S
age h
as
gon
e from a s
ta
nding s
t
ar
t la
st wint
er to a
growin
g busin
ess s
er
ving 2
0,000 p
aying
emp
loyees
. SMEs a
re facin
g the s
ame s
tr
uggl
e to
recr
uit wor
kf
orces as b
igger o
rgani
sati
ons, a
nd a
ben
ef
it
s pl
atfo
rm gi
ves the
m an ed
ge in th
e war
for t
alent
. Th
e grow
th t
his year is on
ly the s
tar
t of
our SM
E sto
r
y
, as we im
prove the at
tr
ac
tio
n,
retent
ion a
nd li
fetim
e value o
f our cl
ient
s.
We help o
ur cli
ents c
reate a win
ning e
mployee
dea
l that keep
s st
af
f per
fo
rmin
g at thei
r bes
t, d
ay
af
ter day, in all sizes a
nd se
cto
rs.
Affordable insurance
Our i
nsura
nce busi
ness i
s the re
sili
ent, re
curr
ing
revenu
e engin
e of the b
usine
ss, w
hich se
r
ved over
93,00
0 insur
ance
-payer
s in 202
1, wi
th mo
re than
23
0,000 p
ol
icies i
n force. We resum
ed face
-to-face
insur
ance s
ale
s in July
, a
nd alth
ough i
t has t
aken
tim
e to ful
ly re-s
tar
t t
he eng
ine af
ter a g
ap of 15
mont
hs, we are wo
rki
ng towards a
chiev
ing ful
l
st
reng
th in t
he team a
nd conver
sion r
ates are hi
gh.
We’re ser
ving n
ew cli
ent
s along
side ex
ist
ing; our
par
t
ner
ship w
ith Roya
l Mail G
roup is
par
ticul
arly successful. W
ith individual
sa
lesp
eopl
e’s averag
e daily sa
les up
18% on 2
019 pre-pandemic numbers,
it is cle
arer t
han ever t
hat our si
mple
insur
ance
s are high
ly value
d by our
cus
tome
rs, a
nd our p
urp
ose; to
‘prote
ct t
he unp
rotec
ted an
d
connect the u
nconnected’ ha
s nev
er
be
en more i
mpo
r
tant
.
What
’s more
, the
se sa
les are n
ot all
substitut
ional – w
e’r
e seeing higher
level
s of p
eopl
e wit
h more t
han on
e
pol
ic
y and t
heref
ore high
er level
s of
pol
ic
y prem
ium inco
me. Th
is tren
d
re-
emph
asise
s that ou
r prod
uct
s are
relev
ant to th
e market we s
er
ve,
and i
nvaluab
le in role
s whic
h don’t of
fer s
ick pay
and d
eath in s
er
vice a
s par
t of t
heir s
ta
ndard
benefit
s packa
ge.
Th
rough t
he pa
ndem
ic loc
kdowns we develo
ped
more ro
ute
s to mar
ket – vir
tual v
isit
s, te
les
ales
,
and i
n-app insu
ran
ce. Whil
s
t face
-to-face sa
les is
st
ill o
ur pri
mar
y dis
tr
ibut
ion m
etho
d, we’
ve
develo
ped e
ff
ec
tive, l
as
ting a
nd lower
-
cost n
ew
chan
nel
s to ad
d to our s
ales m
ode
l which a
ls
o
all
ows us to rea
ch a wide
r prop
or
ti
on of
cus
tome
rs. We loo
k for
ward to s
eei
ng the re
sult
s
of our d
evelopi
ng insu
rance s
tr
ategy over t
he
med
ium ter
m as ear
ly signs are p
romisi
ng.
NE
W CL
IE
NT
S IN 202
1
86
(2020 48)
ACTIV
AT
ED USERS
ON HAPI
AND SAGE
EMPLO
YEE BENEFITS
5
3
9
,0
51
(2020 485,7
73)
NO OF
INSUR
ANCE P
A
YER
S
9
3
,1
4
7
(20
20 103
,497
)
“W
e are at
the forefront o
f incr
easing
awar
eness of
the ‘benefits o
f bene
fits”
Deborah Frost
Group Chief
Executive
GROUP
CHIEF EXE
CUTIVE’S ST
A
TEMENT
15
Strategic Report
Overview
Governance
Financial Statements
GROUP
CHIEF EXE
CUTIVE’S ST
A
TEMENT
con
t
inued
“WE
ARE F
OCUSED ON
BUILDING
A
BUSINE
SS
WITH ROOM
T
O GRO
W
IN
THE
MEDIUM AND
L
ONG-
TERM,
AND THOSE
F
OUND
A
TIONS
ARE NO
W
IN
PLA
CE.
Other own
ed benefits
: Le
t’s Conn
ec
t
Dur
ing 20
21 t
he se
gment b
ega
n to retur
n to
nor
mal t
rad
ing as sc
heme
s be
gan to op
erat
e at
pre COVID l
evel
s wit
h 20 new cl
ient
s won in t
he
period.
Th
e supp
ly shor
t
ages w
hich h
eavily im
pac
ted t
he
se
cond half o
f 2020 cont
inue
d to af
fec
t the
busi
ness d
uri
ng the p
er
iod. H
owever
, th
is was
mit
igate
d by broa
den
ing th
e prod
uct r
ang
e to
incorporate
white goods, gym equipmen
t and
outdoor furniture.
Th
is broa
deni
ng of th
e prod
uct of
fe
ring co
uple
d
wit
h new b
usine
ss wins a
nd an e
xpe
cte
d retur
n to
ful
l supp
ly of soug
ht af
ter te
chnol
ogy p
rodu
ct
s
give
s reaso
n to be opt
imis
tic f
or th
e segm
ent’s
per
f
orma
nce mov
ing into 20
22.
Further information
OUR STRA
TEGY
Find out about our ambitious three
year plan.
Read more |
page 24
Grow
th strategy
We aim to buil
d work
force re
sil
ience fo
r cli
ent
s,
hel
pin
g empl
oyees th
rive in wo
rk an
d in li
fe.
Over t
he th
ree year
s I have le
d the b
usine
ss, we
have consis
tent
ly execut
ed on o
ur st
rate
gy to
widen our
business
proposition bey
ond insuranc
e
sa
les t
hroug
h our ente
rpr
ise cl
ient
s. D
esp
ite t
wo
year
s of pan
demi
c res
tri
ct
ions
, we add
ed 86 n
ew
cli
ent
s acros
s the G
roup i
n 2021 a
nd cont
inue to
se
e evide
nce of new c
lie
nt intere
st in ne
w sec
tor
s.
We are focus
ed on b
uildi
ng a busi
ness w
ith r
oom
to grow in t
he me
dium a
nd lon
g-term
, and t
hos
e
foun
dati
ons are n
ow in pl
ace.
As o
ur busi
nes
s mod
el has evolved
, we have
imp
roved cl
arit
y a
bout b
usin
ess acq
uisit
ion
ta
rget
s. T
hes
e fal
l into th
ree mai
n areas:
inc
reasing t
he s
cale of t
he bu
sine
ss thro
ugh t
he
addition of
client
s and
customers with cross
-
sell oppor
tunit
y;
accel
erat
ing grow
t
h into a cho
sen are
a such as
digi
tal i
nsur
ance or p
rovidin
g acces
s to spe
cif
ic
technology; and
ad
ding in t
hird-
par
t
y sup
pli
ers t
o our be
nef
it
s
proposition.
We are act
ively lo
okin
g at opp
or
tun
itie
s und
er
th
ese ma
in hea
dings
.
Our r
efres
hed s
tr
ategy t
o subs
ta
ntial
ly grow the
busi
ness ove
r the m
ediu
m-ter
m is bas
ed on t
hree
key areas fo
r grow
th:
1.
Driving insurance
Ou
r overarch
ing s
trat
egy cont
inu
es to foc
us on
devel
oping and
maximising opportunities for
grow
th
. Our in
sura
nce busi
ness h
as par
t
icul
ar
res
onan
ce in our cor
e enter
pris
e mar
kets
, and
we are cont
inui
ng to devel
op opp
or
tun
iti
es wi
th
new an
d exis
tin
g account
s t
hroug
h dif
ferent
app
roac
hes wh
il
st s
til
l reta
ining o
ur cent
ral
emp
loyer of
fer of fa
ce-to-fa
ce meet
ings w
ith
all e
mploye
es.
In ad
diti
on, we ar
e develo
ping ne
w prod
uct
s an
d
chan
nel
s to ma
rket in or
der to re
ach new
audiences
through d
ifferent types of
employer
.
This gives us
greater distribut
ion oppor
tunities
and a
llows cr
oss-sel
li
ng from L
et’s Con
nec
t and
Inn
ec
to clie
nt bas
es.
Cont
inui
ng to imp
rove pol
icy
hold
er rete
ntio
n is
fun
dame
ntal t
o our grow
t
h. We have made
imp
or
t
ant st
rid
es by lis
ten
ing to p
oli
cyh
olde
rs,
of
feri
ng paym
ent ho
lid
ays whe
re nee
ded a
nd
ensu
ring we h
ave payme
nt back-up b
eyond
comp
any pay
roll
. Ou
r Keep My Cove
r alter
nati
ve
paym
ent me
tho
d resulte
d in £1
.
1
m of prem
ium
inco
me, wh
ich woul
d previo
usly have be
en los
t,
bei
ng coll
ec
ted by di
rec
t debi
t in 202
1 and is
now in p
lace f
or 28% of p
oli
cyh
olde
rs wh
o
cur
rently p
ay throu
gh pay
roll
. Ou
r goal i
s to
sign
ifi
cant
ly increas
e th
e perce
ntag
e of
pol
ic
yho
lder
s wit
h alter
nati
ve paym
ent
met
hod
s on th
eir accou
nt.
2.
T
ransforming Reward
& Benefits
(platform grow
th
)
Work
force b
enef
it
s is a fa
st
-d
evelop
ing are
a
whe
re we are creat
ing in
novati
on wi
th our
product range: Hapi and Hapi
flex. Adding new
mar
ket opp
or
tuni
tie
s as well a
s a cleare
r of
fer
to our e
xis
ting m
arket
s is
now sh
owing t
rac
tio
n wit
h incre
ased s
ale
s and
dri
ving b
ott
om-l
ine grow
t
h in th
e med
ium-
term.
3.
Accele
ratin
g SME of
fe
r
Th
e SME ma
rket in t
he UK is va
st
, and ma
inly
und
er
-se
r
ved due t
o the ch
alle
nge
s of reach
ing
th
e sec
tor at s
cale
. Our p
ar
tn
ersh
ip wit
h Sa
ge
all
ows us to dir
ect
ly reach t
he se
ven mil
lio
n UK
emp
loyees us
ing S
age se
r
vices at re
alis
ti
c cost
.
Over 20
21 we move
d thro
ugh t
he st
ar
t
-u
p
phas
e and c
an now re
ally ca
pit
alis
e on grow
t
h
by profe
ssio
nali
sing ou
r joint op
erat
ion
. T
o me
et
th
e nee
ds of this m
arket we have inve
ste
d in
new t
ale
nt to dri
ve digit
al cus
tom
er acqu
isit
ion
and impr
ov
e our
customer journey
.
Alon
gside t
his ref
resh
ed st
rate
gy
, we a
re today
ann
ounc
ing a num
ber of as
pirat
ions f
or th
e
mi
d-t
er
m:
1.
Ov
er 80% employ
e
e eng
agement
2.
Over 7
5% cus
tome
r approv
al rati
ng
3.
Ser
vi
ng >
1
.5m e
mploye
es
4.
Dr
ivin
g in-year p
remium i
ncome ove
r £45m
5.
Unlo
ckin
g EBIT
DA growt
h
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
16
HOMEBASE
SEES
THE
VAL
UE OF
FA
CE
TO
FA
CE VISITS
Homebase is a Briti
sh home impro
vement retailer an
d garden cen
tre with
stores
across the Uni
ted Kingdom and
Ireland. They
employ o
ver 5,600 people.
“T
he si
te visit
s are d
el
iverin
g ROI o
n our be
nef
it
s
– both i
n boo
st
ing ta
ke-up nu
mbe
rs, a
nd mak
ing
sure em
ployee
s appre
ciate t
he valu
e of work
ing
for H
omeb
ase com
pare
d to a comp
eti
tor
.
Using t
he ba
ckend HR H
ub, we can s
ee obv
ious
spikes i
n act
ivat
ion leve
ls re
sulti
ng from t
he
Empl
oyee Engag
eme
nt Execu
tive (EEE
) visit
s
.
Havin
g the
m take em
ployees t
hrou
gh th
e
pl
atfo
rm 1:
1 is clear
ly driv
ing th
e ac
tivat
ion a
nd
usa
ge num
ber
s we want to se
e.
Fee
dba
ck from si
te mana
ger
s is that t
he EEEs
are always p
oli
te and e
ff
ici
ent. T
hey wor
k arou
nd
pea
k tim
es to make sur
e our pro
duc
tiv
it
y is not
af
fec
ted an
d the
re’s abs
olut
ely no ‘ha
rd sel
l’
whe
n it come
s to th
e insur
ance po
lici
es.
In fa
ct
, we’ve had p
osit
ive fee
dba
ck from
emp
loyees w
ho did ch
oos
e to take up a h
ealth
insur
ance p
lan
. In th
e wake of COVID-19, it
’s not
sur
prisi
ng that e
mployee
s valu
e the o
ppo
rt
unit
y
to prote
ct t
hems
elves and t
heir f
amil
ies at a
n
affordable price.
We look for
wa
rd to bui
lding o
n this su
ccess by
conti
nuing to i
ncreas
e regis
tr
ation
s and
ac
tiv
ation
s in 2022
.
Read more online |
www.personalgroup.c
om/casestudies
A winning team
Empl
oyee enga
geme
nt score
s were at 72
% this
year
, an
d the B
oard a
nd I are fo
cuse
d on bui
lding
this b
eyond 8
0% over t
he nex
t t
hree yea
rs, w
hich
in tur
n wil
l drive c
usto
mer s
atis
fac
tio
n, cli
ent
sat
isfa
ct
ion an
d incre
ased i
nnovat
ion an
d
commerc
iality
.
Th
e Seni
or Lea
der
ship T
ea
m has be
en ti
ghtene
d
and re
fresh
ed in t
he l
ast few yea
rs, b
rin
ging new
skil
l
s and p
ersp
ec
tive
s to the G
roup. We now have
an excel
lent te
am in pl
ace to exe
cute o
n our
grow
th am
bit
ion.
Outl
ook
Our s
tro
ng team
, tog
ethe
r wit
h the t
echno
log
y
we’ve deve
lope
d, th
e par
t
ner
ship we have wi
th
Sa
ge, our ye
ars of e
xper
ien
ce and s
tron
g bal
ance
she
et, com
bine
d wit
h a huge
ly supp
or
tive e
xt
erna
l
mar
ket environ
ment
, give me g
reat conf
ide
nce in
what we c
an achi
eve in th
e nex
t th
ree to f
ive
year
s. We recognis
e that t
he ne
eds an
d requ
ired
skil
l-set
s of the b
usine
ss evolve, an
d we will
conti
nue to inves
t in pe
ople at d
if
ferent le
vel
s to
ef
fec
t th
e chang
e we nee
d.
I would l
ike to tha
nk th
e seni
or tea
m, our p
eop
le
and t
he Bo
ard fo
r thei
r supp
or
t, c
halle
nge an
d
enth
usiasm fo
r the g
oal
s we’
ve set our
selves
. W
e
are exci
ted ab
out wh
ere we are g
oing ne
x
t.
Debora
h Frost
Group Chief Executive
28 March 2
022
GROUP
CHIEF EXE
CUTIVE’S ST
A
TEMENT
con
t
inued
“W
e’ve no
w c
ompleted our
site
visits schedule
and we’re deligh
ted with how
the r
ollout is going”
Amber Garner
Reward, Benefits & R
ecognition Manager
, Homebase
17
Strategic Report
Overview
Governance
Financial Statements
OUR MARKETS
THE DRIVE
T
O L
OOK
AFTER EMPL
O
YEE
S
HAS
NEVER BEEN
GREA
TER
AND
UNDERPINS
A
CONTINU
ALL
Y
INCREASING
DEMAND F
OR OUR
SER
VICE
S.
* https:/
/londonlovesbusi
ness.com/
pandemic-
fuels-great
-resignation-i
n-uk
-job-market
-as-
workforce-
rethinks-career
-priorities/
** https:/
/ww
w.mckinsey
.com/featured-insigh
ts/diversity-and-inclusion/
diverse-em
ploy
ees-are-struggling-the-most
-during-covid-
19-he
res-
how-companies-can-respond
Mark
e
t driv
er
s
T
ren
ds in th
e world of wo
rk have a sign
if
icant
imp
ac
t on th
e Group, of
te
n creatin
g new
oppor
tunities
for the business.
Over
all
, 202
1 saw t
he conti
nued a
cceler
ation o
f a
core th
eme: t
he ne
ed fo
r employe
rs to im
prove
th
eir emp
loyee val
ue prop
osit
ions
. Th
e drive to
loo
k af
ter em
ployees
, creat
ing a real
, po
siti
ve
imp
ac
t on li
ves rat
her t
han as a ‘
tick-box’ e
xercise
has ne
ver bee
n greate
r
, a
nd und
erp
ins a
conti
nual
ly increasi
ng dem
and for o
ur se
rv
ices
.
K
e themes
Increased importance of emplo
yee
health
and wel
lbeing
202
1 saw a wi
desp
read reco
gnit
ion of t
he role
pl
ayed by th
e employe
r in provid
ing dif
fe
rent
for
ms of healt
h and we
llb
eing s
uppo
r
t, w
ith
ment
al he
alth prov
isions i
n par
t
icul
ar em
ergin
g as
one of t
he key grow
th a
reas.
Th
is means p
rovidi
ng well
bei
ng ser
v
ices t
hat pl
ace
emp
hasis on e
xercise
, sleep, he
althy fo
od, an
d
ment
al he
alth su
ppor
t
, whi
ch have a signi
fi
cant
impact on pre
venting u
nderlyin
g c
onditions.
Maint
ain
ing a tea
m that is ‘
well’ und
erp
ins a
busi
ness’s o
ngoi
ng ope
rati
ons an
d is al
so
incre
asingly s
een to b
e par
t of t
he em
ployer’s
moral resp
onsibil
ity
.
Per
so
nal Gro
up of
fers e
mployer
s acces
s to
work
pl
ace wel
lbe
ing ini
tiat
ives de
signe
d to bo
ost
mor
ale, e
ffe
ct
iven
ess, a
nd resi
lie
nce acros
s the
ir
ope
rat
ions.
A develo
ping n
uance of int
eres
t is the i
ncreas
ed
resp
onsib
ilit
y fo
r empl
oyers to en
sure th
at healt
h
and we
llb
eing b
ene
fi
ts g
enuin
ely have a
mea
ningf
ul imp
ac
t on th
eir pe
ople (as prove
n in
th
e data) as op
pos
ed to a to
ken ef
for
t.
The ‘Great Resigna
tion’
an
d the
war for talent
What h
as bee
n cal
led “
Th
e Great Re
signat
ion” s
aw
4.7% of t
he UK wo
rk
force volu
ntar
ily resig
ning
from ro
les in 20
21
, due to a com
binat
ion of
incre
asing e
conom
ic ins
tab
ili
ty a
nd a shif
t in
worker
s’ pr
ior
itie
s foll
owing t
he ons
et of th
e
pan
dem
ic.
* At the s
am
e time
, dema
nd for n
ew
can
didat
es is out
s
tr
ippin
g supply. In respon
se,
companies have
f
urt
her rec
ognised the
imp
or
ta
nce of em
ployee he
alth prote
ct
ion
,
emp
loyee be
nef
it
s and we
llb
eing s
uppo
r
t as a tool
in th
e att
rac
ti
on and re
tenti
on of st
af
f
.
Building resilient
workforces
Li
ving t
hroug
h a glob
al pan
demi
c has creat
ed a
shif
t in t
he min
ds of many p
eopl
e; the t
hou
ght
th
ey may be
come il
l “som
eday
” has be
en rep
lace
d
by a real
isat
ion t
hat it coul
d happ
en “any day”. Wit
h
this i
n mind
, the G
roup’s h
ealth p
rotec
tion
of
feri
ngs have conti
nued t
o reso
nate st
rongly.
We’ve see
n sust
ain
ed intere
st in o
ur prote
ct
ion
pl
ans fro
m empl
oyers wh
o want to keep wo
rker
s
saf
e and pro
duc
ti
ve, but a l
imit
ed ben
ef
it
s bud
get
mea
ns the
y are unab
le to prov
ide cover for il
l
hea
lth. By p
ar
tn
eri
ng wit
h Per
son
al Grou
p, client
s
can p
rovide t
hei
r st
aff w
ith e
asy a
ccess to
af
forda
ble ind
ivid
ual po
lici
es at no e
xt
ra cos
t to
th
e employe
r
. Em
ployee
s al
so valu
e the ch
ance to
saf
egua
rd the
mselves f
rom th
e impa
ct of il
l healt
h
on t
heir ea
rnin
gs.
Flexible w
orking
COVID
-
1
9 has chan
ged t
he gam
e on f
lexib
le
work
ing – ma
ny employe
es wil
l never g
o back to
f
ive days in t
he of
fi
ce. Hybr
id wor
king is h
ere to
st
ay and H
R manag
ers a
re faci
ng the c
hall
enge of
a work
for
ce that is mo
re disco
nnec
te
d than eve
r
.
As s
uch, usi
ng tech
nolo
gy bot
h to comm
unic
ate
wit
h emp
loyees an
d to del
iver wel
lb
eing s
er
vice
s
has em
erge
d as a key tren
d. As we
ll as prov
iding
vital support, it also encourages
con
t
inued
par
t
icip
atio
n wit
h the b
usine
ss’s valu
es an
d
phil
osop
hy
. T
he adv
antag
es of int
rodu
cing a dig
ita
l
pl
atfo
rm su
ch as Hap
i are th
erefore i
ncreas
ingly
relevan
t.
Diversity and incl
usion
Th
e rise of f
lex
ible wo
rkin
g has al
so p
ose
d a thre
at
to th
e prog
ress ma
de by many b
usine
sses i
n term
s
of diver
sit
y an
d inclus
ion; busi
ness
es mu
st now
consid
er how t
hey wil
l pres
er
ve so
cial eq
uit
y in a
disr
upted e
nvironm
ent. D
esp
ite many b
usine
sse
s
ple
dging t
o prio
rit
ise di
versi
ty a
nd incl
usion
programmes thr
oughout the pandemic, ju
s
t one
in
six em
ployee
s in diver
se c
atego
rie
s repor
t
ed
fee
ling a
ppro
priate
ly supp
or
ted in l
ate 20
20.
**
Th
rough
out 202
1 and h
eadi
ng into 202
2, HR
mana
ger
s nee
ded to t
hink s
tr
ategi
cal
ly about
emp
loyee be
nef
it
s and su
ppo
r
t and how t
hey c
an
make sure t
hes
e provisi
ons are re
aching t
hei
r
people and providing meaningful support
.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
18
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
3
4%
OF C
LI
ENT
S A
RE CU
RR
EN
TLY SER
VE
D BY T
WO OR M
OR
E SEG
M
ENT
S
OUR MARKETS
Enterprise
On
e of our mai
n market
s is t
he
ind
ust
rial h
ear
tl
and
s of the U
K,
acros
s sec
tor
s such a
s socia
l care,
food manufactur
ing, transpor
t and
log
isti
cs. We are pro
ud to of
fer a
ben
ef
it
s pac
kage an
d af
fordab
le
emp
loyee pa
id insur
ance prot
ect
ion
to th
ese e
mployee
s, ma
ny of whom
don’
t sit be
hind a d
esk an
d might not
have acces
s to the b
ene
fi
ts p
ackag
e
of
fered i
n other s
ec
tor
s. Our
Hosp
it
al Cash P
la
n, Conval
esce
nce
Pl
an and D
eath B
ene
fi
t Pla
n incre
ase
th
ese em
ployee
s’ fi
nancia
l resil
ience
against unexpec
ted costs.
Th
e ONS es
ti
mates t
here ar
e 13m
emp
loyees in U
K comp
anie
s over
1,0
00 em
ployee
s. We are alre
ady
tr
uste
d by la
rge ho
useh
old nam
e
orga
nisat
ions l
ike DHL
, Sta
gecoa
ch,
and Roya
l Mail
.
Public Sector
Wi
th sus
ta
ined p
ressu
re on th
e NHS
in th
e la
st 18 m
onths
, coupl
ed wit
h
th
e impa
ct of s
taf
f sh
or
ta
ges du
e to
ill
nes
s and s
elf
-i
sol
atio
n, NHS
employees ar
e vul
nerable to mi
ssing
out o
n the d
iscount
s an
d bene
fi
ts
that ot
her
s ta
ke for grante
d. O
ur
NHS of
fer i
s a custo
mise
d pl
atfo
rm,
empowering
employees with ea
s
y
acces
s to core NHS b
ene
fi
ts
. W
e
have al
so de
velope
d an NH
S
fra
mewor
k st
rateg
y to provi
de
acces
s to PG Let
’s Conn
ec
t and oth
er
sa
lar
y s
acr
if
ice ben
ef
it
s provid
ed by
thi
rd par
t
ies
. The l
aun
ch of Hap
iFlex
wit
h the U
niver
sit
y of Y
or
k this ye
ar
wil
l al
so he
lp us ga
in access t
o more
of th
e UK’s 5.6
m publ
ic se
ct
or
work
er
s, pr
oviding services for
emp
loyees w
ith m
ore disp
osa
ble
income.
T
alent-driven
Our wo
rk wi
th fas
t
-grow
ing
ta
lent
-le
d busin
ess
es main
ly takes
pl
ace th
rough I
nnec
to, ou
r pay and
reward co
nsult
anc
y
. For su
ch
enter
pr
ises
, att
rac
ti
ng and ret
ain
ing
th
e right t
alent is key to t
hei
r futu
re
succes
s, a cha
llen
ge th
at has only
be
en exa
cerb
ated by rece
nt high
level
s of chu
rn acro
ss th
e UK
work
for
ce. Inne
cto’s int
ell
igent
consultancy and digi
tal analysis
solutions help organisatio
ns
und
ers
ta
nd th
eir rewa
rd posi
tion
bet
te
r
. A
s comp
anie
s see
k to
saf
egua
rd soci
al equi
t
y in a disr
upted
work
ing env
ironm
ent, I
nnec
to’s
gen
der p
ay gap an
d other
legislative-led transparency
rep
or
tin
g is more rel
evant th
an ever
,
provi
ding be
nchm
ark
ing dat
a to
guid
e comp
anie
s to bes
t sup
por
t
th
eir pe
ople a
nd pre
ser
ve eq
uit
y
.
SMEs
We targe
t the U
K’s vas
t but
fra
gment
ed SME m
arket th
rough o
ur
par
t
ner
ship w
ith S
age, t
he UK
’s
l
arges
t provi
der of p
ayroll a
nd
account
ing so
ft
ware f
or smal
l
busi
ness
es. T
hrou
gh this
par
t
ner
ship, we are a
ble to rea
ch
significant numbers of smaller
comp
anie
s in th
e UK
.
Cur
rently circ
a 1m SME
s have access
to Sa
ge accou
nting s
er
vice
s,
coverin
g 7m employe
es. We al
so
have pl
ans to wi
den o
ur par
t
ner
ship
to incl
ude ot
her org
anis
atio
ns which
work w
ith
in the S
ME mar
ket, su
ch as
business services and
membership
organisations.
Our mark
et
s
Per
so
nal Gro
up of
fers a u
niqu
ely hol
ist
ic mar
ket propo
siti
on, sp
anni
ng insur
ance, e
mploye
e bene
fi
ts
, and rew
ard consult
an
cy
, a
llowi
ng us to ad
dress
ever
y se
cto
r of UK bu
sines
s and of
fer re
levant
, tim
ely and pr
ice-ap
prop
riate s
er
vice
s that h
elp co
mpan
ies ad
dres
s the
se key the
mes
.
Product off
ering by
vertical
Other owned benefits
(Let’s Con
nec
t)
Dig
ita
l ben
ef
it
s pl
atf
orm
– Hapi (HapiF
lex version
most relevant
)
Digital benefit
s platform
(Hapi white-
labelle
d as
‘S
ag
e Employe
e Ben
ef
it
s’)
Fair
-d
eal he
alth a
nd li
fe
insu
ran
ce pro
duc
t
s
Dig
ita
l ben
ef
it
s pl
atf
orm
– Hapi
Pay an
d rewar
d consult
an
cy
(I
nn
ec
to)
Dig
ita
l ben
ef
it
s pl
atf
orm
– Hapi (HapiF
lex version
mos
t rel
evant)
ENTERPRISE
e.g
.
Royal M
ail G
roup,
Cranswick
SME
s
e.g
.
Any en
terp
ris
e wit
h
<250 emplo
yees
T
ALENT
DRIVEN
e.g
.
Skyscanner
,
Refinitiv
PUBLIC SE
CT
OR
e.g
.
Sa
ndwel
l & West
Birmingham NHS T
rust
See Bought By
Many case study
|
page 8
See Clinisupplies case study |
page 10
See NHS case study |
page 6
&
University
of Y
ork |
page 20
See Homebase case study
|
page 17
19
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
LAUNCH
OF
HAPIFLEX
AFTER
A
SUCCE
SSFUL
LA
UNCH
WITH
UNIVERSITY
OF
Y
ORK,
WE WERE
DELIGHTED
T
O BRING OUR
NEXT
GENERA
TION FLEXIBLE
BENEFITS
SOL
UTION,
HAPIFLEX,
T
O
MARKET
IN SEPTEMBER
2
0
21
.
Hap
iFle
x is an e
asy to u
se pl
at
form t
hat de
live
rs a ran
ge of f
lexi
ble b
ene
fit
s dire
ct
ly to emp
loyees v
ia
a mob
ile an
d des
kto
p app. It b
uil
ds on th
e func
tio
nal
ity o
f the Ha
pi ap
p, but p
uts t
he dec
isio
n-m
aking
pro
cess f
irm
ly into th
e hand
s of em
ployee
s, ma
king i
t simp
le to bu
ild a be
nef
it
s pack
age th
at sui
ts th
eir
individual needs.
Hap
iFlex a
llows us t
o targ
et orga
nisat
ions l
ook
ing
to of
fer t
heir em
ployee
s a more com
plex b
ene
fi
ts
of
fer
. Th
ese t
end to b
e tal
ent
-led o
rganis
ati
ons,
wit
h greate
r averag
e earn
ings pe
r empl
oyee tha
n
our traditional ‘
enterprise’ customer
.
Wh
ethe
r it’s com
mut
ing by bike, h
olid
ay tra
ding
, a
tech scheme or affordable salar
y loans, HapiFlex
br
ings tog
eth
er a ran
ge of pre
-sele
ct
ed be
nef
it
s
all i
n one pl
ace, e
nabl
ing e
mployee
s to see a
comp
lete over
vi
ew of the
ir chos
en pa
ckag
e.
Th
rough t
heir p
ers
onal
ise
d T
otal R
eward
State
ment
, the
y can s
ee what b
ene
fit
s t
hey
cur
rently have, vi
ew the p
rogre
ss of an
app
lic
atio
n, adj
ust t
heir ch
oices w
ith
in pre-
set
win
dows or ch
eck ou
t any new of
fer
s.
Of
fer
ing mo
re ben
ef
it opt
ions do
esn’
t mean m
ore
adm
in for t
he HR tea
m. W
ith ever
y
t
hing ho
ste
d on
a singl
e pl
atfo
rm, i
t’s easi
er to coo
rdinate t
he
many di
ffe
rent sch
eme
s. Pe
rso
nal Gro
up ca
n
accom
modat
e exis
ting p
rovide
rs or a
gree ne
w
dea
ls a
s neces
sar
y. The intu
iti
ve back-end s
ys
tem
hel
ps HR t
eams re
duce th
e hour
s spe
nt
coord
inati
ng ben
ef
it
s pac
kage
s across t
he
busi
ness a
nd has a da
shbo
ard th
at shows wh
ich
ben
ef
it
s are th
e mos
t pop
ul
ar
. This d
ata h
elp
s wit
h
analys
is, high
lig
hts any g
aps an
d ensure
s the ve
r
y
be
st be
nef
it
s are b
eing of
fere
d to st
af
f
. HR c
an
al
so s
ee real t
ime n
otif
icat
ions of a
ny reque
st
s,
share T
otal R
eward Stat
ement
s an
d integr
ate
dire
ctly w
ith p
ayroll
.
Jul
ie Stay
te, C
hief P
eopl
e Of
f
icer at Pe
rso
nal
Gro
up says
, “N
ow more t
han ever
, em
ployee
s are
exp
ec
ting t
hei
r employe
rs to not o
nly provid
e a
comp
etit
ive s
ala
r
y but al
s
o addi
tio
nal pe
rk
s that
prove how mu
ch th
ey are valu
ed. B
eing a
ble to
cho
ose b
enef
it
s t
hat suit t
heir ow
n indi
vidua
l
li
fest
yl
e is key to hel
ping e
mployee
s feel e
ngage
d
and m
otivat
ed. T
his is whe
re Hapi
Flex c
an hel
p.
Hap
iFlex m
akes it eas
y to com
munic
ate wi
th
emp
loyees
. The
re is the o
ption t
o sche
dule re
gul
ar
messaging
, including
p
ush no
t
ifications, which
hel
ps keep u
sag
e and en
gagem
ent up. T
he
messaging
, which
can include employ
ee surveys
and ot
her bu
sines
s infor
mati
on, c
an be se
nt
dire
ctly to e
mployee
s, wh
ich is key for rea
ching
remote o
r hybr
id worker
s”
.
Jul
ie ad
ds, “H
apiF
lex bu
ilds on t
he pr
incip
le that
whe
n a per
son f
eel
s sup
por
te
d – fi
nanci
ally
,
ment
al
ly
, emot
ional
ly
, phys
ical
ly
, so
cially as we
ll
as in t
heir c
areer – t
hey a
re more l
ikely to thr
ive
both i
n work a
nd in li
fe. By res
pond
ing to
emp
loyees’ n
eeds a
nd of
feri
ng th
em the b
ene
fi
ts
th
ey really wa
nt, bu
sines
ses c
an eng
age an
d
moti
vate th
eir wor
kfo
rce at the s
am
e time a
s
showi
ng ho
w much
t
hey
care.
5
,
03
0
EMPLOYEES A
T HAPIFLEX CLIENT
UNIVERSIT
Y
OF YORK
Se
p 2
021
FULL LAUNCH OF
HAPIFLEX
“HapiFlex brings
together
a range of
bespoke
benefits all
in one place.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
20
Personal
G
roup
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
LAUNCH
OF
HAPIFLEX
Afte
r a comp
etit
ive ten
der p
roce
ss, we
cho
se to par
tn
er wi
th Per
son
al Gr
oup to
develop
and deliver flexible benefits t
o our
work
fo
rce of 5,0
30 st
aff.
Per
so
nal Gro
up have des
igned o
ur pl
at
form
,
Reward
s Ex
tr
a, aro
und ou
r organ
isat
ion’s
uniq
ue ne
eds an
d work
force pr
ofil
e. It’s qu
ick
and e
asy fo
r empl
oyees to cho
ose a
nd
mana
ge th
eir cho
ice of be
nef
it
s from
tr
anspo
r
t, he
alth cover
, E
AP
, f
inan
cial
wellbeing, discounts and charitable giving.
Reward
s Ex
tr
a only l
aunc
hed a few m
onths
ago, b
ut so fa
r it’s b
een a rea
l success
. We’
re
work
ing wi
th Pe
rs
onal G
roup to cont
inua
lly
opti
mise o
ur empl
oyee of
fer
, ena
bli
ng us to
recr
uit an
d reta
in th
e ver
y bes
t ta
lent in o
ur
sector
.
Read more online |
www.personalgroup.c
om/casestudies
UNIVE
R
SIT
Y
OF Y
ORK
“Re
wards Extra onl
y
launched a fe
w mon
ths
ago, but so far
it’s been a
real
success.
Helen Challand
Rewar
ds Officer
, University o
f
Y
ork
C
A
S
E
S
T
U
DY
H
A
PI
FL
E
X
L
AU
N
C
H
21
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
OUR BUSINESS MODEL
PERSONAL
GROUP
’S
OFFERING IS
F
OCUSED O
VERALL
ON IMPRO
VING
THE
LIVE
S OF
THE UK
W
ORKF
ORCE.
CLEAR PURPOSE
AND STRA
TEG
Y
HAPI
OUR
MARKET
LEADING,
PROPRIET
ARY
DIGIT
AL
PLA
TFORM
AUTHORISED
BY
THE F
CA
V
ARIETY
OF OFFERINGS
WITHIN ONE GROUP
P
ARTNERSHIP
WITH LEADING
SME SOFTW
ARE
PRO
VIDER
EXPERIENCED
MANAGEMENT
TEAM
Our unique
resources:
Th
e Grou
p provid
es UK org
anis
atio
ns wit
h the f
ull-se
r
vice so
luti
on th
ey nee
d to
st
and o
ut as an e
mployer of ch
oice.
W
e use these resou
rces to
:
Provid
e a broa
d ran
ge of emp
loyee eng
agem
ent and
well
be
ing of
feri
ngs to al
l sec
tor
s of the U
K work
force
.
Our purpose provides the guiding light
for
our b
usin
es
s and al
ign
s us be
hin
d one g
oal
.
Ou
r clea
r st
rate
gy p
rovid
es mot
iva
tio
n
for a
ll s
taf
f an
d at
tra
ct
s inve
st
ors
.
A dig
it
al so
lut
ion t
hat al
lows e
mpl
oyees
to acc
ess a we
alth of f
in
anc
ial
, phys
ica
l,
me
ntal a
nd s
ocia
l ben
ef
it
s th
roug
h an
easy-t
o-use platform and smartp
hone
app.
Hap
if
lex
, la
unch
ed in 2
021
, is an
ex
te
nsio
n to th
e pl
atf
orm p
rovi
ding eve
n
gre
ater f
lex
ibi
lit
y a
nd cho
ice.
We are aut
ho
ris
ed by t
he FC
A for
insurance distribution, a significant
ba
rr
ier to e
ntr
y to co
mp
eti
tor
s in th
e
employ
e
e benefits space.
Ou
r abil
it
y to of
fe
r a ver
y wi
de ra
nge of
be
nef
it
s an
d sol
ut
ions w
it
hin on
e Gro
up
is at
tr
ac
tive t
o cli
ent
s, p
rovid
es a po
int of
dif
fe
rent
iati
on an
d set
s us u
p for f
ur
th
er
bolt
-on acquisitions.
Ou
r long t
erm r
el
atio
nshi
p wit
h Sa
ge pr
ovid
es
acce
ss to c
. 7 mil
lio
n emp
loyee
s wit
hin t
he
UK
’s vas
t but f
rag
ment
ed SM
E mar
ket.
Ou
r st
rong a
nd ex
per
ien
ced t
eam en
sure
s
qua
li
ty d
el
iver
y of o
ur of
fer
ing
s acro
ss th
e
Gro
up, un
der
pin
ning o
ur br
and a
s a tr
ust
wor
t
hy
partner
.
AFFORD
ABLE
INSURANCE
O
THER OWNED
BENEFITS
BENEFITS
PLA
TFORM
P
A
Y
& REW
ARD
Ho
w w
e mak
e money
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
22
Personal
G
roup
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
OUR BUSINESS MODEL
OUR
CLIENTS
OUR
COLLEA
GUES
OUR
CUST
OMERS
OUR
SHAREHOLDERS
How o
ur w
ork cr
eat
es value:
Our e
mploye
e bene
fi
ts a
nd emp
loyee insu
ran
ce produ
ct
s se
r
ve hundre
ds of
th
ousa
nds of UK e
mploye
es, he
lpi
ng th
em thr
ive in wor
k and in l
ife.
Be
spo
ke, inte
grat
ed an
d intu
iti
ve del
ive
r
y
of a bro
ad a
nd af
for
dabl
e sui
te of
em
ployee s
er
v
ices to h
el
p emp
loyer
s to
at
tr
act
, mot
iva
te and r
eta
in st
af
f an
d to
deliver on
t
heir
ESG commitmen
ts.
An engaging, support
ive
and challenging
environ
ment f
or our
people. Meanin
gful
pur
po
se
-led wo
rk w
ith g
reat o
ppo
r
tuni
t
y
for personal
career progr
ession.
He
lpi
ng cus
tom
er
s thr
ive in w
ork a
nd in
li
fe. Pe
ace of m
ind fo
r pol
ic
yh
olde
rs w
ith
our f
air-dea
l insur
an
ce pro
duc
t
s and
enh
ance
d acce
ss to b
ene
fi
t
s and
disc
ounts vi
a several
channels.
Strong financials underpin dividend
payments and
provide
f
irepow
er for
grow
t
h. In
creas
ing re
sil
ien
ce thr
ough
cont
inu
ed de
velop
men
t in new c
hann
el
s,
offerings and audiences.
AFFORD
ABLE INSURANCE
Emp
loyee
-pai
d insu
ran
ce pl
ans – a
cces
s to our i
nsur
anc
e pro
duc
t
s is mad
e
available through an
indi
vidual
’s wider emplo
yee benef
its offering. Premiums
are p
aid by t
he e
mplo
yee via a w
eek
ly or mo
nthly p
ayro
ll de
du
ct
ion
.
O
THER OWNED
BENEFITS
Emp
loyer
-p
aid h
om
e tech
nol
ogy s
al
ar
y s
acr
if
ice s
ales – e
mpl
oyer
s pay up
front
for their emplo
yees’ technol
ogy and
other pu
rchases
with employees
mak
ing s
ubs
equ
ent m
onth
ly sal
ar
y s
ac
rif
ice p
ayme
nt
s bac
k to th
eir
employ
er
s.
BENEFITS PLA
TFORM
Hap
i sub
scr
ipti
ons – e
mpl
oyer
s pay mo
nth
ly or ann
ual s
ubs
crip
tio
ns pe
r
em
ploye
e for us
e of th
e Hap
i pl
atf
orm a
nd ap
p.
C
an be w
hit
e-l
abe
lle
d thr
oug
h a corp
or
ate pa
r
tne
r
, e
g. Sa
ge Em
ploye
e
Benefits
.
Com
mis
sion o
n th
ird pa
r
ty t
ra
nsa
ct
ion
s – we ear
n a mar
gin o
n som
e of th
e
discounted v
oucher
s a
vailable to employ
ee
s through
Hap
i and
commission
on an
y thi
rd-pa
r
ty f
in
anci
ng ar
ran
ged o
r emp
loyer p
urch
ase
s of pa
r
tne
r
solutions.
A significant
proportion of re
venue
(c.3
6%) is pa
ss th
roug
h
vou
cher r
esa
le on H
api
and t
he
refo
re has n
o
imp
ac
t on ea
rn
ings
3
4%
OF C
LI
ENT
S A
RE
SE
RV
ED BY T
WO O
R
MORE SEGMENTS
Adjuste
d EBITDA
contribution
P
A
Y
& REW
ARD
Inn
ec
to Di
git
al su
bsc
ript
ion
s – emp
loyer
s pay a
n ann
ual su
bsc
ript
ion f
or
dig
it
al ana
lysis a
nd pr
edi
ct
ive S
aaS to
ol
s for u
se in m
aki
ng pay d
eci
sion
s.
Inn
ec
to con
sult
anc
y in
come – e
mpl
oyer
s pay fo
r a ful
l rewa
rd se
rv
ice – fr
om
pay benc
hmarking t
o the
devel
opment o
f job evalua
tion and bonus
schemes.
Insu
rance
Employ
ee Engagement
and Benefit
s
Pay and R
eward
Consumer tech
23
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
OUR STRA
TEGY
WE
ARE
BUILDING ON OUR
SUC
CESS
WITH A
CLEAR THREE
YEAR STRA
TEG
Y
.
OUR MEDIUM
TERM
ASPIRA
TIONS
Ov
er 80% emplo
yee
engagemen
t
great p
lac
e to w
ork
Over 75
%
custo
mer
approval rating
great t
o work w
ith
Ser
v
ing >
1
.5
m
e
mp
loye
e
s
making a difference
Drive in-
year premium
inc
ome ov
er £35
m
pro
tecting the
un
prote
c
te
d
Unlocking EBI
TD
A
grow
t
h
OUR
CAP
ABILITIES
Hig
h performing
cust
omer
, s
ale
s, and
client ser
vice teams
Leading-edge
technology
End t
o end proc
esses
tha
t wo
rk ev
er
y time
Supplyin
g produc
t
s
and services peo
ple
need to he
l
p them
thriv
e in life
Purpose
-drive
n Board
and SL
T with grea
t
suppor
ting teams
E
f
fective gov
ernance
PERSONAL
GROUP
HOLDINGS PL
C
OUR VISION
A winn
ing team b
uil
din
g a bright
er future f
or the UK
wo
rkforc
e, supporting o
ver 1.5m emplo
yees b
y 2025
HOW
WE WIN
W
e help people th
r
iv
e in life an
d in work – oursel
ve
s
and our c
lients’ emp
loy
ees
– W
e ma
k
e i
t easy for our cl
ients an
d prospec
ts to cho
ose us,
by creating a market
-leading offer
, meet
ing all Reward and
Benefit
s requi
rements
– Our prop
osition, o
nboarding
, and lifetim
e ser
vice for B2B
client
s is indust
rial
-s
trength a
nd scal
able
– Our s
atisf
yingly simple insurance produ
ct
s are backed by
outs
tanding claims and service experience
– W
e ma
k
e i
t easy to do busine
ss with us t
hrough any channel
TIER 1
SM
ES 0250
EMPLO
YEES
We have a marke
t
-
leading par
tnership
wit
h Sa
ge wi
th
ambitious plans for
grow
th i
n the S
ME
mar
ket. We wi
ll ad
d
oth
er pa
rt
ne
rs an
d a
direc
t
-to-market offer
TIER 2
T
ALENT
DRIVEN
Through HapiFlex
we of
fer a b
esp
oke
be
nef
it
s so
luti
on to
UK
-b
ase
d comp
ani
es
wit
h a so
phis
tic
ate
d
ful
l-ser
vi
ce off
er:
cons
ulta
ncy, sal
ar
y
sa
crif
ice a
nd oth
er
third-part
y solutions
TIER 3
ENTERPRISE/
PUBLIC SECT
OR
Ou
r core ma
rket
s
of
fer com
pany-p
aid
wel
lbe
ing b
ene
fi
ts
and e
mpl
oyee-p
aid
insu
ran
ce to UK
-b
ase
d
enterprise
clients
bet
we
en 2,0
00 an
d
140
,000 e
mpl
oyees
OUR ASPIRA
TIONS
We are focus
ed on b
uildin
g a busin
ess wi
th roo
m to grow in t
he me
dium an
d long-te
rm an
d have lai
d out
what o
ur busin
ess w
ill ne
ed to lo
ok l
ike to meet o
ur aspir
atio
ns.
WHERE WE PLA
Y
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
24
Personal Group Holdings
Plc
· A
nnu
al Re
por
t an
d Accoun
ts 20
21
OUR STRA
TEGY
HOW
WE WILL
DELIVER
Our re
fresh
ed s
trat
egy to su
bst
ant
ially grow t
he bus
ines
s over the m
ediu
m-term is b
ase
d on th
ree key areas fo
r grow
th.
a.
Increas
e channe
ls to mark
et
dir
ec
t mai
l, vir
tua
l visits,
digital
, fa
ce-
to-
fa
ce
b.
New
p
roduct
s
eg Canc
er Pr
ot
ec
t, new
company paid produc
t
c.
I
mpro
ve
retention
improv
e
polic
yholder jour
ney
and communications to
retain highe
r number
s
d.
Improv
e pe
netration lev
el
s
curr
entl
y estimated a
t c.
10%
of avai
l
able employees
a.
Increas
e clien
t base
reach new markets with
clear
‘best in class
’ offer
b.
Increase eac
h client’
s spend
on re
ward and ben
efits
by o
f
feri
ng ne
w idea
s and
ser
vi
c
es including
Innec
to
and Let’s C
onnect
c.
Incr
eased rang
e of offering
pro
viding a broader range
of bene
fit
s to o
ur
custom
er bas
e
a.
Our target mark
et co
vers
c150,000 bu
sinesses
(
ONS da
t
a No
v 2021) betw
een
20 an
d 250 empl
o
y
ees.
T
ogether they acc
ount for
arou
nd 6.
1m empl
oy
ees
with a mark
et va
lue of
c£300m ARR
.
b.
Maximise our rel
ationshi
p
with Sage
c.
Impro
ve lifeti
me value (
L
T
V
)
of s
ubsc
ribers
d.
Add new channels
to add
ress mark
et needs
1.
DRIVE
INSURANCE
2.
TRANSFORM REW
ARD
& BENEFITS
3.
AC
CELERA
TE
SME OFFER
25
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
STRA
TEGIC PROGRESS
MAKING REAL
PROGRESS
ON
OUR STRA
TE
GIC GO
ALS
STRA
TEGIC AREA
P
A
Y
& REW
ARD
BENEFITS PLA
TFORM
AFFORD
ABLE INSURANCE
O
THER OWNED
BENEFITS
Client proposition
Inn
ec
to is th
e la
rge
st in
dep
end
ent pay a
nd rew
ard con
sulta
nc
y in th
e UK
.
We offe
r a comp
rehe
nsive s
uite of co
nsult
an
cy s
er
vice
s incl
udin
g rewar
d
st
rate
gy, pay st
ruc
tur
es, p
ay ben
chm
ark
ing, j
ob eva
luat
ion
, gend
er p
ay and
exec
uti
ve remu
ner
atio
n. In
nec
to sp
ecia
lis
e in wor
king w
ith c
lie
nts w
ho ar
e
goi
ng th
roug
h signi
fi
cant ch
ang
e or grow
th a
nd ne
ed to u
pdate t
he
ir pay
and r
eward a
rra
nge
ment
s to m
eet b
usine
ss de
man
ds.
202
1 cli
ent
s incl
ude A
irb
us, A
ir
ta
nker
, T
ay
lor Wess
ing, B
oug
ht by Many,
Ca
nada L
ife
, Avanti Wes
t Coas
t
, and Bl
oom
sbur
y P
ubl
ishi
ng.
Inn
ec
to has a
ls
o devel
ope
d a suit
e of digi
ta
l analys
is and p
red
ict
ive S
aaS
too
ls f
or us
e in mak
ing p
ay deci
sion
s. In
nec
to has a
l
so deve
lop
ed a pl
at
form
of dig
it
al ana
lysis an
d pred
ic
tive to
ol
s for u
se in m
akin
g pay de
cisi
ons. D
ur
ing
th
e year
, we d
evelo
ped a n
ew too
l, Ad
van
ce, whi
ch all
ows em
ployer
s to
sim
pli
fy a
nd spe
ed up d
eci
sion-m
aki
ng aro
und t
he ann
ual p
ay revie
w
pro
cess
. Thi
s was l
aun
ched i
n ear
ly 2022
.
Many c
lie
nts s
ta
r
t work o
n the
ir rew
ard pro
pos
iti
on wit
h pay, foll
owing o
n
wit
h bo
nus an
d fi
nally b
ene
fi
t provi
sion
. Inn
ec
to bri
ngs cl
ient
s int
o the
Gr
oup at an e
arly s
ta
ge in t
heir t
hin
king a
nd te
nds to wo
rk wi
th key de
cisio
n-
make
rs. We are u
niqu
e amo
ng mid-
mar
ket ben
ef
it prov
ide
rs in of
fe
rin
g
comp
lete p
ay
, r
eward a
nd be
nef
it s
olut
ion
s.
Ou
r empl
oyee be
nef
it
s so
lut
ion
, Hapi
, is a mar
ket
-lea
ding
employ
ee engagement
platform.
Th
e app
-
f
ir
st te
chn
olog
y ena
ble
s empl
oyees t
o access t
hei
r
benefit
s and
wellbeing ser
vic
es wherev
er and whenev
er
th
ey nee
d to wh
ich wor
ks p
ar
ti
cul
arly e
ff
ec
tive
ly in our co
re
cli
ent
s whe
re em
ployee
s are of
te
n not wor
king a
t a desk
, an
d
wit
h th
e incre
ase in hy
bri
d and h
ome
-worki
ng, we s
ee a
dis
tin
ct r
equi
rem
ent for e
mpl
oyers to b
e abl
e to hos
t a
cent
ral hu
b wit
h emp
loyee in
form
atio
n in on
e, eas
ily
acc
essed locati
on.
For l
arg
er cl
ient
s, t
he pl
at
for
m is ful
ly cus
tom
ised a
nd wh
ite
l
abel
le
d wit
h the
ir own b
espo
ke mix of b
ene
fi
ts a
nd
br
andi
ng, w
here
as our S
ME cl
ient
s bu
y a st
and
ardi
sed
pro
duc
t pre
-pop
ul
ated key b
ene
fi
ts a
s Sag
e Empl
oyee
Benefit
s through our partnership with Sage.
Hap
ifl
ex is o
ur new ve
rsio
n of Ha
pi, ai
med at m
ore
so
phis
tic
ate
d clie
nt use
rs w
ho want t
o be ab
le to of
fer
fl
exib
le be
nef
it
s to t
heir e
mpl
oyees w
hich in
clud
es opt
ing i
n
to sp
ecif
ic b
ene
fi
ts (
ie bu
y
/sel
l hol
iday) o
n an an
nual c
ycle
.
Ou
r insur
ance p
rod
uc
ts p
rovid
e pea
ce of mind a
nd se
cur
it
y for e
mploye
e grou
ps
who d
on’t r
ecei
ve deat
h in se
rv
ice or s
ick pay f
rom t
heir e
mpl
oyers
. Our s
impl
e
pro
duc
t
s, wh
ich do
n’t re
quire a m
edi
cal o
r prem
ium un
der
w
rit
ing
, are pa
id
th
roug
h payro
ll de
duc
ti
on. T
he pr
emiu
ms an
d payou
ts a
re rel
ati
vely low val
ue,
but f
il
l an imp
or
t
ant ga
p for th
e comm
unit
ies we s
er
ve.
Ou
r uniq
ue sa
les a
ppro
ach i
s to cond
uc
t ben
ef
it
s roll
out d
irec
tly in t
he
wor
kpl
ace w
ith e
mploye
es, b
oth int
rod
ucin
g the
m to th
eir be
nef
it
s p
acka
ge on
Hap
i, an
d off
eri
ng th
em cha
nce to bu
y insu
ran
ce the
re and t
hen
, face t
o face.
Th
is fulf
il
s ou
r pur
pos
e of Con
nec
tin
g the U
ncon
nec
te
d, and P
rotec
ti
ng th
e
Unp
rotec
te
d, an
d hel
ps em
ployer
s get t
hei
r key mes
sag
es ab
out e
mpl
oyee
wel
lbe
ing an
d th
e key ben
efi
ts t
hey o
ffe
r emp
loyee
s at the s
am
e time
.
Sin
ce COVID, we have be
en de
velop
ing oth
er ch
anne
ls t
o mar
ket, in
clu
ding
Vi
rt
ual V
isit
s
, Dire
ct M
ail an
d T
el
esa
les
. We are al
so tr
ial
lin
g Digi
tal I
nsur
ance
sales through our Hapi
app.
Th
is se
cto
r refe
rs to s
uppl
ier
s wi
thin t
he pl
at
for
m whi
ch are al
s
o owne
d by the
Gr
oup. At pre
sen
t this r
efer
s to Le
t’s Con
nec
t
, the G
rou
p’s Sal
ar
y S
acr
if
ice
T
e
chno
log
y busi
ness
, bu
t the re
all
ocat
ion o
f segm
ent
s al
lows th
is are
a to grow
as th
e Gro
up move
s for
wa
rd.
Ou
r ben
ef
it pro
pos
itio
n prov
ides e
mpl
oyees w
ith t
he op
por
tu
nit
y to e
xchang
e
so
me of th
eir s
al
ar
y ea
ch mont
h for t
he l
ates
t tec
hnol
ogy d
evice
s fro
m lead
ing
manufacturer
s.
Emp
loyees a
re abl
e to save N
atio
nal In
sura
nce – up to 1
2% – an
d proves ve
r
y
po
pul
ar
, a
s they a
re abl
e to spr
ead t
he cos
t over a f
ixed pe
rio
d of ti
me.
Emp
loyer
s valu
e how th
e ben
ef
it dr
ives em
ploye
e enga
gem
ent an
d hel
ps th
em
creat
e an exce
lle
nt empl
oyee val
ue pr
opo
siti
on, w
hich b
oth at
tr
ac
ts a
nd ret
ains
s
t
a
f
f.
Ot
her b
ene
fi
ts i
nclu
de havi
ng acce
ss to th
e lat
es
t devi
ces for r
emote wo
rk
ing,
communications and learning.
2021 progress
Gr
owt
h in cons
ulta
nc
y incom
e of 50
% on 2020.
49 new cl
ie
nts
.
Th
ird dig
it
al pro
duc
t deve
lop
ed; HR p
ay revie
w tool ‘Adva
nce’ l
aun
ched i
n
early 2022.
40 cl
ie
nts o
n eit
her Eval
uate an
d PayL
ab wi
th a ret
enti
on rat
e of 84%
.
An
nual Re
cur
rin
g Reven
ue (AR
R) of £0.43
m at De
c 21 (£0.
25
m Dec 2
0 +
72%).
L
aunc
h of Hap
ifl
ex, t
he Gr
oup’s n
ew Be
nef
it Ma
nag
eme
nt
Syste
m, al
lows f
ull int
egr
atio
n of a ran
ge of com
pany-p
aid
be
nef
it
s (ie p
ens
ion, C
yclet
o
Wor
k, Le
t’s Co
nne
ct
, sea
son
tic
ket loa
ns etc) into t
he Ha
pi so
ft
war
e allow
ing gr
eater
cho
ice for e
mploye
es
, an imp
roved cu
sto
mer j
our
ney an
d
value-
add one-stop
process for c
l
ients and
t
heir
emp
loyee
s. Th
is al
lows us a
ccess to n
ew mar
ket
s who s
ee
th
e off
er of f
lexi
ble b
ene
fi
ts to t
hei
r team
s as key to th
eir
emp
loyee va
lue p
rop
osit
ion
.
Ret
urn to t
he f
iel
d was im
ped
ed by lo
ckdown unt
il mi
d-July w
here we
gra
dua
lly saw a r
e-st
ar
t of f
ace-to-face vi
sit
s wit
h cli
ent
s. Re
-st
ar
ti
ng the
eng
ine o
n the f
iel
d sal
es te
am af
ter a h
iatus of 1
5 mont
hs was c
hall
engi
ng,
and we we
re st
ill h
amp
ered b
y empl
oyee sho
r
ta
ges
, both o
urs a
nd cl
ient
s as a
res
ult of COVID t
hrou
gh th
e summ
er an
d autu
mn. I
ndiv
idu
al coll
eag
ues a
re
pe
rf
orm
ing ver
y we
ll wi
th in
divi
dual s
al
es del
ive
r
y up c8% b
ase
d on 201
9
leve
ls w
hich i
s encou
rag
ing as we co
ntin
ue retu
rni
ng to no
rma
l, a
nd loo
k
forward to 2
022 with confidence.
We went li
ve wit
h a digi
tal i
nsur
ance t
rial w
ith o
ur l
arg
est cl
ie
nt in July.
Att
rac
te
d new cl
ient
s as a re
sult of p
ubl
ic se
cto
r fra
mewo
rk
s gain
ed in 20
20.
Succe
ssf
ully p
ar
t of jo
int Pe
rso
nal G
roup
-wide t
end
er for Ke
nt Coun
ty
Cou
ncil Fra
mewo
rk – go
es l
ive in 202
2.
Add
ed 20 ne
w clie
nt
s.
Du
e to glo
bal te
chn
olog
y sho
r
tag
es, we e
xpa
nde
d our p
rodu
ct s
et – l
aun
ches
of wh
ite go
ods
, high e
nd ga
rden f
urn
itur
e and g
ym eq
uipm
ent wh
ich he
lp
ed
to ret
ain m
argi
ns an
d meet c
lie
nt exp
ec
tat
ion
s.
2022 plans
Many o
rga
nis
atio
ns have com
e out of t
he pa
nde
mic kee
n to rev
iew
exi
st
ing rew
ard pr
ac
tice i
n resp
onse t
o the t
ight l
ab
our m
arket a
nd are
foc
using h
eavi
ly on rewa
rd st
rate
gy rev
iews a
nd be
nchm
ark
ing
.
Foc
us on em
ploye
e life
tim
e valu
e has s
een a
n upl
if
t in consu
lta
ncy
pro
jec
t
s loo
king at b
ene
fi
t prov
ision
, reco
gnit
ion a
nd pay p
rog
ress
ion.
Succe
ssf
ul l
aun
ch of new I
nnec
to D
igit
al p
rodu
ct Ad
van
ce, a pay re
view
sof
t
ware s
olu
tio
n. 202
2 wil
l see t
he evol
uti
on of how we a
re po
siti
onin
g
our p
lat
fo
rms in t
he ma
rket an
d a cont
inue
d focu
s on con
nec
ti
vit
y of al
l
Inn
ec
to Dig
it
al pro
duc
t
s. On
ce conn
ec
ted, c
lie
nts w
ill h
ave a seam
les
s
jou
rne
y thro
ugh re
ward
, alon
gsid
e APIs i
nto HRI
S sy
ste
ms, w
hich w
ill
prov
ide si
gnif
ic
ant cro
ss-sel
l op
por
tu
nit
ies fo
r mult
iple p
rodu
ct
s
.
202
2 is Inn
ec
to’s 20 year a
nni
vers
ar
y.
SME g
row
th: Dr
ive re
lat
ion
ship w
ith S
age to a
dd mo
re
cli
ent
s, im
prove si
gn-up an
d rete
ntio
n. E
xpa
nd fu
rt
he
r
SME channels.
Hap
i grow
th: I
ntegr
ati
on of ma
nual b
ack
-
of
fice p
roce
sse
s,
inc
reas
ed fu
nct
ion
ali
ty o
n mar
ketin
g cap
abil
it
y dr
iven
cent
ral
ly to dri
ve sign-u
p and u
sag
e incl
udin
g integ
rat
ing
digital insurance.
So
urcin
g and in
tegr
atin
g thro
ugh A
PI thi
rd pa
rt
y
pa
rt
ner
shi
ps to ad
d inn
ovati
on to pr
oduc
t of
fer o
n Hap
i at
spe
ed dr
ive hi
gher r
evenu
e valu
es ea
rne
d per p
lat
fo
rm
th
roug
h impr
oved pro
duc
t ra
nge an
d of
fer of b
ene
fi
ts p
lus
Hap
ifl
ex s
ales at h
ighe
r reven
ue pe
r use
r
.
Dr
ivi
ng Insu
ran
ce init
iati
ve foc
use
d on wid
eni
ng and d
eep
eni
ng all a
spe
ct
s of
our i
nsur
ance cu
sto
mer o
per
ati
on:
Imp
rove pe
net
rati
on wi
th ex
ist
ing cl
ient
s th
rou
gh ex
ten
sion of d
igit
al
insu
ran
ce and ot
her ro
ute
s to mar
ket.
Inn
ovati
on in p
rodu
ct
s wi
th th
ird p
ar
ty t
ria
l
s of othe
r insu
ran
ce prod
uc
ts
.
Rev
iew f
irs
t year p
oli
cy
hold
er ret
enti
on jo
urn
ey to ens
ure th
at we sup
por
t
th
e cus
tome
r as req
uire
d in th
e init
ial s
ta
ges of t
hei
r par
t
ner
ship w
ith t
he
Gro
up.
Cro
ss sel
l
/upse
ll ac
ross t
he G
roup, i
nclu
ding H
api/
Let’
s Conn
ec
t on th
e Kent
Fram
ewor
k as a via
ble pu
bli
c sec
to
r choi
ce to Eden
Red.
As s
upp
lie
s of tech
nol
ogy p
rod
uct
s im
prove in 2
022, t
he move
s mad
e in 202
1
to br
oad
en th
e pro
duc
t ran
ge of Le
t’s Con
nec
t wi
ll al
low great
er ch
oice an
d
mor
e sea
sona
lly rel
evant p
rod
uc
t mar
keting t
hro
ugho
ut th
e year
.
Th
e Gro
up cont
inue
s to ac
ti
vely cons
ider a
cquis
iti
on into ot
her a
reas to w
ide
n
it
s owne
d of
fer
ing.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
26
Personal
G
roup
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
STRA
TEGIC PROGRESS
STRA
TEGIC AREA
P
A
Y
& REW
ARD
BENEFITS PLA
TFORM
AFFORD
ABLE INSURANCE
O
THER OWNED
BENEFITS
Client proposition
Inn
ec
to is th
e la
rge
st in
dep
end
ent pay a
nd rew
ard con
sulta
nc
y in th
e UK
.
We offe
r a comp
rehe
nsive s
uite of co
nsult
an
cy s
er
vice
s incl
udin
g rewar
d
st
rate
gy, pay st
ruc
tur
es, p
ay ben
chm
ark
ing, j
ob eva
luat
ion
, gend
er p
ay and
exec
uti
ve remu
ner
atio
n. In
nec
to sp
ecia
lis
e in wor
king w
ith c
lie
nts w
ho ar
e
goi
ng th
roug
h signi
fi
cant ch
ang
e or grow
th a
nd ne
ed to u
pdate t
he
ir pay
and r
eward a
rra
nge
ment
s to m
eet b
usine
ss de
man
ds.
202
1 cli
ent
s incl
ude A
irb
us, A
ir
ta
nker
, T
ay
lor Wess
ing, B
oug
ht by Many,
Ca
nada L
ife
, Avanti Wes
t Coas
t
, and Bl
oom
sbur
y P
ubl
ishi
ng.
Inn
ec
to has a
ls
o devel
ope
d a suit
e of digi
ta
l analys
is and p
red
ict
ive S
aaS
too
ls f
or us
e in mak
ing p
ay deci
sion
s. In
nec
to has a
l
so deve
lop
ed a pl
at
form
of dig
it
al ana
lysis an
d pred
ic
tive to
ol
s for u
se in m
akin
g pay de
cisi
ons. D
ur
ing
th
e year
, we d
evelo
ped a n
ew too
l, Ad
van
ce, whi
ch all
ows em
ployer
s to
sim
pli
fy a
nd spe
ed up d
eci
sion-m
aki
ng aro
und t
he ann
ual p
ay revie
w
pro
cess
. Thi
s was l
aun
ched i
n ear
ly 2022
.
Many c
lie
nts s
ta
r
t work o
n the
ir rew
ard pro
pos
iti
on wit
h pay, foll
owing o
n
wit
h bo
nus an
d fi
nally b
ene
fi
t provi
sion
. Inn
ec
to bri
ngs cl
ient
s int
o the
Gr
oup at an e
arly s
ta
ge in t
heir t
hin
king a
nd te
nds to wo
rk wi
th key de
cisio
n-
make
rs. We are u
niqu
e amo
ng mid-
mar
ket ben
ef
it prov
ide
rs in of
fe
rin
g
comp
lete p
ay
, r
eward a
nd be
nef
it s
olut
ion
s.
Ou
r empl
oyee be
nef
it
s so
lut
ion
, Hapi
, is a mar
ket
-lea
ding
employ
ee engagement
platform.
Th
e app
-
f
ir
st te
chn
olog
y ena
ble
s empl
oyees t
o access t
hei
r
benefit
s and
wellbeing ser
vic
es wherev
er and whenev
er
th
ey nee
d to wh
ich wor
ks p
ar
ti
cul
arly e
ff
ec
tive
ly in our co
re
cli
ent
s whe
re em
ployee
s are of
te
n not wor
king a
t a desk
, an
d
wit
h th
e incre
ase in hy
bri
d and h
ome
-worki
ng, we s
ee a
dis
tin
ct r
equi
rem
ent for e
mpl
oyers to b
e abl
e to hos
t a
cent
ral hu
b wit
h emp
loyee in
form
atio
n in on
e, eas
ily
acc
essed locati
on.
For l
arg
er cl
ient
s, t
he pl
at
for
m is ful
ly cus
tom
ised a
nd wh
ite
l
abel
le
d wit
h the
ir own b
espo
ke mix of b
ene
fi
ts a
nd
br
andi
ng, w
here
as our S
ME cl
ient
s bu
y a st
and
ardi
sed
pro
duc
t pre
-pop
ul
ated key b
ene
fi
ts a
s Sag
e Empl
oyee
Benefit
s through our partnership with Sage.
Hap
ifl
ex is o
ur new ve
rsio
n of Ha
pi, ai
med at m
ore
so
phis
tic
ate
d clie
nt use
rs w
ho want t
o be ab
le to of
fer
fl
exib
le be
nef
it
s to t
heir e
mpl
oyees w
hich in
clud
es opt
ing i
n
to sp
ecif
ic b
ene
fi
ts (
ie bu
y
/sel
l hol
iday) o
n an an
nual c
ycle
.
Ou
r insur
ance p
rod
uc
ts p
rovid
e pea
ce of mind a
nd se
cur
it
y for e
mploye
e grou
ps
who d
on’t r
ecei
ve deat
h in se
rv
ice or s
ick pay f
rom t
heir e
mpl
oyers
. Our s
impl
e
pro
duc
t
s, wh
ich do
n’t re
quire a m
edi
cal o
r prem
ium un
der
w
rit
ing
, are pa
id
th
roug
h payro
ll de
duc
ti
on. T
he pr
emiu
ms an
d payou
ts a
re rel
ati
vely low val
ue,
but f
il
l an imp
or
t
ant ga
p for th
e comm
unit
ies we s
er
ve.
Ou
r uniq
ue sa
les a
ppro
ach i
s to cond
uc
t ben
ef
it
s roll
out d
irec
tly in t
he
wor
kpl
ace w
ith e
mploye
es, b
oth int
rod
ucin
g the
m to th
eir be
nef
it
s p
acka
ge on
Hap
i, an
d off
eri
ng th
em cha
nce to bu
y insu
ran
ce the
re and t
hen
, face t
o face.
Th
is fulf
il
s ou
r pur
pos
e of Con
nec
tin
g the U
ncon
nec
te
d, and P
rotec
ti
ng th
e
Unp
rotec
te
d, an
d hel
ps em
ployer
s get t
hei
r key mes
sag
es ab
out e
mpl
oyee
wel
lbe
ing an
d th
e key ben
efi
ts t
hey o
ffe
r emp
loyee
s at the s
am
e time
.
Sin
ce COVID, we have be
en de
velop
ing oth
er ch
anne
ls t
o mar
ket, in
clu
ding
Vi
rt
ual V
isit
s
, Dire
ct M
ail an
d T
el
esa
les
. We are al
so tr
ial
lin
g Digi
tal I
nsur
ance
sales through our Hapi
app.
Th
is se
cto
r refe
rs to s
uppl
ier
s wi
thin t
he pl
at
for
m whi
ch are al
s
o owne
d by the
Gr
oup. At pre
sen
t this r
efer
s to Le
t’s Con
nec
t
, the G
rou
p’s Sal
ar
y S
acr
if
ice
T
e
chno
log
y busi
ness
, bu
t the re
all
ocat
ion o
f segm
ent
s al
lows th
is are
a to grow
as th
e Gro
up move
s for
wa
rd.
Ou
r ben
ef
it pro
pos
itio
n prov
ides e
mpl
oyees w
ith t
he op
por
tu
nit
y to e
xchang
e
so
me of th
eir s
al
ar
y ea
ch mont
h for t
he l
ates
t tec
hnol
ogy d
evice
s fro
m lead
ing
manufacturer
s.
Emp
loyees a
re abl
e to save N
atio
nal In
sura
nce – up to 1
2% – an
d proves ve
r
y
po
pul
ar
, a
s they a
re abl
e to spr
ead t
he cos
t over a f
ixed pe
rio
d of ti
me.
Emp
loyer
s valu
e how th
e ben
ef
it dr
ives em
ploye
e enga
gem
ent an
d hel
ps th
em
creat
e an exce
lle
nt empl
oyee val
ue pr
opo
siti
on, w
hich b
oth at
tr
ac
ts a
nd ret
ains
s
t
a
f
f.
Ot
her b
ene
fi
ts i
nclu
de havi
ng acce
ss to th
e lat
es
t devi
ces for r
emote wo
rk
ing,
communications and learning.
2021 progress
Gr
owt
h in cons
ulta
nc
y incom
e of 50
% on 2020.
49 new cl
ie
nts
.
Th
ird dig
it
al pro
duc
t deve
lop
ed; HR p
ay revie
w tool ‘Adva
nce’ l
aun
ched i
n
early 2022.
40 cl
ie
nts o
n eit
her Eval
uate an
d PayL
ab wi
th a ret
enti
on rat
e of 84%
.
An
nual Re
cur
rin
g Reven
ue (AR
R) of £0.43
m at De
c 21 (£0.
25
m Dec 2
0 +
72%).
L
aunc
h of Hap
ifl
ex, t
he Gr
oup’s n
ew Be
nef
it Ma
nag
eme
nt
Syste
m, al
lows f
ull int
egr
atio
n of a ran
ge of com
pany-p
aid
be
nef
it
s (ie p
ens
ion, C
yclet
o
Wor
k, Le
t’s Co
nne
ct
, sea
son
tic
ket loa
ns etc) into t
he Ha
pi so
ft
war
e allow
ing gr
eater
cho
ice for e
mploye
es
, an imp
roved cu
sto
mer j
our
ney an
d
value-
add one-stop
process for c
l
ients and
t
heir
emp
loyee
s. Th
is al
lows us a
ccess to n
ew mar
ket
s who s
ee
th
e off
er of f
lexi
ble b
ene
fi
ts to t
hei
r team
s as key to th
eir
emp
loyee va
lue p
rop
osit
ion
.
Ret
urn to t
he f
iel
d was im
ped
ed by lo
ckdown unt
il mi
d-July w
here we
gra
dua
lly saw a r
e-st
ar
t of f
ace-to-face vi
sit
s wit
h cli
ent
s. Re
-st
ar
ti
ng the
eng
ine o
n the f
iel
d sal
es te
am af
ter a h
iatus of 1
5 mont
hs was c
hall
engi
ng,
and we we
re st
ill h
amp
ered b
y empl
oyee sho
r
ta
ges
, both o
urs a
nd cl
ient
s as a
res
ult of COVID t
hrou
gh th
e summ
er an
d autu
mn. I
ndiv
idu
al coll
eag
ues a
re
pe
rf
orm
ing ver
y we
ll wi
th in
divi
dual s
al
es del
ive
r
y up c8% b
ase
d on 201
9
leve
ls w
hich i
s encou
rag
ing as we co
ntin
ue retu
rni
ng to no
rma
l, a
nd loo
k
forward to 2
022 with confidence.
We went li
ve wit
h a digi
tal i
nsur
ance t
rial w
ith o
ur l
arg
est cl
ie
nt in July.
Att
rac
te
d new cl
ient
s as a re
sult of p
ubl
ic se
cto
r fra
mewo
rk
s gain
ed in 20
20.
Succe
ssf
ully p
ar
t of jo
int Pe
rso
nal G
roup
-wide t
end
er for Ke
nt Coun
ty
Cou
ncil Fra
mewo
rk – go
es l
ive in 202
2.
Add
ed 20 ne
w clie
nt
s.
Du
e to glo
bal te
chn
olog
y sho
r
tag
es, we e
xpa
nde
d our p
rodu
ct s
et – l
aun
ches
of wh
ite go
ods
, high e
nd ga
rden f
urn
itur
e and g
ym eq
uipm
ent wh
ich he
lp
ed
to ret
ain m
argi
ns an
d meet c
lie
nt exp
ec
tat
ion
s.
2022 plans
Many o
rga
nis
atio
ns have com
e out of t
he pa
nde
mic kee
n to rev
iew
exi
st
ing rew
ard pr
ac
tice i
n resp
onse t
o the t
ight l
ab
our m
arket a
nd are
foc
using h
eavi
ly on rewa
rd st
rate
gy rev
iews a
nd be
nchm
ark
ing
.
Foc
us on em
ploye
e life
tim
e valu
e has s
een a
n upl
if
t in consu
lta
ncy
pro
jec
t
s loo
king at b
ene
fi
t prov
ision
, reco
gnit
ion a
nd pay p
rog
ress
ion.
Succe
ssf
ul l
aun
ch of new I
nnec
to D
igit
al p
rodu
ct Ad
van
ce, a pay re
view
sof
t
ware s
olu
tio
n. 202
2 wil
l see t
he evol
uti
on of how we a
re po
siti
onin
g
our p
lat
fo
rms in t
he ma
rket an
d a cont
inue
d focu
s on con
nec
ti
vit
y of al
l
Inn
ec
to Dig
it
al pro
duc
t
s. On
ce conn
ec
ted, c
lie
nts w
ill h
ave a seam
les
s
jou
rne
y thro
ugh re
ward
, alon
gsid
e APIs i
nto HRI
S sy
ste
ms, w
hich w
ill
prov
ide si
gnif
ic
ant cro
ss-sel
l op
por
tu
nit
ies fo
r mult
iple p
rodu
ct
s
.
202
2 is Inn
ec
to’s 20 year a
nni
vers
ar
y.
SME g
row
th: Dr
ive re
lat
ion
ship w
ith S
age to a
dd mo
re
cli
ent
s, im
prove si
gn-up an
d rete
ntio
n. E
xpa
nd fu
rt
he
r
SME channels.
Hap
i grow
th: I
ntegr
ati
on of ma
nual b
ack
-
of
fice p
roce
sse
s,
inc
reas
ed fu
nct
ion
ali
ty o
n mar
ketin
g cap
abil
it
y dr
iven
cent
ral
ly to dri
ve sign-u
p and u
sag
e incl
udin
g integ
rat
ing
digital insurance.
So
urcin
g and in
tegr
atin
g thro
ugh A
PI thi
rd pa
rt
y
pa
rt
ne
rshi
ps to ad
d inn
ovati
on to pr
oduc
t of
fer o
n Hap
i at
spe
ed dr
ive hi
gher r
evenu
e valu
es ea
rne
d per p
lat
fo
rm
th
roug
h impr
oved pro
duc
t ra
nge an
d of
fer of b
ene
fi
ts p
lus
Hap
ifl
ex s
ales at h
ighe
r reven
ue pe
r use
r
.
Dr
ivi
ng Insu
ran
ce init
iati
ve foc
use
d on wid
eni
ng and d
eep
eni
ng all a
spe
ct
s of
our i
nsur
ance cu
sto
mer o
per
ati
on:
Imp
rove pe
net
rati
on wi
th ex
ist
ing cl
ient
s th
rou
gh ex
ten
sion of d
igit
al
insu
ran
ce and ot
her ro
ute
s to mar
ket.
Inn
ovati
on in p
rodu
ct
s wi
th th
ird p
ar
ty t
ria
l
s of othe
r insu
ran
ce prod
uc
ts
.
Rev
iew f
irs
t year p
oli
cy
hold
er ret
enti
on jo
urn
ey to ens
ure th
at we sup
por
t
th
e cus
tome
r as req
uire
d in th
e init
ial s
ta
ges of t
hei
r par
t
ner
ship w
ith t
he
Gro
up.
Cro
ss sel
l
/upse
ll ac
ross t
he G
roup, i
nclu
ding H
api/
Let’
s Conn
ec
t on th
e Kent
Fram
ewor
k as a via
ble pu
bli
c sec
to
r choi
ce to Eden
Red.
As s
upp
lie
s of tech
nol
ogy p
rod
uct
s im
prove in 2
022, t
he move
s mad
e in 202
1
to br
oad
en th
e pro
duc
t ran
ge of Le
t’s Con
nec
t wi
ll al
low great
er ch
oice an
d
mor
e sea
sona
lly rel
evant p
rod
uc
t mar
keting t
hro
ugho
ut th
e year
.
Th
e Gro
up cont
inue
s to ac
ti
vely cons
ider a
cquis
iti
on into ot
her a
reas to w
ide
n
it
s owne
d of
fer
ing.
27
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
TOT
AL UNIQ
UE C
LIENT NUMBERS
3
87
(2020: 358)
NUMBER OF
INSUR
ANCE P
A
YER
S
9
3
,1
4
7
(20
20: 1
03,497
)
ACTIV
AT
ED USERS
ON HAPI
AND SAGE
EMPLOYEE
BENEFITS
5
3
9
,0
51
(2020: 484,7
73)
LEAD INDICA
TORS
As p
ar
t of o
ur st
rate
gy fo
r del
iver
ing lo
ng-term s
ust
ain
abl
e grow
th, w
e ident
if
ied a n
umb
er of le
ad ind
icat
ors
, th
e impr
ovemen
t of whic
h wil
l enab
le us to g
row bot
h our
reven
ue an
d prof
it
s and b
uild f
utu
re valu
e for t
he bu
sine
ss.
Lead Indicator
Why we ch
ose it
31 D
ecemb
er 20
21
31 D
ecemb
er 20
20
Res
tated*
T
otal unique client numbers
Wi
nning n
ew clie
nts a
nd ret
ainin
g exis
ting o
nes w
ill b
e key to us bein
g able to
grow our b
usine
ss.
387
358
Num
ber of cl
ient
s se
r
ved by two o
r
more lines
of bu
siness
Encou
ragin
g cross-se
ll
ing acro
ss th
e Group w
ill e
nable u
s to achie
ve increas
ed
pen
etr
atio
n across o
ur exi
sti
ng cli
ent
s as well as m
akin
g us an imp
or
t
ant par
t
of cli
ent
s’ empl
oyee well
bei
ng prop
osit
ion
.
132
120
T
ota
l numb
er of emp
loyees to
whom one or
more of ou
r services
are made a
vail
able
Incre
asing t
he num
ber of e
mployee
s we provid
e ser
vi
ces to wil
l be f
unda
ment
al
to us ach
ievin
g our grow
th a
spirat
ions a
s well as h
elp
ing us ach
ieve our v
ision of
bei
ng a winn
ing tea
m creati
ng a bri
ghter f
uture fo
r the U
K work
force.
1,210,980
1,
159,691
Act
ivate
d user
s on Ha
pi and S
age
Emplo
yee Benefits
Incre
asing t
he num
ber of a
ct
ivated u
ser
s on Hap
i and S
age Em
ployee Be
nef
it
s
wil
l hel
p us dri
ve greater re
turn o
n the G
roup’s S
aaS di
git
ally ena
bled p
rodu
ct
s.
539,051
484
,77
3
Number of
insuranc
e payers
Re-in
vigorating gro
w
th in i
nsuranc
e policyholders, together
wit
h a
consisten
t
focu
s on retent
ion
, will h
elp u
s increa
se th
e size of our insu
ran
ce busine
ss. We
have chos
en to us
e payer
s inst
ead of ou
r histo
ric m
easure of p
ol
icies to r
efl
ect
that t
he ma
jori
t
y of our pre
miums a
re colle
cte
d thro
ugh p
ayroll d
edu
ct
ion an
d our
retent
ion r
ates are l
arg
ely dete
rmin
ed by th
e ac
tion
s of the in
divi
dual p
ayer
.
9
3
,1
4
7
103
,497
*
In l
ine wi
th ou
r app
roa
ch to a mo
re hol
is
tic v
iew of ou
r clie
nt
s we impl
eme
nted S
ale
sfo
rce acro
ss th
e Gro
up in 20
21
. As a re
sult
, som
e of th
e 2020 com
par
ator
s for t
hes
e
met
ric
s have be
en re
st
ated
.
KEY
PERFORMANCE INDICA
TORS
THE GROUP
METICUL
OUSL
Y
REVIEW
S ITS
PERF
ORMANCE,
MEASURED
A
CROSS A
NUMBER
OF
KPIS.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
28
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
2021 £3.
2m
2020 £1.6m
201
9 £1.
5m
20
2
1 80
.7
%
2020 80.5%
20
19 76
.6%
2
0
2
1
3
3
,1
5
5
2020 27
,320
2019
31,319
2021 £3.7m
2021 £2
4.4m
2020 £27
.
1
m
2019 £30.3
m
2020
£2.4m
201
9 £9.0m
2021 24.5%
2020 24.4%
2
0
1
9
2
2
.1
%
YEAR ON YEAR I
NSURANCE RETENTION
8
0
.7
%
ANNUALISED
RECURRING REVENUE
FOR
SAA
S LIC
ENCES
£3.
2m
LC ORDERS
3
3
,1
5
5
OTHER
KPIS
In ad
dit
ion to o
ur le
ad ind
icat
ors we co
ntin
ue to me
asur
e agai
nst a va
rie
ty o
f addi
tio
nal K
PIs bot
h acr
oss th
e Gro
up an
d wit
hin t
he var
iou
s busi
nes
s seg
ment
s.
1.
A
nnu
ali
se
d pre
miu
m inco
me r
efe
rs to t
he a
nnu
ali
se
d pre
miu
m of po
li
cie
s in fo
rce at t
he en
d of t
he f
ina
ncia
l yea
r net o
f IPT.
2.
A
nnu
al
ise
d new b
usi
ne
ss pr
emi
ums a
re a key p
er
for
ma
nce in
di
cato
r as
, whi
ls
t no d
ire
ct r
econ
cil
iat
io
n to ea
rne
d pre
mi
ums fo
r th
e year c
an b
e ca
rri
ed o
ut
, the
y are a p
ri
mar
y d
rive
r of ea
rn
ed pr
em
iums
in f
utu
re yea
rs an
d, a
s suc
h, ar
e a key me
asur
e for t
he G
rou
p. For a w
eek
ly pr
emi
um, t
he m
eas
ure is c
al
cul
ate
d as th
e val
ue of t
he p
rem
ium (n
et of I
PT
) x 52; f
or a mo
nth
ly pre
miu
m, t
he va
lue o
f th
e net
pre
mi
um (ne
t of IP
T) x 1
2.
KEY
PERFORMANCE INDICA
TORS
ANNUALISED
NE
W
BUSINESS P
REMIUM
2
£
3
.7
m
CLAIM
S RA
TIO
24
.
5
%
ANNUALISED
PREMIUM INCOME
1
£2
4.4m
29
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Q&A
WITH LIAM MCGRA
TH, CHIEF
OPERA
TING OFFICER
A C
ONVERSA
TION WITH L
IAM MC
GR
A
TH,
PE
R
SONAL GROUP
S C
OO
, T
O DISCUSS
THE C
HANGING MARKE
T
, N
A
VIGA
TING
OPE
R
A
TIONAL CHA
LLENGES AND THE
GROUP
’S BIGGE
ST OPPORTUNITIES.
“Gro
wth
is
at the top
of
the
agenda and we ar
e clear
how
we will
achiev
e it.
Liam McGrath
Chief Oper
ating Officer
Q
What w
e
re Personal Group
’s priorities
ov
er the last ye
ar?
It’s b
een a re
ally bus
y f
irs
t seven m
onths
.
Wh
en I join
ed Pe
rso
nal G
roup ba
ck in May
202
1, th
e loo
seni
ng of lockdow
n rest
ric
ti
ons
from t
he p
ande
mic ha
d just b
egun w
hich
ena
bled us t
o get th
e insur
ance f
ield s
ale
s
team b
ack o
ut to wor
k. Th
ere was a cl
ear
pr
iori
ty f
or us to ge
t back to f
ace-to
-
face
me
eting
s alongs
ide ou
r vir
tua
l sale
s chan
nel
s
and we we
re able to a
ct qu
ickly and f
lex
ibly to
succes
sfu
lly res
tar
t t
hes
e sal
es.
In ad
diti
on to th
is we have bee
n thin
king
care
ful
ly abou
t how we’re goin
g to grow
th
e insur
ance bus
ines
s signif
ic
antly over
th
e nex
t th
ree to fou
r years
, and ult
imate
ly
what t
hat req
uires f
rom a chan
nel an
d
pro
duc
t per
spe
ct
ive. Reco
gnising t
he wor
ld is
dif
fere
nt pos
t pan
demi
c, we kn
ow the di
visio
n
mus
t be mult
i-ch
anne
l, a
nd app
ropr
iate to
mult
iple ma
rket
s. Dr
ivi
ng this f
or
ward is ver
y
much f
ront of min
d.
On t
he emp
loyee be
nef
it
s pl
atf
orm si
de,
we’ve b
een rea
lly bus
y winn
ing new cl
ient
s
and su
ccess
ful
ly laun
ching H
apif
lex
, a more
comp
lex ver
sion of t
he be
nef
it
s pl
atf
orm
for t
alent
-
dri
ven orga
nisat
ions
. The S
age
par
tnership
con
t
inues
to go
from strength
to st
reng
th as wel
l and o
ur pay an
d reward
busi
ness I
nnec
to is t
hriv
ing.
Q
What a
re the key go
als f
or Pe
rson
al Gro
up’s
insurance
business and ho
w will you
achieve
t
hem?
Dr
ivin
g insur
ance th
rough n
ew and ex
ist
ing
chan
nel
s – spe
cif
ica
lly
, ge
tt
ing in-yea
r
prem
ium inco
me to over £
45m – is cent
ral to
our s
tr
ategy. It’s an am
biti
ous t
arget b
ut I’m
conf
ide
nt in our ca
pab
ili
ty of h
aving real
ly
high p
er
for
ming s
ale
s and se
r
vice tea
ms that
pl
ays dire
ct
ly to how we win wi
th ou
r simpl
e
products and outs
tanding service.
We have identi
fie
d 12 grow
th l
evers: t
hes
e
wil
l enab
le us to prote
ct a
nd grow th
e core
of our i
nsura
nce busin
ess as we
ll as ent
er
adja
cent and n
ew mar
kets
. At the s
ame t
ime
as inc
reasing p
enet
rat
ion into e
xist
ing cl
ient
s
and maximising
polic
yholder ret
ention,
we’ll b
e addi
ng new pro
duc
t
s that s
er
ve our
cus
tome
rs’ ne
eds
. Our di
versi
fie
d chan
nel
s to
mar
ket – face to fa
ce, dire
ct ma
il, v
ir
tual v
isit
s
and i
n-app insu
ran
ce – will e
nable u
s to reach
more c
usto
mer
s tha
n ever bef
ore.
Q
How
much has the industry changed
during y
our career?
Th
e insur
ance an
d employe
e ben
ef
it
s
and we
llb
eing i
ndus
tr
ies have cha
nged
exp
one
ntial
ly in the l
as
t 20 years
. Previ
ous
ben
ef
it
s pac
kage
s had not
hing com
pare
d
to what yo
u can acce
ss now in te
rms of
disco
unt
s, fl
ex be
nef
it
s and p
erk
s.
BRIEF
BIOGRAPHY
As CO
O, Liam le
ads Pe
rso
nal G
roup’s
insur
ance a
rm Pe
rso
nal Gro
up Be
nef
it
s.
He was p
revio
usly Grou
p COO for
Advanc
e
d, pr
ovider of
business software
and s
er
vice
s to over 19,0
00 cus
tom
ers
whe
re he had r
espo
nsibil
it
y for al
l
customer s
upport and prof
essional
services.
Lia
m has hel
d la
rge op
erat
ional ro
les in
ret
ail f
inanc
ial se
rv
ices fo
r over 15 year
s
work
ing fo
r bran
ds such as Equ
init
i Grou
p
plc
, RBS, R
SA an
d GE Co
nsume
r Fina
nce.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
30
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Adva
nceme
nts i
n techn
olog
y have bee
n
th
e key driv
ing force a
cross b
oth ind
ust
ries
and h
ave enable
d a lot of th
e progre
ssio
n
to hap
pen
. Consum
er
s now have direc
t an
d
ins
tant a
ccess to in
suran
ce or emp
loyee
benefit
s fr
om their p
hone.
Alon
gside t
hat, t
he bre
adt
h of of
ferin
g has
signi
fi
cantly in
creas
ed, p
ar
tic
ula
rly in th
e pas
t
24 mont
hs wit
h the r
ise of ins
ur
tech
. W
e
’ve
al
so s
een in
novati
on in th
e way cover is sol
d
and p
rovide
d – at Per
son
al Grou
p we’re now
abl
e to sel
l insur
ance po
lici
es via o
ur Hap
i app
to emp
loyees of e
xist
ing cl
ient
s.
Q
What attrac
ted you
to Pe
rson
al Gro
up?
I was at
tr
act
ed to Pe
rso
nal G
roup du
e to it
bei
ng a st
rong p
urpo
se-
dri
ven busi
ness t
hat
prioritises people.
With businesses
now more
focu
sed o
n the
ir empl
oyees th
an ever b
efore,
the opportunit
y i
n the pr
otection services
and e
mployee b
ene
fi
ts m
arket
s is hug
e. That
real
ly att
rac
ted m
e to the ro
le too. Ever
ybo
dy
I met d
urin
g the re
crui
tme
nt proce
ss was
genuinel
y passionate
about the business.
Q
How has Personal Group adapted t
o
meeting customer demand duri
ng the
CO
VID
-19
pandemic?
Fol
lowing t
he nat
ional l
ockdowns we’
ve
seen people bec
om
e mor
e concerned a
bout
bei
ng ill a
nd focu
sed o
n thei
r mor
t
ali
t
y
.
People a
re
subsequen
tly seeki
ng out
the
prote
ct
ion insu
rance of
fe
ring
s that are
avail
abl
e. Per
son
al Grou
p’s combin
ed of
fer
ing
of well
be
ing se
rv
ices an
d emp
loyee insur
ance
means we
can help employers safeguard
t
heir
productivity with a res
ilient
workforc
e.
1. A
ss
ess
ing I
ntere
st a
nd Af
for
dab
ili
t
y Amo
ng No
n-p
ol
ic
yho
lde
rs
, ‘
A
mo
unt wi
ll
ing t
o pay fo
r hea
lth i
nsur
an
ce by no
n-p
ol
icy
hol
de
rs’, Mint
el Re
por
t
, Ju
ly 2020.
We’ve al
so se
en th
e pan
demi
c drive a wa
r on
ta
lent
, mean
ing emp
loyers c
an’t sim
ply use
basi
c sal
ar
y to at
t
rac
t the r
ight em
ployee
s.
Y
ou n
ow need t
o be loo
king at w
hat your
emp
loyee valu
e prop
osit
ion is an
d how
you max
imis
e that
. All of t
hes
e fac
tor
s are
tr
ansl
ating i
nto more d
eman
d, and u
ltimat
ely
,
more ne
w bus
iness.
Q
What d
o you see as t
he bigg
est c
halle
nge
s
and the biggest opportunities
facing
the
UK workforce
today?
Th
ere is st
ill a l
evel of unce
rt
aint
y l
inge
ring
from t
he p
ande
mic, fo
rcing p
eopl
e to thi
nk
abo
ut wh
ere th
ey want to b
e and how f
lex
ibly
th
ey want to wor
k. T
his is cont
ribu
ting t
o the
signi
fi
cant cha
llen
ge for e
mployer
s to at
tra
ct
and re
tain t
he r
ight ta
lent
.
On the opportunity side, the pandemi
c
has dr
iven di
git
al ado
ption
. This h
as forced
busi
ness
es to in
novate an
d digit
al
ise, cre
ating
new op
por
t
unit
ies fo
r empl
oyers an
d thei
r
work
for
ce to take up s
of
twa
re-b
ased s
uppo
r
t
st
ruc
ture
s.
Q
What ch
alle
nge is to
p of the l
ist f
or
Personal Group’s i
nsurance busi
ness and
how are yo
u tackl
ing it?
Grow
th i
s obvio
usly at the to
p of the a
gend
a
and we a
re clear h
ow we will a
chieve th
is.
We must be
come m
ore mult
i-ch
anne
lle
d, we
mus
t ser
ve ne
w audie
nces
, and to d
o this we
nee
d to inn
ovate. Th
is is alre
ady u
nder
way,
and to
get
her wi
th t
he grow
th in t
he ma
rket,
we have a great o
ppor
t
unit
y avail
ab
le to us.
I’m exci
ted ab
out ou
r new rou
tes to ma
rket
and t
he ra
nge of org
anis
atio
n sizes and
se
cto
rs we ca
n now ser
ve.
Q
Wh
at makes Pe
rso
nal Gr
oup dif
fe
rent to
other market
pl
ay
er
s?
Th
e qual
it
y and b
readt
h of our of
fer
ing.
Com
peti
tor
s in the e
mployee b
ene
fi
ts s
pace
can’
t off
er th
e sam
e level of ins
uran
ces we
can
, and conver
sely t
hos
e we are comp
etin
g
agai
nst in t
he ins
uran
ce space d
on’t prov
ide an
overly at
tr
act
ive em
ployee be
nef
it
s of
fer
ing.
We can ta
ke a holis
ti
c view of wh
at will h
elp
an em
ployee t
hrive a
nd cate
r to the v
ast
majority of
those needs.
Q
Whe
re wil
l Per
sonal G
rou
p go in
thefu
ture?
Th
e market fo
r empl
oyee ben
ef
it
s and
well
be
ing is l
arge an
d rap
idly growin
g.
Empl
oyers in al
l se
ctor
s se
e ben
ef
it
s pack
age
and e
mployee e
xpe
rien
ce as key tool
s fo
r
attra
cting, recruiting and retaining talent.
Our a
ffo
rdabl
e insur
ance is me
eti
ng a
mar
ket nee
d. Accordin
g to in-d
epth re
searc
h
by Minte
l, 65% of p
eop
le wit
hou
t healt
h
prote
ct
ion woul
d not be wil
li
ng to pay m
ore
tha
n £30 pe
r mont
h.
1
Over t
ime, I wo
uld li
ke to see Pe
rs
onal G
roup
rega
rded as o
ne of th
e top t
hree pl
ayer
s in the
mar
ket; consi
dere
d a hous
ehol
d name t
hat
is front of m
ind fo
r clie
nts a
nd emp
loyees
.
Fin
ancial g
rowt
h al
so re
mains a p
rior
it
y of
cour
se, wi
th a cle
ar go
al to dri
ve insur
ance
income through ne
w and existing channels.
We have a brill
iant o
ppor
t
unit
y to c
apit
al
ise
on t
he hard ya
rds we did t
hroug
h the
pan
dem
ic, to bu
ild a clea
r and su
ccessf
ul
bra
nd wit
h our m
arket
-b
eatin
g rang
e of
pro
duc
ts a
nd pos
itio
n our
selves as t
he
obvi
ous cho
ice for cl
ient
s.
31
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
CHIEF
FINANCIAL OFFICER’
S ST
A
TEMENT
WE MAINT
AINED
OUR STRONG
B
ALANCE
SHEET
THROUGH
20
21
AND REMAIN
WELL
POSITIONED
F
OR FUTURE
GRO
WTH.
As anticipated w
e saw
a reduction
to premium income as a dir
ect
consequenc
e of
CO
VID-
19 but despite
this con
tinue
to have o
ver
£24m of
annualised premium at
the end of
2021”
Sarah Mace
Chief Financial
Officer
Group revenue
Gro
up revenu
e for th
e year of £7
4.
5m (2020:
£7
1.
5m) refl
ec
ts a va
rie
d per
fo
rman
ce acros
s the
dif
fere
nt busin
ess are
as and t
he cont
inue
d
con
tribution from
recurring rev
enue streams.
As a
nticip
ated we s
aw a redu
ct
ion to e
arne
d
prem
ium as a di
rect co
nseq
uen
ce of 15 mont
hs of
COVID
-
1
9 lockdown
s rest
ric
ti
ng our ab
ili
ty t
o car
r
y
out our traditional face-to-fac
e selling of
insur
ance. D
esp
ite th
is, as at 31 D
ecem
ber 20
21 we
conti
nue to have over £24m of an
nual
ise
d
prem
ium inco
me, t
he maj
orit
y of w
hich are
rene
wable o
n weekly or m
onth
ly roll
ing cont
rac
ts
.
Group results
2021
£’000
2020
£’000
Reve
nue
74
,
5
1
3
7
1,
524
Adjust
ed E
BITDA
*
6,09
4
10,
111
Operating prof
it
4
,
3
74
8,63
0
Prof
it b
efo
re ta
x
4,3
42
8
,55
7
Ta
x
(
74
5
)
(1
,663)
Prof
it fo
r th
e year
3,597
6,894
Adjust
ed EBITD
A
*
Adjus
ted EB
ITDA
* fo
r the yea
r was £6.
1
m (2020:
1
0
.1
m
)
.
Th
e key driver of t
he de
cli
ne was t
he redu
ct
ion in
premium
income and c
onsequential unde
rwr
iting
prof
it
, which w
as comp
ound
ed by th
e increa
sed
cost o
f scal
ing up t
he f
ield s
ale
s team b
ack up
towards p
re-
COVID
-
1
9 level
s in th
e seco
nd half
of th
e year
. Of
f
set
tin
g this
, we saw inc
rease
d
contr
ibu
tion f
rom bot
h our p
ay and rewa
rd
Ou
tsi
de of insu
rance
, all oth
er area
s of the
busi
ness co
ntinu
ed to grow. Digit
al pl
at
form
subscrip
t
ion i
ncome from ou
r in
ternall
y dev
eloped
ben
ef
it
s pl
atfo
rm in
crease
d by over 40
% year on
year
, dr
iven ma
inly by our ex
pans
ion into t
he SME
se
cto
r throu
gh our p
ar
tn
ersh
ip wit
h Sa
ge. Ou
r pay
and rew
ard subs
idiar
y, Innec
to, al
so p
ut in a s
tron
g
performance with the c
ombination o
f co
nsul
tancy
income
and digital subscrip
tion income f
rom their
prop
riet
ar
y H
R solu
tio
ns up by a thi
rd. Ann
ual
recu
rri
ng revenu
e across a
ll th
e Grou
p’s digit
al
pl
atfo
rms n
ow st
ands at £3
.6m. S
ales of
tech
nolo
gy an
d other p
rodu
ct
s to em
ployer
s as
par
t of t
hei
r employe
e ben
ef
it provisi
on th
rough
th
e Group’s s
ubsid
iar
y PG L
et’s Con
nec
t al
so
reb
ound
ed so
mewhat f
rom th
e supp
ly chain
issu
es face
d in 2020 alt
hou
gh th
ese rem
aine
d in
par
t d
urin
g it
s peak t
rad
ing pe
rio
d. In ad
dit
ion,
income
from voucher
resale through the
b
enefits
pl
atfo
rm cont
inue
d to grow an
d whil
st t
his
pred
omina
ntly repres
ent
s pass-thro
ugh revenu
e,
it do
es cont
inue to d
emo
nst
rate t
he valu
e of the
provisi
on to ou
r clie
nts
.
*
Adj
ust
ed EB
IT
DA is de
fi
ned a
s ear
ni
ngs b
efo
re int
ere
st
, t
ax,
de
pre
ciat
io
n, am
or
ti
sa
tio
n of int
an
gib
le as
set
s
, goo
dw
ill
impairment,
share-based
payment expe
nses, c
orporate
acq
uis
iti
on co
st
s an
d res
tr
uc
tur
in
g cos
ts
.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
32
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
CHIEF
FINANCIAL OFFICER’
S ST
A
TEMENT
GROUP REVENUE
£
74
.
5
m
(2020 £71.
5m)
ADJUSTED EBITD
A
£6.
1m
(2020 £10.
1m)
EARNINGS PER
SHARE
11.
5p
(2020 22.
1p)
busi
ness a
nd PG L
et’s Con
nec
t, i
n lin
e with t
hei
r
increa
s
ed r
evenue c
ontributions. Outside of thi
s
,
th
e reduc
ti
on in ad
just
ed EBI
TDA al
so ref
lec
te
d
inves
tme
nt in both o
ur sal
es an
d market
ing tea
m
and t
he ge
nera
l infra
st
ruc
ture a
nd pe
ople w
ithi
n
th
e busin
ess to en
sure we are in t
he be
st pl
ace
pos
sible t
o supp
or
t fut
ure grow
th
.
We beli
eve adjus
ted EB
ITDA
* re
mains t
he mo
st
app
ropr
iate mea
sure of pe
r
form
ance for o
ur
busi
ness
, ref
lec
ting t
he un
der
lying prof
it
abil
it
y of
th
e busin
ess an
d removi
ng the i
mpa
ct of o
ne-
off
ite
ms arisi
ng from p
ast a
cquisi
tion
s on th
e Grou
p’s
rep
or
ted p
rofi
t befo
re tax
. Th
e def
ini
tion re
mains
unchanged
from previou
s y
ears.
Profit before an
d after tax
Prof
it be
fore t
ax for t
he year w
as £4
.3m (2020:
£8.6
m). This ref
le
ct
s bot
h the re
duc
tio
n in
adj
uste
d EBIT
DA
* a
nd th
e increa
sed am
or
tis
ati
on
charg
e arisi
ng from co
ntinu
ed inves
tme
nt in th
e
Gro
up’s prop
riet
ar
y s
oft
war
e. The t
ax ch
arge fo
r
th
e year was £0.7m (2020: £1
.7m
), and p
rofi
t af
ter
ta
x for t
he year £3
.6m (2020: £6.
9m).
EPS
Resu
lting e
arni
ngs pe
r share was 1
1.5
p (2020:
22.
1
p). The ca
lcul
atio
n is det
aile
d in Note 13.
Dividend
Th
e Boa
rd has reco
mmen
ded a f
ina
l ordina
r
y
div
iden
d of 5.3 p
ence pe
r share, m
akin
g a total
ordi
nar
y div
ide
nd for 20
21 of 10.6 p
ence pe
r share.
Whi
ls
t th
is divi
dend re
fle
ct
s ou
r reduce
d prof
it
s
for t
he year it d
oes e
xceed re
cent pay-o
ut rat
ios
and re
fle
ct
s bot
h the f
ac
t that t
he Gro
up rema
ins
st
rongly c
apit
al ge
ner
ative an
d the sh
or
t
-term
imp
ac
t of CO
VID
-19 on it
s resu
lts
.
Bal
ance sheet
As at 3
1 De
cembe
r 202
1 the G
roup’s b
ala
nce she
et
rema
ined s
tro
ng, wi
th ca
sh and de
posi
ts of
£22.
9m (2020: £2
0.2m) and no d
ebt.
The Group’s main underwri
ting subsidiary
,
Per
so
nal As
sura
nce Plc (PA), contin
ues to m
ainta
in
a cons
er
vati
ve solvenc
y rati
o of 357
% (unaud
ited
),
wit
h a sur
plus over it
s S
olvenc
y Cap
ita
l
Req
uirem
ent of £3.
5m. T
he Com
pany ha
s
consis
tently m
ainta
ined a p
rud
ent po
siti
on in
rel
atio
n to it
s Solven
cy II re
quire
ment
. Per
son
al
As
sura
nce (Gue
rns
ey) Limi
ted
, the G
roup’s
subs
idiar
y w
hich un
der
wr
ite
s the de
ath b
enef
it
pol
ic
y
, al
so m
aint
aine
d a healt
hy solvenc
y rat
io of
220
% (unaudi
ted), u
nder i
ts ow
n regim
e.
No im
pair
ment wa
s dee
med ne
cess
ar
y for t
he
goo
dwi
ll bal
an
ces hel
d in resp
ec
t of the
acqu
isiti
ons of PG L
et’s Con
nec
t and I
nnec
to as
det
aile
d in Note 14
.
Profit before tax
202
1
£’000
2020
£’000
Prof
it b
efo
re ta
x
4,3
42
8,
557
Fin
ance co
st
s
32
73
Dep
reciation
966
1
,003
Amor
tisation of ac
quired intangibles
205
205
Amort
isation
(o
ther)
380
265
Share
-based paym
ent
expense
169
8
A
d
j
u
s
t
e
d
E
B
I
T
DA*
6,094
10,
111
Alt
e
rnativ
e
perf
ormance
measure
Adjus
ted EB
ITDA
, wh
ich is refe
renced
thr
ougho
ut th
is docu
ment
, is an alte
rnat
ive
(non-
Ge
ner
ally Accepte
d Accountin
g
Pract
ice (
non-
GA
AP)
) f
inancial measure
use
d by the G
roup w
hen revi
ewing
performance, evidenc
ed by ex
ecutive
management bonus performance target
s.
As s
uch, t
his mea
sure is imp
or
t
ant and
shou
ld be con
sidere
d alon
gside t
he IFR
S
measur
es.
Adjus
ted EB
ITDA t
akes into a
ccount
adj
ust
ment
s, in a
ddit
ion to t
he s
tan
dard
IFR
S measu
re, whi
ch are consi
dered t
o be
non-underlying to trading activi
ties and
whi
ch are sign
ifi
cant in si
ze. For exam
ple,
goo
dwi
ll imp
air
ment is a no
n-c
ash ite
m
relev
ant to his
tori
c acquisi
tio
ns; share
-
bas
ed pay
ment ex
pens
es are a n
on-
cash
ite
m which h
ave histor
ica
lly be
en
signi
fi
cant in si
ze but can f
luc
tuat
e bas
ed
on ju
dgme
ntal as
sumpt
ions ma
de ab
out
share p
rice an
d have no imp
ac
t on tot
al
equ
it
y; cor
por
ate acquis
itio
n cost
s an
d
reor
ganis
atio
n cost
s are b
oth on
e- of
f
ite
ms which a
re not inc
urred i
n the re
gul
ar
cour
se of bus
ines
s.
33
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Segment
al results
T
o ref
lec
t how ou
r busin
ess ha
s evolved, an
d that in m
any cas
es our cl
ient
s ut
ilis
e our s
er
vice
s acros
s multip
le busi
ness a
reas, we h
ave change
d the w
ay we
pres
ent our s
egm
ent
al result
s. We are now re
por
t
ing fou
r core seg
ment
s as det
ail
ed in t
he ta
ble be
low
.
For ea
ch of th
e segm
ent
s, th
e adju
ste
d EBIT
DA
* cont
rib
uti
on comp
rise
s the g
ross pr
ofit o
f that se
gme
nt toget
her w
ith a
ny cost
s ass
ociate
d dire
ctly w
ith t
he
ope
rat
ion of th
at seg
ment
. In add
itio
n, s
ales a
nd mar
keting cos
t
s and oth
er cent
ral cos
t
s that are n
ot direc
tly at
tr
ibut
abl
e to a seg
ment
, such as F
inan
ce, HR
,
dep
reciat
ion an
d amo
r
tis
ation a
nd Gro
up Bo
ard exp
ens
es are no l
onge
r allo
cate
d to a seg
ment bu
t are show
n sep
arate
ly as ‘Grou
p Admin & C
entra
l Cost
s’
.
We beli
eve the n
ew pres
entat
ion p
rovide
s greater t
ran
spare
ncy t
o enabl
e the i
mpa
ct of to
p lin
e grow
th on a
djus
ted EBI
TDA
* cont
ribu
tio
n for eac
h area of th
e
busi
ness to b
e und
ers
too
d.
Segment
Description
Income S
treams
Pay & Rew
ard
Prov
ision o
f a ful
l rewar
d ser
v
ice to em
ployer
s thr
oug
h the G
roup’
s
pay a
nd rewa
rd sub
sidia
r
y
, In
nec
to
Consultanc
y
, digit
al platfor
m subscriptions
Benefits Platform
Prov
ision o
f a ben
ef
it
s pl
atfo
rm to e
mpl
oyers b
oth di
rec
tly an
d
th
roug
h chann
el p
ar
tne
rs
, cur
rently S
age f
or ou
r SME so
lut
ion
Dig
ita
l pl
atf
orm su
bsc
ript
ions
, comm
issi
ons fr
om th
ird pa
r
ty
be
nef
it
s whi
ch sit o
n the p
lat
for
m
Affordable Insurance
A dire
ct
ly owne
d ben
ef
it
, provi
sion o
f simp
le insu
ran
ce pro
duc
ts
under
written by Group subsidiaries
Premium income
Other Owned
Benef
its
Ot
her d
irec
tly ow
ned b
ene
fi
ts: s
ale o
f tech
nolo
gy an
d othe
r
pro
duc
t
s to emp
loyer
s as pa
r
t of the
ir em
ployee b
ene
fi
t provi
sion
through the Group’s subs
idiar
y
, Let’s
Connect
Ret
ail s
ale
s dire
ct
ly to emp
loyer
s, com
miss
ion re
ceive
d from t
he
int
rodu
ct
ion of t
hird p
ar
t
y fi
nan
ce
CHIEF
FINANCIAL OFFICER’
S ST
A
TEMENT
c
ontinued
THE RE
CURRING REVENUE FROM
S
AAS SUBSCRIP
TIONS C
ONTINUED
T
O
SHO
W
YEAR-ON
-
YEAR
GRO
WTH A
CROSS THE
GROUP
.
Reve
nue
Dec-
21
£’000’s
D
e
c-2
0
£’000’
s
Pay an
d Rewar
d
1,236
875
Benefit
s Platform
3,
303
2,
354
Affordable Insuranc
e
24
,670
28,
830
Other Owned Benefits
18,214
16
,
420
Other
238
310
Reve
nue p
re vouc
her s
ale
s
4
7,6
6
1
48
,789
Voucher resal
e
26,
852
22
,73
5
T
o
tal R
evenu
e
74
,
5
1
3
71
,
524
Adj EBITDA Contribution
Dec-
21
£’000’s
D
e
c-2
0
£’000’
s
Pay & Rew
ard
303
(25
5)
Benefit
s Platform
2
,098
2,092
Affordable Insuranc
e
11
,012
15,082
Other Owned Benefits
730
469
Gr
oup Adm
in & Ce
ntra
l Cos
ts
(8,
228)
(6,9
65
)
Other
179
(3
12)
T
o
tal Ad
j EBI
TDA
6,09
4
10
,
111
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
34
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
CHIEF
FINANCIAL OFFICER’
S ST
A
TEMENT
c
ontinued
Pa
y & Reward
: Innecto
Inn
ect
o, the G
roup’s p
ay and rewa
rd subsid
iar
y
,
put i
n a str
ong pe
r
form
ance in 20
21, w
ith i
ts
consult
an
cy in
come up 50
% on 202
0 as dema
nd
from H
RDs lo
oki
ng to ret
ain an
d att
rac
t th
eir
employees reignited. Digit
al subscription income
from i
ts p
ropr
iet
ar
y HR s
olut
ions al
s
o increa
sed by
33% on t
he prev
ious yea
r
. A
nnual
ise
d Recu
rri
ng
Revenu
e on th
ese p
rodu
ct
s sto
od at £0.
4m as at
31 D
ecem
ber 20
21 and i
s set to in
crease w
ith t
he
intro
duc
tio
n of a fur
t
her p
roduc
t
, Advan
ce, in
Januar
y 2022.
Benefit
s platform
Revenu
e from di
git
al pl
atf
orm su
bscr
iptio
ns and
comm
ission
s from t
hird pa
r
ty b
ene
fi
t suppl
ier
s
whi
ch sit on t
he be
nef
it
s pl
atf
orm ro
se to £3.
3m
in2
021 (2
020: £
2.4m).
Whi
ls
t sub
scri
ptions f
or our e
nterp
rise p
lat
for
m,
Hap
i, remai
ned re
lat
ively st
ati
c in 2021
, th
e
introduction o
f Hapiflex pro
vides an opportunit
y
to bot
h targ
et a new m
arket se
cto
r and to yi
eld
high
er marg
ins fro
m a more s
ophis
tic
ated a
nd
complex
product
.
Th
e main dr
iver of t
he grow
th i
n revenue in t
his
area of t
he bus
ines
s was th
e exp
ansion i
nto the
SME ma
rket wi
th Sa
ge Empl
oyee Ben
ef
it
s, th
e
Gro
up’s SME pro
posi
tio
n bein
g taken t
o market
thr
ough it
s p
ar
tn
er Sa
ge, and t
his is s
et to
conti
nue wi
th th
e signi
ng of a new f
ive-yea
r
contr
ac
t in Febr
uar
y 20
22.
As at 3
1 De
cembe
r 202
1 the A
nnual
ise
d Recur
rin
g
Revenu
e from di
git
al pl
atf
orm su
bscr
iptio
ns
acros
s all ch
anne
ls s
too
d at £3.
1m
.
De
spite i
ncreas
ed revenu
e Adjus
ted EB
ITDA
contr
ibu
tion re
main
ed f
lat yea
r on year at £2.
1
m,
ref
lec
tin
g invest
ment ma
de in t
he infr
ast
ru
ctu
re
to sup
por
t t
he pl
atf
orm
, out
side o
f capi
tal
ise
d
inves
tme
nt, for f
utur
e grow
th.
Insurance
As a
nticip
ated
, prem
ium inco
me from t
he G
roup’s
core insu
ran
ce busin
ess in 20
21 red
uced by £
4.
1m
to £24.7m (2020: £28.8
m).
Th
is refl
ec
ted th
e fac
t that t
he lo
ckdowns
enfo
rced on us by COVID
-19 had a dir
ect i
mpa
ct on
our a
bili
ty t
o wri
te new insu
ran
ce sale
s thro
ugh
our t
rad
itio
nal fa
ce-to-face m
odel f
or 15 mo
nths
from t
he en
d of March 20
20. Whil
s
t we were abl
e
to mit
igate t
his in p
ar
t thro
ugh ou
r adopt
ion of
vir
tu
al visi
ts a
nd tele
sal
es, o
ur annu
alis
ed new
busi
ness i
nsura
nce prem
iums in 20
21 were £3
.7m
(2020: £2.
4m, 20
19: £9.0m), wit
h aroun
d 15% of th
is
comin
g from t
he new, altern
ative ch
annel
s
. Our
face-
to-face
s
ales
activit
y r
ecommenc
ed in
ear
nes
t in July 20
21, w
ith ava
ila
bil
it
y stro
ng acro
ss
our in
creas
ed emp
loyee ba
se, an
d have
subs
equ
ently se
en th
e insur
ance bo
ok s
tar
t
ing to
rebu
ild. A
s at 31 D
ecemb
er 202
1 we have in exces
s
of £24m of ann
nual
ised p
remiu
m incom
e
rene
wable o
n weekly or m
onth
ly roll
ing cont
rac
ts
.
Our re
tenti
on rate
s for ex
ist
ing po
lic
yho
lder
s
rema
ined s
tro
ng dur
ing 202
1 wit
h both f
ir
st yea
r
and yea
r
-on
-year retent
ion r
ates up on p
re-
pan
dem
ic level
s. T
his rei
nforces t
he val
ue that
pol
ic
yhol
der
s pl
ace on ou
r simpl
e, low-cos
t
hosp
it
al, co
nvales
cence an
d deat
h bene
fi
t pl
ans,
that h
ave been p
ar
ti
cul
arly rele
vant to our
pol
ic
yhol
der b
ase of es
sent
ial and key wo
rkers
during the pandemic.
Not
wit
hst
and
ing th
e shor
t
-ter
m imp
ac
t of
COVID
-
1
9, the G
roup’s ins
uran
ce incom
e remain
s a
high q
ual
it
y and rel
ati
vely st
able reve
nue s
tream
to th
e Grou
p.
Cl
aims rat
ios fo
r the yea
r remai
ned s
ta
ble at 24.5
%
(2020: 24.4%). The in
creas
ed los
s ratio o
n deat
h
ben
ef
it cont
inue
d into 202
1 but
, as in 2020, w
as
mit
igate
d by an of
fse
tt
ing red
uc
tion f
or hosp
it
al
and co
nvales
cence in com
par
ison t
o histo
ric
averag
es, re
fle
ct
ive of th
e cap
acit
y of t
he NHS
bei
ng lim
ited a
s a result of COVID
-19.
Adjus
ted EB
ITDA of £1
1.0m f
or the ye
ar (2020:
£15.
1
m), refle
ct
s bot
h the re
duc
ti
on in
und
er
wri
tin
g prof
it and t
he ad
diti
onal cos
t
s
ass
ociate
d wit
h the s
cal
ing ba
ck up of t
he
face
-to-face s
ales te
am in th
e seco
nd half of t
he
year t
owards
pre-p
andemic lev
el
s.
Other owned benefits:
PG
Let’s Co
nnec
t
PG Le
t’s Con
nec
t, w
hich prov
ides t
echn
olog
y and
othe
r prod
uct
s to e
mployer
s as pa
rt o
f thei
r
emp
loyee be
nef
it prov
ision
, saw revenu
es
incre
ase to £1
8.2
m (2020: £16
.4m), rebo
undi
ng in
par
t f
rom th
e supp
ly chain iss
ues t
hey exp
er
ience
d
in 2020 b
ut al
so b
ene
fi
tt
ing fro
m the re
turn of a
num
ber of s
chem
es whi
ch had de
ferre
d in 2020
due to
t
he pandemi
c.
Whilst some ongoing n
ation
wide supp
ly
issues
remained
t
hrou
ghout the y
ear
, broadeni
ng the
pro
duc
t rang
e hel
ped m
itig
ate the i
mpa
ct an
d saw
orde
r numb
er
s up 21% o
n pre-p
and
emic l
evel
s,
demonstrating the
con
tinued popularity of the
benefit for employ
ees.
Adjus
ted EB
ITDA in
crease
d to £0.7m (2020: £0.
5m)
ref
lec
tin
g the h
igher re
venues t
oget
her w
ith a
sli
ght incre
ase in gro
ss marg
in.
Group adminis
tration expenses
andcen
tral costs
Th
e increa
se in G
roup adm
inis
trat
ion a
nd centr
al
cost
s to £
8.2m (20
20: £7
.0m) pre
domi
nantly
ref
lec
t
s the a
ddit
iona
l invest
ment ma
de in S
ales
and Marketing
during the year
.
Sar
ah Mace
Chief Financial Off
icer
28 March 2
022
35
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
BUSINESS AREA
OWNER
INTERNAL
AUDIT
RISK FUNCTION
RISK MANA
GEMENT
THE BO
ARD RE
C
OG
NISES THA
T T
HE E
FFE
C
TIVE MANA
G
E
MENT
OF RISK
S AND OPPORTUNIT
IES IS CE
NTR
AL T
O OUR CUL
TURE
AND DE
CISION MAKING AND KE
Y T
O A
CHIEVING THE G
ROUP
’S
S
TR
A
TE
GIC OB
JE
C
TIVES.
It is i
mport
ant tha
t there is
a strong risk
management cult
ure embedded throughout
the G
roup
. W
e f
ocu
s on ethi
cal b
ehavio
urs, t
he
fair treatment
of colleagues and of
cus
tomers.
We contin
ue to ide
ntif
y, asse
ss, ma
nag
e and
app
rop
riate
ly mitig
ate the key r
isk
s to the G
rou
p
in ach
ievi
ng it
s obje
cti
ves.
Th
e Boa
rd is resp
onsibl
e for id
entif
yi
ng the r
isk
s to
it
s st
rate
gic ob
jec
tive
s and for s
et
ting t
he over
all
risk appetite and tolerance
level
s. The Board
del
egate
s oversig
ht of risk ma
nage
ment to t
he
Risk a
nd Comp
lia
nce Com
mit
tee. T
he
ef
fec
ti
venes
s of the r
isk man
agem
ent sy
stem m
ay
al
so b
e inde
pen
dently as
sess
ed by th
e Inter
nal
Audit F
unct
ion.
Th
e risk env
ironm
ent is man
aged in a t
wo
-prong
ed
app
roach: to
p-
down ri
sks t
hat thr
eaten t
he
st
rate
gic pl
an an
d bot
tom-u
p fi
nancia
l,
ope
rat
ional
, reg
ulat
or
y and n
on-in
suran
ce risk
s
whi
ch are ide
ntif
ied w
ith
in busin
ess a
reas.
Th
e risk
s are ca
ptured o
n a risk re
giste
r whe
re the
inh
erent ris
k is ident
if
ied, a
nd th
e resid
ual ris
k
rate
d af
ter id
entif
yi
ng ope
rati
onal cont
rol
s and
mit
igati
ng ac
tio
ns.
Resp
onsib
ili
ty to m
aint
ain th
e regis
ter as we
ll as to
impl
eme
nt and mo
nitor m
iti
gatin
g act
ions s
it
s
wit
h each m
emb
er of th
e Seni
or Lea
der
ship T
e
am.
Each m
onth a R
isk For
um is hel
d wher
e the S
enio
r
Lead
ers
hip T
ea
m discus
s the key r
isks
, both c
urrent
and e
mergi
ng. Mi
tigat
ing ac
ti
vit
ies an
d tim
elin
es
for im
plem
ent
ation a
re agree
d so t
hat the G
roup
can co
ntinu
e to achi
eve it
s str
ategi
c obje
ct
ives
.
Th
e risk
s faci
ng the b
usine
ss are dis
cuss
ed at ea
ch
Bo
ard me
etin
g and in gre
ater de
tail at t
he
qua
rt
erly Ris
k and Com
pli
ance Com
mit
tee
me
eting
. The B
oar
d is sat
isf
ied t
hat, t
hrou
gh the
pro
cesse
s set ou
t above, i
t can ef
fe
ct
ively ide
ntif
y
,
ass
ess an
d manag
e cur
rent and e
mergi
ng risk
s.
Risk gov
ernance
In ac
cordance
with rec
ognised good practice, the
Gro
up ope
rate
s a ‘t
hree l
ines of d
efen
ce’ app
roach
whi
ch def
ine
s account
abil
it
y for r
isk man
agem
ent
wit
hin rol
es . Th
e Grou
p’s risk gove
rnan
ce is
overs
een by a R
isk fun
ct
ion he
aded by t
he He
ad of
Risk
, wit
h inde
pen
den
ce assure
d thro
ugh dire
ct
and s
epa
rate acce
ss to th
e Chair of t
he Ris
k and
Compl
iance Commit
tee.
Th
e Grou
p’s risk ma
nagem
ent fr
amewo
rk and O
wn
Risk a
nd Solven
cy A
sse
ssme
nt (ORSA) p
roces
ses
are pro
por
t
ionat
e to the r
isk
s that t
he Gro
up
face
s.
Th
e Risk s
trate
gy
, app
eti
te and fr
amewo
rk are s
et
out i
n a suite of p
oli
cies cover
ing th
e mater
ial r
isks
whi
ch exis
t in th
e busin
ess. E
ach po
lic
y is sub
jec
t
to ann
ual revi
ew and ap
proval
.
Risk Management Three
Lines of Defence
Ide
ntif
y
, a
sse
ss and m
anag
e the r
isk
on a da
ily basis
.
Devel
op and i
mple
ment p
oli
cies an
d
procedu
res.
Ownership o
f busin
ess practices.
Ensur
e act
ivi
tie
s are consi
stent w
ith
object
ives.
Imp
leme
nt contro
ls
.
Risk i
dentification.
Devel
opin
g and over
sight of t
he ris
k
management framew
ork.
Risk r
epor
t
ing to R
isk For
um, Ri
sk
and C
ompl
iance C
ommi
tte
e and to
the Board.
Provi
ding gu
idan
ce to the f
ir
st l
ine of
defence.
As
sura
nce of th
e ef
fec
tive
ness of
policies and procedures.
Ind
epe
ndent a
ssur
ance of th
e
ef
fec
ti
venes
s of the f
ir
st an
d seco
nd
lines of
defence.
Ind
epe
ndent r
epor
t
ing to t
he Bo
ard an
d
to the Audit
Committee.
Advisory role.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
36
Personal Group
Holdings Plc
· Ann
ual Re
por
t a
nd Accou
nt
s 202
1
RISK MANA
GEMENT
Bel
ow follow
s a des
cript
ion of t
he key enter
pris
e risk
s th
e Grou
p has man
aged i
n 2021:
Key r
isk
s
(wi
th an i
mpa
ct of
£50
0
k
+ wi
thi
n th
e
next year)
Current and emerging
Mitigating activit
ies
Change in risk
Cos
t
s and l
oss
es
Coronavirus
(
CO
V
I
D
-1
9
)
Th
e cl
aims r
ati
os of t
he G
rou
p’s Hos
pit
al
, Co
nval
esce
nce a
nd
De
ath B
ene
fi
t pl
ans a
re al
l imp
ac
ted by t
he p
and
emic
sit
uat
ion
. The o
ngo
ing i
mpa
ct w
ill b
e dep
en
dent o
n th
e
contin
ued suc
cess of
the Gov
ernment’s vac
cination
pro
gr
amm
e, th
e circ
ul
ati
on of t
he cu
rre
nt and n
ew s
tra
ins of
th
e vir
us, a
nd in
fec
ti
on ra
tes
. Loo
kin
g for
wa
rd to w
hen t
he
NHS rec
ommences its schedu
le of
routine treatments,
it is
po
ssib
le th
at th
ere w
ill b
e an in
flu
x of cl
ai
ms in re
l
atio
n to
those routi
ne trea
tment
s.
In ad
dit
ion
, th
ere i
s an im
pac
t on t
he G
roup
’s abi
lit
y to
und
er
t
ake face
-to-fa
ce insu
ran
ce sa
les a
s wel
l as an i
mpa
ct
on t
he PG L
et’
s Con
nec
t an
d Inn
ec
to bus
ine
sse
s.
Bot
h our i
nsu
ran
ce sub
sid
iar
ies h
old s
igni
fic
ant s
urp
lu
ses a
bove th
eir
capital resour
ce
requiremen
ts and sc
enario and stress
testing has been
ca
rri
ed ou
t to as
ses
s the l
ikely f
in
anci
al im
pac
t on t
he G
rou
p.
Strong
operational resi
lience
enables the
Group to mai
ntain services
and s
upp
or
t to i
ts cu
sto
me
rs an
d pol
ic
yho
lde
rs
.
Alte
rna
tive r
out
es fo
r sal
e of in
sur
ance p
rod
uc
ts h
ave be
en l
aun
che
d
and n
ew pa
r
tne
rs
hips a
re be
ing d
evel
ope
d.
Th
e lon
g-ter
m imp
ac
t of COVID
-19 is un
cer
t
ain h
owever we k
now
pe
opl
e are m
ore aw
are of t
he im
po
rt
an
ce of go
od phy
sic
al an
d men
tal
hea
lth
. We conti
nue to o
ff
er fr
ee acc
ess 24
/7 t
o a digi
ta
l GP se
r
vice
.
Decreased
in 202
1
Inability to
undert
ak
e/
maximise
workplace
ma
rket
ing a
nd
selling
New s
al
es op
por
tu
nit
ies c
an
not be f
ull
y real
is
ed as t
he
tr
adi
tio
nal fa
ce-to
-face me
tho
d of se
ll
ing i
s chal
le
ngin
g
or no
longer ava
ilable.
New s
al
es op
por
tu
nit
ies c
an
not be f
ull
y real
is
ed as o
n-si
te
acce
ss is r
est
ric
te
d or pr
ohi
bite
d by l
aw or by th
e cli
ent
.
Th
e ris
k ass
oci
ated t
o bot
h poi
nts a
bove p
ers
is
ts d
ue to th
e
ong
oin
g imp
lic
ati
ons o
f COVID
-19 and t
he su
bse
que
nt
changes
in working p
ractices.
A new d
igi
tal s
al
es cha
nne
l has b
ee
n int
rodu
ced to a
key cl
ien
t and is e
xp
ec
ted to b
e of
fer
ed mo
re wi
del
y dur
ing 20
22
.
Th
e rete
nti
on of e
xis
ti
ng cl
ient
s an
d cus
tom
er
s has b
een a f
oc
al po
int
.
Ins
ure
ds wh
o are l
eavi
ng th
eir e
mpl
oym
ent hav
e the fa
cil
it
y to re
tai
n
the
ir cover
s.
New o
ppo
r
tuni
tie
s to wor
k wi
th int
rod
uce
rs ar
e bei
ng so
ugh
t, to r
un
alongside
the arrangements already
in existence.
No change
Th
reat
s to
information and
to phy
sic
al
security
arrangements
Po
or
, w
eak or o
utd
ate
d tech
nol
og
y sys
tem
s and
ar
ran
gem
ent
s le
ad to di
sr
upti
ve cy
be
r att
ack
s, r
an
somw
are
,
se
cur
it
y bre
ache
s and
/
or f
ine
s, or r
es
tri
ct b
usi
nes
s
innovation.
Ho
me wor
kin
g and hy
br
id wor
kin
g by all s
ta
ff h
ave inc
reas
ed
the pot
ential
threat
to information
security.
Data processing protocols facilitate homeworking.
IT s
yst
ems a
re re
gul
ar
ly tes
ted f
or s
ecur
it
y fro
m at
ta
ck. T
he s
yst
ems
are b
acke
d up re
gul
ar
ly and h
os
ted on t
hir
d-p
ar
t
y dat
a cent
res
.
Di
sas
te
r recove
r
y pl
ans a
re in p
la
ce and t
est
ed an
nua
lly. ISO 270
01
accreditation is held.
Awar
ene
ss tr
ain
ing a
nd tes
ti
ng of s
taf
f ha
s be
en in
crea
se
d and a
dapt
ed
to reflect the
current en
vironment.
A num
be
r of int
ern
al an
d ex
ter
nal a
udi
ts h
ave bee
n com
ple
ted i
n 202
1
in l
ight o
f the i
ncre
asi
ng th
reat o
f a cy
ber a
tt
ack
. Th
e thr
eat is
inc
rea
sing w
orl
dwi
de an
d is no
t spe
cif
ic to t
he Gr
oup.
No change
Rec
rui
t, t
ra
in and
retain staf
f
Th
e str
ate
gic p
la
n to dou
bl
e the p
rem
ium in
com
e from
ins
ura
nce p
oli
cies i
s de
pen
den
t on in
crea
sin
g the s
ize of th
e
face-t
o-face
s
ales force. Resourcing is
chal
lenging across all
fun
ct
io
ns/rol
es i
n what i
s cur
ren
tly a ca
ndi
date l
ed
env
iro
nme
nt
, whic
h has r
esu
lted in a r
api
d inc
rea
se in s
al
ar
y
ex
pec
ta
tio
ns of e
xt
ern
al hi
res
. In tu
rn th
is cre
ate
s issu
es du
e
to in
ter
nal b
udg
et
s and co
mpa
rato
rs
.
We have pa
rt
icu
la
rly s
een t
his w
ith Tech ro
les w
he
re th
ere i
s
a ca
ndi
date s
hor
t
age a
cro
ss th
e UK; w
hic
h aga
in dr
ives
ex
pec
ta
tio
ns mu
ch hi
ghe
r tha
n the n
orm a
lon
gsi
de mo
re
rec
rui
ter a
ppr
oac
hes b
ein
g mad
e dir
ec
tly to o
ur st
af
f
of
fe
rin
g enh
ance
d pac
kag
es, c
reat
ing a h
igh r
isk of a
tt
rit
ion
.
Int
rod
uc
tio
n of a Str
ate
gic Wor
kf
orce Pl
a
nnin
g (SW
P) app
ro
ach in l
at
e
202
1 ma
ppi
ng our p
eo
ple s
tr
ateg
y to ou
r bus
ine
ss st
rat
egy. We aim to
opt
imi
se th
e cur
ren
t wor
kfo
rce to
get
he
r wit
h a cle
ar vie
w of th
e ski
ll
s
and c
ap
abi
lit
y ne
ed
s for n
ow and f
utur
e to de
live
r ou
r str
ate
gic
obj
ec
ti
ves in t
he mo
st e
ff
ici
ent way p
oss
ibl
e.
Th
is wil
l be t
he dr
iver f
or id
ent
if
ica
tio
n and d
eli
ver
y of a Talen
t
Dev
elo
pme
nt Str
ate
gy wh
ich en
sur
es th
at we have t
he r
ight p
eop
le at
th
e rig
ht tim
e at th
e rig
ht cos
t for o
ur bu
sin
ess a
nd at t
he sa
me t
ime a
fo
cus o
n rete
nti
on an
d giv
ing m
ana
ger
s th
e tool
s to h
ave mea
nin
gfu
l
conve
rs
ati
ons w
ith t
hei
r peo
ple t
o avoid a v
aca
nc
y unn
eces
sa
rily
arising.
Th
e Gro
up ha
s rev
iewe
d our re
cru
itm
ent a
nd as
ses
sme
nt to
ol
s. We are
educating
hiring
managers on
best practice rec
ruitment t
echniques,
alo
ngs
ide a r
evie
w of rew
ard
s and i
ncen
tive
s for o
ur s
ale
s for
ce
sup
po
rt
ed by pa
y ben
chm
ark
ing
, and p
rovi
din
g mor
e coll
eag
ue
en
gag
eme
nt too
l
s such a
s hybr
id a
nd fl
exi
ble w
ork
ing o
ppo
rt
uni
tie
s.
Incr
eas
ed in
2021
Rising inflation
Wi
th con
sum
er p
rice
s ris
ing at a f
as
t rate t
her
e is an
inc
rea
sing r
is
k of hig
h inf
la
tio
n in th
e mar
ket pl
ace w
hic
h
may h
ave an im
pac
t on t
he G
roup t
hro
ugh i
ncr
eas
ed su
pply
cha
in cos
ts a
nd di
sr
upti
on to c
ust
ome
rs an
d cli
ent
s th
rou
gh
appropriate
pr
ic
e incr
eases.
Th
e Gro
up un
der
t
akes r
egu
la
r rev
iews o
f ex
ter
nal t
hre
at
s such a
s
inf
l
atio
n and s
hou
ld t
he ne
ed ar
ise h
as th
e abi
lit
y to a
dju
st p
rice
s
acr
oss a
ll bu
sin
ess s
ec
tor
s to dea
l wit
h inc
rea
ses i
n inf
la
tio
n.
Th
is wil
l
, in al
l ins
ta
nces
, be d
one i
n conj
unc
tio
n wit
h a rev
iew of
cus
tom
er fa
irn
ess t
o ens
ure t
hat n
o st
akeh
old
er is d
isp
rop
or
tio
nat
ely
affected.
Incr
eas
ed in
2021
37
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
THE BUSINE
SS IS
MO
VING
F
OR
W
ARD WITH A
STRONG
E
SG A
GEND
A.
A purpose-led Group
As a G
roup d
riven by a p
assio
n and
comm
itm
ent to imp
roving p
eopl
e’s healt
h and
well
be
ing, E
SG is at th
e core of our b
usine
ss.
Our p
urp
ose is to p
rotec
t the u
nprote
cte
d and
conn
ect t
he un
conne
cte
d. We exis
t in orde
r to
create a p
osit
ive imp
ac
t on so
ciet
y:
Ensur
ing t
here is an a
ffo
rdabl
e, st
raig
ht
-
for
wa
rd way for al
l UK wor
kers to gai
n
acces
s to hea
lth ins
uran
ce
Helping organisations provide fair and
app
ropr
iate remu
ner
ation a
nd be
nef
it
s to
their w
orkforces
Supp
or
t
ing th
e hol
ist
ic well
bei
ng of pe
ople
in th
e UK – bot
h at work a
nd at hom
e.
Th
e progre
ss th
at we make agai
nst ou
r ESG
go
al
s is the
refore ver
y i
mpo
r
tant to u
s and a
pr
iori
ty at B
oar
d level
.
We pride o
urs
elves on do
ing th
e right t
hing
, a
valu
e that is sh
ared t
hroug
hout o
ur ent
ire
orga
nisat
ion
. Just a
s this dr
ives o
ur day-to-d
ay
work
, it is al
s
o refl
ec
ted in h
ow we oper
ate as
a busi
ness at a
ll level
s
.
Progress in
l
ast 12
months
Our co
mmit
ment to b
eing a re
spo
nsible
busi
ness is f
ront of min
d and t
he Bo
ard is
comm
itt
ed to cont
inuin
g to make pro
gress o
n
th
e goal
s fo
rmal
ise
d in 2020. S
ome of t
he
highlight
s are outlined below.
Over t
he pas
t year we have made p
rogres
s
decre
asing ou
r carb
on foot
print by ins
ta
lli
ng
sol
ar p
anel
s at our h
eadq
uar
ter
s which w
ill
hel
p contr
ibute towa
rd our “b
ase level”
ene
rgy requ
ireme
nts. I
n 2021
, since
ins
tal
lat
ion, 6.
1 M
Wh of ene
rgy ws
gen
erte
d in 2021 w
hich would p
ower
1.4 h
ome
s for  yer n
d equ
tes to
plnt
ing 7
1 tree
s.
It was t
he f
irs
t year we had a No
minati
on
Committee, and their
ef
fort
s together
with
that of o
ur diver
sit
y and in
clusion wo
rking
group h
ave led to gen
der an
d ethni
cit
y
repre
sent
ation t
arge
ts at al
l level
s of th
e
organi
sation.
Employee we
llb
eing rem
ains a foc
us for us
and we have conti
nued to i
nv
es
t signif
ic
antly
in tr
aining a
nd develo
pment
, as well as
provid
ing bes
t
-in-
clas
s employee b
enef
it
s,
whil
s
t introd
ucing hyb
rid wor
k pol
icies i
n
orde
r to create a f
lexibl
e and col
lab
orat
ive
working e
nvir
onment.
Th
e Board re
cognis
es th
e impo
r
tan
ce of
contr
ibut
ing to th
e wide
r soci
ety a
nd acros
s
202
1, th
e Comp
any has contin
ued to sup
por
t
our p
ar
tne
r chari
tie
s – P
ACT a
nd Th
e Memus
i
Founda
tion – with bo
th f
inanc
ial don
ations
and t
ime volunt
eered
.
Next steps
W
e have ident
if
ied a num
ber of am
biti
ous ES
G
ta
rget
s that we are wo
rking t
owards. We are
committed to holding ourselv
es acc
ountable
and w
ill provi
de measu
rement
s of pro
gress
again
st our s
tat
ed ta
rget
s annua
lly
.
W
e wil
l al
so be ma
king al
l ESG i
nformat
ion
and
go
al
s accessi
ble fro
m our cor
por
ate
websi
te in du
e cours
e to aid a
ccessibi
lit
y
. We
are currentl
y def
ining which UN Su
st
ainable
Devel
opm
ent Go
al
s our s
trate
gy is l
inked to
and t
hat we wil
l focus o
n goin
g for
ward; t
hes
e
wil
l be ann
ounce
d in th
e 2022 A
nnual R
epo
rt
.
Our s
tr
ateg
y to del
iver lo
ng-ter
m grow
th
al
igns clos
ely wit
h our E
SG obj
ec
tives a
nd th
e
Com
pany is exci
ted ab
out t
he pote
ntial of o
ur
ongoing programmes to drive meaningful
chan
ge over th
e medi
um and lo
nge
r term
.
Th
rough col
la
bor
atio
n wit
h it
s peo
ple an
d
ex
ter
nal s
takeh
olde
rs, t
he Co
mpany h
as
ide
ntif
ied co
re focus
es un
der it
s E
SG st
rate
gy
whi
ch sit und
er ‘E
nvironm
enta
l’
, ‘S
ocia
l’ and
‘G
overnan
ce’ pil
lar
s, l
iste
d on p
ages 4
0-
43.
ESG GO
VERNANCE
Ownership of
ESG matters
Und
er th
e lead
ersh
ip of our B
oard
, 202
1 has se
en
us bui
lding o
n a clear
, h
olis
ti
c vision w
hen i
t
come
s to our E
SG resp
onsib
ili
tie
s and pro
gres
s.
Th
e Comp
any’s E
SG st
rate
gy is over
see
n by
Non
-E
xecut
ive Dire
cto
r Mari
a Darby-Walker
.
Maria, toge
ther with the s
upport of the wider
Board, is
responsible
for devel
oping appr
opriate
pol
icie
s and p
rac
tice
s to ensu
re that we
conti
nue to wor
k towards o
ur ta
rget
s.
Th
is respo
nsibil
it
y is ref
lec
te
d in the f
act t
hat
prog
ressi
on agai
nst t
hes
e tar
get
s are li
nked
to Se
nior E
xecu
tive an
d Boa
rd compe
nsat
ion
,
wit
h 15% of th
e 202
1 Long T
e
rm Ince
ntive Pl
an
Awards be
ing subj
ec
t to the at
t
ainm
ent of
ES
G targ
et
s.
Read more about Boar
d engagement |
page 48
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
38
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Accoun
ts 20
21
ENVIRONMENT
AL
SOCIAL
GOVERNANC
E
OUR ESG GO
ALS
AND T
ARGETS
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
Although
the environmen
tal footprin
t of our
bus
ine
ss is re
la
tive
ly smal
l com
par
ed to ot
her
s,
reducing
our impact on the
environ
ment r
emains
a key fo
cus. We inve
ste
d in re
newa
ble e
ner
gy to
powe
r th
e buil
ding (
via s
ol
ar pa
nel
s) an
d have
star
ted t
o inc
or
porate
more low
er emission
opt
ion
s for t
he fl
eet we o
pe
rate
. For cr
it
ica
l and
significant
par
tners we
use en
vironmental
criteria in our
s
election process and our
environ
mental activities ar
e independen
tly
rev
iewe
d by Avieco.
Ou
r pur
pos
e is he
lp
ing to P
rotec
t t
he
Unp
rote
ct
ed an
d thi
s is so
met
hing t
hat
exp
an
ds ou
ts
ide of o
ur day-to-
day wor
k; we
are f
ocu
sed o
n inves
ti
ng in ou
r peo
ple a
nd
prov
idi
ng th
e sup
por
t t
hey n
eed b
oth in
sid
e
and o
ut
sid
e of wor
k. O
ur of
fe
rin
g is des
ign
ed
for l
ower in
com
e cate
gor
ies a
nd to c
reate
mea
nin
gfu
l posi
ti
ve soc
ial im
pac
t
. Th
e busi
nes
s
has supported vulnerable people within our
lo
cal co
mmu
nit
y an
d beyon
d for m
any yea
rs
now, and h
el
ping ot
he
rs, n
ot jus
t f
inan
cial
ly bu
t
by de
dic
atin
g tim
e, is s
om
ethi
ng we t
ake gre
at
pr
ide i
n.
As a r
egu
lat
ed bu
sin
ess we t
ake gove
rna
nce ve
r
y
seriously
. Ensuring w
e reflect the communities
th
at we ser
ve a
nd hav
ing e
qua
l gen
der a
nd
ethnic r
epresentation
at different
levels o
f the
bus
ine
ss are ke
y met
ric
s for t
he B
oar
d.
GOA
L
Improv
ement on red
ucing
carbon footprin
t and
energy efficiency by
using electricity from
ren
ewa
ble s
ource
s and m
ana
ging f
le
et us
age
effect
ivel
y.
GOA
L
T
o e
nsur
e that o
ur bu
sin
ess h
as a po
siti
ve so
cial
impact on the
communities where
we trade
and t
hat P
er
son
al Gr
oup is a
n emp
loyer t
hat
st
ri
ves to of
fe
r opp
or
tu
nit
y to p
eop
le of al
l
backgrounds
.
GOA
L
Continue
to ensure
and reassure
our stakeholders
th
at our g
overn
ance i
s rob
ust a
nd com
pl
iant w
ith
al
l regu
lat
or
y an
d leg
al fr
amew
ork
s.
TA
R
G
E
T
S
Red
uce H
ead O
ff
ice 2
019 c
ar
bon e
miss
ion
s
by th
ree to
nne
s pe
r ann
um.
Red
uce 20
19 f
lee
t CO
2
us
age by 2
5% ove
r
three years.
Work tow
ard
s beco
min
g net c
arb
on ne
ut
ral
by 203
1.
No wa
ste p
rod
uc
tio
n ta
rge
t as ne
gli
gibl
e.
W
or
k on
environmental
policy for s
uppliers
and p
ar
t
ner
s is on
goi
ng.
TA
R
G
E
T
S
Ple
dge a
t leas
t 1% of EB
ITDA w
ith a
nnu
al
min
imu
m of £10
0k t
o PA
CT (
Per
so
nal
Assurance Charitable T
rust) per year
which
will increase funding
wit
h pro
fitabil
ity
.
Maintaining our long
-term pledge to
our
sch
ool p
roj
ec
t in Keny
a (Mem
usi
) and t
o
inc
reas
e th
e tim
e-sh
ari
ng give
n ba
ck to ou
r
local community through volun
tee
ring and
community action.
Cont
inu
e wor
kin
g towar
ds eq
ual g
end
er
rep
res
ent
ati
on at ea
ch leve
l in th
e
organisation, maintaining the split
at senior
leve
l and i
mpro
ving i
n mor
e juni
or ro
les
.
T
o re
fl
ec
t the e
thn
ic mi
x of th
e comm
uni
tie
s
in wh
ich we a
re bas
ed
, imp
rovin
g our
outreach,
ensuring
our recruitment/talent
management
approach is inc
lusive and
accessible.
TA
R
G
E
T
S
Maintain
current
equal representation
of
independent
Directors versu
s non-
independent Dir
ectors.
Maintain
equal r
epresentation
of men
and
wom
en on t
he B
oar
d – sec
to
r avera
ge is 1
9%
.
T
o meet blended ethnicity representation
ta
rge
t of 20% (t
ak
ing i
nto acco
unt th
e
dif
fe
rent l
oca
tio
ns we tr
ade i
n).
Kee
p CEO pay as a m
ulti
ple of P
er
son
al
Gr
oup m
edia
n in l
ine w
ith m
arket
.
PROG
RESS I
N 2021
So
la
r pan
el
s ins
ta
lle
d and p
rod
uci
ng
renewable
energy.
Th
e Gro
up is re
view
ing t
he f
lee
t of ca
rs
cur
rent
ly in us
e wit
h a vie
w to tr
ansi
tio
nin
g
to mo
re env
iron
me
ntal
ly fr
ien
dly ca
rs in
202
2 as th
e cur
rent l
eas
es ex
pire
.
Work o
n set
ti
ng ta
rge
ts i
n lin
e wit
h UN
Developmen
t goal
s
is ongoi
ng.
PROG
RESS I
N 2021
Diversity &
Inclusi
on W
orking Group.
Th
e Gro
up cont
inu
es to d
evel
op it
s em
ploye
e
proposition,
ensuring
t
hat
it
s benefits remain
com
pet
iti
ve and t
hat we re
mai
n an em
ploye
r
of ch
oice
.
PACT do
nati
on ma
de in l
ine w
it
h tar
get
.
Flexible/hybrid working for employees.
Nomination Committee.
PROG
RESS I
N 2021
Pol
ic
y reg
ard
ing t
he ge
nde
r dive
rsi
ty o
f the
Board
.
T
he G
roup h
as ma
de pr
ogre
ss in i
ts t
ar
get to
reflect the local
environment
representation
in its
workforce.
T
he G
roup h
as be
com
e one of o
nly fo
ur AIM
-li
ste
d
com
pan
ies w
ith b
oth a fe
mal
e CEO and CF
O.
Through our A
ccelerated
Developmen
t
Pro
gra
mme t
he G
rou
p is deve
lop
ing a t
ale
nt
pipeline for
diverse future
leaders
.
39
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
c
ontinued
PERSONAL
GROUP’S
SECR ST
A
TEMENT
Th
e Streaml
ine
d Energ
y and C
arb
on Re
por
t
ing
(SECR) regul
ati
ons, e
nac
ted in 2
018, a
re
des
igne
d to increa
se aware
ness of e
nerg
y cost
s
wit
hin org
anis
atio
ns, prov
ide th
em wi
th dat
a to
infor
m ado
ptio
n of energ
y ef
f
icien
cy me
asure
s
and to h
elp t
hem t
o reduce t
hei
r impa
ct o
n
cli
mate cha
nge. T
hey al
so s
eek to p
rovide
greater
transparency for stakeholders.
Per
so
nal Gro
up recog
nise
s that ou
r ope
rati
ons
have an envi
ronme
ntal i
mpa
ct an
d we are
comm
itt
ed to mo
nito
ring a
nd redu
cing ou
r
emis
sions yea
r
-on
-year
. W
e are aware of o
ur
rep
or
tin
g obl
igati
ons und
er Th
e Comp
anie
s
(Dire
cto
rs’ Re
por
t) a
nd Lim
ited L
iab
ilit
y
Par
t
ner
ships (En
ergy a
nd Ca
rbo
n Repo
r
t)
Reg
ulat
ions 20
18.
We have c
onti
nued t
he rep
or
ti
ng und
er SECR
for t
he year to m
eet t
hes
e new req
uirem
ents
and i
ncreas
e the t
rans
paren
cy w
ith w
hich we
communica
te about ou
r en
vironmental
impact
to our
stakeholders.
2021 performance
Our c
arb
on fo
otpr
int for th
e 202
1 repo
rt
ing
year has b
een c
alcul
ate
d bas
ed on ou
r
enviro
nme
ntal im
pac
t acro
ss scop
e 1, 2 an
d 3
(sele
cte
d cate
gor
ies) emis
sion so
urces fo
r the
UK on
ly
. Our e
missi
ons are pr
esent
ed on b
oth a
loc
atio
n and ma
rket bas
is. On a lo
cat
ion b
asis
our e
missio
ns are 38
1 tCO
2
e, wh
ich is an
averag
e imp
act of 2
.6 tCO
2
e per e
mploye
e (2.5
tCO
2
e per e
mploye
e for scop
e 1 and s
cope 2
emis
sions o
nly), and on a m
arket ba
sis our
emis
sions a
re 380 t
CO
2
e. We have calcul
ate
d
emis
sion int
ensit
y me
tri
cs on an e
mploye
e
basi
s, whi
ch we will m
onit
or to tr
ack
per
fo
rma
nce in our s
ubse
que
nt environ
ment
al
disclo
sures.
As t
he bu
sines
s has be
gun to ret
urn to n
orm
al
tr
ading f
ollow
ing th
e lockdown
s result
ing fro
m
th
e CO
VID
-19 pan
demi
c ther
e has be
en a
consid
era
ble inc
rease in s
cope 1 (53
%) act
ivit
ies
.
Scop
e 2, however
, h
as shown a co
ntinu
ed
redu
ct
ion (23
%) as cer
tai
n off
ice
s wit
hin th
e
Gro
up have not be
en ut
ilis
ed or ar
e being u
til
ise
d
les
s due to t
he intr
oduc
ti
on of hybr
id wor
king
acros
s the G
roup. A f
ur
the
r redu
ct
ion has b
een
se
en due to t
he int
rodu
ct
ion of t
he sol
ar p
anel
s
on t
he roof t
he Gro
up’s hea
d off
ice in J
une 20
21.
Energy and carbon action
As n
oted prev
iously, Pers
onal G
roup ins
t
alle
d a
roof-mounte
d sol
ar PV s
ys
tem onto t
he Jo
hn
Or
mon
d Hous
e site in M
ilton Keyne
s. T
his proj
ect
was com
plete
d in 202
1. T
hese p
ane
ls we
re
impl
eme
nted to re
duce rel
iance o
n grid
ele
ct
rici
ty a
nd provi
de a sou
rce of low car
bon
ene
rgy for t
he G
roup.
Th
e entire
ty of t
he G
roup’s f
leet is u
p for ren
ewal
in 202
2/2
3 and s
o a review of w
hat vehicl
es wil
l
be al
lowed fo
r thos
e who n
eed t
hem is u
nder
w
ay
at th
e time of w
rit
ing. T
he G
roup, unfo
r
tunate
ly
,
doe
s not be
lieve t
hat ele
ct
ric c
ars a
re an opti
on
at this s
t
age for i
ts s
ale
s team d
ue to th
e la
ck of a
nati
onwid
e infra
str
uc
ture. H
owever
, as a
mini
mum, co
nst
raint
s on t
he CO
2
emis
sions of a
ll
vehicl
es lea
sed ar
e being i
nclud
ed in t
he de
cision
.
2021 results
Th
e meth
odo
log
y used to c
alcul
ate t
he GH
G
emis
sions is i
n accordan
ce wit
h the re
quire
ment
s
of th
e follow
ing s
tan
dards:
World Res
ource
s Inst
itu
te (W
RI) G
reenh
ouse G
as
(GHG) P
rotocol (revis
ed ver
sion).
DEFR
A’s En
viro
nment
al Re
por
t
ing Gu
idel
ine
s:
Incl
uding St
reaml
ine
d Energ
y and C
arb
on
Rep
or
tin
g requi
rement
s (Ma
rch 201
9).
UK of
f
ice emis
sions h
ave been c
alcul
ate
d using
th
e DEFR
A 201
9, DEFR
A 2020 is
sue of t
he
con
version factor r
ep
osit
ory
.
Follo
wing an
operational con
t
rol
approach
to defining our organisational boundar
y
,
our c
alcul
ate
d GHG e
missio
ns from b
usine
ss
ac
tiv
iti
es fal
l wit
hin th
e repo
r
ting p
eri
od of
Janu
ar
y 202
1 to De
cembe
r 2021 a
nd usin
g
rep
or
tin
g per
iod of Ja
nuar
y 202
0 to Dece
mbe
r
2020
for c
omparison.
ENVIRONMENT
AL
Emissions and energy usage
T
abl
e 1 – Energ
y and c
arb
on discl
osure
s for rep
or
tin
g year
. All u
nit
s tCO
2
e unle
ss oth
er
wise s
tat
ed.
Emissions source
2021
2020
Varianc
e
Scope 1
Natural
gas
112
128
(12
%)
Company
and leased cars
212
84
152
%
T
otal
Scope 1
324
2
12
53%
Scope 2
Electricity
49
67
(2
3%)
T
otal
Scope 2
49
67
(2
3%)
Scope 3
Electricity
T&D
4
6
(
33%)
Scope 3
Employ
ee cars
3
3
0%
T
otal
Scope 3
7
9
(2
2
%)
T
otal
(Market Based)
380
273
39%
T
otal
(Location Based)
381
282
34%
T
otal
Energy Usage (kWh)
1
1,702,505
1,34
7
,52
6
27%
Normaliser
tCO
2
e per FTE
2.6
1.9
37%
1
Energy reporting includes kWh
from scope 1, scope 2 and scope 3 employee c
ars only
(as requir
ed by the SECR r
egulation)
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
40
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
PEOPLE
Culture and v
alues
Th
e Gro
up’s cu
lture i
s set f
rom th
e top of
th
e orga
nis
ati
on an
d as suc
h the B
oa
rd
pro
mote
s a cultu
re ba
sed a
roun
d fou
r
values: Solid, Engaging, Driven, and
Ex
pe
rt
. T
hes
e val
ues fo
rm a co
re par
t o
f
how t
he bu
sine
ss is m
anag
ed
, from
recruitment to training, and ongoing
rewa
rd and r
ecog
nit
ion
.
Ou
r emp
loyee
s are at t
he he
ar
t of ou
r
bus
ine
ss an
d the G
rou
p’s big
ges
t ass
et
.
We car
r
y out a
n emp
loyee s
ati
sfa
ct
ion
sur
vey a
nnu
ally a
nd fe
ed th
e resu
lt
s bac
k
to t
he Bo
ard
. Des
pite t
he i
mpl
ica
tio
ns of
lo
ckdown a
nd rem
ote wor
ki
ng, o
ur
employ
e
e en
gagement
score
remained
st
ead
y at 72
% in 202
1.
Op
era
tin
g eth
ical
ly is al
s
o ver
y imp
or
t
ant
to us a
nd we have in p
la
ce po
lic
ies
including: T
reating Customers Fairly
,
Wh
ist
leb
lowin
g and A
nti-
Br
ibe
r
y
. We al
so
have a Mo
de
rn Sl
aver
y p
ol
icy w
hich
cover
s our p
ol
icy o
n hum
an ri
ght
s, ch
ild
labour and for
ced labour
.
In 20
21 we ma
de n
o pol
it
ica
l don
atio
ns.
W
ellbeing
Th
e Gro
up’s cor
e pur
pos
e is to su
ppo
r
t
workforce
wellb
eing
and engagement,
and o
ur of
fe
rin
gs tou
ch mo
re tha
n half a
million UK empl
oyees.
We are al
so f
ocus
ed o
n inves
tin
g in an
d
imp
rovi
ng th
e well
be
ing a
nd over
all
sa
tis
fac
ti
on of ou
r own wor
k
force b
oth
at an
d out
si
de of wor
k, i
nclu
din
g havin
g
con
duc
ted a t
ho
roug
h revi
ew of rewa
rds
and b
en
ef
it
s of
fere
d to em
ploye
es in
2021. Personal Group
employee
engagement
and w
ellbeing is
delivered
th
roug
h our i
ndus
tr
y l
ead
ing pl
at
for
m,
Hap
i and o
ur cont
inu
ed hi
gh em
ploye
e
engagement
scores
reflec
t our
committed and passionate
team
.
Po
st
-
per
io
d end t
he Gr
oup a
ppo
inte
d the
Ho
n Colo
nel D
ame Ke
lly Ho
lm
es MB
E
(mil) a
s Chie
f Well
bei
ng Am
bas
sa
dor
. In
th
is role D
ame Ke
lly wi
ll b
e hel
pin
g to
guide Personal Group’s w
ellbeing
st
rat
egy, to ens
ure th
at our o
ff
eri
ng
remains a
s meaningful, relevan
t and
imp
ac
t
ful as i
t can b
e.
Emp
loyee
s have acce
ss to a b
roa
d ran
ge
of be
st
-in
-cl
ass b
en
ef
it
s, in
clud
ing
pr
ivat
e med
ica
l and t
ravel i
nsur
ance
,
acce
ss to a
n onl
ine G
P
, opt
ion
s to bu
y and
se
ll ho
lid
ay al
lowan
ces
, deat
h in se
r
vice
,
lon
g ser
v
ice rew
ards
, acce
ss to an
Emp
loyee A
ssi
st
ance P
rog
ram
me an
d
discoun
ted gym memberships.
Th
e Gro
up pay
s all s
t
af
f above t
he l
ivi
ng
wag
e and d
el
iver
s a pro
gra
mme of
culturally
relevant wellbeing initiatives.
Alo
ngsi
de fl
exi
ble wo
rk
ing ho
ur
s we have
a hybr
id wo
rki
ng po
li
cy in p
la
ce. We al
so
have an e
mpl
oyee he
alt
h and s
afet
y
tea
m, as we
ll as t
rai
ning f
or al
l exec
uti
ves
on h
ealt
h and s
afet
y.
Learning and dev
elopment
Ou
r Chie
f Peo
ple O
f
fi
cer over
se
es
learning and dev
elopm
ent
am
ongst staff,
wi
th th
e Gro
up mo
nit
ori
ng th
e avera
ge
tr
aini
ng ho
urs p
er e
mplo
yee to en
sure
th
at all e
mpl
oyees h
ave eas
y acce
ss to
enhance their learning.
De
spi
te disr
upt
ion f
rom t
he pa
nde
mic
, in
2021 Group
employees c
ompleted
app
roxi
mately 6
,8
68 tr
ain
ing h
our
s. T
his
is a ver
y p
osi
tive i
ncre
ase of 283
% fro
m
2020.
Th
e inc
reas
e in tr
aini
ng ho
urs w
as he
lp
ed
by an in
crea
se of fa
ce to fa
ce del
ive
r
y or
lon
ger v
ir
tua
l se
ssio
ns, as o
pp
ose
d to al
l
vir
t
ual o
r jus
t e-le
ar
ning co
urs
es in 2
020.
We have pol
ici
es in p
la
ce aim
ed to
imp
rove th
e car
eer d
evelo
pme
nt pat
hs of
em
ployee
s, o
r to imp
rove th
eir sk
il
ls
. Th
e
developmen
t and promo
tion of
internal
candidates is al
ways encouraged as
appropriate
.
Du
rin
g 202
1 the G
rou
p beg
an it
s f
ir
st eve
r
Acc
elerated Learning Pr
o
gramme with
th
e aim of u
psk
ill
ing a
nd deve
lop
ing s
taf
f
in mo
re jun
ior r
oles i
n ord
er to su
ppo
r
t
th
eir c
aree
r grow
t
h.
.
Diversity and incl
usion
Di
vers
it
y
, Eq
uit
y an
d Incl
usio
n has b
een
ide
nti
fi
ed as an i
nteg
ral p
ar
t of t
he
Gro
up’s o
bje
ct
ive of pr
ovid
ing a
welco
min
g and i
nclu
sive wor
ki
ng
environ
ment wher
e people a
re eng
aged,
reco
gni
sed a
nd rew
arde
d. T
he Bo
ard
st
ri
ves fo
r equ
ali
ty o
f opp
or
tu
nit
y for a
ll
and f
or th
e Gro
up to re
fl
ec
t the d
iver
se
com
muni
tie
s th
at we se
rve
. Not on
ly is
th
is th
e rig
ht thi
ng to do, b
ut di
ver
se,
inc
lusi
ve team
s, we b
eli
eve, ar
e high
er
performing and better for
our growth.
As s
uch t
he Bo
ard h
as pu
t a numb
er of
ini
tiat
ive
s in pl
ace t
o ensu
re th
e Grou
p’s
de
sire
d cultu
re is en
han
ced. T
he
se
include:
– A di
vers
it
y and i
nclu
sio
n work
ing g
roup,
to en
sure t
hat as a
n orga
nis
ati
on, we
continue
to celebrate
and support
inc
lusi
vit
y an
d dive
rsi
ty w
it
hin ou
r
workforce.
A Nomination
Commit
tee, r
e
sponsi
ble
for r
eview
ing t
he s
tr
uc
ture
, size an
d
com
posi
ti
on (i
nclu
ding t
he sk
il
ls
,
knowledge,
experience and
diversit
y)
of
th
e Bo
ard an
d mak
ing
reco
mme
nda
tio
ns to t
he Bo
ard w
ith
reg
ard to a
ny chan
ges
.
– A po
li
cy re
gard
ing t
he ge
nde
r dive
rsi
t
y
of th
e bo
ard, a
imi
ng to kee
p the g
end
er
balance neutral.
SOCIAL
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
c
ontinued
Group employee
breakdown
by gen
der as a
t 31 Dece
mbe
r 2021
Male
Fem
ale
Direc
tors
4
3
Managers
27
35
Emp
loye
es
74
90
105
128
41
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
c
ontinued
SOCIAL
con
t
inued
Supporting our communi
ty
PAC
T
Per
so
nal As
sura
nce Char
it
y T
ru
st (PACT
) has do
nated ar
ound
£2m to cha
rit
abl
e caus
es sin
ce it was fou
nded i
n 1993. T
he
Gro
up has his
tor
ical
ly donat
ed app
rox. £1
00k t
o P
AC
T per yea
r
,
whi
ch is the
n allo
cate
d in a numb
er of ways
. Since 20
20, the
T
ru
st has re
focus
ed to e
nsure th
e mon
ey bei
ng donat
ed was
bei
ng use
d ef
fec
tively. This saw t
he Com
mit
tee m
ove from
bei
ng simp
ly fundr
aise
rs to b
ecome p
ar
tn
ers of l
oca
l chari
tie
s.
We now work wi
th, a
nd all
ocate f
unds t
o, speci
fi
c proje
ct
s
wit
hin ma
ny loca
l char
itie
s wit
h a view to co
ntinu
e
involvement b
eyond p
ure f
inanc
ial supp
or
t
. Key loc
al proje
ct
s
arou
nd th
e Milton Keyn
es he
ad of
fi
ce for 202
1 inclu
ded:
MK W
inte
r Night S
helte
r
– £16
k creatin
g the P
ers
onal G
roup
Lif
e Skil
ls P
rogr
amme w
hich en
able
s life s
kill
s t
rain
ing (such
as ba
sic ITSk
ill
s, i
nter
view p
repa
redn
ess, m
anag
ing a
household budget, c
ook
ing
) and emplo
yment traini
ng
(ba
ris
ta
, admin e
tc) for gue
st
s ofth
e shelte
r who have jus
t
gain
ed accom
mod
atio
n, beat
en an ad
dic
tio
n or have th
e
chan
ce to work w
ith o
ne of our e
mploym
ent pa
r
tne
rs to
reach t
hei
r full p
otenti
al and s
ta
nd a bet
te
r chance of
succ
ee
ding
when they mov
e on from ho
melessness.
MK Community Foundation
– £10
k creat
ing th
e Per
son
al
Gro
up Char
it
able T
r
ust Fun
d aime
d at conne
ct
ing
communities through technology
, decreasing digital
pover
t
y an
d improvi
ng acces
s to ITte
chnol
ogy.
The Memusi F
oundation
Since 20
15, P
ers
onal G
roup ha
s supp
or
ted t
he Me
musi Fou
ndati
on
– achar
it
y that wo
rk
s to provid
e child
ren in Kenya wi
th acce
ss to
qual
it
y ed
ucat
ion, p
rovidi
ng a safe p
la
ce for chil
dren to le
arn a
nd giv
ing
supp
or
t to t
he sur
round
ing comm
unit
y
. We pledg
ed that ove
r a dec
ade
we would p
rovide £
0.5m to b
uild an
d develo
p a new sch
ool
, kn
own as
Memusi B.
202
1 s
aw:
Aft
er eight m
onths aw
ay from sc
hool d
ue to th
e pan
demi
c, th
e
st
udent
s retu
rne
d to th
e clas
sroom
s.
Th
e commu
nit
y contin
ued to s
uf
fer fro
m the r
isk of st
ar
vat
ion
fol
lowing t
he af
ter
-
ef
fec
t
s of COVID.
Aft
er a gap of 1
8 mont
hs due to t
he res
tr
ic
tion
s in pl
ace, let
te
rs an
d
pic
ture
s were se
nt and rece
ived fro
m the sp
ons
ored chi
ldren at
Memusi.
A fur
t
her a
d-ho
c paym
ent of £2,473 w
as mad
e in Apr
il 202
1 for th
e
Smar
t A
id ini
tiat
ive which p
rovide
s foo
d to the co
mmun
it
y
.
A paym
ent of £2
5,00
0 (in l
ieu of c
ancel
led vol
untee
ring t
rip
s) was
mad
e to Mem
usi in Novem
ber w
hich wil
l be us
ed to bu
ild do
rmit
orie
s
on t
he Mem
usi B site
. The
se wil
l supp
or
t 36 g
irl
s, p
rovidin
g the
m
wit
h a saf
e base s
o that t
hey do n
ot end up h
aving to dro
p out of
sch
ool du
e to th
eir pe
rio
ds, FGM o
r child m
arr
iage.
Sever
al onl
ine f
undr
aise
rs ar
rang
ed to ad
apt to COVID res
tr
ict
ions
.
FOUND
A
TION
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
42
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
GO
VERNANCE
GO
VERNANCE IS CENTRAL
T
O
OUR ETHOS OF
OPERA
TING
WITH
INTEGRITY
.
GOVERNANCE
Th
e Boa
rd recog
nises t
he im
por
t
ant role a ro
bus
t
corp
orat
e govern
ance fr
amewor
k pl
ays in t
he
succes
sfu
l del
iver
y of ou
r long-te
rm st
rate
gy an
d
has ad
opted t
he QC
A Cor
por
ate Gover
nan
ce Code
whi
ch we contin
ue to mo
nitor o
ur per
fo
rma
nce
agai
nst in l
ine w
ith e
ach of th
e 10 pr
incip
les
.
(seep
age 47).
Th
e Chair
man an
d the B
oard is u
ltimat
ely
resp
onsib
le for es
t
abl
ishing t
he Gro
up’s
gover
nance s
tr
uct
ure, t
he ef
fec
ti
venes
s of
inter
nal cont
rol
s, r
isk mana
geme
nt, an
d the
dire
ct
ion of t
he Gro
up in accord
ance wi
th our
pur
pos
e and va
lues to h
elp d
el
iver our s
tr
ategy.
Board composition
Th
e compo
siti
on of our B
oar
d is caref
ully s
elec
ted
to ensu
re a diver
se an
d vari
ed set o
f skill
s
,
cultu
res, ex
per
ien
ces and k
nowle
dge to p
romote
succ
ess within the bus
iness.
We have targe
ts to w
hich we are wo
rki
ng towards
to ensu
re that o
ur Bo
ard is dive
rse a
nd incl
usive. T
o
supp
or
t th
is, we have a po
lic
y in pl
ace re
gardin
g
th
e gend
er dive
rsit
y of t
he Bo
ard and c
urre
ntly
have 14% of Boa
rd memb
er
s and Se
nior E
xecu
tive
s
wit
h a cultur
al ba
ckground d
iff
erent fro
m the
loc
atio
n of the co
rpo
rate he
adqu
ar
ter
s.
We als
o st
rive to have eq
ual rep
rese
ntat
ion of
both e
xecut
ive and n
on-
execut
ive Bo
ard me
mbe
rs
to al
low for fai
r
, v
arie
d and in
dep
ende
nt opin
ion.
Bo
ard me
mber
s are el
ect
ed wi
th a maj
ori
ty vote
and h
ave the au
tho
rit
y to hire e
x
tern
al adv
iser
s or
cons
ultants without
managemen
t’s appr
oval.
202
1 saw th
e inau
gurat
ion of o
ur Nom
inati
on
Committee, res
p
onsi
ble f
or re
viewing the
st
ruc
tur
e, size and com
posi
tion (
incl
uding t
he
skil
l
s, kn
owled
ge, ex
per
ience a
nd diver
sit
y) of th
e
Bo
ard and m
akin
g recomm
endat
ion
s to the B
oard
wit
h rega
rd to any chan
ges
. The N
omin
ation
s
Com
mit
tee Re
por
t o
n page 5
7 cont
ains mo
re
det
aile
d infor
mati
on on t
he Com
mit
tee’s a
ct
ivit
y
dur
ing th
e year
.
Board compensation
Th
e Boa
rd’s comp
ens
atio
n is dete
rmin
ed by our
Remu
ner
ation C
ommi
tt
ee, cha
ired by No
n-
Exe
cuti
ve Dire
ctor M
aria D
arby-Walker
. Ou
r
share
hold
ers h
ave the ri
ght to vote on exe
cuti
ve
compensation.
For m
ore infor
mati
on on h
ow the Re
mune
rati
on
Com
mit
tee s
ets a
ppro
priat
e compe
nsat
ion
, see
pages 60-63.
POLICIES
Th
e follow
ing po
lice
s are cur
rently im
plem
ented
by th
e Group:
Modern slavery
Th
e Mod
ern Sl
aver
y Ac
t (2015) re
quire
s a
comm
ercial o
rganis
ati
on over a cer
t
ain size to
pub
lish a sl
aver
y an
d human t
raf
f
icki
ng st
atem
ent
for ea
ch f
inanc
ial year
. T
his st
atem
ent ca
n be
foun
d on our we
bsite p
er
sona
lgroup.com an
d is
mad
e avail
able to o
ur ent
ire work
force
. As a
busi
ness we a
re commi
tte
d to era
dic
ating h
uman
tr
aff
ick
ing an
d slaver
y a
nd ens
ure a zero tole
rance
pol
ic
y in rel
atio
n to our di
rec
t and in
direc
t
ope
rat
ions an
d acros
s our sup
ply chain
. Our p
oli
cy
al
so ex
te
nds to o
ur wide
r Per
son
al Gro
up
comm
unit
y an
d par
t
ner
s. Across t
he rep
or
ti
ng
per
iod t
here h
ave been n
o ins
tan
ces that d
o not
comp
ly with t
he Mo
der
n Slaver
y Ac
t
.
Whistleblowing
We have a whist
leblow
ing po
lic
y in pl
ace, w
hich
comp
lie
s wit
h loca
l regul
ator
y re
quire
ment
s an
d is
designed t
o protect those who
repor
t wron
gdoing
in th
e work
pl
ace. De
tail
s of t
he po
lic
y are
comm
unic
ated to al
l work
force m
emb
ers
.
Bob Head, I
ndependent Non
-Executive
Director
, is
th
e desig
nated W
hist
lebl
owers’ Ch
ampi
on and h
as
oversi
ght of the a
rra
ngem
ent
s. He is re
spo
nsible fo
r:
subm
it
ting t
he An
nual Re
por
t to t
he Bo
ard
for
approval;
ensu
ring a
nd overs
eein
g the i
ntegr
it
y
,
independence and
ef
fectiveness of
the policy
and arrangements;
ensu
ring t
he Po
lic
y and s
uppo
r
ting
Ar
rang
ement
s prote
ct W
his
tleb
lowers f
rom
being
victimised
b
ecause
they hav
e disc
losed
repor
table concerns;
recei
ving al
l noti
fi
cati
ons mad
e to th
e ex
tern
al
pro
vider of
the whistleblowin
g line;
and d
ecidi
ng who t
o engag
e wit
h in Per
son
al
Gro
up whe
n he recei
ves not
ifi
cati
on of a cal
l
,
dep
end
ing on t
he natu
re of the re
por
t
.
Anti-briber
y and c
orruption
Th
e Grou
p’s Anti-
Bri
ber
y an
d Cor
rupt
ion Po
lic
y
is revie
wed ann
ually an
d inclu
des al
l Dire
cto
rs,
emp
loyees an
d all t
hird p
ar
tie
s ope
ratin
g on
it
s beh
alf
.
Th
ere were no i
nst
ance
s of brib
er
y or co
rru
ptio
n in
the period.
We asses
s all ou
r busin
ess p
ar
tne
rs fo
r potent
ial
comp
lian
ce risk
s such as b
rib
er
y and co
rr
uptio
n,
mon
ey l
aund
erin
g, ta
x evasio
n facil
it
atio
n, dat
a
privacy breac
hes or o
ther reputational r
e
d flags.
Fur
th
er det
ail is in
clude
d in th
e Corp
orat
e
Gover
nance s
ec
tio
n, pa
ges 4
6-47
.
ENVIRONMENT
AL, SOCIAL
AND
GOVERNANCE
c
ontinued
43
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
SECTION 1
72 ST
A
TEMENT
Th
e Dire
ctor
s are awar
e of thei
r dut
y und
er
s17
2 of the C
omp
anies Ac
t 20
06 to a
ct in
th
e way they wo
uld consi
der
, in g
ood f
aith
,
would b
e mos
t likely to p
romote t
he
succes
s of the G
roup fo
r the b
ene
fi
t of it
s
mem
ber
s as a who
le and
, in doi
ng so, to
have rega
rd (amongs
t othe
r mat
ter
s) to
:
th
e likely cons
eque
nces of i
ts d
ecisio
ns
in th
e long
-term;
th
e interes
t
s of the G
roup’s e
mployee
s;
th
e nee
d to fost
er th
e Grou
p’s busin
ess
rel
atio
nship
s with s
uppl
ier
s, cus
tom
ers
and ot
her
s;
th
e impa
ct of t
he Gro
up’s op
erat
ions on
the community and
the envir
onment;
th
e desir
abil
it
y of th
e Grou
p maint
ainin
g
a repu
tat
ion fo
r high s
tan
dards of
business
conduct; and
th
e nee
d to ac
t fairly b
etwe
en me
mbe
rs
of th
e Grou
p.
Th
e Chair
man se
ts o
ut th
e tex
t of s17
2
Com
pani
es Act 2
00
6 on ever
y Bo
ard
age
nda by way of a rem
inde
r
.
Bel
ow follow
s a des
cript
ion of t
he key enter
pris
e risk
s th
e Grou
p has man
aged i
n 2021:
Strategic area
Why we e
ngag
e
How we en
gage
d in 202
1
Wh
at mat
ter
s to the G
rou
p
Our
Policyhol
ders
Ou
r pol
ic
yho
lde
rs a
re key to t
he lo
ng-ter
m su
ccess o
f the G
rou
p. Th
e ret
ent
ion
of ex
is
tin
g, an
d att
ra
ct
ion of n
ew, pol
ic
yho
lde
rs is e
qu
ally i
mpo
rt
an
t.
We aim to m
ake any i
nter
ac
tio
n wit
h Pe
rso
nal G
ro
up as p
osit
ive an
d sim
ple
as poss
ible.
Prov
isi
on of s
uit
abl
e and t
ar
get
ed em
ploye
e be
nef
it
s to o
ur rel
eva
nt
market
sec
tors.
We prov
ide in
div
idu
al fa
ce-to-fa
ce pre
se
nta
tio
ns of o
ur pr
odu
ct
s to p
oten
tial a
nd e
xis
tin
g pol
ic
yho
lde
rs at t
he
ir
pl
ace o
f work
. Sin
ce th
e beg
inn
ing of t
he COVI
D-19 pa
nde
mic t
his m
et
hod o
f sel
lin
g was i
mpa
ct
ed an
d so we
deve
lop
ed v
ir
tua
l and te
le
sal
es m
eth
ods t
o all
ow us to e
xpl
ai
n our p
rod
uc
ts to c
us
tome
rs we w
ere ot
her
w
ise
una
bl
e to see
. Th
is ha
s now be
en in
cor
por
ate
d as an o
ptio
n in th
e BAU ap
pro
ach o
f the G
ro
up, al
bei
t now t
hat ou
r
rep
re
sent
at
ives a
re ab
le to s
ee pe
opl
e at th
eir p
la
ce of wo
rk th
is ap
pro
ach h
as be
com
e incr
eas
ingly p
op
ul
ar in
ord
er to p
rovi
de a pe
rs
ona
lis
ed s
er
vic
e to our p
ote
ntia
l and e
xis
ti
ng po
lic
yh
old
ers
.
Th
e COVID
-
19 p
and
emi
c for
ced th
e Cus
tom
er Re
la
tio
ns T
eam t
o wor
k from h
om
e for t
he ma
jor
it
y of 202
0 and
sin
ce th
en we have o
per
ate
d a hybr
id wo
rki
ng mo
del w
ith s
ta
ff a
sked to w
ork f
rom t
he of
f
ice th
ree d
ays a wee
k,
in t
ime
s whe
re Gov
ern
men
t reco
mme
nda
tio
ns al
low, and t
o work f
rom h
ome o
r the o
ff
ice a
s req
uir
ed fo
r the
rem
ain
de
r at the i
ndi
vid
ual a
nd ma
nag
er
’s agr
eed c
hoo
sin
g. Th
is fl
ex
ibil
it
y has a
ll
owed us t
o mai
nta
in a sm
oot
h
and s
upp
or
ti
ve out
come f
or ou
r cus
tom
er
s, es
pec
ial
ly wit
h many o
f our p
ol
icy
hol
de
rs c
all
ing f
rom a pl
a
ce of
vulnerabilit
y
.
In 20
21 o
ur Cus
tom
er Re
la
tio
ns Team too
k over 4
8,
50
0 ca
ll
s and d
ealt w
ith ove
r 54
,00
0 em
ail
s an
d
online queries.
O
ur pro
duc
t
s are r
ele
vant a
nd pr
ovid
e cos
t ef
fec
ti
ve
protection
Fai
r and co
nsi
ste
nt pr
icin
g
Ef
fic
ien
t and s
ymp
ath
et
ic pro
ces
sing o
f cl
aim
s
Ease of a
cces
s to
customer service
Strong
net promo
ter sc
ore
Retention
rates
Our Cl
ient
s
Ou
r pur
pos
e is to h
elp co
mp
ani
es im
prove t
hei
r ef
fec
ti
ven
ess a
nd pro
fi
ta
bil
it
y
by im
prov
ing t
hei
r st
aff e
ng
age
men
t and re
ten
tio
n. Im
prov
ing s
uch m
etr
ics i
n
turn impr
oves
our customer reten
tion and
encourages new
business.
We eng
age a
nd bu
ild re
l
atio
nsh
ips w
ith o
ur cu
sto
mer
s an
d clie
nt
s in se
vera
l ways f
rom fa
ce-to
-face int
era
ct
ion
to ho
ldi
ng in
dus
tr
y an
d oth
er bu
sin
ess f
oru
ms an
d pro
duc
ing w
hite p
ap
ers o
n top
ics t
hat a
re re
leva
nt fo
r the
ir
bu
sine
sse
s. We al
so r
ecog
nis
e the i
mpo
r
tan
ce of s
yst
em se
cur
it
y fo
r our cu
st
ome
rs an
d the
ir e
mpl
oyees a
nd
have I
SO 270
01 a
ccred
it
atio
n acr
oss t
he wh
ole G
ro
up an
d ISO 9
00
1 cover
ing t
he Emp
loyee B
en
ef
it
s Pl
atf
orm
op
era
ted by t
he Gr
oup
.
Pr
odu
ct r
ang
e, pr
ice an
d qua
lit
y
Conve
nie
nce and a
ccessib
ili
ty
Customer service
Fair marketing
Responsible use of
per
sonal da
t
a
Ethics and sustainability
Our Colleague
s
Th
e Gro
up’s l
ong
-term s
ucces
s is pr
edi
cate
d on t
he com
mit
men
t of ou
r
em
ploye
es to o
ur pu
rpo
se an
d dem
on
str
ati
on of o
ur val
ue
s. In o
rde
r to de
live
r
gre
at cu
sto
mer s
er
vi
ce and i
mpr
ove our a
lre
ady h
igh s
ta
ff e
nga
gem
ent s
core
s
we ne
ed to e
nsu
re th
at we pro
vid
e an ap
prop
ri
ate env
iro
nme
nt to at
tr
ac
t and
retain g
reat
people.
We have an o
pen
, coll
a
bor
ati
ve, an
d inc
lusi
ve ma
nag
eme
nt st
ru
ctu
re an
d eng
age r
egu
la
rly wi
th ou
r emp
loye
es.
We do th
is th
rou
gh an ap
pr
ais
al pr
oces
s, s
tru
ct
ure
d car
eer co
nver
sat
ion
s, e
mpl
oyee su
rv
eys, o
ur Ha
pi si
te and
Com
pa
ny pre
sen
tat
ion
s. We rem
une
rat
e wit
h mar
ket-bas
ed p
ay
, r
ewar
ds an
d ben
ef
it
s and o
ur co
ntin
ued h
igh
em
ploye
e eng
age
me
nt scor
es re
fl
ec
t our co
mmi
tt
ed an
d pas
sio
nate t
eam
. Foll
owi
ng a succ
ess
ful t
ria
l, w
e have
int
rod
uced a h
ybr
id wor
kin
g pol
ic
y for a
ll of
f
ice-
bas
ed s
taf
f. Feed
bac
k tel
ls u
s tha
t thi
s hel
ps e
mpl
oyees
ma
int
ain a b
et
ter wo
rk
-li
fe ba
la
nce
, wit
h sub
seq
uen
t gain
s for e
ng
age
men
t and p
rod
uc
tiv
it
y
.
Fair
employment
Fai
r pay an
d ben
ef
it
s
T
raining, development and career opportunities
Health and safety
Responsible use of
per
sonal da
t
a
Ethics and sustainability
Our Suppliers
Ou
r sup
pli
ers a
re fu
nda
me
nta
l to th
e qual
it
y of o
ur pr
odu
ct
s an
d to ens
uri
ng
th
at as a bu
sin
ess we m
ee
t the h
igh s
ta
nda
rd of con
duc
t t
hat we se
t ou
rse
lves
.
Ou
r Hap
i pl
atf
or
m cont
ain
s num
ero
us th
ird-
par
t
y of
fe
rin
gs wh
ich ad
d val
ue to
th
e overa
ll pr
opo
sit
ion
. It is i
mpo
rt
an
t that w
e ens
ure go
od wo
rk
ing
rel
at
ion
shi
ps wi
th th
ose s
upp
lie
rs b
ut al
so t
o cho
ose p
ar
tn
ers t
hat a
llow t
he
Gr
oup t
o fulf
il it
s day-to
-day o
per
ati
ons t
o del
ive
r our p
rod
uc
ts a
nd se
rv
ice
s to
the best
s
tandard
possible.
We regu
la
rly e
nga
ge in o
pen a
nd t
wo-way co
nver
sat
ion
s wit
h ou
r la
rge
st su
ppl
ier
s. Ke
y sup
pli
er
s are inv
ite
d to
at
ten
d and p
res
ent at o
ur cl
ien
t conf
ere
nces o
r wor
ks
hop
s.
We have rev
iewe
d and u
pda
ted o
ur sup
pl
ier o
nbo
ard
ing p
roce
ss th
rou
gh th
e year, and as p
ar
t of t
hat pr
oce
ss we
now f
eel we h
ave imp
roved o
ur un
de
rst
an
din
g of ou
r supp
li
ers a
nd ar
e abl
e to wor
k tog
et
her b
et
ter a
s a res
ult
.
Long-term partnerships
Collab
orative
appro
ach
Open terms of
business
Fair
p
ay
ment t
erms
Our Communit
y
and Environment
Th
e Boa
rd re
cogn
ise
s th
e imp
or
ta
nce of l
ead
ing a G
rou
p tha
t not o
nly ge
ner
ate
s
val
ue fo
r sha
reh
old
er
s but a
ls
o cont
rib
ute
s to th
e wid
er so
cie
ty.
We enco
ura
ge al
l our e
mpl
oyee
s to eng
age i
n the l
oc
al com
mun
it
y and wo
rk w
ith o
ur PACT Co
mmi
tt
ee to ut
il
ise
th
e fun
ds in t
he Pe
rs
onal A
ss
ura
nce Ch
ari
ta
ble Trus
t to sup
po
rt c
har
iti
es at h
ome a
nd ab
roa
d as di
scu
sse
d on
pa
ge 42
. We are con
scio
us of t
he n
eed f
or ou
r bus
ine
ss to fo
cus o
n lon
g-ter
m sus
ta
ina
bil
it
y
, d
uri
ng 20
21 we ha
ve
ins
t
all
ed so
la
r pan
el
s on t
he ro
of of o
ur he
ad of
fi
ce and a
re cu
rre
ntly i
n the p
roce
ss of r
enew
ing o
ur f
lee
t wit
h
em
issi
ons a ke
y fac
tor i
n any de
cisi
on ma
de
.
We are cu
rre
ntly r
evie
win
g ways in w
hic
h the G
rou
p ca
n be mo
re ac
ti
ve in th
e loc
al co
mmu
nit
y an
d are
be
ginn
ing d
isc
uss
ion
s wit
h loc
al sc
hoo
ls a
nd col
le
ges t
o sup
por
t th
em a
nd to of
fe
r our
se
lves as a w
ork
ex
per
ien
ce pos
sib
ili
ty f
or th
eir s
tud
ent
s.
Reduce environmental impact
Invest in
local community
Promote environmental offer
ings on platform,
i.e
. Cycl
e to Work
Suppor
ting local community by
creating jobs and
providing w
ork experience and apprenticeships
Our Shareholde
rs
Ou
r sha
reh
old
ers a
re key to t
he l
ong-te
rm su
cces
s of th
e bus
ine
ss. T
hro
ugh o
ur
inve
sto
r eng
age
men
t ac
tiv
iti
es, we s
tr
ive to o
bta
in inve
sto
r bu
y-in int
o our
st
rate
gic o
bje
ct
ive
s and h
ow we pl
an to d
eli
ver o
n the
m. We cre
ate va
lue f
or
our shareholders b
y generating strong sustainable profits and
dividends
Th
rou
gh our i
nves
tor re
l
atio
ns p
rogr
amm
e, w
hich i
ncl
ude
s reg
ul
ar up
date
s, m
eet
ing
s, ro
ads
hows a
nd o
ur
An
nual G
en
er
al Me
eti
ng, we e
nsu
re th
at sh
are
hol
der
s’ vi
ews ar
e bro
ugh
t into t
he Bo
ard
roo
m and co
nsi
der
ed in
our d
eci
sio
n mak
ing
. We intr
odu
ced re
ta
il inve
sto
r roa
dsh
ows fo
r the f
ir
st t
ime i
n 202
1, as b
oth l
ive a
nd vi
rt
ual
even
ts
. Aft
er su
ccess
ive yea
rs of c
los
ed do
or AG
Ms we ar
e loo
kin
g for
w
ard to t
he p
ossi
bil
it
y of mov
ing t
o a
tr
adi
tio
nal AG
M in 202
2 and b
ein
g abl
e to se
e and t
ake qu
es
tio
ns fr
om ou
r sha
reh
old
ers i
n our h
ead o
ff
ice
.
Financial per
formance
Strategy a
nd business
model
Dividend
Lo
ng te
rm gr
owt
h
Re
put
ati
on of t
he G
rou
p
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
44
Personal Group Holdings
Plc
· A
nnu
al Re
por
t an
d Accoun
ts 20
21
SECTION 1
72 ST
A
TEMENT
Bel
ow follow
s a des
cript
ion of t
he key enter
pris
e risk
s th
e Grou
p has man
aged i
n 2021:
Strategic area
Why we e
ngag
e
How we en
gage
d in 202
1
Wh
at mat
ter
s to the G
rou
p
Our
Policyhol
ders
Ou
r pol
ic
yho
lde
rs a
re key to t
he lo
ng-ter
m su
ccess o
f the G
rou
p. Th
e ret
ent
ion
of ex
is
tin
g, an
d att
ra
ct
ion of n
ew, pol
ic
yho
lde
rs is e
qu
ally i
mpo
rt
an
t.
We aim to m
ake any i
nter
ac
tio
n wit
h Pe
rso
nal G
ro
up as p
osit
ive an
d sim
ple
as poss
ible.
Prov
isi
on of s
uit
abl
e and t
ar
get
ed em
ploye
e be
nef
it
s to o
ur rel
eva
nt
market
sec
tors.
We prov
ide in
div
idu
al fa
ce-to-fa
ce pre
se
nta
tio
ns of o
ur pr
odu
ct
s to p
oten
tial a
nd e
xis
tin
g pol
ic
yho
lde
rs at t
he
ir
pl
ace o
f work
. Sin
ce th
e beg
inn
ing of t
he COVI
D-19 pa
nde
mic t
his m
et
hod o
f sel
lin
g was i
mpa
ct
ed an
d so we
deve
lop
ed v
ir
tua
l and te
le
sal
es m
eth
ods t
o all
ow us to e
xpl
ai
n our p
rod
uc
ts to c
us
tome
rs we w
ere ot
her
w
ise
una
bl
e to see
. Th
is ha
s now be
en in
cor
por
ate
d as an o
ptio
n in th
e BAU ap
pro
ach o
f the G
ro
up, al
bei
t now t
hat ou
r
rep
re
sent
at
ives a
re ab
le to s
ee pe
opl
e at th
eir p
la
ce of wo
rk th
is ap
pro
ach h
as be
com
e incr
eas
ingly p
op
ul
ar in
ord
er to p
rovi
de a pe
rs
ona
lis
ed s
er
vic
e to our p
ote
ntia
l and e
xis
ti
ng po
lic
yh
old
ers
.
Th
e COVID
-
19 p
and
emi
c for
ced th
e Cus
tom
er Re
la
tio
ns T
eam t
o wor
k from h
om
e for t
he ma
jor
it
y of 202
0 and
sin
ce th
en we have o
per
ate
d a hybr
id wo
rki
ng mo
del w
ith s
ta
ff a
sked to w
ork f
rom t
he of
f
ice th
ree d
ays a wee
k,
in t
ime
s whe
re Gov
ern
men
t reco
mme
nda
tio
ns al
low, and t
o work f
rom h
ome o
r the o
ff
ice a
s req
uir
ed fo
r the
rem
ain
de
r at the i
ndi
vid
ual a
nd ma
nag
er
’s agr
eed c
hoo
sin
g. Th
is fl
ex
ibil
it
y has a
ll
owed us t
o mai
nta
in a sm
oot
h
and s
upp
or
ti
ve out
come f
or ou
r cus
tom
er
s, es
pec
ial
ly wit
h many o
f our p
ol
icy
hol
de
rs c
all
ing f
rom a pl
a
ce of
vulnerabilit
y
.
In 20
21 o
ur Cus
tom
er Re
la
tio
ns Team too
k over 4
8,
50
0 ca
ll
s and d
ealt w
ith ove
r 54
,00
0 em
ail
s an
d
online queries.
O
ur pro
duc
t
s are r
ele
vant a
nd pr
ovid
e cos
t ef
fec
ti
ve
protection
Fai
r and co
nsi
ste
nt pr
icin
g
Ef
fic
ien
t and s
ymp
ath
et
ic pro
ces
sing o
f cl
aim
s
Ease of a
cces
s to
customer service
Strong
net promo
ter sc
ore
Retention
rates
Our Cl
ient
s
Ou
r pur
pos
e is to h
elp co
mp
ani
es im
prove t
hei
r ef
fec
ti
ven
ess a
nd pro
fi
ta
bil
it
y
by im
prov
ing t
hei
r st
aff e
ng
age
men
t and re
ten
tio
n. Im
prov
ing s
uch m
etr
ic
s in
turn impr
oves
our customer reten
tion and
encourages new
business.
We eng
age a
nd bu
ild re
l
atio
nsh
ips w
ith o
ur cu
sto
mer
s an
d clie
nt
s in se
vera
l ways f
rom fa
ce-to
-face int
era
ct
ion
to ho
ldi
ng in
dus
tr
y an
d oth
er bu
sin
ess f
oru
ms an
d pro
duc
ing w
hite p
ap
ers o
n top
ics t
hat a
re re
leva
nt fo
r the
ir
bu
sine
sse
s. We al
so r
ecog
nis
e the i
mpo
r
tan
ce of s
yst
em se
cur
it
y fo
r our cu
sto
me
rs an
d the
ir e
mpl
oyees a
nd
have I
SO 270
01 a
ccred
it
atio
n acr
oss t
he wh
ole G
ro
up an
d ISO 9
00
1 cover
ing t
he Emp
loyee B
en
ef
it
s Pl
atf
orm
op
era
ted by t
he Gr
oup
.
Pr
odu
ct r
ang
e, pr
ice an
d qua
lit
y
Conve
nie
nce and a
ccessib
ili
ty
Customer service
Fair marketing
Responsible use of
per
sonal da
t
a
Ethics and sustainability
Our Colleague
s
Th
e Gro
up’s l
ong
-term s
ucces
s is pr
edi
cate
d on t
he com
mit
men
t of ou
r
em
ploye
es to o
ur pu
rpo
se an
d dem
on
str
ati
on of o
ur val
ue
s. In o
rde
r to de
live
r
gre
at cu
sto
mer s
er
vi
ce and i
mpr
ove our a
lre
ady h
igh s
ta
ff e
nga
gem
ent s
core
s
we ne
ed to e
nsu
re th
at we pro
vid
e an ap
prop
ri
ate env
iro
nme
nt to at
tr
ac
t and
retain g
reat
people.
We have an o
pen
, coll
a
bor
ati
ve, an
d inc
lusi
ve ma
nag
eme
nt st
ru
ctu
re an
d eng
age r
egu
la
rly wi
th ou
r emp
loye
es.
We do th
is th
rou
gh an ap
pr
ais
al pr
oces
s, s
tru
ct
ure
d car
eer co
nver
sat
ion
s, e
mpl
oyee su
rv
eys, o
ur Ha
pi si
te and
Com
pa
ny pre
sen
tat
ion
s. We rem
une
rat
e wit
h mar
ket-bas
ed p
ay
, r
ewar
ds an
d ben
ef
it
s and o
ur co
ntin
ued h
igh
em
ploye
e eng
age
me
nt scor
es re
fl
ec
t our co
mmi
tt
ed an
d pas
sio
nate t
eam
. Foll
owi
ng a succ
ess
ful t
ria
l, w
e have
int
rod
uced a h
ybr
id wor
kin
g pol
ic
y for a
ll of
f
ice-
bas
ed s
taf
f. Feed
bac
k tel
ls u
s tha
t thi
s hel
ps em
pl
oyees
ma
int
ain a b
et
ter wo
rk
-li
fe ba
la
nce
, wit
h sub
seq
uen
t gain
s for e
ng
age
men
t and p
rod
uc
tiv
it
y
.
Fair
employment
Fai
r pay an
d ben
ef
it
s
T
raining, development and career opportunities
Health and safety
Responsible use of
per
sonal da
t
a
Ethics and sustainability
Our Suppliers
Ou
r sup
pli
ers a
re fu
nda
me
nta
l to th
e qual
it
y of o
ur pr
odu
ct
s an
d to ens
uri
ng
th
at as a bu
sin
ess we m
ee
t the h
igh s
ta
nda
rd of con
duc
t t
hat we se
t ou
rse
lves
.
Ou
r Hap
i pl
atf
or
m cont
ain
s num
ero
us th
ird-
par
t
y of
fe
rin
gs wh
ich ad
d val
ue to
th
e overa
ll pr
opo
sit
ion
. It is i
mpo
rt
an
t that w
e ens
ure go
od wo
rk
ing
rel
at
ion
shi
ps wi
th th
ose s
upp
lie
rs b
ut al
so t
o cho
ose p
ar
tn
ers t
hat a
llow t
he
Gr
oup t
o fulf
il it
s day-to
-day o
per
ati
ons t
o del
ive
r our p
rod
uc
ts a
nd se
rv
ice
s to
the best
s
tandard
possible.
We regu
la
rly e
nga
ge in o
pen a
nd t
wo-way co
nver
sat
ion
s wit
h ou
r la
rge
st su
ppl
ier
s. Ke
y sup
pli
er
s are inv
ite
d to
at
ten
d and p
res
ent at o
ur cl
ien
t conf
ere
nces o
r wor
ks
hop
s.
We have rev
iewe
d and u
pda
ted o
ur sup
pl
ier o
nbo
ard
ing p
roce
ss th
rou
gh th
e year, and as p
ar
t of t
hat pr
oce
ss we
now f
eel we h
ave imp
roved o
ur un
de
rst
an
din
g of ou
r supp
li
ers a
nd ar
e abl
e to wor
k tog
et
her b
et
ter a
s a res
ult
.
Long-term partnerships
Collab
orative
appro
ach
Open terms of
business
Fair
p
ay
ment t
erms
Our Communit
y
and Environment
Th
e Boa
rd re
cogn
ise
s th
e imp
or
ta
nce of l
ead
ing a G
rou
p tha
t not o
nly ge
ner
ate
s
val
ue fo
r sha
reh
old
er
s but a
ls
o cont
rib
ute
s to th
e wid
er so
cie
ty.
We enco
ura
ge al
l our e
mpl
oyee
s to eng
age i
n the l
oc
al com
mun
it
y and wo
rk w
ith o
ur PACT Co
mmi
tt
ee to ut
il
ise
th
e fun
ds in t
he Pe
rs
onal A
ss
ura
nce Ch
ari
ta
ble Trus
t to sup
po
rt c
har
iti
es at h
ome a
nd ab
roa
d as di
scu
sse
d on
pa
ge 42
. We are con
scio
us of t
he n
eed f
or ou
r bus
ine
ss to fo
cus o
n lon
g-ter
m sus
ta
ina
bil
it
y
, d
uri
ng 20
21 we h
ave
ins
t
all
ed so
la
r pan
el
s on t
he ro
of of o
ur he
ad of
fi
ce and a
re cu
rre
ntly i
n the p
roce
ss of r
enew
ing o
ur f
lee
t wit
h
em
issi
ons a ke
y fac
tor i
n any de
cisi
on ma
de
.
We are cu
rre
ntly r
evie
win
g ways in w
hic
h the G
rou
p ca
n be mo
re ac
ti
ve in th
e loc
al co
mmu
nit
y an
d are
be
ginn
ing d
isc
uss
ion
s wit
h loc
al sc
hoo
ls a
nd col
le
ges t
o sup
por
t th
em a
nd to of
fe
r our
se
lves as a w
ork
ex
per
ien
ce pos
sib
ili
ty f
or th
eir s
tud
ent
s.
Reduce environmental impact
Invest in
local community
Promote environmental offer
ings on platform,
i.e
. Cycl
e to Work
Suppor
ting local community by
creating jobs and
providing w
ork experience and apprenticeships
Our Shareholde
rs
Ou
r sha
reh
old
ers a
re key to t
he l
ong-te
rm su
cces
s of th
e bus
ine
ss. T
hro
ugh o
ur
inve
sto
r eng
age
men
t ac
tiv
iti
es, we s
tr
ive to o
bta
in inve
sto
r bu
y-in int
o our
st
rate
gic o
bje
ct
ive
s and h
ow we pl
an to d
eli
ver o
n the
m. We cre
ate va
lue f
or
our shareholders b
y generating strong sustainable profits and
dividends
Th
rou
gh our i
nves
tor re
l
atio
ns p
rogr
amm
e, w
hich i
ncl
ude
s reg
ul
ar up
date
s, m
eet
ing
s, ro
ads
hows a
nd o
ur
An
nual G
en
er
al Me
eti
ng, we e
nsu
re th
at sh
are
hol
der
s’ vi
ews ar
e bro
ugh
t into t
he Bo
ard
roo
m and co
nsi
der
ed in
our d
eci
sio
n mak
ing
. We intr
odu
ced re
ta
il inve
sto
r roa
dsh
ows fo
r the f
ir
st t
ime i
n 202
1, as b
oth l
ive a
nd vi
rt
ual
even
ts
. Aft
er su
ccess
ive yea
rs of c
los
ed do
or AG
Ms we ar
e loo
kin
g for
w
ard to t
he p
ossi
bil
it
y of mov
ing t
o a
tr
adi
tio
nal AG
M in 202
2 and b
ein
g abl
e to se
e and t
ake qu
es
tio
ns fr
om ou
r sha
reh
old
ers i
n our h
ead o
ff
ice
.
Financial per
formance
Strategy a
nd business
model
Dividend
Lo
ng te
rm gr
owt
h
Re
put
ati
on of t
he G
rou
p
45
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
CORPORA
TE GOVERNANCE
THE BO
ARD CONTINUE
S T
O HA
VE A
SIGNIFICANT
ROLE
T
O PLA
Y
IN EST
ABLISHING
THE CUL
TURE OF
THE
BUSINESS
Dear Shareholde
r
My rol
e as Chair
man of P
ers
onal G
roup is to
ensu
re that t
he Bo
ard is pe
r
form
ing it
s role
ef
fec
ti
vely
. Th
is mean
s makin
g sure th
e Dire
cto
rs
have th
e cap
acit
y
, a
bili
t
y
, st
ru
ctu
re, diver
sit
y an
d
supp
or
t to re
spon
d to the o
ppo
r
tunit
ies b
eing
create
d for us
, whil
s
t having con
sider
atio
n of
our re
spon
sibil
iti
es und
er s1
72 of th
e Comp
anie
s
Act 20
06
.
I al
so have re
spons
ibil
it
y for ens
urin
g the ro
bust
gover
nance of t
he Gro
up th
rough ch
alle
nge an
d
dire
ct
ion of t
he Sen
ior Le
ader
ship T
e
am. G
ood
governance
should enhance per
formance and
del
iver p
osit
ively for o
ur share
hold
ers
, st
af
f
,
customers, suppliers and o
ther st
ak
eholder
s
whil
s
t st
ill en
abl
ing ach
ieveme
nt of the G
roup’s
strategic aims.
Th
e Boa
rd contin
ues to h
ave a signif
ica
nt role to
pl
ay in es
tab
lish
ing th
e culture of t
he bu
sines
s,
ensu
ring t
hat it is con
siste
nt wit
h our bus
ines
s
mo
del an
d suit
ably ca
sca
ded t
hrough t
he G
roup.
Th
is is moni
tored t
hrou
gh enga
gem
ent wit
h the
wider in
vestor community
, through i
nv
olvement
of th
e Boa
rd Comm
it
tees a
nd by use of t
he
wid
e-ra
nging e
xpe
rie
nce, ski
ll
s and c
apa
bili
tie
s of
Board members.
We have worked on an i
ntegr
ated succe
ssio
n
pl
an for t
he Bo
ard an
d, as note
d in my Chai
rman’s
rep
or
t ear
lie
r in this d
ocum
ent
, we have
emb
edd
ed th
e Boa
rd chang
es (b
oth exec
uti
ve
and n
on-e
xecut
ive) made i
n 2020 an
d 2021
.
Wi
th Mar
k Wi
nlow
, G
roup Ch
air
, de
par
t
ing th
e
Per
so
nal Gro
up Hol
dings B
oard in M
ay 2021 I a
m
ple
ased to h
ave taken on h
is role. I
n addi
tion
, Lia
m
McG
rat
h has joi
ned t
he Bo
ard as Chi
ef Op
erat
ing
Of
f
icer an
d And
y Lothia
n, havin
g ste
ppe
d down
from h
is execu
tive du
tie
s, has re
maine
d wit
h the
Bo
ard in a No
n-E
xecut
ive ca
paci
ty.
Th
is year has cont
inue
d to se
e chall
enge
s as a
result of t
he COVID
-19 pand
emic a
nd th
e Boa
rd
has b
een fo
cuse
d on sup
por
t
ing th
e Seni
or
Lead
ers
hip T
ea
m in ensur
ing t
he emp
loyees of t
he
Com
pany are su
ppo
r
ted in t
heir ro
les be i
t from
th
e off
ice or wo
rki
ng from h
ome. E
nsuri
ng our
st
af
f have the r
ight sup
por
t
, not jus
t in ter
ms of
equ
ipme
nt but al
s
o wit
h thei
r ment
al hea
lth, ha
s
conti
nued t
o be a maj
or pri
ori
ty f
or th
e Boa
rd
during this time.
In 202
1, we cont
inue
d to develo
p our g
overnan
ce
pro
cesse
s to imp
rove adhere
nce to th
e Quote
d
Com
pani
es All
ian
ce (QCA) Co
rpo
rate G
overnan
ce
Cod
e which t
he G
roup ad
opted in 2
018
. The B
oard
doe
s not consi
der t
hat it de
par
t
s fro
m any of the
pr
incipl
es of th
e Cod
e and we cont
inue to m
onito
r
our p
er
for
mance a
gains
t each of t
he 10 p
rin
ciple
s.
Th
e Boa
rd is able t
o del
iver ef
fec
ti
ve decisi
on
mak
ing an
d subse
que
nt drive of va
lue fo
r
share
hold
ers
, bas
ed on t
he qua
lit
y info
rmat
ion
whi
ch it recei
ves.
Our last independent board
ef
fectiveness revie
w
was ca
rr
ied ou
t in 201
9 and, in l
ine w
ith o
ur
comm
itm
ent und
er the Q
CA Co
de (Pr
incip
le 7
) we
wil
l be cond
uc
ting a f
ur
th
er one t
owards th
e end
of 202
2. In th
e meant
ime, d
urin
g 202
1 we
cond
uct
ed an inte
rnal e
ff
ec
tiven
ess rev
iew and
are in t
he pro
cess of ad
dres
sing th
e poi
nts r
aised
.
Th
e Boa
rd met 1
0 time
s in 202
1 and t
he num
ber of
me
eting
s each D
irec
tor at
ten
ded c
an be se
en on
pag
es 50 a
nd 51. In ad
dit
ion, t
he rep
or
t
s of the
Audi
t, Ris
k and Co
mpl
iance, N
omin
ation
s and
SM&
CR and Re
mune
rati
on Com
mit
tee
s can b
e
se
en lat
er in t
his sec
ti
on.
Martin Bennett
Independent Non-Exec
utive Ch
air
Chairman’s Introduc
tion
2021 Commi
ttee meeting
dates
Board
21 J
an
22 Fe
b
17 Ma
r
5 May
26 May
30 Jun
21 J
ul
28 Sep
2
1 Oc
t
23 Nov
Audit
11 Mar
14 Se
p
2
3 Nov
Risk & Complianc
e
11 Mar
30 Ju
n
14 Se
p
2
3 Nov
Nomination
21 J
ul
Remuneration
21 J
an
17 Mar
21 J
ul
2
1 Oc
t
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
46
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
CORPORA
TE GOVERNANCE
QCA Code complianc
e
Principle 1
Establish a strategy and
busine
ss
model, which promote
long-term
value for shareholders.
Pe
rso
nal G
roup p
rovid
es in
sura
nce se
r
vice
s and a br
oad r
ang
e of emp
loyee b
enef
it
s an
d well
be
ing pr
odu
ct
s to
bus
ines
ses a
cros
s the U
K
. The G
rou
p enab
les e
mploye
rs to i
mprove e
mpl
oyee eng
age
ment a
nd sup
por
t t
hei
r peo
ple’s
phys
ical
, me
nta
l, s
ocia
l and f
ina
ncia
l well
bei
ng, su
ppo
r
tin
g our vi
sion o
f creat
ing a br
ighte
r fut
ure fo
r the U
K
wor
kfo
rce. Ful
l det
ail
s of o
ur bus
ines
s mod
el an
d st
rate
gy ca
n be fo
und in t
he Str
ateg
ic Rep
or
t se
ct
ion of o
ur An
nual
Rep
or
t (p
age 24) and A
ccount
s whi
ch are ava
il
able o
n our C
omp
any webs
ite (w
w
w
.
pe
rso
nalgr
oup.com).
Principle 2
Seek to
understand and meet
shareholders’ needs
and expectations.
Reg
ul
ar dia
logu
e ta
kes pl
ace wi
th sha
reh
olde
rs t
hrou
gh ini
tiat
ives i
nclu
ding t
he An
nual G
en
era
l Mee
ting
, inves
tor
roa
dshow
s, re
gul
ator
y a
nno
unce
ment
s an
d the R
epo
rt a
nd Accou
nts
. Du
ring 2
021 o
ur Chi
ef E
xecut
ive, CFO, C
hair
man
and ot
her N
on-E
xec
uti
ve Dire
cto
rs m
et vir
tu
ally, and in p
ers
on
, wit
h key invest
ors
. We als
o hos
ted o
ur f
irs
t ret
ail
inves
tor eve
nts i
n Marc
h and S
epte
mbe
r 2021
.
Principle 3
T
ake in
to accoun
t wid
er st
akeho
lde
r
and social
responsibilities and their
imp
lica
tion
s for l
ong-te
rm su
ccess.
As a B
oa
rd we und
ers
t
and ou
r dut
y to p
romot
e the su
ccess o
f the Co
mpa
ny whi
ls
t consi
der
ing t
he vi
ews of, and
imp
ac
t on, o
ur wi
der s
ta
kehol
der gr
oup of c
usto
mer
s, p
oli
cy
hold
er
s, sup
pl
ier
s, col
leag
ues a
nd ou
r commu
nit
y an
d
envi
ronm
ent as we
ll as o
ur sha
reho
lde
rs. A m
ore d
eta
iled s
umm
ar
y of th
e Gro
up’s en
gage
ment w
ith a
ll ou
r
st
akeh
olde
rs c
an be s
een o
n pag
es 4
4-45.
Principle 4
Embed effective risk mana
gement,
considering both opportunities and
threats, throughout the
organis
ation.
Th
e Boa
rd is re
spo
nsibl
e for id
ent
if
ying a
nd mit
igat
ing r
isk
s to th
e Gro
up ach
ievin
g it
s st
rate
gic ob
jec
ti
ves. I
t addr
ess
es
ris
k mana
gem
ent th
rou
gh an “
Enter
pri
se Ri
sk Man
agem
ent Fra
mewor
k”, and a sy
ste
m of ris
k gover
nance
, incl
udi
ng a
Ris
k and Co
mpl
ian
ce Comm
it
tee. D
ur
ing 202
1, a r
isk b
ase
d inter
nal a
udit f
unc
ti
on was a
gain p
rovid
ed by R
SM. Fo
r
fur
t
her d
et
ail
s se
e pag
e 53.
Principle 5
Mai
ntai
n the B
oard a
s a well-
functioning, balanced team led
by the C
hair
.
Th
e Gro
up mai
nta
ins, a
nd is s
atis
fi
ed th
at, t
he B
oard h
as a sui
tab
le ba
la
nce of in
dep
end
ence a
nd kn
owled
ge, w
ith
Dir
ec
tor
s enco
urag
ed to ch
all
enge a
ll mat
te
rs
. The B
oar
d mee
ts re
gul
ar
ly
, wi
th a fo
rma
l sche
dul
e of mat
ter
s for i
ts
app
roval
. T
he Bo
ard is s
upp
or
ted by re
gul
ar e
ngag
eme
nt wit
h th
e Sen
ior Le
ade
rsh
ip T
ea
m, an
d a sys
tem o
f form
al
Bo
ard com
mit
tee
s. D
irec
tor
s are r
equi
red to d
evote suf
f
icie
nt tim
e to ca
rr
y ou
t the
ir rol
e.
Principle 6
Ens
ure th
at be
twee
n the
m the
Dir
ec
tors h
ave the ne
cess
ar
y
up to da
te exp
erie
nce, s
kill
s and
capabilities.
Th
e bac
kground a
nd ex
per
ien
ce of th
e Boa
rd ens
ures t
her
e is an ef
fe
ct
ive an
d app
ropr
iate b
al
ance of sk
ill
s a
nd
kn
owled
ge. Ad
dit
ion
al tr
aini
ng is prov
ide
d whe
re ne
ede
d and B
oard m
emb
er
s are en
cour
age
d to mai
ntai
n the
ir
prof
essi
onal d
evelo
pme
nt. A
s not
ed on p
age 4
6 the
re have be
en t
wo add
iti
ons to t
he Bo
ard i
n the yea
r wit
h Mar
t
in
Be
nnet
t an
d Lia
m McG
rat
h tak
ing u
p the
ir rol
es as Cha
irm
an an
d COO res
pec
ti
vely
. T
he re
cent B
oard e
f
fec
tive
nes
s
revi
ew has h
ighl
ighte
d the n
ee
d for an a
ddi
tio
nal No
n-E
xecut
ive, t
he se
arch fo
r whi
ch is un
der
way.
Principle 7
Evaluate
Board performance based on
cle
ar and r
elev
ant ob
jec
tive
s, see
king
continuous
improv
ement.
Bo
ard me
mbe
rs a
re eac
h set an
nual o
bje
ct
ives
, wit
h per
fo
rma
nce fe
edb
ack pr
ovid
ed by cor
resp
ond
ing E
xecut
ive an
d
No
n-Exe
cut
ive me
mbe
rs. B
oa
rd eval
uati
on is t
he res
pons
ibil
it
y of th
e Chai
rma
n. Inte
rna
l Boa
rd ef
fe
ct
iven
ess rev
iews
are u
nder
t
aken ye
arly, with in
dep
end
ent rev
iews a
t leas
t ever
y t
hree ye
ars
. Th
e consis
tent t
he
mes f
rom th
e 202
1
Inte
rna
l revie
w have bee
n fed b
ack to t
he B
oard a
nd ac
ti
ons ar
e bei
ng wor
ked on.
Principle 8
Pro
mote a cor
por
ate cultu
re that i
s
bas
ed on e
thic
al val
ues
and behaviours.
Th
e Boa
rd be
lieve
s Gro
up cult
ure is s
et fro
m the t
op of th
e org
anis
ati
on. T
he Bo
ard p
romot
es a cult
ure ba
sed a
roun
d
fou
r valu
es: S
oli
d, Eng
aging
, Dr
iven a
nd Ex
per
t
. Th
es
e valu
es for
m a core p
ar
t of how t
he bu
sine
ss is ma
nag
ed, f
rom
rec
rui
tme
nt to tr
aini
ng, an
d ong
oing re
ward a
nd reco
gni
tio
n. An e
mploye
e sat
isf
ac
tio
n sur
vey is c
arr
ied o
ut on a
n
ann
ual b
asis
, wit
h the re
sult
s fed b
ack t
o the B
oar
d. De
spit
e the o
ngoi
ng imp
ac
t of COVID
-
1
9 and t
he move to hy
bri
d
wor
king t
he G
roup’s e
nga
gem
ent sco
res re
main
ed ver
y h
igh an
d rema
ins a so
urce of p
rid
e for t
he Bo
ard
.
Principle 9
Mai
ntai
n govern
ance s
tru
ctur
es an
d
pro
cess t
hat ar
e fit fo
r pur
pos
e and
support good decision-making
by
the Boar
d.
Th
e Boa
rd is col
lec
ti
vely res
pon
sible f
or th
e lon
g-
ter
m succe
ss of th
e Gro
up an
d for se
tt
ing an
d exec
uti
ng the b
usin
ess
st
rate
gy. It fulf
il
s thi
s resp
onsi
bil
it
y thro
ugh B
oar
d and ot
her Co
mmi
tte
e mee
tin
gs hel
d regu
la
rly th
roug
hou
t the ye
ar
.
Th
e mee
ting
s hel
d in 202
1 for t
he Bo
ard an
d othe
r Com
mit
tee
s can b
e se
en ab
ove.
Principle 10
Communicate
how the
Company
is gove
rne
d and is p
er
for
ming by
maintaining a dialogue with shareholders
and other
relevant
stakeholders.
The Group communicates through a
variety of regular digital and traditional communications. These include face-
to-
face m
eet
ings
, th
e Annu
al Re
por
t an
d Account
s
, Inter
im Re
sult
s, inve
sto
r news a
nnou
ncem
ent
s and i
nfor
mati
on
prov
ide
d on th
e Gro
up’s web
site
.
47
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
BOARD
ACTIVITY
IN
2
02
1
STRA
TEG
Y
AND
DEVEL
OPMENT
W
e are focused on building a business
with
room to gr
ow
in the medium and long-
term, and those
foundations are now
in
place
GO
VERNANCE
AND RISK
W
e continued to identify
, assess, manage
and appropriately
mitigate the k
ey risks
to
the Group in achieving its objectiv
es
THIS
YEAR,
THE KEY
BUSINESS
AND
A
CTIVITIE
S OF
THE BO
ARD
INCL
UDED
At our st
rate
gy day in J
une 20
21, we re
fle
cte
d on ou
r
prev
iously st
ate
d str
ateg
ic aims an
d grow
th asp
irat
ions
to wid
en th
e footp
rint of t
he bus
ines
s and to do
uble
th
e EBIT
DA in the mi
d-term
. W
e ref
ine
d this f
ur
the
r to
conce
ntrate o
n tho
se area
s of the b
usine
ss that we
bel
ieve have t
he greate
st p
otentia
l to del
iver on t
his.
Th
is has resu
lted in t
he ide
ntif
icat
ion of t
hree co
re
pil
lar
s of foc
us to del
iver t
he ref
ine
d st
rate
gy:
Dr
ivin
g insur
ance s
ales t
hroug
h new and e
xis
ting
channels
T
ransforming reward
and bene
fit
s
Acceler
atin
g SME
In resp
ons
e to our s
trat
egy re
set
, we al
so consi
dere
d
th
e form
at of our Bo
ard me
eti
ngs to hel
p sup
por
t t
his
and h
ave conseq
uently re
shape
d the s
tr
uc
ture of ou
r
age
nda to en
able a
n increa
sed am
ount of t
ime an
d
focu
s to be sp
ent on th
e areas t
hat wil
l hel
p del
iver o
n
our s
tr
ategy.
In l
ine wi
th th
e revise
d for
mat for ou
r Boa
rd mee
tings
,
we al
so ad
opted a sl
ight
ly dif
ferent ap
proa
ch to our
work at t
he Ri
sk and Co
mpl
iance Co
mmit
te
e.
We have c
onti
nued t
o cover all rel
evant area
s of risk
and co
mpl
iance bu
t have focus
ed de
bate o
n
excepti
ons. W
it
h the t
ime s
aved we now ad
dress t
wo
‘dee
p dives’ at e
ach me
etin
g on subj
ec
ts re
garde
d as
eit
her n
ew risk
s or are
as whe
re we percei
ve we have
incre
ased r
isk wh
ich are key to us ac
hievin
g our bu
sines
s
objectives.
In addition, through our out
sourced in
ter
nal audit
fun
ct
ion, p
rovide
d by RSM
, we have chang
ed ou
r
app
roach t
o ensure t
hat we not on
ly focus on t
he
ef
fec
ti
venes
s of key intern
al contro
ls b
ut al
so t
hos
e
areas of t
he bu
sines
s that a
re potent
ially go
ing to
wit
nes
s the m
ost c
hange a
s we progre
ss on ou
r jour
ney
to grow
t
h.
In 202
1 we al
so int
rodu
ced a No
minat
ions an
d SM&
CR
Com
mit
tee to e
nable f
ocus
ed dis
cussio
ns arou
nd the
comp
osit
ion of t
he Bo
ard and t
he G
roup req
uirem
ent
s
arou
nd SM&
CR, w
hich ha
d previo
usly bee
n discu
sse
d as
par
t of re
gul
ar Bo
ard m
eeti
ngs.
Read more about Our
Strategy |
page 24
Read more about Risk |
pages 36-
37 & 53
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
48
Personal Group
Holdings Plc
· Ann
ual R
epo
rt a
nd Acco
unt
s 202
1
PERF
ORMANCE
MONIT
ORING
The monthly
review
provided
to the Board
includes an update on progress
for
the lead
indicators KPIs introduced in 2020
CUL
TURE AND
ENGA
GEMENT
The Board continues
to have a significant
role to pla
y in establishing the cultur
e of
our business, ensuring it is c
onsistent with
our business model
In 2020, a
s par
t of ou
r st
rateg
y for de
live
ring lo
ng-ter
m
sus
tai
nable g
rowt
h, we id
entif
ie
d a numb
er of lea
d
indi
cator
s, t
he imp
rovement of w
hich wi
ll ena
ble us to
grow bot
h our reven
ue and p
rofi
ts a
nd bui
ld fut
ure
value f
or the business.
In 202
1 we have regu
lar
ly reviewe
d both t
hes
e lead
indi
cator
s and t
he lower l
evel KPI
s which si
t ben
eath
th
em to mo
nitor o
ur per
fo
rma
nce agai
nst o
ur st
rateg
y
.
In ad
diti
on we reg
ula
rly review a
nd consi
der ou
r KPIs
arou
nd ES
G which we
re al
so int
roduce
d in 2020.
All of t
hes
e met
ric
s are brou
ght into consi
der
ation by
the Remunera
t
ion C
ommit
tee for
the developmen
t of
annu
al bo
nus sch
emes a
nd pe
r
form
ance t
arget
s for t
he
Gro
up’s long t
erm in
centi
ve pla
n for th
e seni
or
leadership team.
Suppor
ting, communicating with and rewarding
our
own pe
opl
e has be
en a key focus t
his year a
nd we
impl
eme
nted a f
lexib
le hybr
id wor
king p
oli
cy to c
ater
for a b
road va
riet
y of p
ers
onal p
refere
nces an
d spent
tim
e reaf
f
irmi
ng our core v
alue
s as a team
.
Our c
ulture an
d value
s are al
so a
n impo
r
ta
nt par
t of
what we lo
ok for i
n new ca
ndid
ates to jo
in our B
oard
and S
enio
r Lead
ersh
ip T
eam a
nd cons
eque
ntly our
app
ointm
ent
s in 202
1 were a mix
t
ure of exp
eri
enced
ex
ternal appointm
ents alongside several internal
promo
tions.
72% employ
e
e
engagemen
t score
We ran our yea
rly
employ
ee engagement
sur
vey in O
cto
ber 20
21
.
We were del
ighted w
ith an
overal
l score of 7
5% acros
s
th
e Group.
Read more about our
Key
Performance Indicators |
page 28
Read more about our
People |
page 41
49
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
BOARD
OF
DIRECTORS
Sarah Mace
Chie
f Fina
ncial O
f
fice
r
Deborah Frost
Gro
up Chi
ef Exe
cuti
ve
Liam McGrath
Chief
Operating
Off
icer
Martin Bennet
t
Non-Execut
ive Chairman
EXPERIENCED
MANAGEMENT
TEAM
THE BO
ARD HAS
A
COMBINED
WEAL
TH OF
KNO
WLEDGE
AND EXPERIENCE
T
O HELP
THE BUSINESS
A
CHIEVE
SUCCE
SS
AND KEEP
IT
MOVING
FORW
ARD
.
Appointed date
Experience
Skills, personal
qualities and
capabilities
External
appointments
Committee
membership and
Board attendanc
e
January 2021
September 2015
(pre
viously Non-Ex
ecutive
Director; appointed CE
O
February
2019)
October 2020
(pre
viously Compan
y Secr
etary
from April
2014)
May
2021
Martin is an experienced
non-executiv
e and chairman,
bringing ov
er 20
years of
financial servic
e experience to
businesses. He has a diverse
and extensive skill
set,
stretching acr
oss commerce,
operations and
finance. Prior
to
embarking on a non-executiv
e
career
in 2018 Martin spent
nearly
15 years at H
omeServe
plc creating a FTSE 250
services business, holding CEO
,
COO and CFO r
esponsibilities in
the UK, US and Europe.
Befor
e this he
spent thr
ee
years as Finance Dir
ector of
Clarity Gr
oup and 10 years at
Arthur Andersen wher
e he
work
ed in audit and
transaction services.
An accounting and
finance
graduate, Martin is a F
ellow
of
the Institute of Charter
ed
Acc
ountants.
A Chart
ered F
ellow
of the CIPD
,
Deborah is a respected and
ground-br
eaking thought-
leader in r
eward.
Sarah is a Fello
w Member o
f
the A
ssociation of
Chartered
Certified
Accountants and also
has a Master’s degree in
mathematics fr
om
Oxfor
d
University
.
Liam graduated
with honours
in History
from the Univ
ersity
of Bristol. His earl
y career
was
as an Infantry
Officer
where he
completed Operational
T
ours
in Northern Ireland and Ir
aq.
Chairman of
V
entureprise plc,
Lumon, and
the
Association of
For
eign Exchange and
Payments C
ompanies (AFEP).
10/10 Meetings attended
None
10/10 Meetings attended
None
10/10 Meetings attended
Non-Executiv
e Director at
Astral
PS Ltd
6/6 Meetings attended
C
Deborah
was appointed Gr
oup
Chief Ex
ecutive in February
2019.
Befor
e joining Personal Gr
oup,
Deborah had a diverse
back
ground and long-standing
career
spanning over
two
decades in both industry
and
consultancy
. She co-
founded
Innecto Rew
ard Consulting in
2002, which has sinc
e become
the largest independent
rew
ard consultancy
in the UK.
Her r
ole involv
ed her securing
and successfull
y delivering
multiple global
projects
for
prestigious clients including
Boden, Caffè Ner
o, Grosvenor
Estate, England &
Wales
Cricke
t Board, ITN, and
Arsenal
Football
Club.
Sarah joined Personal
Group in
January 2014 as Gr
oup
Financial C
ontroller
and
Company
Secretary
.
Previousl
y Head of
Finance for
private equity
owned Chicago
Leisur
e Ltd she also has
experience in a br
oad range of
industries including roles at
large communications firm
Cable and Wir
eless and various
life and pensions companies.
Sarah is particularly
proud tha
t
Personal Gr
oup is one of only
four
out of 844
AIM-listed
businesses that ha
ve both a
female CEO and CF
O.
Prior
to joining Personal Group
,
Liam w
as Group Chief
Operating Officer
for
Advanc
ed, the UK’s third
largest pr
ovider
of business
softwar
e and services to ov
er
19,000 cust
omers wher
e he
had responsibility
for all
customer support and
prof
essional services.
Liam has held large opera
tional
roles in r
etail financial
services
for
ov
er 15
years, w
orking for
brands such as Equniti Gr
oup
plc, RBS, RSA
and GE Consumer
Finance.
I
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
50
Personal Group Holdin
gs Plc
· Annu
al Re
por
t an
d Accoun
ts 20
21
BOARD
OF
DIRECTORS
Andy Lothian
Non-E
xecutive Direc
tor
Bob Head
Non-E
xecutive Direc
tor
Maria Darb
y-
Walker
Senior No
n-Executive
Direc
tor
Damian Kane
Fin
ance Di
rec
tor an
d
Company Secretary
Committee membership ke
y
Audit
Committee
Nominations
&
SM&CR Committee
Remuneration
Committee
Risk and Compliance
Committee
C
Chair o
f Committee
I
Independent
June 2019
(Appointed Senior
Non-Executive
Director
in January 2021)
November
2016
July 2017
(pre
viously Ex
ecutive Dir
ector
,
appointed Non-Ex
ecutive
Director
in January 2021)
October 2020
Beyond her
technical
and
industry qualific
ations, Maria is
also a qualified leadership
coach and mentor
.
Bob has solid blue-chip
experience
with big brands and
business and a rich tapestry
of
management roles.
Andy hase
xtensive kno
wledge
and experience of
the
important day
-to-day
role tha
t
all Personal
Group employ
ees
play
in the de
velopment and
gro
wth of
the business.
Damian is a Chartered
Acc
ountant and holds a degr
ee
in Economics and Politic
s fr
om
the University
of
Southampton.
Non-Executiv
e Director at
Redwood Bank L
td, Board
Gov
ernor at Univ
ersity of
Central
Lancashire, and
Non-Executiv
e
Director
for
Amigo Loans Plc.
10/10 Meetings attended
Non-Executiv
e Director at
Alexander
Forbes and Chair of
Audit and Remcom
committees at Mirriad.
10/10 Meetings attended
None
10/10 Meetings attended
None
10/10 Meetings attended
C
C
C
Maria joined Personal Gr
oup as
Non-Executiv
e Director in
June 2019 and is Chair o
f
the
Remuneration C
ommittee.
In 2005 she started her o
wn
consultancy
, advising the
Boards of
leading brand names
on business-critical
issues
including mergers and
acquisitions, crisis
management, brand and
reputation, E
SG, equality and
diversity
, and financial
regulation. Her
client list
included: The Financial
Conduct Authority
, The
Investmen
t Association,
Unum,
Iglo / Birds E
ye, Cadbury and
Rio Tin
to amongst others.
Bob joined Personal Gr
oup in
July
2016. With ov
er 25 y
ears in
Non-Executiv
e Director Roles,
Bob brings an extensive r
ange
of kno
wledge and experience
to the Board.
His diverse
working life has
seen him work worldwide with
almost every
branch of
financial servic
es. He also has
experience of
software and
marke
ting companies as
well
as gov
ernment.
Andy L
othian joined Personal
Group in 1998 as a Gr
oup
Acc
ount Executiv
e focusing on
new
business sales and client
servicing. His passion for
exc
ellence, drive, and
commitment has seen him go
from str
ength to strength. His
journey
at Personal Group has
evol
ved greatl
y over
the last
two decades,
through Sales
Management roles and
even
tually 11
years as
Managing Director
ofPersonal
Group Benefits.
In January
2021 Andy
moved
into a Non-Ex
ecutive Dir
ector
role on
the Board.
Damian first joined the
business in 2015 as Senior
Finance Manager
, with his r
ole
evol
ving to Financial C
ontr
oller
in 2018. He w
as appointed
Finance Direct
or and Compan
y
Secretary
in 2020.
Damian has extensive
knowledge and experienc
e in a
variety
of industries having
held finance positions within
Amtech Group L
td and
Connells Group subsequen
t to
his prof
essional training as an
auditor
for Grant
Thornton UK
LLP
.
I
I
51
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
Karen Thornley
Chief
Commerc
ial Officer
Kar
en joi
ned Pe
rs
onal G
roup a
s Chief
Com
merci
al Of
fi
cer in Ma
rch 202
1,
bringing over 20
years’ commercial
and s
tr
ategic e
xpe
rie
nce to th
e role.
Kar
en is al
so CEO of In
nec
to Rewa
rd
Consulting where she is responsible
for providing inspired leadership and
strategic direction across all aspect
s
of t
he com
pa
ny
.
SENIOR LEADERSHIP TEAM
AN
ADEPT
SENIOR LEADERSHIP
TEAM
REFLECTING
ALL
FA
CETS OF
THE GROUP
Deborah Frost
Gro
up Chi
ef Exe
cuti
ve
Sarah Mace
Chie
f Fina
ncial O
f
fice
r
Richard Thompson
Chie
f Cust
omer & P
rodu
ct O
ff
ice
r
Jul
ie St
ay
te
Chief People Off
icer
Liam McGrath
Chief
Operating
Off
icer
Se
e Boa
rd spre
ad on pre
viou
s page
.
Se
e Boa
rd spre
ad on pre
viou
s page
.
Se
e Boa
rd spre
ad on pre
viou
s page
.
Rich
ard was a
ppo
inted as C
hief
Cus
tome
r & Prod
uct O
f
fice
r in
Janu
ar
y 202
2. Wi
th a st
rong
technical back
ground, Richard can
ide
ntif
y cl
ient req
uire
ment
s and
dri
ve our cont
inua
l improvem
ent
.
Rich
ard is al
s
o Manag
ing Di
rec
tor of
Let’s C
onne
ct
. He h
as a wealth of
knowledge of its business operations,
pro
duc
ts a
nd se
r
vices a
nd has le
d
the e
xecut
ion of l
arg
e multi
facete
d
proj
ec
ts f
or cli
ent
s.
Julie joined Personal Group in August
202
1 as Inter
im Hu
man Re
source
s
Dire
ct
or
, and t
ook on t
he ro
le of Chie
f
People Of
ficer from January 2022.
Jul
ie po
sses
ses a we
alth of
exp
eri
ence in co
mmer
cial HR an
d
has operated within dema
nding,
fast
-p
aced environments, including
working within Financial Ser
vices,
Retail, Hospit
ality
, A
viation and
Manufac
turing.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
52
Personal Group Holdin
gs Plc
· Annu
al Re
por
t an
d Accoun
ts 20
21
RISK
AND COMPLIANCE
COMMITTEE REPORT
THE ROLE OF
THE COMMITTEE IS
T
O
O
VERSEE C
OMPLIANCE IN CONJUNCTION
WITH THE OVERALL
APPRO
ACH T
O
GO
VERNANCE
AND RISK
MANAGEMENT
.
Upd
ating a
nd fur
t
her d
evelop
ing th
e Own Ri
sk
and S
olvenc
y As
sess
ment (OR
SA) for P
ers
onal
As
sura
nce Plc. T
he O
RSA pr
ocess is we
ll
emb
edd
ed and t
he Co
mmit
te
e and Bo
ard ap
ply
th
eir min
ds to new p
otentia
l or ac
tual r
isks
. For
exam
ple, i
nfl
atio
n is viewe
d as a more m
ateri
al
risk t
his revi
ew comp
ared to p
rior ye
ars
.
Gre
ater foc
us bei
ng appl
ie
d to the over
sight of
th
e Healt
h and S
afet
y Comm
it
tee, sp
ecif
ic
ally
ensu
ring G
overn
ment ad
vice rel
ati
ng to th
e
COVID
-
1
9 pan
demi
c was comp
lie
d wit
h at all
times.
In ad
diti
on to th
e above, ot
her wor
k und
er
ta
ken
dur
ing th
e year com
pris
ed:
Over
sight of t
he fur
t
her e
mbe
dding of d
ata
(speci
fi
cal
ly GDPR rel
ate
d) ar
rang
ement
s
.
The con
t
inued
monitoring
of the adequacy and
ef
fec
ti
venes
s of the G
roup’s r
isk mana
gem
ent
incl
uding e
merg
ing and f
ocus r
isks b
eing
infor
med by d
ata f
rom our T
r
eatin
g Custo
mer
s
Fairly (
TCF) an
d Cond
uc
t Risk dash
boa
rds.
T
he ongo
ing r
eview
, considera
t
ion
and appr
ova
l of
th
e exis
ting G
roup p
oli
cies us
ed acr
oss th
e busin
ess
.
Consi
der
ation o
f manag
eme
nt inform
atio
n
whi
ch conf
irms l
evel
s of qual
it
y and com
pli
ance.
and t
he ef
fe
ct
ivene
ss of th
e Infor
matio
n
Securit
y Management S
ys
tem.
As i
n previo
us year
s, th
e Comm
it
tee has a
ppl
ied it
s
min
d to the r
isk log
s both in te
rms of co
mplet
enes
s
and h
ow risk
s are opt
imise
d. Th
e Comm
it
tee has a
l
so
worke
d tight
ly with t
he Audi
t Comm
it
tee to e
nsure
that t
he Co
mmit
te
es nei
the
r dupl
icat
e work no
r allow
thi
ngs to sl
ip bet
wee
n the ga
ps.
Bob Head
Independent Non-Exec
utive Dir
ector
28 March 2
022
Dear Shareholde
r
I am pl
ease
d to pres
ent th
e Risk an
d Compl
ian
ce
Com
mit
tee Re
por
t fo
r the yea
r ende
d
31 December 2021.
Objectives
Th
e role of t
he Comm
it
tee is to over
se
e
complianc
e with Prudential R
egul
ation
Authority
and F
inan
cial Con
duc
t Auth
ori
ty r
equire
ment
s,
as wel
l as other a
ppro
priat
e regul
ati
ons wh
ich
imp
ac
t the G
roup, in con
junc
tio
n wit
h the over
all
app
roach t
o govern
ance an
d risk ma
nagem
ent
,
incl
uding s
et
ting t
he G
roup’s ris
k appe
tite a
nd
monitoring
and re
viewing the impact o
f bus
iness
dec
isions u
pon t
he ca
pit
al held by t
he G
roup over
and a
bove the s
t
atutor
y m
inimu
ms.
Activity during the y
ear
We have adopted a s
light
ly dif
ferent ap
pro
ach to
our wo
rk th
is year
. We stil
l cover the s
ame g
round
but h
ave focus
ed deb
ate on e
xception
s. Wi
th th
e
tim
e saved we d
o two “de
ep di
ves” in eac
h
me
eting o
n subje
ct
s t
hat th
e memb
ers re
gard as
eit
her n
ew risk
s or are
as whe
re we percei
ve we
have incre
ased r
isk. E
ach me
etin
g we review o
ur
lis
t of pl
ann
ed “dee
p dives” f
or subs
equ
ent
meetings
.
Th
e Commi
tt
ee’s Cha
irma
n repo
r
ts fo
rma
lly to
th
e Boa
rd on it
s pro
ceedi
ngs af
ter e
ach me
etin
g
and d
urin
g the yea
r the Co
mmit
te
e met fou
r
times, overseeing significant Group-wide project
s
which included:
A revie
w of the G
roup’s ap
proa
ch to
Enviro
nment
al
, Soc
ial and G
overna
nce mat
ter
s
and to t
he f
inan
cial r
isks p
ose
d by clim
ate
change.
Fair valu
e for insu
ran
ce custo
mer
s.
Th
e qual
it
y of insur
ance s
ales m
ade as o
ur
f
ield-
base
d sal
es st
af
f retur
ne
d to work
.
Th
e Grou
p’s resil
ience a
gains
t cyb
er t
hreat
s.
Ensur
ing vu
lne
rab
le cust
omer
s are id
enti
fie
d
and su
ppo
r
ted du
ring t
heir re
lat
ionsh
ip wit
h the
Gr
oup.
MEETINGS HELD
4
RISK AND
COMPLIANCE
COMMITTEE MEMBERS
Meeting Attendanc
e
Bob Head (Chair)
4
/4
Martin Bennett
4
/4
Maria Darby-
Walk
er
4
/4
Andy Lothian
4
/4
Deborah Frost
4
/4
Sarah Mace
4
/4
Liam McGrath
3/3
Mark Winlow
1/1
53
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
AUDIT
COMMITTEE
REPORT
THE
AUDIT
COMMITTEE C
ONTINUES
T
O PRO
VIDE
ASSURANCE
THA
T
SHAREHOLDERS’
INTERESTS
ARE BEING PR
OPERL
Y
PRO
TECTED B
Y
APPROPRIA
TE FINANCIAL
MANAGEMENT
,
REPOR
TING
AND INTERNAL
CONTROLS
.
Dear Shareholde
r
Th
e Commi
tt
ee has fo
cuse
d on ens
urin
g that t
he
chan
ges to t
he wor
king e
nvironm
ent and n
eed
s of
th
e Group’s s
t
akehold
ers h
ave been a
ppro
priat
ely
dea
lt with a
nd relev
ant chan
ges to f
ina
ncial
mana
gem
ent and int
erna
l control
s have b
een
impl
eme
nted, e
nsuri
ng that t
he cont
rol
enviro
nme
nt remain
s fit f
or pur
pos
e.
Roles and Responsibili
ties
Th
e Audit Co
mmit
te
e assis
t
s the B
oard in
disc
hargin
g it
s respo
nsibil
it
ies wi
th re
gard to
th
e oversig
ht of:
Financial repor
ting:
Mon
itor
ing th
e integ
rit
y of th
e fi
nanci
al
st
atem
ent
s of the G
roup, in
cludin
g it
s annu
al
and h
alf yearly rep
or
t
s, an
d consid
erin
g the
cl
arit
y an
d compl
eten
ess of dis
closu
res th
erein;
Reviewing and challenging an
y changes to
accoun
ting policies, accounting for signi
fic
ant
or
unus
ual tr
ans
act
ions a
nd th
e appl
icat
ion of
app
ropr
iate jud
geme
nts a
nd es
tim
ates; an
d
Advi
sing th
e Boa
rd on wh
ethe
r the G
roup’s
f
inanc
ial st
atem
ent
s are fair
, b
al
ance
d and
underst
andable.
Internal
and external aud
it:
Over
see
ing th
e Grou
p’s rel
ation
ship wi
th it
s
exte
rnal and in
ternal auditors, including their
appointment, r
emuneration, independenc
e
and t
he ef
fe
ct
ivene
ss of th
e audit p
roces
s;
Devel
opin
g and imp
leme
nting a p
ol
icy o
n the
supp
ly of non-au
dit se
r
vices by t
he ex
te
rnal
auditor; and
Monitoring
and r
eviewin
g the effectiveness
of th
e out
sou
rced inte
rnal a
udit f
unc
tio
n in
th
e contex
t of th
e Grou
p’s overal
l risk
management
s
ystem.
Internal c
ontrol
s:
Revi
ewing t
he ad
equa
cy an
d ef
fec
tive
ness of
th
e Group’s i
ntern
al fi
nanci
al contro
ls a
nd ris
k
management
s
ystems;
and
Revi
ewing t
he Gro
up’s ar
rang
ement
s wi
th
regard
to employ
ee/c
ontractor whistleblo
wing,
fra
ud det
ect
ion
, prevent
ion of br
ibe
r
y and
money-laundering.
Membership and meetin
gs
The Audit
Committee comprises the
Independent
Non
-E
xecut
ive Dire
cto
rs an
d meet
s at le
ast t
wice
a year
.
Th
e Dire
ctor
s’ prof
ile
s and qu
alif
ic
atio
ns are
included
on page 50
.
Risk is covere
d at the R
isk Com
mit
tee b
ut all
mem
ber
s of th
e Audit Co
mmit
te
e are al
so
mem
ber
s of th
e Risk Com
mit
tee
, which e
nsures
tight co-ordination.
Th
ree for
mal me
eti
ngs were he
ld dur
ing 202
1 and
all C
ommi
tte
e mem
ber
s were in at
ten
dance.
Addi
tio
nally
, the r
emain
ing Bo
ard me
mbe
rs, H
ead
of Risk a
nd Com
pany Se
cret
ar
y were pre
sent at al
l
meetings
.
Th
e meet
ings of t
he Com
mit
tee a
re desi
gned t
o
facilitate and encourage communication among
th
e Commi
tt
ee, t
he Gro
up, the G
roup’s
out
so
urced int
erna
l audi
t func
ti
on (RS
M) and t
he
app
ointe
d ex
ter
nal aud
itor
. T
he Com
mit
tee m
eet
s
wit
h the i
ntern
al aud
itor
s and t
he ex
ter
nal
auditors, with
and without m
anagement
present,
to dis
cuss th
e result
s of t
heir e
xamin
ation
s, th
eir
evalu
atio
ns of the G
roup’s int
erna
l control a
nd th
e
overal
l qual
it
y of th
e Grou
p’s fin
ancia
l repo
r
ting
. In
add
itio
n, th
e mem
ber
s of the Au
dit Co
mmit
te
e
al
so m
eet se
par
ately to consi
der any is
sues
.
“The ongoing disruption
caused b
y C
OVID-
19
has required a dynamic
approach to risk
management.
Bob Head
Non-Executiv
e Director
MEETINGS HELD
3
AUDIT
COMMITTEE
MEMBERS
Meeting Attendanc
e
Bob Head (Chair)
3/3
Martin Bennett
3/3
Maria Darby-
Walk
er
3/3
Mark Winlow
1/1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
54
Personal Group Holdi
ngs Plc
· Annu
al Rep
or
t an
d Accoun
ts 20
21
AUDIT
COMMITTEE
REPORT
Activities of the
Audit C
ommittee
during the y
ear
Th
e Commi
tt
ee dis
cusse
d wit
h the G
roup’s
inter
nal an
d ex
ter
nal aud
itor
s the ove
rall s
cope
and p
lan
s for th
eir res
pec
ti
ve audit
s. I
n addi
tio
n,
th
e key work und
er
t
aken by the C
ommi
tte
e dur
ing
th
e year und
er revie
w and up to t
he date o
f this
Annual Repor
t included:
Revi
ew and ap
proval of t
he 2020 A
nnual R
epor
t
and Accou
nts a
nd 202
1 Inter
im Resu
lts
statement.
App
roval of th
e Solven
cy an
d Finan
cial
Con
diti
on Rep
or
t and O
wn Risk & S
olvenc
y
Assessment.
Revi
ew of inter
nal aud
it
s car
rie
d out by R
SM.
Dur
ing 20
21 RS
M unde
r
took a
udit
s, i
n lin
e wit
h the
agre
ed scop
e, over are
as inclu
ding re
mote
work
ing
, intern
al contro
l
s of Inne
cto, HR & p
ayrol
l,
cond
uct r
isk man
agem
ent, p
remiu
m colle
ct
ion
and supplier management.
Th
e Commi
tt
ee rece
ived rep
or
t
s from t
he inte
rnal
aud
itor
s thro
ugho
ut th
e year and w
as sat
isf
ied
wit
h the e
f
fec
tiven
ess of int
erna
l control
s an
d risk
opti
misat
ion
. It supp
or
t
s the re
comm
endat
ions
mad
e by the int
erna
l audi
tors a
nd is s
atisf
ie
d wit
h
th
e pla
ns in pl
ace an
d the a
ct
ions t
aken or p
lan
ned
by mana
gem
ent in resp
onse t
o the
se
recom
men
datio
ns and m
onito
rs t
he clea
rance of
th
e items r
aise
d to ensu
re that t
hey are re
solved
on a t
imely ba
sis.
Th
e appro
ach in d
evelop
ing th
e inter
nal aud
it pl
an
for 20
22 was b
ased o
n analysi
ng the co
rpo
rate
obj
ect
ives
, risk p
rofil
e and ass
uran
ce fram
ewor
k of
th
e Group, as we
ll as oth
er fac
tor
s af
fec
tin
g the
Gro
up. The a
im is to cover all s
ignif
ic
ant risk a
reas
at leas
t once e
ver
y thre
e years
.
Th
e Audit Co
mmit
te
e regul
ar
ly discus
ses t
he
per
fo
rma
nce of inter
nal au
dit wi
thin t
he
Com
mit
tee, w
ith m
anag
ement a
nd wit
h inter
nal
aud
it. G
iven t
he size of th
e Group we b
el
ieve that
an ou
ts
ource
d Inter
nal Audi
t func
ti
on give
s us
acces
s to more a
reas of exp
er
ti
se th
an an
internall
y resourced
depar
tment.
Significant reporting issues
and judgements
In fulf
il
lin
g it
s oversig
ht respo
nsibil
it
ies, t
he
Com
mit
tee ha
s reviewe
d and dis
cuss
ed th
e
aud
ited con
sol
idate
d fin
ancia
l st
ateme
nts a
nd th
e
rel
ated s
ched
ules w
ithi
n the A
nnual R
epor
t w
ith
Group management, including a discussion o
f the
appropria
teness o
f the ac
counting
principles,
the
reas
onabl
ene
ss of sign
ifi
cant ju
dgem
ent
s and t
he
cl
arit
y of di
sclosu
res in t
he f
inanc
ial st
atem
ent
s.
Wi
th th
e excepti
on of COVID
-
1
9, the a
reas th
e
Audi
t Commi
tt
ee have be
en conce
rne
d abo
ut are
simil
ar to p
rio
r years a
nd are de
tai
led l
ater in t
he
repo
r
t.
COVID
-
1
9 contin
ued to have a sizea
ble im
pac
t both
on G
roup an
d it
s counter
par
t
ies
.
Key Gro
up issue
s inclu
ded:
As w
ith t
he pr
ior yea
r the am
ount of n
ew
insur
ance b
usine
ss that co
uld be w
rit
ten w
as
mate
rial
ly affe
cte
d due to t
he cont
inue
d
lockdow
ns and re
st
ric
tio
ns on movem
ent dur
ing
th
e fir
st h
alf of the ye
ar
. This i
mpa
ct was f
elt in
202
1 by the a
mount of n
ew busin
ess t
hat could
be wr
it
ten b
ut give
n fir
st yea
r prof
it
abil
it
y is
marg
inal t
he ful
l ef
fec
t on prof
it
abil
it
y wil
l be
felt in f
uture yea
rs rat
her t
han in 2
021
.
Whi
ls
t th
e off
ice re
ope
ned fo
r mos
t of the
cal
enda
r year
, th
e natio
nal move to a hyb
rid way
of wor
king ha
s meant cont
inue
d at
tenti
on has
be
en pai
d to cy
ber r
isks as we
ll as op
erat
iona
l
resil
ien
ce to del
iver w
hat we have promi
sed ou
r
clients and cu
stomers.
Consi
der
ation w
as given to g
oing co
ncer
n, th
e
ade
quac
y of ca
pit
al in a var
iet
y of sce
nari
os and
th
e abil
it
y to pay a di
vide
nd whi
ls
t mai
ntain
ing
our t
arge
t of two t
ime
s regul
ator
y c
apit
al
.
Th
e car
r
ying va
lue of go
odw
ill in t
he Gro
up’s
f
inanc
ial st
atem
ent
s was revi
ewed in l
ine wi
th
th
e dif
fi
cult tr
ading e
nviron
ment
.
55
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
AUDIT
COMMITTEE
REPORT
c
ontinued
Th
e Commi
tt
ee revi
ewed th
e recom
mend
atio
ns of the f
ina
nce fun
ct
ion an
d recei
ved repo
r
ts f
rom th
e ex
ter
nal au
ditor o
n the
ir fi
ndin
gs. Th
e signi
fic
ant rep
or
ti
ng
mat
ter
s and ju
dgem
ent
s the C
ommi
tte
e consid
ered d
urin
g the yea
r inclu
ded:
Ca
rr
yin
g valu
e of go
odwi
ll and o
the
r inta
ngib
les
Note 1
5 & 16
As a r
esult of b
usin
ess a
cquis
iti
ons, t
he G
roup h
as reco
gnis
ed si
gnif
ic
ant ba
la
nces
for g
ood
wil
l. G
oo
dwil
l mus
t be te
ste
d ann
ual
ly for imp
air
men
t; oth
er int
ang
ible
ass
et
s are te
ste
d whe
n the
re are i
ndic
ator
s tha
t they m
ay be im
pai
red.
Th
e asse
ssm
ent of p
otent
ial imp
air
ment r
equ
ires a n
umbe
r of ju
dgem
ent
s and
es
tim
ates to b
e mad
e in det
erm
inin
g the r
eleva
nt fut
ure ca
sh fl
ows and t
he
dis
count r
ate to be a
ppl
ied
.
Th
e Comm
it
tee re
viewe
d the key f
ina
ncia
l assu
mpti
ons un
der
pinn
ing c
ash fl
ow
pro
jec
ti
ons, t
he di
scou
nt and lo
ng-ter
m grow
th ra
tes ap
pli
ed t
here
to and t
he
res
ults o
f sen
siti
vit
y an
alyse
s. T
he Com
mit
tee w
as sat
is
fie
d tha
t, con
side
rin
g the
suf
f
icie
nt hea
droo
m avail
ab
le, n
o impa
irm
ent wa
s requ
ired
, and a
ppro
pri
ate
dis
closu
re has b
een m
ade (s
ee note 1
5 to th
e fin
anci
al st
ate
ment
s for d
et
ail
s).
The presentation o
f “
Adjusted E
BITDA
” alongside statutory profit.
Pag
e 32 & Note 4
Adju
ste
d EBI
TDA
, in thi
s conte
xt
, lo
oks t
o adju
st fo
r non-
unde
rlyi
ng tr
adin
g
ac
ti
vit
y wit
hin t
he f
inan
cial
s fo
r year wh
ich ar
e mater
ial i
n size, in o
rder t
o
fairly
remunerate the man
agement on
underlying performance.
Th
e Comm
it
tee co
nside
red t
he ap
pro
ach ad
opte
d and wa
s sat
isf
ie
d that t
he
app
roa
ch cont
inue
s to he
lp pr
ovide a c
lear a
nd mo
re bal
an
ced vi
ew of th
e
und
erly
ing pe
r
for
mance o
f the b
usin
ess t
han si
mply pr
ofi
t af
ter t
ax. I
t al
so
conc
lude
d tha
t the a
ppro
ach i
s bein
g app
lie
d consi
ste
ntly fro
m year to yea
r and
th
e rati
onal
e is cle
arly p
rese
nted a
nd reco
ncil
ed ba
ck to t
he IFR
S pub
lis
hed
numbers.
Th
e Comm
it
tee is s
upp
or
ti
ve of the re
vis
ed se
gme
ntal r
epo
r
ting w
hich p
rovid
es
gre
ater un
der
st
and
ing of t
he ma
ke up of th
e Gro
up for t
he rea
der o
f the f
ina
ncia
l
statements
The valuation
of the claims provis
ion
Note 2
5
Th
e Gro
up ret
ain
s a provi
sion fo
r th
e gros
s est
imat
ed li
abil
it
y ar
ising f
rom cl
aim
s
epi
sod
es in t
he cur
rent a
nd pr
eced
ing f
inan
cial yea
rs w
hich have n
ot give
n ris
e to
cl
aims p
aid
. It is es
ti
mated b
ase
d on t
he cur
rent i
nfor
mati
on, a
nd th
e ultim
ate
li
abil
it
y may va
r
y as a resu
lt of sub
seq
uent i
nfor
mati
on an
d event
s.
Du
e to the o
ngo
ing COVID
-
1
9 pan
dem
ic and t
he nat
ure of t
he Gr
oup’s in
sura
nce
pol
ici
es th
e Com
mit
tee h
as revi
ewed t
he met
ho
dolo
gy an
d cal
cul
atio
ns rel
at
ing
to th
e cl
aims p
rovisi
ons h
eld by t
he insu
ran
ce enti
tie
s wit
hin t
he Gr
oup to e
nsur
e
tha
t the in
cur
red b
ut not re
por
te
d cl
aims r
efl
ec
t not on
ly the hi
sto
ric
al tre
nds o
f
th
e insur
ance p
ol
icie
s sold b
ut al
so o
ngo
ing rev
iew of t
he dat
a aro
und COVI
D-
1
9
and i
n par
t
icul
ar t
he re
cent ri
se of th
e Omi
cron v
aria
nt. T
he Co
mmi
tte
e was
sat
isf
ie
d that t
he am
ount r
ese
r
ved for a
cros
s the G
rou
p is app
rop
riate g
iven t
he
data available.
External audit
E
Y LLP wer
e fir
st a
ppoi
nted for t
he 20
19 f
inanc
ial
year
. We value co
ntinui
t
y providi
ng th
e Group g
et
s
valu
e for mo
ney bot
h for th
e for
mal rep
or
tin
g and
th
e third
-par
t
y ass
uran
ce that t
he busi
nes
s has a
good con
trol envir
onment.
Th
e Commi
tt
ee consi
der
s a numb
er of area
s when
revie
wing t
he ex
ter
nal au
ditor r
eapp
ointm
ent
,
nam
ely the
ir per
fo
rma
nce in dis
chargin
g the a
udit
,
th
e scope of t
he au
dit an
d term
s of enga
geme
nt,
their independence
and objectivity
, and their
reap
point
ment a
nd remu
nerat
ion
. In add
itio
n, we
are se
eki
ng more v
alue fr
om th
e audit a
nd
enco
urag
e a control b
ase
d appro
ach r
athe
r than
subs
t
antive w
here it is co
st ef
fe
ct
ive to do so.
Th
e ex
ter
nal aud
itor re
por
t
s to th
e Comm
it
tee on
ac
tio
ns ta
ken to comply wi
th prof
essio
nal an
d
regu
lato
r
y requi
reme
nts an
d is requ
ired to rot
ate
th
e lead au
dit p
ar
tn
er ever
y f
ive year
s.
Th
ere is al
so a
n act
ive, on
goin
g dialo
gue be
twe
en
th
e Commi
tt
ee and t
he ex
te
rnal a
udito
r on ac
ti
ons
to imp
rove the ef
fe
ct
ivene
ss and e
ff
ici
enc
y of
th
e ex
tern
al aud
it proce
ss. In a
ddi
tion
, the
Com
mit
tee con
sider
s risk a
reas th
at might
infor
m th
e audit s
tr
ateg
y and dis
cuss t
his wit
h
the ex
ternal auditors.
Th
e Commi
tt
ee has co
nfir
med i
t is sat
isf
ied
with the independenc
e, objectivit
y and
ef
fec
ti
venes
s of EY L
LP as au
ditor a
nd wil
l
supp
or
t a res
olut
ion t
o retai
n the
m at the
for
t
hcomin
g Annu
al Ge
nera
l Meet
ing.
No no
n-audi
t ser
v
ices were p
rovide
d by the
ex
ter
nal au
ditor
s dur
ing t
his fi
nanci
al year or
since t
hey were o
rigi
nally ap
poi
nted.
Bob Head
Independent Non-Exec
utive Dir
ector
28 March 2
022
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
56
Personal Group Ho
ldings Plc
· Annu
al Rep
or
t and A
ccount
s 20
21
NOMINA
TIONS COMMITTEE REPORT
THE OBJE
CTIVE OF
THE NOMINA
TIONS C
OMMITTEE IS
T
O
REC
OMMEND FOR
SELECTION
B
Y
THE FULL
BOARD
,
DIRECT
OR NOMINEES
AND
T
O ENSURE COMPLIANCE
WITH
THE REQUIREMENT
S
AROUND SM&
CR.
Dear Shareholde
r
I am pl
ease
d to pres
ent th
e inaug
ural N
ominat
ion
s
Com
mit
tee Re
por
t fo
r the yea
r ende
d 31
De
cembe
r 202
1. Th
e Comm
it
tee me
t for th
e fi
rst
tim
e in 202
1 and it w
as intro
duce
d to enab
le
focu
sed di
scuss
ions aro
und t
he comp
osit
ion of
th
e Boa
rd and t
he Gro
up requ
ireme
nts a
round
SM&
CR whic
h had be
en prev
iously dis
cuss
ed as
par
t of ot
her Co
mmit
te
e mee
tings
.
Objectives
Th
e aims an
d obje
ct
ives of t
he Nom
inati
ons
Com
mit
tee is to:
ensu
re the
re is a form
al
, rigo
rous an
d
tr
anspa
rent pro
cedure fo
r the a
ppo
intme
nt of
new D
irec
tor
s to the B
oard a
nd new m
emb
ers
of th
e seni
or man
agem
ent team;
provi
de oversi
ght of Bo
ard comp
osit
ion,
mem
ber
ship an
d Bo
ard and s
enio
r / execu
tive
app
oint
me
nts;
lea
d the p
rocess f
or app
oint
ment
s, en
sure pl
ans
are in pl
ace f
or orde
rly succe
ssion to b
oth t
he
Bo
ard and s
enio
r mana
geme
nt posi
tio
ns, an
d
overs
ee th
e develo
pme
nt of a diver
se pip
eli
ne
for suc
cession
;
provi
de ind
epen
dent over
sight of t
he Gro
up’s
comp
lian
ce wit
h the S
enio
r Mana
ger
s and
Cer
t
if
icat
ion Reg
ime;
ensu
re all B
oard re
crui
tme
nt rel
ated pro
cess
es
are transparent, cr
e
dible, effective and reliable;
and
determine
whether emplo
yees who ar
e sub
ject
to dis
cipl
inar
y pro
cedu
res have brea
ched t
he
Conduct Rules applicable to their role and
whether di
smissal
is an
appropriate out
come.
Th
e Nomi
natio
ns Com
mit
tee, a
ssist
ed by ex
ter
nal
execu
tive s
earch ag
enci
es as req
uired
, prim
arily
mana
ges a
ppoi
ntme
nts to t
he Bo
ard, b
ut al
l Boa
rd
mem
ber
s have the o
ppo
r
tuni
ty to m
eet
sho
rt
lis
ted c
andi
dates
, ensur
ing a wi
de ra
nge of
fee
dba
ck in th
e appo
intme
nt proce
ss. Al
l
Exe
cuti
ve Dire
ctor
s are en
gage
d on a ful
l-time
basi
s. Non
-E
xecut
ive Dire
cto
rs have let
te
rs of
app
ointm
ent s
tat
ing th
eir ann
ual fee
, the
mini
mum req
uired t
ime co
mmit
ment an
d
conf
irm
ation t
hat t
heir ap
poi
ntment is s
ubje
ct to
sat
isfa
cto
r
y per
fo
rma
nce. Th
eir ap
point
ment may
be te
rmin
ated wi
th a ma
ximu
m of six mo
nths’
wr
itt
en noti
ce at any tim
e.
Th
e remun
erat
ion of t
he Chai
rman a
nd
Non
-E
xecut
ive Dire
cto
rs is de
term
ined by t
he
Board foll
owing
proposal
s from
t
he Nom
inations
Com
mit
tee, w
ith
in the l
imi
ts s
et out i
n the A
r
ticle
s
of As
soc
iatio
n, bas
ed on a rev
iew of th
e level of
fee
s paid by co
mpar
ator com
pan
ies.
“The Board is satisfied
that its current
composition includes
an appropriate balance
of
skills, experience
and capabilities.
Martin Bennett
Non-Executiv
e Director
MEETINGS HELD
1
NOMINA
TIONS
COMMITTEE MEMBERS
Meeting Attendanc
e
Martin Bennett (Chair)
1/1
Maria
Darby-
W
alker
1/1
Bob Head
1/1
The CE
O, Non-Independent
NEDs and
Com
pany Se
cret
ar
y are no
rma
lly pres
ent
at th
e meet
ings
.
57
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
Activity during the y
ear
Th
e Commi
tt
ee’s Cha
irma
n repo
r
ts fo
rma
lly to th
e
Bo
ard on it
s pr
ocee
dings af
te
r each m
eeti
ng and
dur
ing th
e year th
e Comm
it
tee me
t once, d
eta
il of
what wa
s reviewe
d by the Co
mmit
te
e is as
fol
lows;
Board succession
We act
ively mana
ge our B
oard s
uccessi
on pl
an, to
ensu
re that ou
r Boa
rd has an a
pprop
riate a
nd
diver
se r
ange of sk
ill
s to e
nable u
s to del
iver ou
r
st
rate
gy for t
he be
nef
it of al
l of our s
ta
kehold
ers
.
We are a small a
nd cohe
sive Bo
ard, a
nd ta
ke care
to ensu
re that a
ll new m
embe
rs of o
ur Bo
ard are
al
igned t
o our cult
ure and sh
are our va
lues
,
whate
ver the
ir skil
l
s and b
ackground
. Our B
oard
ind
uct
ion p
roces
s, und
er
ta
ken by all ne
w
mem
ber
s upo
n app
ointm
ent, is a
n impo
r
ta
nt way
to get o
ur new B
oard m
emb
ers up t
o spee
d and
valu
ed by our N
on-
Execu
tive D
irec
tor
s. We have a
for
mal pl
an fo
r how Bo
ard mem
ber
ship sh
ould
develo
p whic
h aims to b
ala
nce conti
nuit
y of
ser
v
ice wit
h a regu
lar re
fresh
ment of sk
ill
s an
d
exp
eri
ence ne
ede
d to del
iver o
ur evolving
st
rate
gy
. We regul
ar
ly review t
he ba
lan
ce of skil
l
s
on t
he Bo
ard as a wh
ole, t
aki
ng account of t
he
fut
ure ne
eds of th
e busin
ess
, and t
he know
ledg
e,
exp
eri
ence, l
engt
h of ser
v
ice and p
er
for
mance of
th
e Direc
tor
s. We are sat
isf
ie
d with t
he pl
an w
hich
has re
sulted in t
he pl
ace
ment of L
iam Mc
Grat
h on
th
e Boa
rd and are co
nfi
dent th
at the s
earch fo
r a
fur
ther independen
t Non-Executive
Director in
202
2 will p
rove eff
ect
ive.
Board and Director effectiveness
Th
e CEO receives a fo
rma
l evaluat
ion of t
heir
per
fo
rma
nce dur
ing th
e year
, wh
ich is cond
uc
ted
by th
e Chair
man. In a
ddi
tion
, the CEO dis
cuss
es
with the Non-Exec
utive Di
rectors the
per
fo
rma
nce of ind
ivid
ual
s of th
e Execu
tive te
am
and a
ny change
s that s
he prop
ose
s to make to th
is
team
. Whil
s
t this a
ct
ivi
ty d
oes n
ot take pl
ace
for
mally w
ithi
n the m
eeti
ngs of th
e Nom
inati
ons
Com
mit
tee, i
t doe
s form p
ar
t of it
s wor
k in
overs
eein
g Exec
uti
ve team deve
lopm
ent and
succes
sion p
roces
s, and t
he pip
el
ine of t
alent
avail
abl
e for succe
ssion t
o the B
oard
. The
per
fo
rma
nce of our B
oard a
nd th
e Comm
it
tees is
evalu
ated by t
he Chair a
nd he ha
s conclu
ded t
hat
th
e Boa
rd is func
ti
onin
g well
, is dyn
amic
, has a
brea
dth a
nd dept
h of compl
eme
ntar
y sk
ill
s an
d
exp
eri
ence an
d that t
here is a s
tro
ng tr
ust
bet
wee
n the N
on-E
xecu
tive D
irec
tor
s and th
e
Exe
cuti
ve Dire
ctor
s in t
he run
ning of t
he Gro
up. A
key ac
tion t
o the e
ffe
ct
ivene
ss of th
e Bo
ard wil
l
be t
he de
cision o
n fil
lin
g the N
on-
Execu
tive
Dire
cto
r posi
tio
n lef
t af
ter t
he ret
ireme
nt of Ken
Roo
ney
. A
n inter
nal Bo
ard ef
fe
ct
ivene
ss revie
w
was con
duc
ted in 20
21 wi
th a fo
rmal e
xt
erna
l
revie
w due in 20
22.
Diversi
ty
We fully sup
por
t di
versi
ty a
s an imp
or
ta
nt
contr
ibu
tion t
o goo
d qual
it
y dec
ision ma
king a
nd
inn
ovative t
hinki
ng. Di
versi
ty h
as many di
mensi
ons
and we p
ar
ti
cul
arly valu
e diver
sit
y of th
ought
,
whi
ch in tur
n is assis
ted by di
versi
ty of b
ackgroun
d
and e
xper
ien
ce, as wel
l as of gen
der an
d ethn
icit
y
.
We alread
y have on ou
r Boa
rd a diver
sit
y of gen
der
,
skil
l
s, ex
per
ience, p
er
sona
lit
y
, and co
gnit
ive
app
roach
. Across t
he bus
ines
s, tea
ms are dive
rse
wit
h an even sp
lit of m
ales a
nd fema
les in
mana
gem
ent pos
itio
ns. Howeve
r
, we a
re
consc
ious t
hat our s
enio
r lead
ersh
ip pop
ul
ation
doe
s not cur
rently ref
le
ct t
he bro
ader e
thni
c mix
of our e
mployee
s and ou
r cust
omer
s and we w
ill
se
ek to add
ress t
his. We contin
ue to revi
ew how
we can f
ur
th
er bro
aden o
ur app
roac
h,
encouraging diversity and inclusion throughout
th
e Boa
rd and t
he busi
ness
.
Culture
and values
Pres
er
vat
ion of our c
ulture ha
s always bee
n a
pr
iori
ty, which s
tems f
rom th
e value
s ins
till
ed by
th
e Boa
rd. Ou
r culture is b
rought to l
ife t
hroug
h
our sh
ared va
lues a
nd busi
ness p
rin
ciple
s which
th
e Boa
rd moni
tor
s throu
gh Bo
ard rep
or
t
s and
agenda items,
engagement with emplo
yees, and
visi
ts to t
he G
roup’s of
f
ices. O
ur cultu
re and va
lues
are an im
por
t
ant p
ar
t of what we lo
ok for i
n new
can
didat
es to joi
n our Bo
ard, s
o that t
hey may
promo
te and
engage with the dev
elopment o
f
th
ese asp
ec
t
s throu
ghou
t the b
usine
ss. It is
imp
or
ta
nt that t
hey are al
ign
ed wi
th our v
alue
s so
that t
hey c
an be ro
le mod
el
s for al
l our em
ployee
s
and stakeholders.
Cer
tif
ica
tion & co
nduc
t ru
les
It is imp
or
t
ant for t
he ong
oing su
ccess of t
he
busi
ness t
hat ri
gorou
s cer
tif
ic
atio
n proces
ses a
nd
tr
ainin
g and over
sight of comp
lia
nce wit
h the
cond
uct r
ule
s are compl
eted a
nd mon
itore
d by
th
e Commi
tt
ee. We have worked ha
rd to ar
ti
cul
ate
th
e condu
ct r
ules as p
ar
t of th
e wide
r Gro
up
valu
es and h
ave no tole
rance fo
r any brea
ches
of th
e rule
s.
NOMINA
TIONS COMMITTEE REPORT
continued
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
58
Personal
Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOMINA
TIONS COMMITTEE REPORT
continued
TENURE AND RE
-ELECTION OF DIRECTORS
Th
e Nomi
natio
ns Com
mit
tee con
sider
s th
e leng
th of se
r
vice of Bo
ard me
mbe
rs at le
ast an
nual
ly
. Th
e tenure of t
he D
irec
tors i
s set ou
t below
:
Member
Appointment
Las
t AGM re
newal
Up fo
r rene
wal at 20
22 AGM
Board
role
Mar
tin Bennett
January 2021
AGM
202
1
Non-Executive
Chairman
De
b
or
ah Fr
os
t
September 1
5
(pr
evio
usly NED, a
ppo
inted CEO Fe
b 19)
AGM
202
1
Chief Executive
Sa
rah M
ace
Oc
tober 2020
AGM 2
02
1
Chief F
ina
ncial O
f
fi
cer
Liam McGra
th
May 202
1
N
/A
For re
newa
l as f
irs
t year
Chi
ef Op
erat
ing O
ff
ice
r
Ma
r
ia D
ar
by-Wal
ke
r
June
2019
AGM 2020
For re
newal b
y rotat
ion
Senior Non-Ex
ecutive
Director
Bob Head
Nov
ember 2016
AGM 2020
For re
newal b
y rotat
ion
Non-Executive
Direc
tor
Andy Lothian
July 2017
(pr
evio
usly E
xecut
ive Di
rec
tor
,
app
oint
ed NED J
an 202
1)
AGM
202
1
Non-Executive
Direc
tor
Martin Bennett
Independent Non-Exec
utive Ch
airman
28 March 2
022
59
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
REMUNERA
TION COMMITTEE REPORT
“W
e remain focused on
aligning reward with
the business’s long-
term sustainability
and
gro
wth.
Maria Darby-
Walk
er
Non-Executiv
e Chair
THE C
OMMITTEE’S
OBJECTIVE IS
T
O
ALIGN OUR REW
ARD
STRA
TEG
Y
WITH
THE DELIVER
Y
OF
PROFIT
ABLE
AND
SUST
AINABLE GRO
WTH FOR
THE BENEFIT
OF
ALL
OUR
ST
AKEHOLDERS.
MEETINGS HELD
4
REMUNERA
TION
COMMITTEE MEMBERS
Meeting Attendanc
e
Maria Darby-
Walk
er (
Chair)
4
/4
Martin Bennett
3/3
Bob Head
4
/4
Mark Winlow
1/1
Dear Shareholde
r
On b
ehalf of t
he Bo
ard, I a
m pleas
ed to pre
sent
this ye
ar’s Re
mune
rati
on Com
mit
tee re
por
t
. Th
e
Remuneration
Repor
t pro
vides a compr
ehensiv
e
pic
ture of t
he s
tru
ct
ure of our re
mune
rati
on
fra
mewor
k, it
s al
ignm
ent wi
th th
e busin
ess
st
rate
gy and t
he res
t of th
e work
force
, as well as
th
e decisi
ons ma
de by th
e Commi
tt
ee as a res
ult
of busi
ness p
er
for
mance f
or this ye
ar and t
he
intended
arrangements for FY22.
Aims of the R
emuneration Commi
ttee
Th
e prim
ar
y pur
pos
e of th
e Remun
erat
ion
Com
mit
tee is to rev
iew an
d make
recommendations regarding the remuneration
pol
ic
y for th
e Gro
up, speci
fi
cally re
gardi
ng the
Gro
up’s fra
mewor
k of Exec
uti
ve Remun
erat
ion.
Th
e Commi
tt
ee’s overa
ll ob
jec
tive is to a
lign
reward fo
r the E
xecu
tive T
e
am wit
h th
e del
iver
y
of prof
it
able s
ust
aina
ble grow
th f
or our
share
hold
ers a
nd emp
loyees t
hroug
h the G
roup’s
remunera
tion framew
or
k wh
ich
:
Of
fer
s comp
etit
ive s
ala
r
y pack
ages t
o att
rac
t,
ret
ain, an
d moti
vate t
alente
d peo
ple.
Op
erate
s st
raight
for
w
ard, tr
ansp
arent
, and
ef
fec
ti
ve reward sch
eme
s that in
centi
vise
del
iver
y of s
tret
ching an
nual t
arge
ts a
nd
del
iver
y of o
ur long
er
-ter
m busin
ess s
trat
egy.
In addition,
t
he C
ommittee:
Of
fer
s th
e chance fo
r all e
mployee
s to
par
t
icip
ate in sha
re sche
mes s
o that ever
yo
ne
thi
nks a
nd ac
t
s to “ru
n it li
ke w
e own it
” – one of
our cor
e employe
e value
s.
Over
see
s and rev
iews t
he comm
issio
n and
bonus arrangemen
t
s for
customer
-f
acing
insur
ance s
ale
s employe
es to ens
ure a prop
er
bal
an
ce bet
ween m
otivat
ing s
taf
f wh
il
st
mak
ing s
ales of t
he hig
hes
t qual
it
y (i.e. b
eyond
simple regulatory compliance)
.
T
o th
at end, we c
urrent
ly oper
ate th
e foll
owing
remunera
tion framew
or
k:
Ann
ual sa
la
r
y and ass
ociat
ed be
nef
it
s (all
employ
ees).
Defined contribution
pension
scheme and
other
ben
ef
it
s such as l
ife cover
, pr
ivate m
edi
cal
insurance (all employ
ees).
Per
fo
rma
nce bas
ed ann
ual bo
nus l
inked to
del
iver
ing s
tretch
ing f
inan
cial
, busin
ess
deve
lopment, and
ser
vice-oriented
targets
(se
lected emp
loy
ees)
.
Commi
ssion
, bon
us sche
mes a
nd incent
ives fo
r
th
e custo
mer
-fac
ing insu
rance t
eams (sel
ec
ted
sa
les an
d sale
s supp
or
t em
ployees).
Share
schemes:
PG Sha
re Owne
rshi
p Pla
n (all emp
loyees);
Comp
any Share O
ptio
n Pla
n (selec
te
d
employ
ees); a
nd
Long T
er
m Ince
ntive Pl
ans (L
T
IP
s
) (sele
cte
d
sen
ior exe
cuti
ves – se
e page 6
3 for fur
t
her
d
et
a
il
s)
.
We have c
onti
nued t
o consid
er comp
aris
ons of
remu
nerat
ion f
or sen
ior em
ployees o
f simil
ar sized
quote
d comp
anie
s in rel
ated se
ct
ors w
hen
es
tab
lish
ing th
e level
s of pa
ckage
s set
. Our m
ost
recent e
xecut
ive ben
chma
rkin
g exercis
e was
undert
ak
en in Dec
ember 2021.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
60
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
REMUNERA
TION COMMITTEE REPORT
Composition of
the Remuneration Committee
Th
e Remun
erat
ion Co
mmit
te
e consis
ts of t
he
independent
N
on-Executiv
e Directors, with the
Chie
f Exec
utive
, Chief P
eop
le Of
f
icer
, Co
mpany
Secretar
y and
any non-independent
Non-
Exe
cuti
ve Dire
ctor
s invit
ed to be i
n att
enda
nce at
tim
es. T
he Re
mune
rati
on Comm
it
tee op
erat
es
wit
hin de
fi
ned te
rms of re
ference
, which we
re
upd
ated l
ast yea
r
. I
t met fou
r tim
es in 202
1, w
ith
ad ho
c cal
l
s tak
ing pl
ace w
hich ref
lec
te
d the
changing circum
sta
nces ar
ound the pandemic.
Non
e of the C
ommi
tt
ee has any p
ers
onal f
ina
ncial
intere
st
, conf
lic
t
s of intere
st
s ari
sing fro
m cross
Dire
cto
rshi
ps, o
r day-to-day involvem
ent in
run
ning t
he bus
ines
s and, as s
uch, t
he Com
mit
tee
is deemed t
o be independen
t.
Th
e Boa
rd dete
rmin
es th
e remun
erat
ion of t
he
Non
-E
xecut
ive Dire
cto
rs af
ter b
ench
mar
king
ex
ter
nal ma
rket res
earch. N
on-
Execu
tive
Dire
cto
rs are n
ot involved in set
ti
ng th
eir own p
ay
and d
o not par
t
icip
ate in th
e bon
us sche
mes o
r the
L
TI
Ps, o
r in any oth
er share awa
rd sche
me.
Performance for the y
ear
As h
as bee
n reviewe
d el
sew
here in t
his rep
or
t in
202
1 the b
usine
ss conti
nued t
o have a chall
engin
g
year du
e to the COVI
D-19 pan
dem
ic. De
spit
e this
,
due to a n
umb
er of busi
ness o
bjec
ti
ves and K
PIs
bei
ng met
, th
e Remun
erat
ion Co
mmit
te
e deci
ded
that a p
ropo
r
tio
n of the S
enio
r Lead
ersh
ip T
eam
bon
us comm
ensur
ate wit
h th
e targ
et
s achieve
d
shou
ld be p
aid.
2021 annual bonus
Since t
he en
d of the n
ation
al lockdow
ns the G
roup
has b
een wor
king h
ard to creat
e new rou
tes to
mar
ket and imp
roved pro
duc
t off
erin
gs. Wh
il
st t
he
reward
s of this wor
k are s
til
l to be ref
lec
ted i
n the
prof
it of t
he Gro
up, it is th
e opini
on of th
e
Com
mit
tee t
hat st
af
f shou
ld be rewa
rded fo
r the
work p
er
for
med t
o put t
he Gro
up in a favour
able
position moving
into
2022.
As a re
sult of th
is, th
ose w
ith b
onus
es as pa
r
t of
their employment r
e
ceiv
e
d amoun
ts
comm
ense
rate to t
he obj
ec
tives b
eing re
ache
d.
In ad
diti
on an al
l-st
aff b
onus fo
r tho
se em
ployees
wit
h no el
igib
ilit
y fo
r other co
mmiss
ion or b
onus
st
ruc
tur
e, was pa
id at one we
ek’s s
al
ar
y for al
l
eligible employ
ees.
Pay
increases
Th
e Remun
erat
ion Co
mmit
te
e deci
ded t
hat no
Com
pany pay re
view sho
uld be a
ppl
ied to t
he
Bo
ard for t
he f
inan
cial year 20
21
, altho
ugh al
l
othe
r empl
oyees rece
ived a sha
re of a pay in
crease
pot of c3
% of payro
ll
.
However
, i
t was agre
ed dur
ing t
he year to in
creas
e
th
e sal
ar
y of G
roup Chi
ef Exe
cut
ive Deb
ora
h Frost
as of 1 Oc
tob
er 202
2 to £330,0
00 fol
lowin
g
benchmarking and a perfor
mance
review
.
Other Committee activities for
the y
ear
Th
e Commi
tt
ee has b
een a
ct
ively enga
ged in
revie
wing t
he chan
ging nat
ure of reward a
nd
ben
ef
it
s in li
ght of chang
es in p
ackag
es as a re
sult
of th
e pand
emic a
nd wor
king f
rom ho
me
be
coming a
n indus
tr
y n
orm
. The Co
mmi
tte
e is in
regu
lar co
mmun
icat
ion wi
th th
e Chie
f Peop
le
Of
f
icer to e
nsure th
at the G
roup u
nder
st
and
s the
mar
ket nor
ms and of
fer
s pa
ckage
s which a
re
competitive
of
fers for
our employees.
Th
e Commi
tt
ee dis
cusse
d, an
d approve
d the is
sue,
of a num
ber of Co
mpa
ny Share Opt
ion Pl
an (C
SOP)
opti
ons to s
enior s
t
aff d
urin
g the yea
r
. T
his is
exp
ec
ted to p
rovide f
ur
the
r incent
ive for t
he level
of man
agem
ent bel
ow the S
enio
r Leade
rsh
ip T
eam
in fulf
il
lin
g the G
roup’s go
al
s movi
ng for
war
d.
Dur
ing t
he year t
he Gro
up ut
ilis
ed a new e
mployee
eng
agem
ent sur
vey to
ol whi
ch, in l
ine wi
th pr
ior
year
s, showe
d exceptio
nally hi
gh score
s from t
he
emp
loyees of t
he Gro
up. Th
e Commi
tt
ee reg
ula
rly
revie
ws the n
eces
sar
y a
ct
ions t
he Gr
oup ne
eds to
ta
ke to prese
r
ve and en
hance ou
r empl
oyees’
working
envir
onment.
The y
ear ahead
In reco
gnit
ion to
o of the g
rowing im
por
t
ance of
ES
G repo
rt
ing fo
r busin
ess
es, we wi
ll al
so e
nsure
that a
ny long-te
rm ince
ntive
s for th
e busin
ess are
clos
ely lin
ked and al
igne
d to our E
SG s
trate
gy
whi
ch the Co
mpa
ny is curre
ntly develo
ping
.
Th
e Remun
erat
ion Co
mmit
te
e remai
ns focus
ed on
al
igning re
ward wi
th del
iver
ing lo
ng-ter
m
sus
tai
nabil
it
y and g
rowt
h of th
e busin
ess,
combined
wit
h ou
r on-going
progressiv
e dividend
pol
ic
y
. Wh
ere any mat
eria
l chang
es are ma
de to
th
e Remun
erat
ion p
oli
cy
, we w
ill cont
inue t
o
disc
uss our i
ntenti
ons wi
th our m
ajor sh
areho
lder
s
and g
ive the
m the o
ppo
r
tunit
y to co
mment
.
Ser
v
ice contra
ct
s
Th
e Exec
utive D
irec
tor
s have ser
v
ice contr
act
s
that c
an be t
ermi
nated o
n 6 mont
hs’ noti
ce with
th
e exceptio
n of the C
hief E
xecut
ive wh
o has a 12
mon
th no
tice p
eriod.
Th
ese p
rovide fo
r term
inati
on pay
ment
s
equ
ivale
nt to the n
otice p
erio
ds bas
ic sal
ar
y a
nd
con
tractual benefit
s.
Th
e Non-
Exec
uti
ve Direc
tor
s have let
ter
s of
app
ointm
ent th
at can b
e term
inate
d on six
months’ notice.
61
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
REMUNERA
TION COMMITTEE REPORT
continued
Membership of Board and Directors’
interest
s
Th
e memb
er
ship of th
e Bo
ard thr
ougho
ut th
e year is se
t out b
elow
.
Th
e interes
t
s of the D
irec
tor
s and t
heir f
amil
ies (
inclu
ding t
rans
ac
tio
ns commi
tt
ed to be
fore th
e year en
d and sha
res hel
d in th
e PGH e
mploye
e share own
ersh
ip
pl
an) in th
e shares of t
he Co
mpany as of 3
1 De
cemb
er 2020 o
r date of app
oint
ment if l
ater
, a
nd 31 D
ecem
ber 20
21, we
re as fol
lows:
Ordinar
y shares
of 5p eac
h in
Personal Group Holdings Plc
At 31 De
cemb
er
2021
At
3
1
December
2020
De
bor
ah Fros
t
(Chi
ef Exe
cut
ive)
304
,063
304,919
Sa
rah M
ace
(Chi
ef Fin
anci
al Of
f
icer – A
ppo
inted O
c
tobe
r 2020)
12
,030
11,
9
07
And
rew Lot
hian
(No
n-E
xecut
ive Di
rec
tor – M
anag
ing Di
rec
tor P
GB S
ale
s unti
l Dece
mbe
r 2020)
3
7,
5
3
2
3
8
,1
2
8
Bo
b Head
(Independent
Non-Executiv
e)
Ma
r
ia D
ar
by-Wal
ke
r
(Senior
Independent Non
-Executive
)
Mar
t
in Be
nne
tt
(In
dep
end
ent No
n-Exe
cut
ive Cha
ir – Ap
point
ed Ja
nuar
y 20
21)
Lia
m McG
rat
h
(Chi
ef Op
erat
ion
s Of
fi
cer – Ap
poi
nted M
ay 2021
)
At 31 De
cemb
er 202
1, th
e mid-
market clo
sing sha
re pri
ce was 325
.00
p per sha
re (31 D
ecem
ber 20
20: 206
.00p).
Directors’ remuneration
Th
e Exec
utive D
irec
tor
s’ remu
nerat
ion p
acka
ges cur
rently in
clud
e compo
nent
s of a bas
ic sa
lar
y, annual b
onus
, a comp
any car o
r car al
lowan
ce if appl
ic
able to t
he
role
, Long T
er
m Ince
ntive Pl
an (L
T
IP), non
-match
ed pe
nsion cont
rib
uti
ons an
d life cover as a
ppro
priat
e.
Th
e remun
erat
ion of t
he Dire
cto
rs l
iste
d by indi
vidu
al Dire
cto
r is as fol
lows:
Sa
la
r
y
and fees
2021
£’000
Bon
us 202
1
£’000
Share-based
gains on
exer
cise o
f
options 20
21
£’000
Pension
contributions
2021
£’000
To
t
a
l
2021
£’000
To
t
a
l
2020
£’000
De
b
or
ah Fr
os
t
304
113
10
427
310
Sa
rah M
ace *
182
45
12
239
42
Lia
m McG
rat
h
113
28
-
4
145
-
And
rew Lot
hian *
*
41
-
41
266
Bob Head
50
50
42
Ma
r
ia D
ar
by-Wal
ke
r
49
-
49
43
Martin Benne
tt ***
78
-
-
-
78
-
Mar
k Wi
nlow
33
-
-
-
33
81
Mike
D
ugdale
-
-
-
-
-
237
Ken
Rooney
-
-
-
-
-
45
T
otal
850
186
26
1,0
62
1,0
66
*
S
ar
ah Ma
ce was a
pp
oin
ted t
o the r
ole o
f Chi
ef Fi
nan
cia
l Of
fi
cer. Sar
ah h
ad wor
ked f
or th
e bu
sin
ess a
s Gro
up F
ina
ncia
l Con
tro
ll
er an
d Com
pa
ny Se
cret
ar
y p
rev
iou
sly, the v
alu
es ab
ove sh
ow th
eir s
al
ar
y a
nd
fe
es fo
r the
ir t
ime a
s a Dir
ec
tor o
f the G
ro
up
**
A
ndr
ew Lot
hia
n was M
an
agi
ng Di
rec
to
r of PG
B, a
nd an E
xe
cut
ive B
oar
d me
mbe
r
, u
nti
l 31/
12
/20 at w
hic
h poi
nt he r
eti
red f
rom h
is E
xecu
ti
ve rol
e and b
ec
am
e a Non I
nde
pe
nde
nt No
n-E
xec
ut
ive Di
rec
to
r
.
**
* Mar
t
in B
enn
et
t be
cam
e a No
n-E
xecu
ti
ve Dir
ec
tor i
n Jan
uar
y 2
02
1 and b
ec
ame C
hai
r in May 2
02
1 fol
lowi
ng t
he de
pa
rt
ure o
f Mar
k Wi
nlow.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
62
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
REMUNERA
TION COMMITTEE REPORT
continued
Directors’ share options
CSOP
On 3
1 Dece
mbe
r 2021 o
ption
s out
st
an
ding were as f
ollow
s:
Number
of shares
Exe
rcis
e price
pence
per sha
re
Ear
lie
st
exercisable dat
e
Andy Lothian
6,026
498
.00
14 Feb
ru
ar
y 201
7
Sa
rah M
ace
6,
122
490.00
28 J
anua
r
y 2017
De
b
or
ah Fr
os
t
8
,
74
6
343.
00
29 No
vember 202
4
Liam McGra
th
8
,
74
6
343.
00
29 No
vember 202
4
LT
I
P
On 3
1 Dece
mbe
r 2021 o
ption
s out
st
an
ding were as f
ollow
s:
Number
of shares
Exe
rcis
e price
pence
per sha
re
Ear
lie
st
exercisable dat
e
De
b
or
ah Fr
os
t
235,66
2
5.0
0
01 January 2024
De
b
or
ah Fr
os
t
29,61
5
5.0
0
31 M
arch 20
22
Sa
rah M
ace
62,
438
5
.00
01 Januar
y 2
024
Liam McGra
th
52,0
32
5.0
0
01 January 2024
Th
e optio
ns above are s
ubje
ct to t
he pe
r
form
ance cr
iter
ia of the LTIP
.
Lo
ng T
e
rm Ince
ntive Pl
ans
L
TIP 2021
Th
e pl
an rul
es and h
eads of a
greem
ent of a new Lo
ng T
er
m Incent
ive Pl
an were f
inal
ise
d in Ap
ril 202
1. T
his L
TI
P has be
en es
ta
blis
hed in o
rder to rew
ard and
ince
ntivis
e th
e seni
or execu
tive
s to del
iver sus
ta
inab
le grow
th fo
r the Co
mpa
ny and to creat
e mater
ial valu
e for sha
reho
lder
s, an
d repl
aced L
TIP 2 w
hich ex
pired
wit
hou
t any paym
ent
s made u
nde
r the s
chem
e in March 20
20. The s
chem
e accomm
odat
es per
fo
rma
nce cond
itio
ns acros
s mar
ket, f
inan
cial an
d ESG m
easure
s
which s
uppor
t the gro
w
th of
the busines
s.
In Ap
ril 202
1 th
e fi
rst t
ran
che of L
T
IP 202
1 was ann
ounce
d alon
g wit
h a fur
th
er ad
diti
on in Ju
ly 2021 fo
llowin
g the a
ppoi
ntme
nt of Liam M
cGr
ath to t
he Bo
ard. T
he
opti
ons in t
hes
e two t
ran
ches were i
ssue
d to the t
hree E
xecu
tive di
rect
ors
, as shown i
n the L
T
IP sha
re optio
n tab
le ab
ove, and al
so f
our se
nior m
emb
ers of s
taf
f
t
wo of whom h
ad subs
equ
ently lef
t t
he bus
ines
s by 31s
t Dece
mbe
r 2021 w
ith n
o payme
nt made u
nde
r the s
chem
e. The p
er
for
man
ce crite
ria of t
he opt
ions is
shown i
n note 22b of t
he f
inan
cial s
tate
ment
s
As n
oted in t
he 2020 f
ina
ncial s
tat
ement
s t
he 29,615 sha
re opti
ons gra
nted to D
ebo
rah Fros
t in li
eu of an L
T
IP in prev
ious yea
rs were al
s
o anno
unced i
n Apr
il 202
1.
Th
ere are no p
er
for
man
ce condit
ions at
t
ache
d to th
ese o
ptions ot
her t
han cont
inue
d empl
oyment to t
he exe
rcise date
.
A new t
ranc
he is cur
rently be
ing f
inal
ise
d follow
ing th
e pri
ncipl
es out
lin
ed in L
T
IP 202
1. T
his is exp
ec
ted to b
e compl
eted in t
he s
econd q
uar
ter of 2
022 an
d will b
e
ann
ounce
d as an RNS w
hen f
ina
lise
d.
Maria Darby
-Walk
e
r
Non-Executive
Director
28 March 2
022
63
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
DIRECT
ORS’
REPORT
THE DIRE
CTORS
PRESENT
THEIR
REPORT
TOGETHER
WITH
THE
AUDITED
FINANCIAL
ST
A
TEMENTS FOR
THE
YEAR ENDED 3
1 DECEMBER 2
021
Principal ac
tivities
The Group is principally engaged in pro
viding
employ
ee ser
vices, inc
luding s
hort
-term ac
cident
and
hea
lth insu
rance
, bene
fi
ts a
nd pl
at
form p
roduc
t
s,
pay an
d reward con
sulta
ncy a
nd th
e provisi
on of
sa
lar
y s
acr
if
ice tech
nolo
gy pro
duc
t
s in the U
K.
Results and
dividends
A revie
w of the yea
r’s res
ults is g
iven in t
he Chie
f
Fin
ancial O
f
fi
cer’s St
ateme
nt (see pa
ge 32).
Th
e prof
it from co
ntinu
ing op
erat
ions fo
r the yea
r is
£4
,3
42,000 (20
20: £8,
557,
00
0) be
fore t
axati
on of
£7
45
,00
0 (2020: £1
,663,0
00). D
urin
g the yea
r ordin
ar
y
div
iden
ds of £3,
244,0
00 (20
20: £4
,
1
4
7,
00
0) were p
aid.
Directors
Th
e memb
er
ship of th
e Bo
ard at th
e end of t
he year
is set o
ut in t
he Remu
ner
ation R
epo
rt o
n pag
es
60
-63
. Th
e Remun
erat
ion Co
mmit
te
e Repo
r
t al
so
incl
udes d
eta
il
s of the D
irec
tor
s’ remu
nerat
ion a
nd
intere
st
s in t
he ordi
nar
y sha
res of th
e Comp
any
.
Dur
ing t
he year al
l Dire
cto
rs an
d off
ice
rs were
covered by t
hird pa
r
ty i
ndem
nit
y insu
rance.
Political con
tributions
Nei
the
r the Co
mpa
ny nor any of i
ts su
bsidi
arie
s
mad
e any pol
it
ical d
onat
ion or in
curr
ed any
pol
it
ical e
xpe
ndit
ure dur
ing th
e year (2020: £n
il).
Charitable donations
Do
natio
ns to char
it
able o
rganis
atio
ns amo
unted
to
£100,
000 (
202
0: £
100,000
).
Principal risks and
uncer
tainties
Th
e prin
cipa
l risk
s and un
cer
t
aintie
s faci
ng the
Gro
up, along w
ith t
he ris
k manag
eme
nt obje
ct
ives
and p
oli
cies a
re discus
sed i
n the R
isk and Aud
it
Com
mit
tee re
por
t
s and N
ote 3 of the
se f
inan
cial
statements.
Capital requirements
Se
e Note 4 of th
ese f
ina
ncial s
tat
ement
s.
Corporate
governanc
e
Th
e Boa
rd of Per
son
al Grou
p Hold
ings Plc s
uppo
r
ts
th
e prin
ciple
s and is com
mit
ted t
o achiev
ing hig
h
st
and
ards of cor
por
ate gover
nance an
d has
adopted
t
he Quo
ted Companies A
lliance C
orporate
Gover
nance C
ode in i
ts e
ntiret
y
. Th
e Boa
rd’s rep
or
t
on t
he Gro
up’s corp
orate g
overna
nce pro
cedure
s is
set o
ut on p
ages 4
6-
4
7
.
Disclosure of i
nformation to
auditor
Th
e Dire
ctor
s wh
o held of
f
ice at th
e date of
app
roval of th
is Direc
tor
s’ Rep
or
t conf
irm t
hat
, so
far as t
hey are e
ach aware
, the
re is no relev
ant
aud
it infor
mati
on of whi
ch the G
roup’s a
udito
r is
unawa
re; and ea
ch Dire
cto
r has ta
ken all t
he st
eps
that t
hey o
ught to have t
aken as a Dire
ct
or to
make
themselves a
ware of an
y relev
ant audit
infor
mati
on and t
o est
abl
ish t
hat the G
roup’s
aud
itor is awa
re of that inf
ormat
ion
.
Auditor
E
Y LLP have ex
pres
sed w
ill
ingne
ss to cont
inue i
n
of
fi
ce. In accorda
nce wi
th se
ct
ion 4
89 (4) of the
Com
pani
es Act 2
00
6 a resol
uti
on to bot
h form
ally
app
oint an
d reapp
oint E
Y LL
P will b
e prop
ose
d at
th
e Annua
l Gen
eral M
eet
ing to b
e held o
n
Wednes
day 5 May 202
2.
Other information
An in
dicat
ion of l
ikely fut
ure develo
pme
nts i
n the
busi
ness a
nd pa
rt
icul
ar
s of signi
fi
cant event
s
whi
ch have occur
red sin
ce the e
nd of th
e fin
ancia
l
year have be
en in
clude
d in th
e Strate
gic Rep
or
t
.
In ar
riv
ing at th
eir con
clusio
n that t
he Gro
up’s
account
s sh
ould be p
repa
red on a g
oing con
cern
basi
s, th
e Direc
tor
s have consi
dered t
he p
otential
imp
ac
t of CO
VID
-19 over the n
ex
t 12 mont
hs bas
ed
on rev
iew of a var
iet
y of pos
sible s
tre
ss and
scenario test
s.
BY ORDER O
F THE B
OARD
Sar
ah Mace
Chief Financial Off
icer
28 March 2
022
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
64
Personal Group Holdings
Plc
· A
nnu
al Re
por
t an
d Accoun
ts 20
21
ST
A
TEMENT OF
DIRECT
ORS
RESPONSIBILITIES
THE DIRE
CTORS
ARE
RESPONSIBLE
FOR
PREP
ARING THE
STRA
TEGIC
REPOR
T
, DIRE
CT
ORS’
REPORT
AND
THE GROUP
AND P
ARENT C
OMP
ANY
FINANCIAL
ST
A
TEMENTS IN
A
CC
ORDANCE WITH
APPLICABLE
LA
W
AND
REGULA
TIONS
In respect of the St
rategic R
eport
,
Directors’ Repor
t and the Financial
Sta
temen
t
s
Th
e Dire
ctor
s are re
spons
ible fo
r prep
arin
g the
Strat
egic Re
por
t
, Dire
cto
rs’ Re
por
t an
d the G
roup
and p
arent Co
mpa
ny Finan
cial Stat
ement
s in
accor
dance with applicable law and regulations.
Com
pany l
aw requi
res th
e Dire
cto
rs to pre
pare
Gro
up and p
arent Co
mpany f
ina
ncial s
tat
ement
s
for ea
ch f
inanc
ial year
. Un
der t
he AIM R
ules of t
he
Lond
on Stock E
xchan
ge th
ey are req
uired to
prep
are th
e Gro
up fi
nanci
al st
atem
ent
s in
acc
ordanc
e with Interna
tional Fin
ancial
Repor
ting
Stan
dards as a
dopte
d by the EU (I
FRSs a
s adopte
d
by th
e EU) and ap
pli
cab
le law a
nd th
ey have
ele
cte
d to prep
are th
e pare
nt Comp
any f
inanc
ial
st
atem
ent
s on th
e sam
e basis
.
Und
er comp
any l
aw the D
irec
tor
s must n
ot
app
rove the f
inan
cial s
tate
ment
s unl
ess t
hey are
sat
isf
ied t
hat t
hey give a t
rue a
nd fai
r view of t
he
st
ate of af
fai
rs of th
e Grou
p and p
arent Com
pany
and of t
heir p
rof
it or los
s for th
at per
iod
. In
prep
ari
ng each of t
he G
roup an
d pare
nt Comp
any
f
inanc
ial st
atem
ent
s, th
e Dire
cto
rs are re
quire
d to:
Select suit
able ac
counting
policies and then
apply
them consisten
tly
.
Make jud
gem
ent
s and es
tim
ates t
hat are
reasonable, rele
vant and
rel
iable.
State w
heth
er th
ey have be
en prep
ared i
n
accord
ance wi
th IFR
Ss as ad
opted by t
he EU.
As
ses
s the G
roup an
d pare
nt Comp
any’s ab
ili
ty
to cont
inue as a g
oing con
cern
, disclo
sing, a
s
app
lic
able
, mat
ters re
late
d to goi
ng conce
rn.
Use t
he goi
ng conce
rn bas
is of account
ing
unle
ss th
ey eit
her int
end to l
iqui
date th
e Grou
p
or t
he pare
nt Comp
any or to ce
ase op
erat
ions
,
or have no re
alis
tic a
ltern
ative b
ut to do s
o.
Th
e Dire
ctor
s are re
spons
ible fo
r keeping a
deq
uate
account
ing re
cords th
at are suf
f
icient to s
how and
exp
lai
n the p
arent Co
mpa
ny’s tr
ansa
ct
ions a
nd
discl
ose w
ith rea
sona
ble accu
rac
y at any tim
e th
e
f
inanc
ial pos
itio
n of the p
arent Co
mpa
ny and
ena
ble th
em to ens
ure that i
ts f
in
ancial
st
atem
ent
s comply wi
th t
he Comp
ani
es Act 2
006
.
Th
ey are resp
onsib
le for su
ch inter
nal cont
rol as
th
ey dete
rmin
e is nece
ssa
r
y to enab
le th
e
prep
arat
ion of f
ina
ncial s
tat
ement
s t
hat are fre
e
from m
ater
ial miss
tat
ement
, wh
ethe
r due to
fra
ud or er
ror
, an
d have gen
eral re
spon
sibil
it
y for
ta
king su
ch st
eps as are re
ason
ably op
en to th
em
to sa
fegua
rd the a
sset
s of th
e Gro
up and to
prevent a
nd dete
ct f
raud a
nd oth
er irre
gul
ari
tie
s.
Under applicable l
aw
and regul
ations, the Directors
are al
so re
spo
nsible f
or prep
ari
ng a Strate
gic Re
por
t
and a D
irec
tor
s’ Repo
r
t that co
mpl
ies wi
th th
at law
and t
hos
e regul
ati
ons.
Th
e Dire
ctor
s are re
spons
ible fo
r the ma
intena
nce
and i
ntegr
it
y of the co
rpo
rate an
d fin
ancia
l
infor
mati
on incl
ude
d on th
e Comp
any’s web
site.
Leg
islat
ion in t
he UK g
overnin
g the p
repa
rati
on and
diss
emin
ation of f
in
ancial s
t
ateme
nts m
ay dif
fer
from legislation in other jurisdictions.
65
Strategic Report
Governance
Financial Statements
Strategic Report
Overview
Governance
Financial Statements
INDEPENDENT
AUDIT
OR’S
REPORT
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
66
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
INDEPENDENT
A
UDIT
OR’S REPOR
T
T
O
THE MEMBERS
OF
PERSONAL
GROUP
HOLDINGS PL
C
Opinion
In our opinion:
Per
so
nal Gro
up Hol
dings pl
c’s grou
p fin
ancia
l st
ateme
nts a
nd pa
rent comp
any f
inanci
al st
atem
ent
s (the “
f
inan
cial s
tate
ment
s”) g
ive a tr
ue and f
air
view of t
he s
tate of t
he gro
up’s and of t
he pa
rent comp
any’s af
fa
irs as at 3
1 Dece
mbe
r 2021 a
nd of th
e group’s p
rofi
t for th
e year th
en en
ded;
th
e group f
ina
ncial s
tate
ment
s have be
en pro
per
ly prepa
red in acco
rdance w
ith U
K adopt
ed inter
nati
onal a
ccountin
g st
anda
rds;
th
e parent co
mpa
ny fina
ncial s
tat
eme
nts have b
een pr
oper
ly prep
ared in a
ccordan
ce with U
K ado
pted inte
rnat
ional a
ccounti
ng st
and
ards as ap
pli
ed in
accord
ance wi
th se
ct
ion 4
08 of th
e Comp
anie
s Act
; and
th
e fin
ancia
l st
ateme
nts h
ave been p
repa
red in accor
dance w
ith t
he requ
ireme
nts of t
he Co
mpa
nies Ac
t 200
6.
We have audite
d the f
ina
ncial s
tat
ement
s of P
ers
onal G
roup Ho
lding
s plc (th
e ‘pa
rent comp
any’
) and it
s sub
sidia
ries (
the ‘gro
up’) fo
r the yea
r ende
d 31
December 2021 whic
h comprise:
Group
Parent Compan
y
Cons
oli
dated i
ncome s
tat
ement fo
r the ye
ar end
ed 31 D
ecem
ber 20
21
Ba
lan
ce shee
t as at 31 D
ecemb
er 202
1
Cons
oli
dated b
al
ance sh
eet as at 3
1 Dece
mber 2
021
State
ment of cha
nge
s in equi
t
y for th
e year
then ended
Cons
oli
dated s
tat
ement of co
mpreh
ensi
ve income f
or the ye
ar th
en end
ed
Cas
h flow s
tate
ment fo
r the yea
r the
n ende
d
Cons
oli
dated s
tat
ement of c
hange
s in eq
uit
y for t
he year t
hen en
ded
Rel
ated n
otes 1 to 32 to t
he f
inan
cial
st
atem
ent
s inclu
ding a su
mmar
y of si
gnif
ica
nt
accoun
ting policies
Cons
oli
dated c
ash f
low st
ateme
nt for th
e year th
en en
ded
Rel
ated n
otes 1 to 32 to t
he f
inan
cial s
tate
ment
s (except for t
he solven
cy ca
pit
al po
siti
on of th
e Grou
p’s
regu
late
d comp
anie
s disclo
sed in n
ote 4 whi
ch is mar
ked as unau
dite
d), incl
uding a su
mmar
y of
significant accounting policies
Th
e fin
ancia
l repo
r
ting f
rame
work t
hat has be
en ap
pli
ed in t
heir pr
epar
atio
n is appl
ic
able l
aw and U
K adopt
ed inter
nati
onal a
ccountin
g st
anda
rds and
, as
rega
rds to th
e pare
nt compa
ny fin
ancia
l st
ateme
nts
, as app
lie
d in accorda
nce wit
h se
ct
ion 40
8 of th
e Comp
anie
s Act 20
06.
Basis for opinion
We c
ond
uc
ted our a
udit i
n accordan
ce wit
h Inter
natio
nal Sta
ndard
s on Audi
ting (
UK
) (ISA
s (UK
)) and ap
pli
cabl
e law. Our resp
onsib
ili
ties u
nde
r thos
e
st
and
ards are f
ur
the
r des
crib
ed in t
he Audi
tor
’s respo
nsibil
it
ies fo
r the au
dit of t
he f
inan
cial st
atem
ent
s sec
ti
on of our re
por
t
. We are inde
pend
ent of th
e
grou
p and pa
rent comp
any in acco
rdance w
ith t
he eth
ical re
quire
ment
s th
at are relev
ant to our a
udit of t
he f
inan
cial st
atem
ent
s in th
e UK
, inclu
ding t
he
FRC
’s E
thi
cal St
anda
rd as appl
ie
d to lis
ted ent
iti
es, a
nd we have fulf
ill
ed our ot
her et
hic
al resp
onsib
ilit
ies i
n accordan
ce wit
h the
se req
uirem
ent
s.
We beli
eve that t
he aud
it evid
ence we have obt
ain
ed is suf
f
icie
nt and app
ropr
iate to pr
ovide a b
asis for o
ur opin
ion.
INDEPENDENT
AUDIT
OR’S
REPORT
67
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Conclusions relating to going conc
e
rn
In aud
iti
ng the f
in
ancial s
t
ateme
nts
, we have conclu
ded t
hat the d
irec
tor
s’ use of t
he goi
ng conce
rn bas
is of account
ing in t
he prep
arat
ion of t
he
f
inanc
ial st
atem
ent
s is appr
opri
ate. Ou
r evaluat
ion of t
he dire
cto
rs’ as
ses
sment of t
he grou
p and p
arent comp
any’s a
bili
ty t
o contin
ue to ado
pt the g
oing
conc
ern basi
s of
accountin
g inc
luded the f
ollowin
g proc
edures:
conf
irm
ed our u
nde
rst
an
ding of ma
nage
ment’s g
oing con
cern a
sses
sment p
roces
s and obt
aine
d mana
gem
ent’s ass
essm
ent whi
ch covers 12 m
onths
end
ing 28 Marc
h 2023;
obt
aine
d the f
ina
ncial fo
reca
st
s prep
ared by t
he G
roup an
d asse
ssed t
he ap
prop
riate
ness of a
ssumpt
ions a
ppl
ied in t
he mo
del
led s
tres
s scena
rio
s
bas
ed on o
ur und
ers
ta
nding of t
he bu
sine
ss and t
he Gro
up’s his
tori
cal p
er
form
ance, i
nclud
ing sin
ce the s
tar
t of COVI
D-19 pan
dem
ic;
per
fo
rme
d enq
uiri
es of man
agem
ent and t
hos
e charg
ed wit
h gover
nance to i
dent
if
y risk
s or event
s th
at may imp
act t
he G
roup’s ab
ilit
y to co
ntinu
e as
a goi
ng concer
n. We al
so revie
wed man
agem
ent’s ass
ess
ment ap
proved by th
e Boa
rd, min
utes of m
eet
ings of t
he Bo
ard and i
ts co
mmit
te
es, a
nd mad
e
enq
uiri
es as to t
he imp
ac
t of COVID-19 on t
he busi
nes
s; and
ass
esse
d th
e appro
priat
enes
s of the g
oing co
ncern d
isclo
sures by com
par
ing th
e consis
tenc
y wi
th man
agem
ent’s as
sess
ment an
d for comp
lia
nce
wit
h the r
elevant re
por
t
ing req
uirem
ent
s
Bas
ed on m
anag
ement
’s asse
ssme
nt, we have ob
ser
ved t
hat th
e Grou
p is able t
o continu
e to have sur
plus c
ash and s
olvenc
y above th
e solvenc
y
requ
ireme
nts w
ith
in it
s two re
gul
ated e
ntit
ies in a n
umbe
r of ex
trem
e downs
ide sce
nari
os and t
he G
roup has co
ntinu
ed to se
r
vice cus
tom
ers an
d mee
t
it
s comm
itm
ent
s in the c
urrent e
nvironm
ent
.
Bas
ed on t
he wor
k we have per
fo
rme
d, we have not id
entif
ie
d any mater
ial un
cer
ta
intie
s rel
ating to e
vents o
r condi
tio
ns that
, ind
ividu
ally or
coll
ec
tively
, may cas
t sign
ifi
cant d
oubt on t
he grou
p and p
arent comp
any’s a
bili
ty t
o contin
ue as a goi
ng conce
rn for t
he pe
rio
d endi
ng 28 March 20
23.
Our re
spo
nsibil
it
ies an
d the re
spons
ibil
iti
es of th
e direc
tor
s wit
h resp
ect t
o going co
ncer
n are des
crib
ed in t
he rel
evant se
ct
ions of t
his rep
or
t. H
owever
,
be
caus
e not all f
uture eve
nts o
r condi
tion
s can b
e predi
cte
d, th
is st
atem
ent is not a gua
rante
e as to th
e group’s ab
ili
ty to co
ntinu
e as a goi
ng concer
n.
Overview of our audit approach
Audi
t scope
We per
for
med f
ull sco
pe aud
it of fou
r compo
nent
s of th
e Grou
p:
UK core insu
rance (
Per
sona
l Ass
uran
ce Plc),
Guernse
y core
insurance
(Personal Assu
rance
(Guernsey
) Limit
ed),
IT sal
ar
y s
acr
if
ice (PG Le
t’s Con
nec
t IT So
lut
ions L
imit
ed),
Sof
tw
are as a se
r
vice (Pe
rso
nal Ma
nagem
ent So
lut
ions L
imite
d), an
d
In ad
diti
on, we p
er
for
med au
dit pro
cedu
res on sp
ecif
ic b
ala
nces fo
r Inne
cto P
eop
le Consu
lting L
imit
ed, in
clud
ed in th
e
Gro
up comp
onent S
of
tw
are as a se
rv
ice.
Th
e compo
nent
s wh
ere we per
fo
rme
d ful
l or spe
cif
ic aud
it pro
cedure
s accounte
d for 99
% of th
e Group re
venue an
d 99%
of th
e Grou
p prof
it bef
ore ta
x.
Key audi
t mat
ter
s
Valuati
on of PG L
et’s Con
nec
t go
odwi
ll
Valuati
on of Inn
ec
to goo
dwil
l and ot
her int
angi
ble ass
et
s.
Materiali
ty
Over
all gro
up mate
rial
it
y of £21
9,00
0 (2020: £43
0,000) w
hich re
pres
ents 5
% (2020: 5%) of conso
lidat
ed prof
it b
efore t
ax
.
Profit before
tax
88
% F
ull sco
pe comp
enen
ts
6% Spe
cifi
c scope com
pene
nt
s
6% Oth
er pro
cedur
es
Rev
enue
98% Full s
cope comp
ene
nts
2% Spec
if
ic
scope c
ompenents
0% Other
procedures
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
68
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
An ov
er
view of the s
cope of t
he parent C
ompan
y and G
roup a
udits
Tailoring
the scope
Our a
sses
sment of a
udit r
isk, o
ur evalu
atio
n of mater
iali
t
y and ou
r allo
cati
on of pe
rf
orma
nce mate
rial
it
y det
ermi
ne our a
udit s
cope fo
r each com
pany
wit
hin t
he Gro
up. T
aken tog
eth
er
, this e
nabl
es us to fo
rm an op
inio
n on th
e consol
idat
ed f
inanc
ial st
atem
ent
s. We take into acco
unt size, risk p
rofi
le, th
e
orga
nisat
ion of t
he gro
up and ef
fe
ct
ivene
ss of grou
p wide co
ntrol
s, c
hang
es in th
e busin
ess e
nvironm
ent and ot
her fa
cto
rs su
ch as recent I
ntern
al audi
t
result
s wh
en ass
essi
ng th
e level of wor
k to be pe
r
form
ed at ea
ch comp
any
.
In ass
essi
ng the r
isk of mate
rial m
isst
atem
ent to t
he Gro
up fi
nanci
al st
atem
ent
s, and t
o ensure we ha
d ade
quate q
uanti
tat
ive coverage of s
ignif
ic
ant
account
s in t
he f
inan
cial st
ate
ment
s, we id
entif
ie
d fi
ve repor
t
ing com
pon
ent
s of the G
roup. O
f the f
ive com
pon
ents s
ele
cte
d, we pe
rf
orm
ed an au
dit of
th
e comple
te fi
nanci
al infor
mati
on of four co
mpo
nent
s (“
ful
l scop
e compo
nent
s”) w
hich were s
ele
cte
d bas
ed on t
heir si
ze or risk cha
rac
ter
ist
ics
. The f
ull
scop
e comp
onent
s are U
K core insu
rance (P
ers
onal A
ssu
rance p
lc), Guer
nsey co
re insur
ance (P
ers
onal A
ssur
ance (G
uer
nsey) L
imite
d), IT s
al
ar
y sa
crif
ice
(PG L
et’s Con
nec
t IT S
olut
ions L
imit
ed), an
d Sof
t
ware as a se
r
vice (P
ers
onal Ma
nage
ment S
olut
ions L
imit
ed only). In a
ddit
ion
, for th
e remai
ning on
e
comp
one
nt, Sof
t
ware a
s a ser
vi
ce (Inne
cto P
eop
le Consu
lting L
imit
ed) (“
spec
ifi
c scop
e compo
nent”
), we per
fo
rme
d audi
t proce
dure
s on spe
cif
ic
account
s t
hat we consid
ered ha
d the p
otenti
al for t
he greate
st im
pac
t on t
he sign
if
icant a
ccount
s in the f
in
ancial s
t
ateme
nts e
ithe
r bec
aus
e of the size
of th
ese a
ccount
s or th
eir risk p
rof
ile.
For t
he cur
rent year
, t
he ful
l scop
e comp
onent
s cont
rib
uted 8
8% (2020: 9
6%) of the G
roup’s pr
ofit b
efo
re tax a
nd 98
% (2020: 98%) of t
he Gro
up’s
Revenu
e. Th
e spec
ifi
c scop
e compo
nent cont
rib
uted 6
% of the G
roup’s prof
it b
efor
e tax (20
20: 3%) and 2
% of the G
roup’s Reve
nue (2020: 1%). T
he aud
it
scop
e of the
se com
pon
ent
s may not have incl
uded t
est
ing of al
l signi
fi
cant accou
nts of t
he com
pon
ent but w
ill have cont
rib
uted to t
he covera
ge of
signi
fi
cant acco
unts t
est
ed for t
he Gro
up.
Th
e char
t
s bel
ow illus
tr
ate the cover
age o
btain
ed fro
m the wo
rk pe
rf
orm
ed by our a
udit te
ams.
Inv
olv
ement with c
omponent teams
In es
ta
blis
hing ou
r overal
l appro
ach to t
he Gro
up aud
it, we d
eter
mine
d the t
yp
e of work t
hat ne
ede
d to be un
der
t
aken at eac
h of the com
pon
ent
s by us,
as th
e pri
mar
y aud
it eng
agem
ent tea
m, or by com
pone
nt audi
tor
s from oth
er E
Y glob
al net
wor
k fir
ms op
erat
ing un
der ou
r inst
ruc
ti
on.
Of t
he fou
r full s
cope co
mpon
ent
s, au
dit pro
cedure
s were pe
r
form
ed on t
hree of t
hes
e direc
tly by t
he pr
imar
y au
dit tea
m, E
Y UK
, whil
s
t audi
t
pro
cedure
s on th
e remain
ing on
e compo
nent (P
ers
onal A
ssu
rance (G
uer
nsey) L
imite
d) were p
er
for
med by t
he comp
one
nt audit t
eam, E
Y G
uer
nsey
. We
dete
rmi
ned t
he app
ropr
iate level of i
nvolv
eme
nt to enab
le us to de
term
ine t
hat suf
f
icient a
udit ev
iden
ce had be
en obt
ain
ed as a ba
sis for ou
r opini
on on
th
e Group a
s a whol
e. W
e provi
ded de
tai
led au
dit ins
tr
uc
tion
s to EY G
uer
nsey w
hich in
clude
d guid
ance on a
reas of foc
us, in
cludin
g the re
levant r
isks of
mate
rial mis
st
atem
ent, a
nd set o
ut th
e infor
matio
n requ
ired to b
e repo
rt
ed to us
. W
e h
eld dis
cussi
ons wit
h th
e compo
nent te
am thro
ugho
ut th
e audi
t
and rev
iewed t
heir key wor
kin
g pap
ers
. Due to t
he p
ande
mic, t
he UK p
rima
r
y audi
t team d
id not visi
t Gue
rnse
y and cond
uc
ted t
he aud
it wit
h the E
Y
Gu
erns
ey team re
motely
. T
his
, toget
her w
ith t
he ad
dit
ional p
roced
ures p
er
form
ed at G
roup level
, gave us ap
prop
riate ev
iden
ce for ou
r opini
on on t
he
Gro
up fi
nanci
al st
atem
ent
s.
Climate change
Th
ere has b
een in
creasin
g intere
st fro
m st
akehol
der
s as to how cl
imate ch
ange wi
ll imp
ac
t comp
anie
s. Th
e Grou
p has det
ermi
ned t
hat th
e physic
al and
tr
ansit
ion r
isks f
rom cl
imate cha
nge do n
ot curre
ntly pos
e a mater
ial ris
k to the G
roup. T
his is ex
pla
ined o
n pag
e 83 in the Accou
nting P
oli
cies
, which f
orm
par
t of t
he “O
th
er infor
mati
on” rat
her t
han th
e audi
ted f
inan
cial s
tate
ment
s. O
ur pro
cedure
s on th
ese d
isclos
ures th
erefo
re consis
ted s
olely of
consid
eri
ng whe
ther t
hey a
re mater
ially in
consis
tent wi
th th
e fin
ancia
l st
ateme
nts o
r our k
nowle
dge obt
aine
d in th
e cour
se of th
e audi
t or othe
r
wise
app
ear to b
e mater
ially mi
sst
ated
.
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
69
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Our a
udit e
ff
or
t in consi
der
ing cli
mate cha
nge was fo
cuse
d on cha
llen
ging ma
nage
ment’s r
isk ass
essm
ent of th
e imp
act of p
hysica
l and t
ransi
tio
n risk
s
and t
he res
ulting co
nclusi
on th
at ther
e was no mate
rial i
mpa
ct fr
om cli
mate chan
ge and t
he ad
equa
cy of t
he Gr
oup’s dis
closure
s on pa
ges
XX
to
XX
of
th
e fin
ancia
l st
ateme
nts w
hich ex
pl
ain th
e rati
onale
.
K
ey audi
t matters
Key audi
t mat
ter
s are th
ose mat
te
rs th
at, in o
ur profe
ssion
al judg
ment
, were of mo
st sig
nif
ican
ce in our a
udit of t
he f
inan
cial s
tate
ment
s of th
e curre
nt
per
iod a
nd incl
ude t
he mo
st sign
if
icant as
ses
sed r
isks of m
ater
ial miss
tat
ement (w
heth
er or n
ot due to fr
aud) t
hat we id
entif
ie
d. Th
ese m
atte
rs in
clude
d
th
ose wh
ich had t
he gre
ates
t ef
fec
t on: the ove
rall a
udit s
tr
ategy, the al
loc
atio
n of resou
rces in t
he aud
it; a
nd dire
ct
ing th
e ef
for
t
s of th
e engag
eme
nt
team
. Th
ese mat
te
rs were a
ddres
sed i
n the cont
ex
t of our au
dit of th
e fi
nanci
al st
atem
ent
s as a who
le, and i
n our op
inion t
here
on, a
nd we do not
provi
de a sep
arat
e opini
on on t
hes
e mat
ters
.
Risk
Our r
esp
ons
e to the ri
sk
Key obs
er
vati
ons co
mmun
icate
d to the
Audit Committee
Valua
tion o
f PG Le
t’s Con
nec
t Go
odw
ill
(2021: £10.6m, 2020: £10.
6
m)
We conside
r the r
isk asso
ciate
d with t
he
valua
tio
n of PG Let’
s Conne
ct g
oodw
ill to
have i
ncrea
sed as a re
sult of incr
ease
d
unce
r
taint
y over th
e futu
re cash flow
projections due
to the C
OVID-
19 pandemic.
Refe
r to Account
ing p
olici
es (pa
ge 84); and
Note 14 of t
he Consol
idate
d Fina
ncia
l
Statem
ents (
page
s 99 to 101)
.
Th
e PG Let
’s Conn
ec
t goo
dwil
l arisi
ng on
conso
lid
atio
n repres
ent
s th
e excess of t
he
cost
s of a
cquisit
ion over t
he Gr
oup’s
intere
st in t
he fa
ir value o
f the id
enti
fie
d
ass
ets a
nd li
abil
iti
es at th
e date of
acqu
isiti
on of PG Le
t’s Con
nec
t in 201
4.
Th
e PG Let
’s Conn
ec
t goo
dwil
l bal
ance as at
31 D
ecem
ber 20
21 is sign
if
icant b
ase
d on it
s
size rel
ative to t
he tot
al ass
ets of t
he G
roup.
Bas
ed on o
ur pr
ior year e
xpe
rien
ce and t
he
updated current y
ear considerations including
th
e impa
ct of t
he COVID
-
1
9 pan
demi
c and
global supply c
hain interruptions, we c
onsider
th
e follow
ing key assu
mptio
ns to have th
e
mos
t sign
ifi
cant im
pac
t on t
he PG L
et’s
Connect goodwill va
luation.
Dis
count rate
Future c
ash f
low forec
ast
s
These key assump
tions inv
olv
e significant
jud
geme
nt abou
t fut
ure event
s for wh
ich
smal
l chang
es ca
n result in a m
ater
ial imp
ac
t
to th
e result
ant val
uatio
n and t
heref
ore lea
ds
to a great
er risk of m
ater
ial miss
tat
ement
.
T
o obt
ain suf
f
icie
nt audi
t evide
nce to con
clude o
n the
valu
ation of P
G Let
’s Conne
ct g
ood
will
, we pe
r
form
ed th
e
foll
owing pro
cedure
s:
Ex
amin
ed and as
ses
sed t
he ap
propr
iaten
ess of
mana
gem
ent’s im
pair
ment m
odel
, in
cludin
g an
ide
ntif
icat
ion of t
he ca
sh gen
erat
ing uni
t (‘CGU
’) an
d
at
tri
but
able c
ashf
lows, a
n asse
ssment of d
iscount
ed cas
h
flows, and unders
tanding of the significant assumptions
use
d in th
e impa
irme
nt tes
t for th
e ide
ntif
ied CGU;
Consi
dere
d the in
creas
ed unce
r
tai
nty in t
he un
der
lying
fore
cas
ts a
nd chal
leng
ed th
e fut
ure cash f
low pro
jec
tio
ns
of th
e CGU, includ
ing th
e app
ropr
iatene
ss of th
e appl
ie
d
sho
rt
-te
rm an
d long-te
rm grow
th r
ates an
d es
timate
d
convers
ion rat
es;
Enga
ged E
Y valu
ation s
peci
alis
t
s to asse
ss th
e
reas
onabl
ene
ss of th
e discou
nt rate by consi
der
ing th
e
CGU’s s
peci
fic c
ircums
ta
nces as wel
l as comp
ara
ble
companies;
Per
fo
rme
d sen
siti
vit
y analys
is to asse
ss th
e imp
act of
cer
t
ain key var
iable
s on level
s of h
eadro
om, in
clud
ing
disco
unt rate an
d grow
th as
sumpti
ons; an
d
Consi
dere
d whet
her t
he ap
plie
d account
ing t
reatm
ent is in
compliance with the applicable accoun
t
ing framew
ork and
th
e Group’s a
ccounti
ng pol
ic
y and t
he Gro
up discl
osure is in
li
ne wit
h the re
quire
d repo
r
tin
g fram
ework a
nd th
e revise
d
aud
itin
g st
anda
rd – ISA 5
40 (Rev
ised
)
Auditin
g Ac
counting
Est
ima
tes an
d Relate
d Disclosur
es.
We are satis
f
ied t
hat the
re is no im
pair
ment
and t
he ca
rr
yin
g value of t
he go
odw
ill is
app
ropr
iate as at 31 D
ecem
ber 20
21
.
However
, t
his assu
mes t
he ong
oing i
mproved
fut
ure tr
adin
g of PG Let
’s Conn
ect f
ollow
ing
th
e CO
VID
-19 pan
demi
c and glo
bal su
pply
chai
n interr
upti
ons. T
he t
iming a
nd sc
ale of
th
e CGU’s fu
ture grow
t
h is curre
ntly
unce
r
tain
, par
t
icul
ar
ly with re
spe
ct to t
he
spe
ed at whi
ch the b
usine
ss’ ca
sh flow
s will
rever
t to pre
-
CO
VID
-19 level
s and h
istor
ica
l
grow
th t
rends (dis
close
d in Note 14 of t
he
f
inanc
ial st
atem
ent
s). Del
ay in this re
cover
y
could h
ave a signif
ica
nt adver
se im
pac
t on
th
e futu
re cash f
lows of t
he PG Le
t’s Con
nec
t
CGU and m
ay aff
ec
t the f
uture c
arr
y
ing valu
e
of the
goodwill.
We have reviewed t
he rel
ated d
isclos
ures an
d
concl
uded t
hat t
hese a
ccurat
ely refl
ec
t the
unce
r
taint
y as
soci
ated wi
th th
e fut
ure cash
fl
ows of the L
et’s Con
nec
t CGU, as wel
l as the
sensit
ivities an
d k
ey assum
ptions.
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
70
Personal
Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
Risk
Our r
esp
ons
e to the ri
sk
Key obs
er
vati
ons co
mmun
icate
d to the
Audit Committee
Valuat
ion of Innecto
goodwill and other
intangibl
e assets (2021: £2
.6m, 2020: £2.8m)
We conside
r the r
isk asso
ciate
d with t
he
valua
tio
n of Inne
cto g
oodw
ill an
d othe
r
intang
ible a
ssets to h
ave incr
ease
d as a
result of i
ncrea
sed u
ncer
tai
nty over t
he
futu
re cash f
low proj
ect
ions d
ue to th
e
CO
VID-
19 pandemic.
Refe
r to Account
ing p
olici
es (pa
ge 84); and
Note 14 of t
he Consol
idate
d Fina
ncia
l
Statem
ents (
page
s 99 to 101)
.
Th
e Inne
cto g
ood
will a
risin
g on
conso
lid
atio
n repres
ent
s th
e excess of t
he
cost
s of a
cquisit
ion over t
he Gr
oup’s
intere
st in t
he fa
ir value o
f the id
enti
fie
d
ass
ets a
nd li
abil
iti
es at th
e date of
acqu
isiti
on of Inn
ect
o in 2019.
We c
onsi
der t
he valu
ation of I
nne
cto
goo
dwi
ll and ot
her int
ang
ible as
set
s to be a
signi
fi
cant r
isk for th
e Gro
up. Spec
ifi
cal
ly
,
disco
unt rate an
d shor
t
-te
rm and l
ong-ter
m
grow
th r
ates have th
e mos
t signi
fi
cant
imp
ac
t on th
e valuat
ion.
Th
e value of t
he In
nec
to go
odwi
ll was m
ost
sen
siti
ve to the d
iscount r
ate and t
he
sho
rt
-te
rm grow
th r
ates of t
he dig
ita
l sale
s.
Th
e forec
ast
ed cash f
lows we
re dep
ende
nt
on t
he re-p
lat
for
ming of I
nnec
to’s dig
ita
l
pay ma
nage
ment su
ite in 202
0, which wa
s
del
ayed f
ur
the
r into 202
1 due to COVID
-19.
Th
e appl
ied d
iscount r
ate too
k into account
th
e exis
ting u
ncer
t
ainti
es arou
nd th
e futu
re
cash f
lows
. Curre
nt 2021 f
orec
ast
s show a
more pos
itive
outlook for
Innec
to
, but due
to COVID
-
1
9 st
ill im
pac
tin
g the b
usine
ss’s
abil
it
y to ge
ner
ate new bu
sines
s,
unce
r
taint
y rel
ate
d to the f
utu
re cash f
lows
and s
ensit
ivi
ty t
o the di
scount r
ate contin
ue
to r
emain.
Th
e ident
if
ied key assu
mptio
ns involve
signi
fi
cant ju
dgme
nt abou
t fut
ure event
s
for w
hich sma
ll chan
ges c
an result i
n a
mate
rial im
pac
t to th
e result
ant val
uatio
n
and t
here
fore lea
ds to a great
er risk of
mate
rial mis
st
atem
ent.
T
o obt
ain suf
f
icie
nt audi
t evid
ence to con
clude o
n the
valu
ation of g
oo
dwil
l at the yea
r end, we p
er
for
med t
he
foll
owing pro
cedure
s:
Ex
amin
ed and as
ses
sed t
he ap
propr
iaten
ess of
mana
gem
ent’s im
pair
ment m
odel
, in
cludin
g an
ide
ntif
icat
ion of t
he ca
sh gen
erat
ing uni
t (‘CGU
’) an
d
at
tri
but
able c
ashf
lows, a
n asse
ssment of d
iscount
ed cas
h
flows, and unders
tanding of the significant assumptions
use
d in th
e impa
irme
nt tes
t for th
e ide
ntif
ied CGU;
Consi
dere
d the in
creas
ed unce
r
tai
nty in t
he un
der
lying
fore
cas
ts a
nd chal
leng
ed th
e fut
ure cash f
low pro
jec
tio
ns
of th
e CGU, includ
ing th
e app
ropr
iatene
ss of th
e appl
ie
d
sho
rt
-te
rm an
d long-te
rm grow
th r
ates an
d es
timate
d
convers
ion rat
es;
Enga
ged E
Y valu
ation s
peci
alis
t
s to asse
ss th
e
reas
onabl
ene
ss of th
e discou
nt rate and g
rowt
h rate
s by
consid
eri
ng the CG
U’s sp
ecif
ic circ
umst
an
ces as wel
l as
comparable companies;
Per
fo
rme
d sen
siti
vit
y analys
is to asse
ss th
e imp
act of
cer
t
ain key var
iable
s on level
s of h
eadro
om, in
clud
ing
disco
unt rate an
d grow
th as
sumpti
ons; an
d
Consi
dere
d whet
her t
he ap
plie
d account
ing t
reatm
ent is in
compliance with the applicable accoun
t
ing framew
ork and
th
e Group’s a
ccounti
ng pol
ic
y and t
he Gro
up discl
osure is in
li
ne wit
h the re
quire
d repo
r
tin
g fram
ework a
nd th
e revise
d
aud
itin
g st
anda
rd – ISA 5
40 (Rev
ised
)
Audi
ti
ng Accou
nting
Est
ima
tes and R
elate
d Disclosu
res
.
We are satis
f
ied t
hat the
re is no im
pair
ment
and t
he ca
rr
yin
g value of t
he go
odw
ill is
app
ropr
iate as at 31 D
ecem
ber 20
21
. However
,
this a
ssum
es ong
oing grow
t
h wit
hin th
e CGU
fol
lowing t
he COVID
-
1
9 pan
dem
ic (disclos
ed in
Note 14 of t
he f
inan
cial s
tate
ment
s). Del
ay in
th
e pos
t COVID-19 recover
y co
uld have a
signi
fi
cant ad
vers
e imp
act o
n the f
uture c
ash
fl
ows of the I
nne
cto CGU a
nd may af
fec
t th
e
fut
ure ca
rr
yin
g value of t
he go
odw
ill
.
We have reviewed t
he rel
ated d
isclos
ures an
d
concl
uded t
hat t
hese a
ccurat
ely refl
ec
t the
unce
r
taint
y as
soci
ated wi
th th
e fut
ure cash
fl
ows of the I
nne
cto CGU, as wel
l as th
e
sensit
ivities an
d k
ey assum
ptions.
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
71
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Our applicat
ion of ma
teria
lity
We apply th
e concept of mat
eria
lit
y in p
lan
ning an
d per
fo
rmin
g the a
udit
, in eval
uatin
g the e
ffe
ct of i
dent
ifi
ed miss
t
ateme
nts o
n the au
dit an
d in
forming our audit opinion.
Materiality
The m
agn
itud
e of an omi
ssion o
r miss
tatem
ent th
at, i
ndiv
idua
lly or in t
he ag
grega
te, cou
ld reaso
nab
ly be exp
ecte
d to inf
luen
ce the eco
nom
ic de
cisio
ns
of the u
ser
s of the f
ina
ncial s
tatem
ent
s. Ma
teri
ali
ty p
rovide
s a basis fo
r dete
rmi
ning t
he nat
ure and e
x
tent of our a
udit p
roce
dure
s.
We deter
mine
d mater
iali
ty f
or th
e Grou
p to be £2
19,00
0 (2020: £
430,00
0), which is 5
% (2020: 5%) of the con
sol
idate
d prof
it be
fore t
ax. T
he Gro
up has
be
en prof
it
able over a n
umbe
r of year
s and we jud
ge th
e focus of s
hareh
olde
rs to b
e the G
roup’s prof
it
abi
lit
y an
d ear
nings p
er share
. While COVI
D-19 has
imp
ac
ted th
e prof
it be
fore t
ax, we co
nside
r that it re
mains t
he mo
st ap
prop
riate b
asis to de
term
ine mate
rial
it
y for t
he G
roup.
We deter
mine
d mater
iali
ty f
or th
e Parent Co
mpany to b
e £25
0,00
0 (2020: £260,0
00), w
hich is 1% (2020: 1
%) of the Pare
nt Comp
any equ
it
y
. We have used
th
e capi
tal b
ase
d measu
re for det
erm
ining m
ateri
alit
y du
e to th
e Parent Co
mpany b
eing a h
oldin
g comp
any
.
Dur
ing t
he cour
se of ou
r audi
t, we reas
ses
sed in
itia
l mater
ial
it
y and con
clude
d that m
ateri
alit
y as
ses
sed at pl
an
ning s
tag
es of ou
r audit r
emain
ed
appropria
te.
We als
o reass
esse
d init
ial mat
eria
lit
y for t
he G
roup fro
m £244
,00
0 to £21
9,000 d
ue to a de
creas
e in the G
roup’s p
rofi
t befo
re ta
x bet
ween t
he
inter
im fore
cas
t amo
unt (upon wh
ich th
e init
ial mate
rial w
as bas
ed) an
d the yea
r
-en
d ac
tual
. We reasses
sed o
ur aud
it pro
cedure
s as a result of t
he
decre
ased m
ateri
ality
.
We als
o reass
esse
d init
ial mat
eria
lit
y for t
he Pa
rent Comp
any fro
m £266,0
00 to £2
50,0
00 du
e to a dec
rease in t
he Pa
rent Comp
any’s e
quit
y b
etwe
en
30 S
eptemb
er 202
1 (upon w
hich ou
r init
ial mate
rial
it
y was b
ased
) and 3
1 Dece
mbe
r 2021
. W
e consid
ered t
he im
pac
t of thi
s on th
e ex
tent of our a
udit
proce
dures
.
Performance materiality
The a
ppl
icat
ion of ma
teri
alit
y at t
he in
divid
ual a
ccount or b
alan
ce level. I
t is set at an a
mou
nt to redu
ce to an app
ropr
iately low level t
he pr
oba
bil
ity t
hat
the a
ggre
gate of un
corre
cte
d and un
detec
ted m
issta
teme
nts e
xceeds m
ater
ial
ity.
On t
he bas
is of our r
isk asse
ssme
nts
, toge
the
r wit
h our ass
essm
ent of th
e Grou
p’s overal
l control e
nvironm
ent
, our jud
gment w
as that p
er
for
mance
mate
rial
it
y was 75% (20
20: 75%) of our pl
an
ning mat
erial
it
y
, n
amely £
165,0
00 (2020: £3
23,0
00). We have set p
er
form
ance mat
eria
lit
y at t
his perce
ntag
e
as we have not id
entif
ie
d any signi
fic
ant er
rors i
n the p
rio
r year aud
it
s.
Audi
t work at com
pon
ent loc
atio
ns for t
he pur
pos
e of obt
aining a
udit cover
age over sig
nif
ica
nt fin
ancia
l st
ateme
nt account
s is und
er
t
aken bas
ed on a
per
centag
e of tota
l per
for
man
ce mater
iali
ty. The p
er
for
mance mat
eria
lit
y s
et for ea
ch comp
onent is b
ase
d on th
e relat
ive sc
ale an
d risk of t
he
comp
one
nt to the G
roup as a w
hole a
nd our as
ses
sment of t
he ris
k of miss
tate
ment at t
hat comp
onent
. In t
he cur
rent year
, t
he ran
ge of pe
rf
orma
nce
mate
rial
it
y allo
cate
d to comp
one
nts wa
s £33,00
0 to £1
65,00
0 (2020: £32
,00
0 to £275,0
00).
Reporting threshold
An am
ount b
elow whi
ch ide
ntif
ied m
isstate
me
nts are co
nside
red a
s bei
ng clea
rly triv
ial
.
We agreed w
ith t
he Audi
t Comm
it
tee t
hat we would re
por
t to t
hem al
l uncor
rec
ted a
udit d
iff
erence
s in excess o
f £11,0
00 (202
0: £22,0
00) fo
r the G
roup
and i
n excess of £12
,00
0 (2020: £13,0
00) f
or th
e Parent Co
mpany , w
hich is s
et at 5% of pl
anni
ng mater
ial
it
y
, as wel
l as dif
fere
nces b
elow th
at thre
shold
that
, in ou
r view, warr
anted re
por
t
ing on qu
ali
tat
ive groun
ds.
We evaluate any u
ncorre
ct
ed miss
tat
eme
nts ag
ains
t both t
he qua
ntit
ative m
easure
s of mater
ial
it
y discu
sse
d above and i
n light of ot
her re
levant
qual
it
ative co
nside
ratio
ns in for
ming o
ur opi
nion
.
Oth
er info
rmatio
n
Th
e other i
nform
atio
n compr
ises t
he info
rmat
ion in
clud
ed in th
e annu
al repo
r
t set ou
t on pa
ges 1 to 69, ot
her t
han th
e fi
nanci
al st
atem
ent
s and ou
r
aud
itor
’s repo
r
t the
reon. T
he di
rec
tors a
re resp
onsibl
e for th
e othe
r infor
matio
n wit
hin th
e annu
al repo
r
t.
Our o
pini
on on t
he f
inanc
ial st
atem
ent
s doe
s not cover the ot
her inf
orm
ation a
nd, exce
pt to the e
xt
ent othe
rw
ise ex
pli
citly s
tate
d in thi
s repor
t
, we do
not
express
any
form o
f assu
rance
concl
usion
t
hereon.
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
72
Personal Group Holdi
ngs Plc
· Annu
al Rep
or
t an
d Accoun
ts 20
21
Our re
spo
nsibil
it
y is to rea
d the ot
her info
rmat
ion an
d, in d
oing so, co
nside
r whet
her t
he oth
er infor
mati
on is mate
rial
ly incons
istent w
ith t
he f
inan
cial
st
atem
ent
s or our k
nowle
dge o
btain
ed in t
he cour
se of t
he aud
it or oth
er
wise a
ppe
ars to b
e mater
ial
ly misst
ated
. If we ident
if
y such m
ateri
al
incon
siste
ncie
s or app
arent m
ateri
al miss
tate
ment
s, we a
re requi
red to det
erm
ine wh
ethe
r this g
ives ris
e to a mate
rial m
isst
atem
ent in th
e fi
nanci
al
st
atem
ent
s the
mselves
. If
, b
ased o
n the wo
rk we have pe
rf
orm
ed, we con
clude t
hat th
ere is a mat
erial m
isst
ate
ment of th
e othe
r infor
matio
n, we are
requ
ired to re
por
t t
hat fac
t.
We have nothing to re
por
t i
n this re
gard.
Opinions on o
ther matters prescribed b
y the Companies A
c
t 2006
In our o
pini
on, b
ased o
n the wo
rk un
der
t
aken in th
e cour
se of th
e audi
t:
th
e infor
matio
n given in t
he s
trat
egic re
por
t an
d the d
irec
tor
s’ repo
r
t for th
e fi
nanci
al year for w
hich t
he f
inanc
ial st
atem
ent
s are pre
pare
d is
consis
tent wi
th t
he f
inanc
ial st
atem
ent
s; and
th
e str
ategi
c repo
r
t and dir
ect
ors’ re
por
t have b
een p
repare
d in accord
ance wi
th ap
pli
cabl
e lega
l requi
rement
s.
Matters on whi
ch we are requ
ired to r
eport by exc
eption
In th
e lig
ht of the k
nowle
dge an
d unde
rs
tan
ding of t
he gro
up and t
he pa
rent comp
any and i
ts e
nvironm
ent obt
aine
d in th
e cours
e of th
e audit
, we have
not ide
ntif
ie
d mater
ial miss
t
ateme
nts in t
he s
trat
egic re
por
t or t
he di
rec
tors’ re
por
t
.
We have nothing to re
por
t i
n respe
ct of t
he fol
lowing m
att
ers i
n relat
ion to w
hich t
he Com
pani
es Ac
t 200
6 requi
res us to rep
or
t to you i
f
, in ou
r opini
on:
ade
quate a
ccountin
g records h
ave not bee
n kept by the p
arent comp
any
, o
r retur
ns ade
quate fo
r our au
dit have not b
een re
ceived f
rom bra
nche
s not
visi
ted by us; or
th
e parent co
mpa
ny fina
ncial s
tat
eme
nts are n
ot in agre
ement w
ith t
he accou
nting re
cords an
d retur
ns; or
cer
t
ain dis
closure
s of dire
ctor
s’ rem
uner
atio
n speci
fi
ed by l
aw are not mad
e; or
we have not recei
ved al
l the inf
ormat
ion a
nd exp
la
natio
ns we requ
ire for ou
r audi
t
Responsibilities of direc
tors
As e
xpl
aine
d more f
ully in t
he dire
ct
ors’ re
spon
sibil
iti
es st
atem
ent set o
ut on p
age 65, t
he di
rect
ors a
re respo
nsibl
e for th
e prep
arat
ion of t
he f
inanc
ial
st
atem
ent
s and fo
r bein
g sati
sf
ied t
hat the
y give a tr
ue an
d fair vi
ew
, a
nd for su
ch inter
nal cont
rol as t
he dire
cto
rs det
erm
ine is ne
cess
ar
y to en
able t
he
prep
arat
ion of f
ina
ncial s
tat
ement
s t
hat are fre
e from mat
eria
l miss
tate
ment
, whet
her d
ue to fr
aud or e
rror
.
In pre
par
ing th
e fi
nanci
al st
atem
ent
s, th
e direc
tor
s are resp
onsi
ble for as
ses
sing t
he grou
p and pa
rent comp
any’s ab
ili
ty t
o continu
e as a goi
ng concer
n,
discl
osing
, as app
lic
able
, matt
ers re
late
d to goi
ng conce
rn and u
sing th
e goin
g concer
n basis of a
ccounti
ng unle
ss th
e direc
tor
s eit
her int
end to l
iqui
date
th
e group o
r the p
arent com
pany or t
o cease op
erat
ions
, or have no re
alis
tic a
ltern
ative bu
t to do s
o.
Audi
tor’s res
ponsibili
ties for the audit of th
e financia
l s
tat
ement
s
Our o
bje
ct
ives are to o
btain r
eason
able as
sura
nce abo
ut wh
ethe
r the f
ina
ncial s
tat
eme
nts as a w
hole a
re free f
rom mate
rial m
isst
atem
ent, w
het
her du
e
to fr
aud or e
rror
, a
nd to issu
e an aud
itor
’s repo
r
t that in
clud
es our o
pinio
n. Reas
onab
le assu
ran
ce is a high level o
f assur
ance, b
ut is not a gua
rante
e that
an au
dit cond
uc
ted in a
ccordance w
ith I
SAs (U
K) w
ill always d
etec
t a mate
rial m
isst
atem
ent whe
n it ex
ist
s.
Miss
tat
ement
s c
an aris
e from f
rau
d or erro
r and a
re conside
red mate
rial i
f
, ind
ivid
ually o
r in the a
ggreg
ate, th
ey could re
asona
bly be ex
pec
ted t
o
inf
luen
ce the e
conom
ic de
cisions of u
ser
s taken o
n the b
asis of t
hese f
in
ancial s
t
ateme
nts
.
Explanation as
to what extent the audit
was considered capable o
f detecting irregularities, inc
luding fraud
We obtain
ed an un
der
st
and
ing of th
e lega
l and reg
ulat
or
y fra
mewor
ks t
hat are ap
pli
cab
le to th
e group an
d dete
rmin
ed th
at the d
irec
t law
s and
regu
lat
ions re
late
d to ele
ment
s of Com
pany l
aw and t
ax le
gisl
atio
n, and t
he f
inan
cial rep
or
ti
ng fra
mewor
k. Ou
r consid
erat
ions of ot
her l
aws and
regu
lat
ions t
hat may have a mate
rial e
ff
ec
t on th
e fin
ancial s
t
ateme
nts in
clud
ed pe
rmis
sions an
d supe
r
viso
r
y requi
rement
s of t
he Pr
udent
ial
Reg
ulat
ion Au
tho
rit
y (‘
PR
A
), the F
inanc
ial Con
duc
t Auth
ori
ty (
‘FCA’) and t
he Gu
ern
sey Fi
nanci
al Ser
v
ices Com
missi
on (‘G
FSC’
).
We under
sto
od how t
he Com
pany is com
plying w
ith t
hos
e fram
ework
s by ma
king en
quir
ies of m
anage
ment
, and t
hrou
gh discu
ssion
s wit
h thos
e
charg
ed wi
th gover
nance
. W
e a
ls
o reviewe
d corre
spon
den
ce bet
ween t
he Com
pany an
d the re
gul
ator
y b
odie
s; reviewe
d minu
tes of t
he Bo
ard and
th
e Risk an
d Compl
ian
ce Commi
tt
ee; and g
aine
d an und
ers
ta
ndin
g of the Co
mpa
ny’s app
roach t
o govern
ance, d
emon
str
ated by t
he Bo
ard’s a
pproval
of the
Company’
s governanc
e framework.
INDEPENDENT
AUDIT
OR’S
REPORT
con
tinued
73
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
We asses
sed t
he sus
ceptibi
lit
y of t
he Gro
up’s f
inanc
ial st
atem
ent
s to mater
ial mis
st
ateme
nt, in
cludi
ng how fr
aud mi
ght occur by con
sider
ing t
he
contro
l
s that t
he Com
pany has e
st
abl
ishe
d to addre
ss ris
ks id
entif
ie
d by the e
ntit
y
, o
r that ot
her
wis
e see
k to prevent
, det
er or de
tec
t frau
d. Wh
ere
fra
ud risk
, incl
udin
g the r
isk of mana
gem
ent overr
ide, wa
s consid
ered to b
e highe
r
, we per
fo
rme
d audi
t proce
dures t
o addre
ss eac
h ident
if
ied ri
sk.
These procedu
res inc
luded:
Review
ing es
tim
ates for ev
ide
nce of mana
gem
ent bias
. Supp
or
ted by o
ur valuat
ion s
pecia
lis
ts
, we asse
sse
d if th
ere were any in
dic
ators of
mana
gem
ent bias in t
he val
uati
on of goo
dwi
ll
.
T
e
st
ing th
e app
ropr
iatene
ss of jou
rnal e
ntri
es reco
rded in t
he ge
ner
al led
ger
, wi
th a foc
us on ma
nual jo
urna
ls a
nd eval
uating t
he bu
sine
ss rati
onal
e
for significant and/
or unusual transac
tions.
In ad
diti
on, we con
sidere
d the o
ngoi
ng imp
ac
t of Covid-19 on t
he Gro
up, inclu
ding an a
sses
sment of t
he consi
sten
cy of o
per
ation
s and gro
up-wi
de
contro
l
s in pl
ace as th
ey conti
nued to o
per
ate rem
otely for a sign
ifi
cant p
ropo
rt
ion of 20
21
, and ma
king e
nquir
ies w
ith m
anage
ment v
ia use of
vid
eoco
nferen
cing. We per
fo
rme
d analy
tic
al revi
ew proce
dures t
o asse
ss for un
usual m
ovement
s th
rough
out t
he year
. O
ur aud
it proce
dure
s al
so
incor
po
rate unp
redi
ct
abil
it
y into t
he nature
, timi
ng and e
xt
ent of our te
st
ing.
We design
ed our a
udit p
roced
ures to id
enti
fy n
on-
compl
iance w
ith b
oth dire
ct a
nd othe
r laws a
nd reg
ulat
ions i
nclud
ing th
ose at t
he comp
one
nts
. Our
pro
cedure
s involved: maki
ng enq
uir
y of th
ose ch
arged w
ith g
overna
nce and s
enio
r mana
geme
nt for th
eir aware
nes
s of any non-
comp
lian
ce of law
s or
regu
lat
ions
, inqu
iring a
bou
t the p
oli
cies t
hat have be
en es
tab
lish
ed to pre
vent non-
compl
ian
ce wit
h laws a
nd reg
ulat
ions by of
f
icer
s and e
mployee
s,
inq
uirin
g abo
ut th
e compa
ny’s met
hod
s of enforci
ng and m
onito
rin
g compl
iance w
ith su
ch pol
icie
s, ins
pec
tin
g signif
ic
ant corr
espo
nden
ce wit
h the
FCA
, t
he PR
A and t
he G
FSC.
Th
e Comp
any ope
rate
s in the i
nsura
nce ind
ust
r
y which is a h
ighly reg
ulat
ed envir
onme
nt. A
s such t
he Se
nior St
atuto
r
y Audito
r consid
ered t
he
exp
eri
ence an
d exp
er
tis
e of the e
ngage
ment te
am to ens
ure that t
he tea
m had t
he app
ropr
iate comp
eten
ce and c
apab
ili
ties
, whi
ch inclu
ded t
he use
of s
pecialists where a
ppropriat
e.
A fur
t
her d
escr
iptio
n of our re
spons
ibil
iti
es for t
he aud
it of th
e fin
ancia
l st
ateme
nts is l
ocat
ed on t
he Fin
ancial R
epo
rt
ing Co
uncil’s web
site at
https:/
/ww
w
.fr
c.org.uk/
auditorsresponsi
bilities. This
description
forms par
t o
f our
auditor’s
repor
t.
Use of our repor
t
Th
is repo
rt i
s made s
olely to t
he comp
any’s m
emb
ers
, as a bod
y
, in a
ccordan
ce wit
h Chapter 3 of P
ar
t 16 of t
he Comp
ani
es Act 2
006
. Our a
udit wo
rk has
be
en und
er
ta
ken so th
at we might s
tate to t
he com
pany’s m
emb
ers t
hos
e mat
ter
s we are requ
ired to s
tate t
o the
m in an aud
itor
’s repo
r
t and fo
r no
othe
r pur
pos
e. T
o th
e full
est e
x
tent pe
rmit
te
d by law, we do not accept or a
ssume re
spo
nsibil
it
y to anyon
e other t
han t
he comp
any and t
he com
pany
’s
mem
ber
s as a bo
dy
, f
or our au
dit wor
k, fo
r this re
por
t
, or fo
r the o
pinio
ns we have form
ed.
Robert Bruce (Senior statut
ory auditor)
for an
d on be
half of Ern
st & Y
o
ung LL
P
, St
atuto
r
y Audito
r Lond
on
28 March 2
022
CONSOLID
A
TED INCOME ST
A
TEMENT
Note
2021
£’000
Res
tated*
2020
£’000
Gross premiums written
25,050
29,265
Ou
twa
rd rei
nsur
ance p
remi
ums
(163)
(182)
Change in unearned premiums
(208)
(245)
Cha
nge in re
insu
rer
s’ shar
e of une
arn
ed pre
mium
s
(9)
(8)
Earned premiums net of
re
insurance
5
24,670
28,830
Emp
loyee be
nef
it
s an
d ser
v
ices In
come
5
22,753
19,649
V
oucher resale income
5
26,852
22,735
Other income
5
215
236
Inv
es
tment
income
6
23
74
Group Rev
e
nue
74,513
71,524
Claims incurred
7
(6,049)
(7,031)
Insu
ran
ce ope
rat
ing ex
pen
ses
8
(4,860)
(4,171)
Emp
loyee be
nef
it
s an
d ser
v
ices e
xpe
nses
5
(22,370)
(19,890)
V
oucher resale expenses
(26,894)
(22,999)
Other expenses
82
(258)
Group administration expense
s
5
(9,779)
(8,437)
Sha
re bas
ed p
aymen
ts e
xpe
nses
22
(169)
(8)
Charitable donations
(100)
(100)
Group Expenses
(70,139)
(62,894)
Operating profit
4,374
8,630
Fin
ance co
st
s
(32)
(73)
Profit before tax
4,342
8,557
Ta
x
a
t
i
o
n
11
(745)
(1,663)
Pro
fit f
or th
e year
3,597
6,894
Th
e prof
it for t
he year is at
tr
ibu
tab
le to eq
uit
y hol
der
s of Per
sona
l Grou
p Holdi
ngs Plc
Earnings per share
Pen
ce
Pence
Basic
13
11.5
22.1
Diluted
13
11.5
22.1
Th
ere is no ot
her com
prehe
nsive in
come for t
he year a
nd, as a re
sult
, no st
atem
ent of comp
rehen
sive inco
me has b
een pro
duce
d.
*
Whi
le the re
sult
s rema
in unch
ange
d, th
e pres
entat
ion of t
he pr
ior year h
as be
en res
tate
d to add cl
ar
it
y to th
e reade
r
. S
ee N
ote 2.2
3 for fur
t
her d
eta
il
s.
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
74
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
CONSOLID
A
TED INCOME ST
A
TEMENT
Note
2021
£’000
2020
£’000
ASSETS
Non-current assets
Goodwill
14
12,696
12,696
Intangible assets
15
1,637
1,254
Proper
ty
, plant and equipment
16
5,033
5,456
19,366
19,406
Current assets
Financial inv
estme
nts
17
2,596
2,587
T
rade and o
ther receivables
19
14,035
18,346
Reinsurance assets
20
108
78
Inven
tories
18
898
861
Cash and cash
equivalents
21
20,291
17,589
Cur
rent t
ax as
set
s
310
55
38,238
39,516
T
ot
al assets
57,604
58,922
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
CONSOLID
A
TED BALANCE SHEET
at 31 De
cemb
er 202
1
75
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
CONSOLID
A
TED BALANCE SHEET
c
ontinued
for t
he year e
nde
d 31 De
cemb
er 202
1
Note
2021
£’000
2020
£’000
EQUIT
Y
Equ
ity a
ttr
ibut
abl
e to eq
uit
y hol
der
s of Pe
rso
nal G
rou
p Hol
ding
s Plc
Share capital
22
1,561
1,561
Share premi
um
22
1,134
1,134
Sha
re bas
ed p
aymen
t rese
r
ve
158
-
Capital redemption reser
ve
24
24
Other reserve
(32)
(21)
Prof
it a
nd los
s res
er
ve
38,436
38,076
T
ot
al equity
41,281
40,774
LIABIL
ITIES
Non-current liabilities
Deferred tax liabilities
23
478
399
T
r
ade an
d othe
r paya
ble
s
24
402
352
Current liabili
ties
T
r
ade an
d othe
r paya
ble
s
24
12,356
14,274
Insurance c
ontrac
t liabilities
25
3,087
3,123
15,443
17,397
T
otal liabilities
16,323
18,148
T
otal equity and liabilities
57,604
58,922
Th
e fin
ancia
l st
ateme
nts we
re approve
d by the B
oard o
n 28 March 20
22.
S Mace
D Fros
t
Chief Financial Off
icer
Chief Executive
Company
number: 3194991
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
76
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
CONSOLID
A
TED BALANCE SHEET
c
ontinued
for t
he year e
nde
d 31 De
cemb
er 202
1
Note
2021
£’000
2020
£’000
ASSETS
Non-current assets
Investment in
subsidiary under
takings
26
25,203
25,045
25,203
25,045
Current assets
T
rade and o
ther receivables
19
192
1,278
Cash and cash
equivalents
21
119
92
311
1,370
T
ot
al assets
25,514
26,415
EQUIT
Y
Equ
ity a
ttr
ibut
abl
e to eq
uit
y hol
der
s of Pe
rso
nal G
rou
p Hol
ding
s Plc
Share capital
22
1,561
1,561
Share premi
um
22
1,134
1,134
Sha
re bas
ed p
aymen
t rese
r
ve
158
Capital redemption reser
ve
24
24
Other reserve
(32)
(21)
Prof
it a
nd los
s res
er
ve
22,172
23,142
T
ot
al equity
25,017
25,840
LIABIL
ITIES
Current liabili
ties
T
r
ade an
d othe
r paya
ble
s
24
497
575
T
otal liabilities
497
575
T
otal equity and liabilities
25,514
26,415
Th
e pare
nt Comp
any has t
aken adv
antag
e of sec
ti
on 40
8 of the C
omp
anies Ac
t 20
06 an
d has not in
clude
d it
s own prof
it an
d loss a
ccount in t
hese f
in
ancial
st
atem
ent
s. Th
e pare
nt Comp
any’s pro
fit f
or th
278,000 (2020: £2,885,000).e year was £2,
Th
e fin
ancia
l st
ateme
nts we
re approve
d by the B
oard o
n 28 March 20
22.
S Mace
D Fros
t
Chief Financial Off
icer
Chief Executive
Company
number: 3194991
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
COMP
ANY
BALANCE SHEET
at 31 D
ecemb
er 202
1
77
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
CONSOLID
A
TED ST
A
TEMENT OF
CHANGES IN E
QUITY
f
or th
e year end
ed 31 D
ecem
ber 20
21
Equi
t
y attributable t
o equity holders of Personal Group Holdings P
lc
Share
capital
£’000
Share
Premium
£’000
Capital
redemption
re
ser
ve
£’000
Share Based
Paym
ent
Res
er
ve
£’000
Ot
her
re
ser
ve
£’000
Profit and
loss reser
ve
£’000
To
t
a
l
equit
y
£’000
Ba
lan
ce as at 1 J
anua
r
y 202
1
1,561
1,134
24
(21)
38,076
40,774
Dividends paid
(3,244)
(3,244)
Emplo
yee sh
are-
based compen
sation
158
11
169
Pro
ceed
s of SIP
* shar
e sal
es
24
24
Cos
t of SIP s
hare
s sol
d
28
(28)
Cos
t of SIP s
hare
s purc
hase
d
(39)
(39)
Transactions wi
th o
wners
158
(11)
(3,237)
(3,090)
Prof
it fo
r th
e year
3,597
3,597
Ba
lan
ce as at 3
1 Dec
emb
er 202
1
1,561
1,134
24
158
(32)
38,436
41,281
Equi
t
y attributable t
o equity holders of Personal Group Holdings P
lc
Share
capital
£’000
Share
Premium
£’000
Capital
redemption
re
ser
ve
£’000
Ot
her
re
ser
ve
£’000
Profit and
loss reser
ve
£’000
To
t
a
l
equit
y
£’000
Ba
lan
ce as at 1 J
anua
r
y 2020
1,561
1,134
24
(230)
35,526
38,015
Dividends paid
(4,147)
(4,147)
Emplo
yee sh
are-
based compen
sation
8
8
Pro
ceed
s of SIP
* shar
e sal
es
26
26
Cos
t of SIP s
hare
s sol
d
231
(231)
Cos
t of SIP s
hare
s purc
hase
d
(22)
(22)
Transactions wi
th o
wners
-
-
209
(4,344)
(4,135)
Prof
it fo
r th
e year
6,894
6,894
Ba
lan
ce as at 3
1 Dec
emb
er 202
0
1,561
1,134
24
(21)
38,076
40,774
*
PG S
har
e Own
er
shi
p Pl
an (S
IP)
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
78
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
CONSOLID
A
TED ST
A
TEMENT OF
CHANGES IN E
QUITY
f
or th
e year end
ed 31 D
ecem
ber 20
21
Equi
t
y attributable t
o equity holders of Personal Group Holdings P
lc
Share
capital
£’000
Share
Premium
£’000
Capital
redemption
re
ser
ve
£’000
Share Based
Paym
ent
Res
er
ve
£’000
Ot
her
re
ser
ve
£’000
Profit and
loss
re
ser
ve
£’000
To
t
a
l
equit
y
£’000
Ba
lan
ce as at 1 J
anua
r
y 202
1
1,561
1,134
24
-
(21)
23,142
25,840
Dividends paid
-
(3,244)
(3,244)
Emplo
yee sh
are-
based compen
sation
158
-
-
158
Pro
ceed
s of SIP
* shar
e sal
es
-
-
-
-
-
24
24
Cos
t of SIP s
hare
s sol
d
-
28
(28)
-
Cos
t of SIP s
hare
s purc
hase
d
-
(39)
-
(39)
Transactions wi
th o
wners
158
(11)
(3,248)
(3,101)
Prof
it fo
r th
e year
-
2,278
2,278
Ba
lan
ce as at 3
1 Dec
emb
er 202
1
1,561
1,134
24
158
(32)
22,172
25,017
Equi
t
y attributable t
o equity holders of Personal Group Holdings P
lc
Share
capital
£’000
Share
Premium
£’000
Capital
redemption
re
ser
ve
£’000
Ot
her
re
ser
ve
£’000
Profit and
loss
re
ser
ve
£’000
To
t
a
l
equit
y
£’000
Ba
la
nce as at 1 Ja
nuar
y 2
020
1,561
1,134
24
(230)
24,601
27,090
Dividends paid
(4,147)
(4,147)
Emplo
yee sh
are-
based compen
sation
8
8
Pro
ceed
s of SIP
* shar
e sal
es
26
26
Cos
t of SIP s
hare
s sol
d
231
(231)
Cos
t of SIP s
hare
s purc
hase
d
(22)
(22)
Transactions wi
th o
wners
209
(4,344)
(4,135)
Prof
it fo
r th
e year
2,885
2,885
Ba
lan
ce as at 3
1 Dec
emb
er 202
0
1,561
1,134
24
(21)
23,142
25,840
*
P
G Sha
re Ow
ne
rsh
ip Pl
an (S
IP)
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
COMP
ANY
ST
A
TEMENT
OF CHANGES
IN EQUITY
for t
he year en
ded 3
1 De
cembe
r 2021
79
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Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
CONSOLID
A
TED CASH FL
OW
ST
A
TEMENT
Note
2021
£’000
2020
£’000
Net cash from
operating activities (
see next page)
7,588
8,100
Investing activities
Additions to
proper
ty
, plant and equipment
17
(236)
(341)
Additions to
intangible assets
16
(981)
(424)
Pro
ceed
s from d
ispo
sa
l of prop
er
t
y
, p
la
nt and e
quip
ment
1
382
Purchase of financial assets
(9)
(22)
Inte
res
t rece
ived
6
23
74
Net c
ash f
rom inves
ti
ng ac
ti
vit
ies
(1,202)
(331)
Financing activities
Interest paid
2
(2)
Pur
chas
e of own sha
res by t
he SIP
*
(35)
(22)
Pro
ceed
s from d
ispo
sa
l of own sha
res by t
he SIP
*
20
26
Paym
ent of le
ase l
iabi
lit
ies
30
(427)
(511)
Dividends paid
14
(3,244)
(4,147)
Net cash used in financing activi
ties
(3,684)
(4,656)
Net change
in cash
and cash equiv
alents
2,702
3,113
Ca
sh an
d cas
h equ
ival
ent
s, b
egin
ning o
f year
21
17,589
14,476
Cash and cash
equivalents, end of
year
21
20,291
17,589
*
P
G Sha
re Ow
ne
rsh
ip Pl
an (S
IP)
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
80
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
CONSOLID
A
TED CASH FL
OW
ST
A
TEMENT
Note
2021
£’000
2020
£’000
Operating activities
Prof
it af
te
r ta
x
3,597
6,894
Adjustments f
or
Dep
reciation
17
966
1,003
Amor
tisation of intangible asset
s
16
585
470
Prof
it o
r loss o
n disp
os
al of pro
pe
rt
y, pla
nt and e
quip
ment
11
(150)
Inte
res
t rece
ived
(23)
(74)
Interes
t charge
32
73
Share
-based paym
ent
expenses
5
169
8
T
axation
expense recogni
sed in
income
st
atemen
t
11
745
1,663
Changes in working capital
T
rade and o
ther receivables
4,280
247
T
r
ade an
d othe
r paya
ble
s
(1,817)
384
Inven
tories
(37)
(115)
T
axes paid
(920)
(2,303)
Ne
t cas
h from o
per
atin
g act
ivit
ies
7,588
8,100
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
81
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Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
COMP
ANY
CASH FL
OW
ST
A
TEMENT
Note
2021
£’000
2020
£’000
Ne
t cas
h from o
per
atin
g act
ivit
ies (s
ee be
low)
786
1,570
Investing activities
Dividends rec
eived
2,500
4,000
Net c
ash us
ed in i
nvest
ing a
ct
ivi
tie
s
2,500
4,000
Financing activities
Pur
chas
e of own sha
res by t
he SIP
*
(35)
(22)
Pro
ceed
s from d
ispo
sa
l of own sha
res by t
he SIP
*
20
26
Dividends paid
14
(3,244)
(4,147)
Net cash used in financing activi
ties
(3,259)
(4,143)
Net change
in cash
and cash equiv
alents
27
(73)
Ca
sh an
d cas
h equ
ival
ent
s, b
egin
ning o
f year
21
92
165
Cash and cash
equivalents, end of
year
21
119
92
Operating activities
Prof
it af
te
r ta
x
2,278
2,885
Changes in working capital
T
rade and o
ther receivables
1,086
1,792
T
r
ade an
d othe
r paya
ble
s
(78)
(607)
Dividends rec
eived
(2,500)
(4,000)
Net c
ash f
rom op
erat
ing a
ct
ivi
tie
s
786
1,570
*
P
G Sha
re Ow
ne
rsh
ip Pl
an (S
IP)
Th
e pare
nt Comp
any has ca
sh and c
ash equ
ivale
nts at 3
1 Dece
mbe
r 2021 i
nclud
ing £5
0,000 (2020: £7,00
0) of Com
pany
’s own cash a
nd £69,0
00 (£85,000)
rel
atin
g to the p
urchas
e and s
ale of SI
P shares by t
he em
ployee be
nef
it t
rus
t.
Th
e accomp
anying a
ccounti
ng pol
icie
s and not
es for
m an integ
ral p
ar
t of the
se f
inan
cial s
tate
ment
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
82
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
COMP
ANY
CASH FL
OW
ST
A
TEMENT
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
1
Ge
neral information
Th
e prin
cipa
l act
ivi
tie
s of Per
son
al Grou
p Hold
ings Plc
(
“t
he Com
pany”
) and
subsidi
ar
ies
(together
“the Group”) i
nclude tran
sacting short
-term ac
cident
and h
ealth i
nsura
nce and p
rovidin
g empl
oyee ser
v
ices in t
he UK
.
Th
e Comp
any is a li
mite
d liab
ili
ty co
mpany
i
ncorp
orat
ed and d
omic
iled in
Engl
and
. The a
ddre
ss of it
s regis
tere
d of
fice i
s John O
rmo
nd Ho
use, 89
9
Sil
bur
y Bo
uleva
rd, Milto
n Keynes
, MK9 3XL
.
Th
e Comp
any is lis
ted o
n the A
ltern
ative Inves
tm
ent Mar
ket of the Lo
ndon
Stock Exchange.
Th
ese f
ina
ncial s
tate
ment
s have be
en ap
proved for is
sue by th
e Bo
ard of
Dire
cto
rs on 28 M
arch 202
2.
2
Acc
ounting policie
s
Th
ese f
ina
ncial s
tate
ment
s of Pe
rso
nal G
roup Ho
lding
s Plc are for t
he year
end
ed 31 D
ecem
ber 20
21
. The f
ina
ncial s
tat
ement
s are p
repa
red in
accord
ance wi
th UK e
ndor
se
d IFRS in co
nform
it
y wit
h the re
quire
ment
s of
Com
pani
es Act 2
00
6.
Th
e Grou
p is aware th
at IFRS 1
7 – Insura
nce Cont
rac
t
s is tobe ef
fe
ct
ive for
per
iod
s from 1 Ja
nuar
y 20
23. B
ased o
n a review of t
hecu
rrent pu
bli
c
infor
mati
on it is n
ot bel
ieved th
at the a
ccountin
g for th
eGro
up’s insur
ance
contr
ac
ts w
ill cha
nge mat
eria
lly due to t
he sho
r
t ta
ilnature of t
hos
e
contr
ac
ts (w
ith t
he except
ion of em
ployee de
fault in
suran
ce whic
h is
unl
ikely to be mat
erial
) alth
ough di
sclosu
res are e
xpec
te
d to be ad
just
ed
for n
ew term
inol
ogy an
d addi
tio
nal dis
closure re
quire
ment
s l
ikely to
bere
quire
d.
2.
1
Basis of preparati
on
Th
e func
ti
onal a
nd pres
ent
ation
al cur
renc
y of the G
roup is s
ter
lin
g. Th
ese
st
atem
ent
s and t
he pr
ior year co
mpar
ative
s have bee
n pres
ented to t
he
nea
rest t
hou
san
d, unle
ss oth
er
wise s
tat
ed.
In pre
par
ing th
ese co
nsol
idate
d fi
nanci
al st
atem
ent
s, man
agem
ent has
mad
e judg
ement
s
, est
imate
s and as
sumpti
ons th
at af
fec
t the
app
lic
atio
nof the G
roup’s a
ccountin
g pol
icie
s and th
e repo
r
ted am
ount of
ass
ets
, lia
bil
itie
s, in
come an
d expe
nse
s. Act
ual res
ults m
ay dif
fer fro
m
these estimates.
Es
tim
ates an
d unde
rlying as
sumpt
ions a
re reviewe
d on an on
going b
asis.
Revisi
ons to e
sti
mates a
re recogn
ised p
rospe
ct
ively
.
Climate
Risk
In pre
par
ing th
ese f
ina
ncial s
tat
ement
s t
he dire
cto
rs have consi
dere
d the
imp
ac
t of the p
hysica
l and tr
ansit
ion r
isk
s of clim
ate chang
e, but h
ave
concl
uded t
hat it d
oes n
ot have a mater
ial imp
ac
t on th
e recogn
itio
n and
mea
sureme
nt of the a
sset
s an
d liab
ili
tie
s in the
se f
inan
cial s
tate
ment
s as at
31 D
ecem
ber 20
21. T
his is be
cau
se th
e asset
s are r
epor
t
ed at fair v
alue un
der
UK en
dor
sed I
FRS
. Market p
rices w
ill in
clud
e the cu
rrent e
xpe
ct
atio
ns of the
imp
ac
t of clim
ate chang
e on th
ese i
nvest
ment
s. Ins
uran
ce liab
ili
tie
s are
accr
ued b
ased o
n pas
t insur
able eve
nts s
o will n
ot be imp
ac
ted by any f
uture
imp
ac
t of clim
ate chang
e. However
, we re
cognis
e that g
overnm
ent and
so
ciet
al resp
onse
s to cli
mate chan
ge risk
s are s
til
l develo
ping an
d the f
utu
re
imp
ac
t cann
ot be pre
dic
ted. Fut
ure valu
ation
s of asse
ts m
ay there
fore di
ffe
r
as th
e mar
ket respon
ds to th
ese ch
angin
g imp
act
s or a
sses
ses t
he im
pac
t of
cur
rent requ
ireme
nts d
if
ferent
ly and th
e frequ
enc
y / magn
itud
e of fut
ure
insur
able e
vents l
inked to t
he ef
fe
ct of cl
imate r
isk
s could cha
nge.
Judgements
Infor
mati
on ab
out ju
dgem
ent
s made i
n applyi
ng account
ing po
lic
ies t
hat
have th
e mos
t signif
ic
ant ef
fec
t
s on th
e amou
nts re
cognis
ed in t
he
conso
lid
ated f
inan
cial s
tate
ment
s is inc
lude
d in th
e follow
ing note
s:
Agent vs p
rin
cipal (
Note 2.2
2) – whet
her t
he s
ale of dis
counted vo
ucher
s
shou
ld be t
reated as a p
rin
cipal o
r age
ncy t
rans
ac
tio
n.
Assumption
s and estimation unc
ert
ainties
Infor
mati
on ab
out as
sumpti
ons an
d est
imat
ion un
cer
ta
intie
s that have a
signi
fi
cant r
isk of result
ing in a m
ateria
l adjus
tm
ent to th
e car
r
ying
amo
unt
s of asset
s an
d lia
bili
tie
s wit
hin th
e year en
ding 3
1 Dece
mber 2
021 is
included
in the f
ollowing no
tes:
Go
odw
ill val
uatio
n (Note 14) – key assu
mptio
ns und
erlyin
g recoverab
le
amo
unt
s.
Es
ta
blish
ing th
e valu
e of clai
ms out
s
tan
ding (N
ote 25
); – k
ey assu
mptio
ns
regarding the pro
visions for c
laims.
Go
ing con
cern
Th
e fin
ancia
l st
ateme
nts a
re prep
ared o
n a going co
ncer
n basis
. In
consid
eri
ng goin
g concer
n, t
he Dire
cto
rs have rev
iewed t
he Gro
up’s and
Com
pany’s f
uture c
ash req
uirem
ent
s, ear
ning
s proje
ct
ions an
d cap
ita
l
proj
ec
tion
s over the n
ex
t 12 mont
hs end
ing 28 Marc
h 2023
. Various s
tre
ss
and s
cenar
io tes
t
s have taken p
la
ce to asse
ss th
e potent
ial imp
ac
t on th
e
Gro
up of COVID
-
1
9, conside
ring t
he p
otential i
mpa
ct o
n premiu
ms, cl
aims
and s
olvenc
y rati
os for t
he insu
rance s
ubsidi
arie
s, to
geth
er wi
th li
quid
it
y
and o
t
her non
-insu
rance activities f
or the wider
Group. The Dir
ec
tors
bel
ieve t
hese f
orec
ast
s have be
en pre
pare
d on a pr
udent b
asis an
d have
al
so con
sidere
d the i
mpa
ct of a r
ange of p
otentia
lchang
es to tr
adin
g
per
fo
rma
nce over th
e nex
t 12 mo
nths en
ding 28 M
arch 202
3, incl
udin
g the
imp
ac
ts of cl
imate r
isk dis
cuss
ed above.
Havin
g prep
ared an
d consid
ered t
hes
e st
ress sce
nar
ios th
e Dire
cto
rs have
concl
uded t
hat t
he Gro
up and Co
mpa
ny will b
e able to o
per
ate wit
hou
t
requ
irin
g any ex
ter
nal fu
nding a
nd th
erefo
re bel
ieve it is ap
prop
riate to
prep
are th
e fi
nanci
al st
atem
ent
s of the G
roup an
d Comp
any on a g
oing
conce
rn bas
is. Th
is is supp
or
te
d by the G
roup’s, a
nd Com
pany’s
, li
quidi
ty
pos
itio
n at the yea
r end
.
2.
2
Basis of consolidati
on
Subsidiaries
Subs
idiar
ies ar
e entit
ies co
ntrol
led by th
e Gro
up. The G
roup co
ntrol
s an ent
it
y
whe
n it is ex
pose
d to, or has r
ight
s to, var
iabl
e retur
ns from i
ts i
nvolv
eme
nt
wit
h the e
ntit
y an
d has th
e abil
it
y to af
fec
t th
ose ret
urns t
hroug
h it
s power
over th
e entit
y. In asses
sing cont
rol
, the G
roup t
akes into co
nside
ratio
n
pote
ntial votin
g right
s t
hat are cur
rently exe
rcisab
le. T
he acqui
siti
on date is t
he
date on w
hich cont
rol is t
rans
ferre
d to th
e acquir
er
. Th
e fin
ancia
l st
ateme
nts
of subs
idiar
ies a
re inclu
ded in t
he cons
oli
dated f
ina
ncial s
tat
ement
s fro
m the
date t
hat contro
l comme
nces unt
il th
e date th
at control ce
ases
.
83
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
2
Acc
ounting policie
s
c
ontinued
2.
2
Basis of consolidati
on
con
tinued
T
ransactions eliminated on c
on
solidation
Intr
a-
Grou
p bal
ance
s and t
rans
ac
tio
ns, and a
ny unreal
ise
d incom
e and
exp
ense
s aris
ing fro
m the
se tr
ans
act
ions
, are el
imin
ated on co
nsol
idat
ion.
2.
3
Goodwill and acquired i
ntangibles
Go
odw
ill rep
rese
nting t
he exces
s of the co
st of acq
uisit
ion over t
he fair
valu
e of the G
roup’s sh
are of th
e ident
if
iable n
et ass
ets a
cquire
d, is
cap
it
alis
ed and re
viewed a
nnual
ly for imp
air
ment
. Go
odw
ill is ca
rri
ed at
cost l
ess a
ccumul
ated i
mpai
rme
nt loss
es. N
egati
ve goo
dwil
l is recog
nise
d
imm
ediate
ly aft
er acqu
isiti
on in th
e incom
e st
atem
ent.
Int
angib
le ass
ets m
eet
ing th
e releva
nt recogn
itio
n cri
teri
a are init
ially
mea
sured at cos
t and a
mor
t
ised o
n a sys
temat
ic ba
sis over th
eir use
ful l
ives.
2
.4
Reven
ue
Revenu
e is meas
ured by refe
rence to t
he fa
ir valu
e of conside
rati
on
recei
ved or re
ceivab
le by the G
roup f
or goo
ds sup
pli
ed and s
er
vice
s
provided, exc
luding V
A
T
, IPT and trade discounts.
Whi
ls
t IFR
S 15 consid
erat
ions h
ave been n
oted for t
he mo
st sig
nif
icant
revenu
e str
eams to w
hich it is a
ppl
icab
le, th
e insur
ance p
remium reve
nue
st
ream is o
ut of scop
e for IFR
S 15.
Earned premium
Ear
ned p
remium i
s recogn
ised in t
he p
erio
d in whi
ch the G
roup is l
egal
ly
bou
nd th
rough a co
ntrac
t to prov
ide ins
uran
ce cover
, w
hich is t
yp
ical
ly a
week o
r a mont
h in len
gth an
d renew
s at the e
nd of eac
h cover per
iod. I
t
repre
sent
s t
he ear
ned a
mount of gro
ss wr
it
ten pre
miums re
ceiva
ble un
der
th
e contra
ct
. Th
e remai
nder of g
ross wr
it
ten pr
emium
s are defe
rred a
s a
pro
vision
for unearned premi
ums un
til recogni
sed as rev
enue computed
on
a mont
hly or dai
ly pro-r
ata b
asis. T
he une
arn
ed prem
ium res
er
ve is t
ypic
ally
smal
l as a l
arge pro
por
t
ion of p
oli
cies are we
ekly ren
ewal
s.
Net e
arne
d prem
iums are s
tat
ed net of a
mount
s p
asse
d to reinsu
rers
.
Prem
iums are sh
own be
fore de
duc
tio
n of commis
sion an
d exclud
e any
sales-
based taxes
or duties.
Other insurance related
Com
missio
n receiv
able o
n the re
newal of p
reviou
sly sold f
inan
cial s
er
vice
s
are reco
gnis
ed by th
e Group a
s the re
newal t
akes pl
ace w
ith t
he und
er
wr
iter
.
IT sa
la
ry s
acr
ifice
Income
from the
provision
of salar
y sacrifice tec
hnology pr
oduct
s i
s
recog
nise
d when t
he go
ods a
re dispatc
hed.
IFR
S 15 – IT s
al
ar
y sa
crif
ice in
come
Pe
rf
orm
ance
Obligations
Prov
ision o
f IT go
ods to e
mpl
oyer comp
ani
es. G
oo
ds are
acqu
ired by t
he G
roup f
rom va
rio
us sup
pl
ier
s and h
eld as
invento
r
y unt
il sol
d to cus
tom
ers at a
n agre
ed pr
ice
.
T
ransac
tion Price
Purc
hase p
rice v
ari
es de
pen
dant o
n prod
uc
t purc
hase
d
but i
s clea
rly ind
icat
ed.
Alloca
tion of P
rice
P
rice
s are al
loc
ated by p
rod
uc
t, vol
ume
s and va
lue
s.
Sat
isf
ac
tio
n of
Obligations
Reven
ue is re
cogn
ise
d on dis
patch a
s Gro
up has m
et it
s
pe
rf
orm
ance o
blig
atio
n as pe
r the co
ntr
ac
ts in p
la
ce.
Pl
atf
orm in
come
Pl
atfo
rm in
come, in
cludi
ng that d
eri
ved fro
m Hapi, is r
ecogn
ised o
n a
st
raig
ht
-l
ine b
asis over t
he len
gth of t
he cont
rac
t.
Wh
ere a prop
or
ti
on of th
is incom
e and cos
t
s, cred
ited o
r charge
d in th
e
cur
rent year
, rel
ate to t
he prov
ision of s
er
vice
s provid
ed in th
e foll
owing
year
, t
hey are c
arr
ied fo
rw
ard as de
ferre
d incom
e or cos
ts
, calc
ulat
ed on a
daily pro
-rat
a ba
sis.
IFR
S 15 – Be
nef
it
s inco
me
Pe
rf
orm
ance
Obligations
On
goin
g access t
o Hap
i pla
tfo
rm wi
th ea
ch rel
evant
mon
th acce
ss is pr
ovide
d be
ing cons
ide
red a se
par
ate
performance obligation.
T
ransac
tion Price
Pri
ces are s
et on a by e
mpl
oyee rate a
nd are a
gre
ed wit
h
each client individually
.
Alloca
tion of P
rice
P
rice a
llo
cate
d evenly to e
ach p
eri
od/pe
rf
orm
ance
obligation.
Sat
isf
ac
tio
n of
Obligations
Reco
gnis
ed s
tra
ight
-l
ine over p
er
iod of a
gree
ment o
f
se
rv
ice as t
he pe
r
form
ance o
bli
gati
on is de
em
ed to be
met e
ach mo
nth as t
he con
tra
ct p
rogr
ess
es.
V
oucher income
der
iv
es from
customers ordering r
et
ail
vouchers through
th
e Hapi pl
at
for
m. E-v
ouc
her
s are fulf
ill
ed an
d made ava
ila
ble ins
ta
ntly to
th
e custo
mer w
hile, fo
r relo
adabl
e cards
, cus
tome
rs rece
ive the
se se
veral
work
ing day
s aft
er pl
acin
g the o
rder
. In
come fro
m the s
ale of re
load
able
card
s and e
-voucher
s is reco
gnise
d as orde
rs are f
ulf
ille
d by the G
roup. In
th
e vast m
ajor
it
y of the
se tr
ans
ac
tion
s the G
roup a
ct
s as pr
incip
al
. Refer t
o
2.2
2 for fu
r
the
r det
ail
s of age
nt vs pri
ncip
al ass
essme
nt.
IFR
S 15 – Vouch
er inco
me
Pe
rf
orm
ance
Obligations
Provision o
f voucher
to individuals/
companies.
T
ransac
tion Price
Pri
ces are b
ase
d on ea
ch ret
ail
er’s d
isco
unt on p
urcha
se
into t
he Gr
oup.
Alloca
tion of P
rice
W
hol
e pri
ce all
ocat
ed to t
he so
le pe
rf
orm
ance o
blig
atio
n.
Sat
isf
ac
tio
n of
Obligations
Reco
gnis
ed o
n disp
atch of vou
che
r as thi
s is th
e poin
t at
whi
ch th
e Gro
up has f
ulfi
lle
d it
s par
t of t
he ag
ree
d
contract.
Th
e Grou
p receive
s incom
e from it
s prov
ision of H
R consult
anc
y ser
v
ices to
corp
orat
e clie
nts
. Consu
ltan
cy in
come is re
cognis
ed in th
e prof
it an
d loss
account at t
he rel
evant char
ge out r
ates of t
he consu
ltant
s an
d base
d on
th
e charge
able t
ime sp
ent on ea
ch cli
ent proj
ect
.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
84
Personal Group
Holdings Plc
· Ann
ual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings Plc
· Ann
ual R
epo
rt a
nd Acco
unt
s 202
1
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
IFR
S 15 – Co
nsult
anc
y inco
me
Pe
rf
orm
ance
Obligations
Prov
ision o
f consu
ltan
cy s
er
vice
s, t
yp
ical
ly bas
ed on a
n
agr
eed n
umbe
r of cons
ulta
nt hou
rs
.
T
ransac
tion Price
Pri
ces are b
ase
d on ea
ch cont
rac
tua
l cli
ent agr
eem
ent
,
dep
en
dant on t
he le
vel and d
urat
ion of co
nsult
ant
hou
rssp
ent
.
Alloca
tion of P
rice
E
ach ch
arge
able h
our w
ill h
ave an agre
ed p
rice de
pe
ndant
on t
he leve
l and ex
per
ien
ce of th
e consu
ltant
.
Sat
isf
ac
tio
n of
Obligations
Eac
h consu
ltant h
our c
harg
ed is con
side
red a s
epa
rate
performance obligation
and rec
ognition is rec
orded
pe
rio
dic
ally (t
ypi
cal
ly mont
hly) ba
sed o
n char
geab
le
hou
rs in t
hat p
eri
od.
Ot
her in
come
Prop
er
t
y rent
al incom
e is recog
nise
d on a recei
vable b
asis wh
en th
e right
to rece
ive consid
erat
ion has b
een e
st
abl
ishe
d.
Gove
rnm
ent g
rant
s
Gr
ant
s are account
ed for un
der t
he accr
ual
s mo
del as p
erm
it
ted by IFR
S.
Gr
ant incom
e rel
ating t
o the jo
b retent
ion s
chem
e is recogn
ised i
n lin
e with
fur
loug
h cost
s inc
urre
d, and t
here
fore th
e accr
ued el
ement of t
he gr
ant is
included
in deb
tors as acc
rued inc
ome.
Gr
ant
s are recog
nise
d in the I
ncome St
atem
ent in th
e sam
e per
iod as t
he
rel
ated e
xpen
ditu
re and ne
tte
d of
f agains
t pay
roll cos
t
s wit
hin
adm
inist
rat
ive cost
s.
Cos
ts in
curr
ed to ful
fil a con
trac
t
Cos
ts i
ncur
red to fu
lfil a co
ntra
ct un
der IF
RS 15 are re
cognis
ed as a
n asset
und
er cer
t
ain cond
iti
ons l
aid ou
t in IFR
S 15.95. T
he c
apit
al
ised cont
rac
t
cost
s are a
mor
t
ised o
n a sys
tem
atic b
asis th
at is consis
tent wit
h th
e
Com
pany’s t
rans
fer of t
he rel
ated g
ood
s or ser
v
ices to t
he cus
tom
er
.
Ca
pit
alis
ed cont
rac
t cost
s are s
ubje
ct to a
n impa
irme
nt asse
ssme
nt at the
end of e
ach rep
or
ti
ng per
iod
. Impa
irm
ent loss
es are re
cognis
ed in t
he prof
it
or lo
ss. T
here are n
o contr
act
s in t
he G
roup for w
hich t
hes
e condi
tion
s are
met a
nd, as su
ch, no as
set
s have be
en reco
gnise
d.
Inve
stm
ent in
come
Intere
st in
come is re
cognis
ed on a
n ef
fec
tive inte
res
t rate me
tho
d.
2.
5 Reinsuranc
e
Ou
twa
rds reins
uran
ce premiu
ms are accou
nted fo
r in the s
ame a
ccounti
ng
per
iod a
s the p
remium
s for th
e rel
ated dir
ect o
r inwards b
usine
ss bei
ng
reins
ured. Re
insure
rs’ sha
re of tech
nica
l rese
rve
s is shown as a
n asse
t in the
bal
ance sheet.
Amo
unt
s recovera
ble und
er rein
sura
nce contr
ac
ts a
re asse
ssed f
or
imp
airm
ent at ea
ch bal
ance sh
eet dat
e. If obj
ect
ive evi
dence of i
mpai
rme
nt
exis
t
s reinsu
rance a
sset
s are re
duced t
o the le
vel at which t
hey a
re
consid
ered t
o be recover
able an
d an imp
air
ment lo
ss is recog
nise
d in the
incom
e st
atem
ent.
2
.6
Cl
aims r
ecogn
ition a
nd cla
ims pr
ovisio
ns
Th
e provisio
n for cl
aims re
pres
ent
s the g
ross es
tim
ated l
iabil
it
y ar
ising
from cl
ai
m episo
des i
n the cu
rrent a
nd prece
ding f
ina
ncial yea
rs wh
ich have
not give
n rise t
o clai
ms pai
d. Th
e provisio
n inclu
des a
n allowa
nce for cl
aim
s
management
and handling expenses.
Th
e provisio
n for cl
aims is e
st
imate
d base
d on cur
rent info
rmat
ion
, and
th
eultimat
e lia
bili
ty m
ay var
y as a res
ult of subs
equ
ent infor
mati
on
andeve
nts
.
Adjus
tm
ent
s to the a
mount of cl
ai
ms provisi
on for p
rior yea
rs are i
nclud
ed
in th
e incom
e st
atem
ent in th
e fin
ancia
l year in wh
ich th
e chang
e is made
.
In se
tt
ing th
e provisi
ons for cl
aim
s out
st
an
ding, a b
es
t est
imate is
dete
rmi
ned on a
n undis
counte
d basis an
d the
n a margi
n of pru
den
ce is
add
ed suc
h that t
here is conf
id
ence t
hat fut
ure cl
aims wi
ll be m
et from t
he
pro
visions.
T
he l
eve
l of
pr
udence
set is one
that pr
ovides an appr
opriate
degree o
f confidence.
Th
e liab
ili
ty a
deq
uac
y tes
t is per
fo
rme
d at each re
por
te
d bal
ance sh
eet
date. T
his req
uires t
he es
tim
ate of fu
ture cas
h flow
s unde
r it
s insur
ance
contr
ac
ts to b
e mea
sured ag
ains
t the re
cognis
ed ins
uran
ce liab
ili
ties
.
2.7
Prope
rty,
plant and equipment and
intangible assets
Prop
er
t
y
, pl
ant an
d equ
ipme
nt and sof
t
ware int
ang
ible
s are st
ated at co
st
,
net of d
epre
ciatio
n, am
or
tis
atio
n and any p
rovision f
or imp
airm
ent
. No
dep
reciat
ion or a
mor
t
isat
ion is ch
arged d
urin
g the p
eri
od of cons
tr
uc
tion
.
Research and
development
Ex
pen
ditu
re on res
earch ac
ti
vit
ies is re
cognis
ed in t
he incom
e st
atem
ent as
an ex
pens
e as incu
rred
.
Ex
pen
ditu
re on develo
pme
nt act
ivi
tie
s is capi
tal
ise
d if th
e prod
uct o
r
pro
cess is te
chnic
ally an
d comme
rcial
ly feasibl
e and th
e Grou
p inten
ds, and
has t
he tech
nic
al abil
it
y and su
ff
ici
ent res
ources to, co
mplet
e
develo
pme
nt, fu
ture e
conom
ic ben
ef
it
s are pro
babl
e and if t
he Gro
up ca
n
mea
sure rel
iably th
e exp
endi
ture at
tr
ibut
abl
e to th
e intan
gible a
sset d
urin
g
it
s develo
pme
nt. D
evelopm
ent ac
ti
vit
ies involve a pl
an or d
esign fo
r the
production of
new or substantiall
y improv
ed products or processes.
Th
e expe
ndi
ture ca
pit
alis
ed in
clude
s the co
st of mate
rial
s
, ex
ter
nal
consult
an
cy cos
ts a
nd sa
la
r
y cost
s wh
ere a dis
tinc
t pro
duc
t has b
een
create
d. Ot
her d
evelop
ment ex
pen
diture i
s recogn
ised in t
he in
come
st
atem
ent as an ex
pen
se as inc
urre
d. Ca
pit
alis
ed deve
lopm
ent exp
endi
ture
is st
ated at co
st le
ss accum
ul
ated am
or
tis
atio
n and le
ss accu
mul
ated
impairm
ent l
osses.
Disposal of assets
Th
e gain or l
oss ar
ising o
n the dis
pos
al of an as
set is de
term
ined a
s the
dif
fere
nce bet
wee
n the d
ispos
al pro
ceed
s and th
e car
r
ying a
mount of t
he
ass
et and is re
cognis
ed in t
he inco
me st
atem
ent.
85
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
2
Acc
ounting policie
s
c
ontinued
2.7
Prope
rty,
plant and equipment and
intangible assets
continued
Amortisation and deprecia
tion
Amo
r
tis
atio
n and de
preci
ation a
re calc
ulat
ed to wr
ite dow
n the co
st or
valu
ation l
ess e
sti
mated re
sidua
l value of a
ll int
angi
ble ass
et
s, and t
ang
ible
ass
ets ot
her t
han fre
eho
ld la
nd exclu
ding inves
tm
ent prop
er
ti
es by equ
al
annu
al ins
tal
me
nts over t
heir e
st
imate
d econo
mic us
eful l
ives
.
Resi
dual va
lue is revi
ewed ann
ually an
d ame
nde
d if mater
ial
. The r
ates
generally applicable are:
Fr
eehold pr
opert
ies
50 ye
ar
s
Motor v
ehicles
3 – 4 year
s
Computer
equipment
2 – 4 year
s
Furniture, fixtu
res and fittings
5 – 1
0 year
s
Computer so
ft
ware
and developmen
t
2 – 4 year
s
Internally generated intangibles
3 – 5 yea
rs
Intangible assets
3 – 5 year
s
Rig
ht of Use A
ss
et
s
T
e
rm of Le
ase
2
.8 Le
ases
Und
er IFR
S 16, w
ith t
he except
ion of sh
or
t
-term o
r low valu
e lease
s, al
l
ope
rat
ing and f
ina
nce leas
es are a
ccounted f
or in th
e bal
ance s
heet
. On
ince
ption of t
he le
ase, t
he fu
ture pay
ment
s, in
cludi
ng any exp
ec
ted en
d of
li
fe cost
s, a
re discou
nted ba
sed o
n the im
pli
cit inte
rest r
ate in th
e spe
cif
ic
leas
e. A “R
ight of Use” a
sset is cre
ated at an e
qual v
alue de
prec
iated over
th
e life of t
he le
ase whi
ch is dete
rmi
ned by t
he contr
ac
t wit
h any break
cl
ause
s bein
g reviewe
d as to the e
xpe
cte
d use at t
he ti
me of ince
ption a
nd
at each f
ollow
ing year en
d. Paym
ent
s made t
o the le
sso
r are deb
ited t
o the
bal
an
ce sheet a
nd th
e incom
e st
ateme
nt is charg
ed wi
th mo
nthly
dep
reciat
ion an
d intere
st wh
ich is incl
ude
d as fi
nance cos
t
s in th
e account
s.
Low valu
e leas
es or sh
or
t lif
e leas
es of les
s than o
ne year a
re exp
ense
d
dire
ctly int
o the in
come s
tate
ment a
ccount on a s
tra
ight lin
e over th
e life
of th
e lease
.
2.9
Impairment of
non-financial assets
For t
he pur
pos
es of ass
essi
ng imp
airm
ent
, asset
s are g
roup
ed at th
e
lowes
tlevel
s for w
hich t
here are s
epa
rately id
enti
fia
ble ca
sh flow
s (cash-
gen
erat
ing uni
ts). A
s a result
, som
e ass
ets a
re tes
ted in
divi
dual
ly for
imp
airm
ent and s
ome a
re tes
ted at c
ash-g
ener
atin
g unit le
vel. G
oo
dwil
l is
all
ocate
d to th
ose c
ash-g
ene
ratin
g unit
s th
at are exp
ec
ted to b
ene
fi
t
froms
yne
rgie
s of the re
late
d busin
ess com
binat
ion an
d repre
sent t
he lowes
t
level w
ithi
n the G
roup at wh
ich man
agem
ent mo
nitor
s th
e relat
ed cas
h flow
s.
Go
odw
ill
, othe
r indi
vidua
l asset
s o
r cash-
gen
erat
ing uni
ts t
hat incl
ude
goo
dwi
ll and t
hos
e inta
ngibl
e asse
ts n
ot yet availa
ble fo
r use are te
ste
d for
imp
airm
ent at lea
st an
nually. All othe
r indiv
idua
l asset
s or c
ash-
gen
erat
ing
unit
s ar
e test
ed for i
mpai
rme
nt when
ever event
s or cha
nges i
n
circu
mst
ance
s indic
ate th
at the c
arr
y
ing amo
unt may not b
e recoverab
le.
Se
e Note 15 for f
ur
th
er det
ail
s on t
he im
pair
ment te
st
ing of go
odw
ill
.
2.
10 Taxation
Cur
rent ta
x is the t
ax cu
rrent
ly payabl
e base
d on t
axab
le prof
it for t
he year
.
De
ferre
d incom
e ta
xes are cal
cul
ated usi
ng the l
iab
ilit
y m
etho
d on
tem
por
ar
y dif
fere
nces. D
efe
rred t
ax is g
ener
ally prov
ided o
n the d
if
feren
ce
bet
wee
n the c
arr
y
ing amo
unt
s of asse
ts a
nd lia
bil
itie
s and t
heir t
ax b
ases
.
However
, d
efer
red t
ax is not prov
ided o
n the i
niti
al recog
niti
on of go
odwi
ll
,
nor o
n the i
niti
al recog
niti
on of an as
set or l
iabi
lit
y un
less t
he rel
ated
tr
ansa
ct
ion is a b
usine
ss comb
inati
on or af
fec
t
s ta
x or accou
nting p
rofi
t.
De
ferre
d ta
x on tem
por
ar
y dif
fere
nces as
soci
ated wi
th shar
es in
subs
idiar
ies an
d joint vent
ures is n
ot provide
d if rever
sal of t
hes
e
tem
por
ar
y dif
fere
nces c
an be cont
roll
ed by th
e Grou
p and it is p
roba
ble
that re
vers
al wil
l not occur i
n the fo
rese
eabl
e futu
re. In ad
diti
on, t
ax lo
sses
avail
abl
e to be ca
rri
ed for
wa
rd as well a
s other i
ncome t
ax cre
dit
s to th
e
Gro
up are ass
ess
ed for re
cogni
tio
n as defe
rred t
ax as
set
s.
De
ferre
d ta
x liab
ili
tie
s are provid
ed in f
ull
, wit
h no dis
counti
ng. De
fer
red
ta
x asse
ts a
re recogn
ised to t
he ex
te
nt that i
t is prob
able t
hat th
e
und
erlyin
g ded
uct
ible t
empo
rar
y d
iff
erence
s wil
l be abl
e to be of
fs
et
agai
nst f
uture t
axa
ble inco
me. Cur
rent an
d defer
red t
ax as
set
s and
lia
bil
itie
s are ca
lcul
ated at t
ax rat
es th
at are exp
ec
ted to ap
ply to th
eir
resp
ec
tive p
erio
d of real
isat
ion
, provid
ed th
ey are ena
cte
d or sub
st
anti
vely
ena
cte
d at the b
al
ance sh
eet date
.
2.
11
Financial assets
Fin
ancial a
sset
s in
clude; b
ank d
epos
it
s (
as de
fin
ed be
low); loan
s and oth
er
recei
vable
s. Fi
nanci
al asse
ts a
re assign
ed to t
he dif
fere
nt cate
gor
ies by
management on initial recognition, depending on the purpose for which
th
ey were a
cquire
d.
A f
inanc
ial ass
et is meas
ured at am
or
tis
ed cos
t if it is b
oth: held w
ith
in a
busi
ness m
ode
l whos
e obje
ct
ive is to ho
ld ass
ets t
o colle
ct cont
rac
tua
l
cash f
lows; a
nd it
s contr
ac
tual te
rms gi
ve rise to c
ash f
lows th
at are sol
ely
paym
ent
s of pri
ncip
al and int
eres
t on th
e amou
nt out
st
and
ing. Fo
r the
pur
pos
es of th
is asse
ssme
nt, “p
rin
cipal” is d
ef
ined as t
he fa
ir valu
e of the
f
inanc
ial ass
et on ini
tial re
cogni
tio
n, and “
intere
st” is d
ef
ined a
s
consid
erat
ion fo
r the t
ime va
lue of mo
ney an
d for th
e credi
t risk as
soci
ated
wit
h the p
rin
cipal a
mou
nt out
st
and
ing. In as
ses
sing wh
eth
er th
e
contr
ac
tual c
ash flow
s are so
lely paym
ent
s of pri
ncip
al and inte
res
t, t
he
Gro
up consid
ers t
he cont
rac
tual t
erms of t
he ins
tr
ume
nt, in
cludi
ng any
ter
ms whi
ch may af
fec
t the t
imin
g or amo
unt of contr
ac
tual c
ash fl
ows.
Loa
ns and re
ceivab
les are n
on-
der
ivati
ve fin
ancial a
sset
s wi
th f
ixed or
dete
rmi
nable p
ayme
nts t
hat are not q
uoted in a
n act
ive mar
ket. Lo
ans an
d
recei
vable
s are me
asured s
ubse
que
nt to init
ial reco
gnit
ion at am
or
tis
ed
cost u
sing th
e ef
fec
ti
ve interes
t met
hod
, less p
rovisio
n for imp
air
ment
. Any
chan
ge in th
eir val
ue th
rough im
pai
rment o
r revers
al of im
pair
ment is
recog
nise
d in the i
ncome s
t
ateme
nt.
Fixe
d interes
t rate b
ank d
epos
it
s wit
h a matur
it
y date of th
ree mo
nths or
more f
rom th
e date of acq
uisit
ion are cl
as
sif
ied as f
inan
cial as
set
s.
Th
ere are no f
in
ancial a
sset
s cat
ego
rise
d as at fair v
alue t
hroug
h prof
it and
loss f
ollow
ing th
e sal
e of the e
quit
y inves
tm
ent
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
86
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
In ass
essi
ng imp
airm
ent req
uirem
ent
s on fi
nanci
al asse
ts
, the G
roup
consid
ers t
he r
ate of hist
oric l
osse
s on sim
ila
r asset
s in co
njunc
ti
on wit
h
exp
ec
ted fu
ture lo
sse
s and cre
dit los
ses as a re
sult of pote
ntial d
efau
lts
.
Th
is will
, as ma
ndate
d by IFRS 9, cont
inue t
o be reas
ses
sed as a
nd whe
n
furt
her i
nforma
tion becomes
available or when
conditions ch
ange.
A f
inanc
ial ass
et is de-
recogn
ised o
nly wher
e the cont
rac
tua
l right
s to t
he
cash f
lows f
rom th
e asse
t expire o
r the f
in
ancial a
sset is t
rans
fer
red, a
nd
that t
ran
sfer q
uali
fi
es for d
e-reco
gnit
ion
. A fin
ancia
l asset is t
ran
sfer
red if
th
e contra
ct
ual rig
hts to re
ceive t
he cash f
lows of t
he ass
et have be
en
tr
ansfe
rred o
r the G
roup re
tai
ns the co
ntra
ctu
al right
s to re
ceive th
e cash
fl
ows of the a
sset b
ut assu
mes a cont
rac
tua
l obl
igati
on to pay t
he ca
sh
fl
ows to one o
r more re
cipie
nts
. A fi
nanci
al asse
t that is t
rans
fer
red
qual
if
ies fo
r de-
recogn
iti
on if th
e Grou
p tra
nsfer
s sub
st
antia
lly all t
he ris
ks
and rew
ards of own
ersh
ip of the a
sset
, or if t
he G
roup ne
ith
er ret
ains no
r
tr
ansfe
rs su
bst
anti
ally al
l the r
isks a
nd reward
s of owner
ship b
ut do
es
tr
ansfe
r contro
l of that as
set
.
Impairment of
f
inanci
al assets
Th
e Grou
p asse
sses o
n a for
ward
-loo
king b
asis, t
he ex
pec
ted cr
edit lo
sse
s
(ECL) asso
ciate
d wit
h it
s debt ins
tr
ument a
sset
s ca
rri
ed at am
or
tis
ed cos
ts
.
Th
e Grou
p calcu
late
s the l
ifet
ime ECL as a pr
ac
tic
al exp
edie
nt for sho
r
t
-
ter
m recei
vable
s. A los
s allowa
nce is reco
gnise
d for su
ch loss
es at eac
h
rep
or
tin
g date. T
he Gro
up meas
ures ECL on ea
ch bal
ance s
heet d
ate
accord
ing to a th
ree st
ag
e ECL impair
ment m
ode
l:
Stag
e 1 – from in
itia
l recogn
iti
on of th
e fin
ancia
l asset to t
he dat
e on whi
ch
th
e asset h
as exp
eri
enced a si
gnif
ica
nt increa
se in cre
dit ri
sk (SICR) rel
ati
ve
to it
s ini
tial re
cogni
tio
n, a loss a
llowan
ce is equ
al to th
e credit l
oss
exp
ec
tedto re
sult from d
efau
lt occur
ring over 1
2 mont
hs foll
owing t
he
rep
or
tin
g date.
Stag
e 2 – foll
owing a sig
nif
icant i
ncreas
e in cred
it risk re
lat
ive to th
e init
ial
recog
nit
ion of th
e fi
nanci
al asse
t, a lo
ss all
owance is re
cognis
ed eq
ual to
th
e credit l
osse
s exp
ec
ted over t
he rema
ining l
ifet
ime of t
he ass
et. W
here
an SI
CR is no lon
ger ob
ser
ved
, the i
nst
rum
ent wil
l move bac
k to Stage 1
.
Stag
e 3 – whe
n the f
ina
ncial as
set is cons
idere
d to be cre
dit im
paire
d, a los
s
all
owance is re
cognis
ed eq
ual to th
e credi
t loss
es exp
ec
ted over t
he
rema
ining l
ife of t
he ass
et. Int
eres
t and reven
ue is ca
lcul
ated b
ased o
n the
gros
s car
r
ying am
ount of t
he ass
et, n
et of the l
oss al
lowance
.
Th
e measu
reme
nt of the ECL ref
lec
t
s an unb
iase
d and pro
babi
lit
y-
weighte
d amo
unt that is d
eter
mine
d by evalu
ating a r
ange of p
ossib
le
out
comes
, the t
ime va
lue of mo
ney an
d reaso
nabl
e and sup
por
t
abl
e
infor
mati
on th
at is avail
able w
ith
out un
due cos
t and e
ffo
r
t at the re
por
t
ing
date ab
out p
ast eve
nts
, curre
nt condi
tio
ns and fo
recas
t
s of fut
ure
economic
conditions.
Insur
ance re
ceiva
bles
, which a
re out
sid
e the s
cope of IF
RS 9, are su
bjec
t to
a l
apse p
rovision c
alcu
late
d bas
ed on his
tor
ic los
s data
.
2.
12
Financial
liabilities
Fin
ancial l
iab
ilit
ies a
re cla
ssif
ied as m
easure
d at amo
r
tise
d cost o
r fair va
lue
thr
ough pr
ofit a
nd los
s (F
V
TPL). A f
ina
ncial l
iabi
lit
y is cl
assi
fi
ed as at F
V
TPL
if it is cl
ass
ifi
ed as he
ld-for
-tr
ading o
r it is de
signate
d as such o
n init
ial
recognition.
Fin
ancial l
iab
ilit
ies a
re subs
eque
ntly mea
sured at am
or
tis
ed cos
t using t
he
ef
fec
ti
ve interes
t met
hod
, wit
h intere
st rel
ated c
harge
s recogn
ised a
s an
exp
ense i
n fi
nance cos
t in th
e incom
e st
atem
ent. F
inan
ce charge
s,
incl
uding p
remiu
ms payab
le on se
tt
leme
nt or red
empti
on and d
irec
t issu
e
cost
s
, are charg
ed to t
he inco
me st
atem
ent on an a
ccrua
ls b
asis usi
ng the
ef
fec
ti
ve interes
t met
hod a
nd are ad
ded to t
he c
arr
yi
ng amo
unt of the
ins
tru
ment to t
he ex
te
nt that t
hey are not s
et
tled i
n the p
eri
od in wh
ich
they aris
e.
Th
ere are no f
in
ancial l
iab
ilit
ies c
ateg
oris
ed as at fa
ir valu
e throu
gh prof
it
orlo
ss.
A f
inanc
ial lia
bil
it
y is de-
recogn
ised o
nly when t
he ob
lig
ation is
ex
tin
guish
ed, t
hat is, wh
en th
e obl
igat
ion is dis
charg
ed or c
ancel
led
orex
pires
.
2.
13
Cash and cash equivalents
Cas
h and ca
sh equi
vale
nts com
pris
e cash o
n hand a
nd dem
and de
posi
ts
,
tog
ethe
r wit
h other s
hor
t
-ter
m, hig
hly liq
uid inves
tme
nts t
hat are rea
dily
conver
ti
ble into k
nown am
ount
s of cash a
nd whi
ch are sub
jec
t to an
insignificant risk of
changes in value.
As s
tat
ed in Not
e 2.
11 f
ixed inte
rest r
ate ba
nk dep
osit
s wi
th th
e matur
it
y
date of t
hree m
onths o
r more f
rom th
e date of acqu
isiti
on are cl
assi
fi
ed as
fina
ncial asset
s.
2.
14
Investments in subsidiary undertakings
Com
pany inves
tme
nts i
n subsi
diar
y un
der
t
akin
gs and jo
int venture
s held i
n
th
e Comp
any Bal
an
ce Shee
t are shown at co
st le
ss imp
airm
ent provi
sions
.
Imp
airm
ent tes
ti
ng is compl
eted o
n an ann
ual bas
is or as an
d when a
n
indi
cator f
or imp
airm
ent un
der IA
S 36 ar
ise
s.
2.15 Equity
Equ
ity comprises the
following:
“S
hare ca
pit
al” repre
sent
s th
e nom
inal val
ue of equ
it
y share
s.
“S
hare pre
mium a
ccount” rep
rese
nts t
he am
ount pa
id on iss
ue for e
quit
y
share
s in excess o
f thei
r nomi
nal valu
e.
“C
apit
al red
empt
ion res
er
ve” rep
rese
nts t
he no
minal va
lue of it
s own
equ
it
y share
s purcha
sed
, and th
en ca
ncell
ed, by t
he Com
pany
.
“S
hare b
ased p
ayme
nts re
ser
ve” rep
rese
nts t
he eq
uit
y valu
e of the
accum
ulat
ed sha
re base
d paym
ent
s exp
ense
s in L
TI
P 2021
.
“Ot
her r
eser
ve” re
pres
ent
s the i
nvestm
ent in own C
ompa
ny shares by
th
e Employee B
ene
fi
t T
rus
t.
“Prof
it a
nd loss re
ser
ve” rep
resent
s ret
aine
d prof
it
s.
2.
16
Employ
ee benefit
s
Defined contribution
group
and self
-inv
ested personal pension
schemes.
Th
e pensi
on cos
ts ch
arge
d agains
t prof
it
s are t
he cont
ribu
tio
ns payab
le to
th
e sche
mes in re
spe
ct of t
he account
ing p
erio
d.
87
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
2
Acc
ounting policie
s
c
ontinued
2.
17
Share
-based payment
Equity-settled shar
e-based payment
All g
oods a
nd se
r
vices re
ceived i
n exchang
e for th
e grant of a
ny share
-
bas
ed pay
ment are m
easure
d at th
eir fai
r value
s. Wh
ere emp
loyees a
re
reward
ed usin
g share
-bas
ed pay
ment
s, t
he fair v
alue
s of empl
oyees’
ser
v
ices are d
eter
mine
d indi
rec
tly by refere
nce to th
e fair va
lue of th
e
ins
tru
ment as at t
he date i
t is grant
ed to th
e emp
loyee.
All e
quit
y-set
t
led sha
re-b
ased p
ayme
nts a
re ultimat
ely recog
nised a
s an
exp
ense i
n the i
ncome s
tat
ement w
ith a co
rresp
ond
ing cred
it to “prof
it a
nd
loss reserve”
.
If ves
ting p
eri
ods or ot
her n
on-ma
rket ves
ting co
ndit
ions a
pply
, t
he
exp
ense i
s allo
cated ove
r the ves
ti
ng per
iod
, bas
ed on t
he be
st avail
ab
le
es
timat
e of the n
umbe
r of share o
ptions e
xpe
cte
d to ves
t. E
st
imates a
re
subs
equ
ently revis
ed if t
here is a
ny indic
atio
n that t
he num
ber of sh
are
opti
ons ex
pec
ted t
o vest di
ffe
rs fro
m previ
ous es
tim
ates. A
ny cumul
at
ive
adj
ust
ment pr
ior to ve
st
ing is reco
gnise
d in th
e curre
nt per
iod. N
o
adj
ust
ment is ma
de to any ex
pens
e recog
nise
d in pri
or pe
rio
ds if share
opti
ons ult
imately exe
rcised a
re dif
fere
nt to that e
sti
mated o
n vest
ing.
Upo
n exercis
e of share o
ptions
, the p
rocee
ds rece
ived net of at
t
ribu
ta
ble
tr
ansa
ct
ion cos
t
s are cred
ited to s
hare ca
pit
al
, and wh
ere app
ropr
iate
share p
remium
.
2.
18
Employ
ee benefit trust
Th
e asset
s an
d lia
bil
itie
s of the E
mployee B
ene
fit Trust (EBT
) have be
en
incl
uded i
n the G
roup a
ccount
s. Any ass
et
s held by t
he EBT ceas
e to be
recog
nise
d on th
e Grou
p bal
ance sh
eet wh
en th
e asse
ts ve
st
unconditionally in identified benef
iciaries.
Th
e cost
s of pu
rchasing ow
n share
s held by t
he EBT are show
n as a
ded
uc
tion a
gains
t equ
it
y
. T
he pro
ceeds f
rom th
e sal
e of own share
s held
incre
ase eq
uit
y
. N
eit
her t
he purch
ase no
r sal
e of own share
s lead
s to a gain
or lo
ss bei
ng recog
nise
d in the G
roup in
come s
tat
ement
.
At prese
nt the C
ompa
ny ope
rates a p
lan w
here
by all em
ployee
s are
enti
tle
d to make mont
hly paym
ent
s to th
e tru
st via p
ayrol
l ded
uct
ions
. Th
e
cur
rent all
ocat
ion p
erio
d is six m
onths a
nd share
s are al
locat
ed to
emp
loyees at t
he end o
f each al
loc
atio
n per
iod. T
he sha
res are al
loc
ated at
th
e lower of th
e mid-m
arket pr
ice at th
e beg
innin
g and en
d of the
all
ocat
ion p
erio
d. T
he tr
ust Co
mpa
ny has not wai
ved it
s rig
ht to divi
dend
s
on un
allo
cated s
hares
. Any prof
it or l
oss on a
lloc
atio
n of share
s to
indi
vidu
al
s is ta
ken direc
tly to t
he “othe
r rese
rve” w
ith
in equ
it
y
.
2.
19
Shares held
in an
employ
ee benefit trust
T
ra
nsac
ti
ons of t
he Com
pany sp
onso
red EBT are tr
eated as b
eing t
hos
e of
th
e Comp
any and ar
e ther
efore, re
fle
ct
ed in th
ese f
ina
ncial s
tat
eme
nts
.
2.
20 Inventories
Inventor
ies a
re value
d at the l
ower of cost a
nd net re
alis
abl
e value af
te
r
mak
ing du
e allowa
nce for ob
sol
ete and sl
ow-moving i
tems
. Cost i
nclud
es al
l
dire
ct cos
t
s and an a
pprop
riate p
ropo
r
tio
n of fixe
d and va
riab
le overhe
ads.
2.
21 Provisions
A provisi
on is reco
gnise
d in th
e bal
ance s
heet w
hen t
he Gro
up has a pre
sent
leg
al, o
r cons
tru
ct
ive, ob
ligat
ion as a re
sult of a pa
st event
, that c
an be
rel
iably me
asured
, and it i
s prob
able t
hat an ou
tf
low of econ
omic b
ene
fi
ts
wil
l be req
uired to s
et
tle t
he obl
igat
ion. P
rovisio
ns are det
ermi
ned by
disco
untin
g the ex
pec
te
d futu
re cash f
lows at a pre
-ta
x rate th
at refl
ec
ts
risk
s specif
ic to the liabil
it
y
.
2
.22
Agen
t vs Prin
cipal
Th
e sal
e of discou
nted vouc
her
s, be it p
hysic
al or ele
ct
roni
c, repre
sent
s th
e
majo
rit
y of S
aaS reven
ue for t
he Gro
up. Th
e Grou
p has a mix
tu
re of
rel
atio
nship
s with re
tai
lers a
nd th
ird-p
ar
t
y suppl
ier
s, d
epen
ding o
n the
of
feri
ng. So
me of
fer
ings req
uire pu
rchasin
g inventor
y in a
dvance w
hile
othe
rs req
uire t
he maint
ain
ing of cas
h flo
ats w
ith su
ppl
ier
s and oth
ers
requ
ire th
e set
tle
ment of sup
pl
ier invoice
s as the
y are recei
ved.
De
pend
ing on t
he cont
rac
tual re
lat
ionsh
ip and t
he natu
re of the
tr
ansa
ct
ions w
ith t
he rele
vant sup
plie
rs
, the G
roup ha
s made a ju
dge
ment
on whether the
of
fering
s co
nstitute agency or
pr
inci
pal transactions. This
jud
geme
nt is signif
ic
ant in nat
ure as it has a m
ater
ial imp
ac
t on th
e revenue
and cos
t of s
ales of t
he Gro
up.
In th
e majo
rit
y of circ
umst
an
ces, t
he Gro
up, eit
her phys
ical
ly or via it
s I
T
sy
stem
s, t
akes pos
ses
sion an
d owner
ship of t
he vou
cher
s, has co
ntrol over
th
eir use a
nd res
ale pr
ice an
d, as a resu
lt, t
hes
e tran
sac
ti
ons are d
eem
ed to
be pr
inci
pal in n
ature. In su
ch cas
es, t
he s
ale of vouc
her
s, and t
hei
r relevant
cost o
f sale
s, are p
rese
nted gro
ss in th
e incom
e st
ateme
nt for th
e year
.
Wh
ere a contr
ac
tual rel
at
ionshi
p exis
ts w
ith t
he sup
pli
er th
at clas
sif
ies t
he
rel
atio
nship as t
hat of an ag
enc
y
, t
his is de
eme
d to supe
rse
de th
e fac
tor
s
disc
usse
d above. A
s a result
, th
e vouche
r sal
e and t
heir re
levant cos
t of
sa
les have be
en pre
sente
d net as ag
enc
y inco
me in th
e incom
e st
atem
ent
for t
he pe
rio
d.
2.
23
Restatement of segmental information
As d
escr
ibe
d on pa
ge 3
4, dur
ing th
e year man
agem
ent too
k the d
ecisi
on to
chan
ge th
e form
at of the s
egm
ental a
nalysis to b
et
ter ref
lec
t th
e Grou
p’s
business
ac
tivities.
As a r
esult, while t
here are n
o adju
sti
ng entr
ies to t
he f
inan
cial re
sult
s in
th
ese f
ina
ncial s
tate
ment
s, t
he l
ayout of bot
h the co
nsol
idate
d incom
e
st
atem
ent and t
he se
gme
ntal an
alysis have be
en am
ende
d, wi
th pr
ior year
result
s re
st
ated in t
his new fo
rmat to e
ns
ure
com
p
ar
ab
il
it
y
acr
os
s t
he
t
wo
reporting pe
riods.
3
Risk managemen
t objectives and polic
ies
Th
e Boa
rd recog
nises t
hat th
e ef
fec
tive m
anag
ement of r
isks a
nd
oppor
tunities is fundamental to achieving the Group’s
strategic objec
tives.
As a re
sult
, it is imp
or
t
ant the
re is a st
rong r
isk mana
geme
nt culture
thr
ougho
ut th
e Grou
p, and th
at we ident
if
y
, ass
ess a
nd app
ropr
iately
mit
igate t
he key risk
s to th
e Grou
p achie
ving t
his st
rate
gy
.
T
o ach
ieve it
s obje
ct
ives as we
ll as sus
ta
inabl
e prof
it
abil
it
y
, t
he Gro
up may
pur
sue t
he opp
or
tu
niti
es th
at gave rise to r
isk. T
her
efore, we h
ave adopte
d
an Ente
rpr
ise Risk M
anag
ement Fra
mewor
k as pa
rt o
f our de
cision m
akin
g
and b
usine
ss man
agem
ent pro
cess. A
s a resu
lt of this r
igoro
us app
roach
,
th
e Group c
an ma
intai
n fin
ancia
l secu
rit
y
, p
rodu
ce goo
d outco
mes an
d the
fair t
reatm
ent of cus
tom
ers
, and me
et th
e nee
ds of othe
r par
t
ies su
ch as
shareholders, employ
ees, suppliers and regulators.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
88
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
We review th
e risk ma
nage
ment s
trat
egy re
gul
arly
, p
ar
ti
cul
arly af
ter a
ny signif
ic
ant chan
ge to th
e chang
e enviro
nment a
nd, ea
ch year
, af
ter t
he ap
proval of
th
e Group’s s
tr
ateg
y and bus
ines
s pl
ans.
Th
e mos
t signif
ic
ant f
inan
cial risk
s to wh
ich th
e Grou
p and Co
mpany a
re exp
osed u
nder n
orm
al circu
mst
ance
s are des
crib
ed in t
his se
ct
ion.
In ad
diti
on to th
ose r
isk
s ident
if
ied, t
he on
going COVI
D-19 out
brea
k continu
ed to im
pac
t op
erat
ions of t
he busi
ness d
urin
g 2021
. Gover
nme
nt impo
sed
lockdow
ns lim
ited t
he ab
ili
ty to u
nder
t
ake face
-to-face ins
uran
ce sale
s in th
e early p
ar
t
s of the yea
r
, b
ut th
e Gro
up has se
en a retu
rn to no
rma
l tra
ding in
it
s insur
ance b
usine
ss in th
e seco
nd half of t
he year
.
Credit risk
Th
e Grou
p’s and Com
pany
’s expo
sure to cre
dit r
isk inclu
des t
he ca
rr
yin
g value of ce
r
tai
n fin
ancia
l asset
s at t
he bal
an
ce shee
t date, sum
mar
ised as f
ollow
s:
Group
Company
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Insurance r
eceivables
1,6
65
2,295
Reinsurance assets
108
78
T
rade debt
ors
10,
592
14
,71
2
Accrued intere
st
10
6
Cash and cash
equivalents
20,2
91
1
7,
5
8
9
119
92
Bank deposits
2,
596
2,
587
T
o
tal c
redi
t ris
k
35
,262
3
7,
2
6
7
119
92
A l
arge pro
por
t
ion of t
he Gro
up’s revenu
e is gene
rate
d from t
he sa
le of insur
ance p
oli
cies to i
ndiv
idual c
usto
mer
s, wit
h mos
t of th
e premi
ums col
lec
ted,
and p
aid over to t
he Gr
oup, by the i
ndiv
idual
s’ e
mployer v
ia payro
ll de
duc
tio
n. Th
e vast m
ajor
it
y of emp
loyers p
ay over payro
ll de
duc
tio
ns mad
e, wit
hin on
e
mont
h, on a re
gul
ar ba
sis, th
ereby m
inimisi
ng th
e credit r
isk ex
posur
e to the G
roup. W
ith ve
r
y few excepti
ons, COVID
-19 has not ha
d an imp
ac
t on debto
r
recover
y ac
ross t
he Gro
up.
Du
e to the s
easo
nal natu
re of the P
G Let’s C
onne
ct b
usine
ss, t
he year
-
end re
ceivab
les b
ala
nce is heav
ily weighte
d towards s
al
ar
y sa
crif
ice go
ods
. The
se
recei
vable
s are du
e from t
he emp
loyers of t
he in
divid
ual
s wh
o pla
ce the o
rder
. T
he vas
t majo
rit
y of t
hes
e empl
oyers pay t
he rece
ivab
le bal
an
ce with
in t
wo
mont
hs of rece
iving t
he cons
ol
idated i
nvoice for t
heir s
chem
e. Inclu
ded w
ith
in tra
de de
btors a
re £8.4
m (2020: £1
0.
1
m) relat
ing to P
G Let’s Co
nnec
t s
ales
.
Th
e use of p
ayroll d
educ
ti
ons by a “h
ost co
mpa
ny employer
” would n
ot be pe
rmi
tte
d whe
re the B
oard b
el
ieved th
ere may b
e a signif
ic
ant cred
it risk
.
Rece
ivabl
es pas
t th
eir du
e date are su
mmar
ised w
ith
in Note 19. T
he cred
it risk f
or li
quid f
unds an
d othe
r shor
t
-ter
m fi
nanci
al asse
ts is co
nside
red ne
glig
ible,
since t
he count
erp
ar
tie
s are al
l regul
ate
d in the U
K by the P
RA
.
At 31 De
cemb
er 202
1 the co
unter
par
t
ies were as f
ollow
s: The Co
-o
perat
ive B
ank plc
, Sant
and
er UK p
lc, HSB
C Ban
k Plc, L
loyds Ban
k Plc, Cl
ose B
rother
s Ltd
and A
berd
een St
anda
rd Invest
ment
s. Lo
ng-ter
m rate cre
dit rat
ings fo
r the
se count
erp
ar
tie
s ran
ge from A
A t
o B (ratings s
ource
d from F
itch, a
nd Stan
dard &
Po
or’s) (2020: A
A to B r
ating r
ange).
Th
e Grou
p is al
so exp
ose
d to th
e recovera
bili
ty of re
ceiva
bles f
rom rein
surer
s. At 31 D
ecemb
er 202
1, t
he Gro
up ut
ilis
ed t
wo reinsur
ance
s counter
par
t
ies
,
nam
ely
, Swiss Re Euro
pe S.
A
., Uni
ted K
ingd
om Br
anch an
d A
X
A XL Insu
rance L
ife Syndi
cate 30
02. Cr
edit r
ating
s for th
is reinsu
rer ran
ge from A+ to A
A
.
All su
bsidi
ar
y und
er
ta
kings a
re 10
0% owne
d by the C
omp
any or sub
sidiar
ies t
here
of
. T
here is at le
ast on
e Dire
cto
r of Per
son
al Grou
p Hold
ings on e
ach of th
e
l
arger s
ubsidi
ar
y comp
anie
s’ Bo
ards and a
ll op
erat
ions a
re control
led f
rom wit
hin t
he regi
stere
d of
fi
ce in Milton Key
nes. T
he Co
mpa
ny Direc
tor
s have a
goo
d und
ers
ta
ndin
g of the o
perat
ion
al per
fo
rma
nce of each of t
he su
bsidia
r
y unde
r
tak
ings
. The C
ompa
ny Dire
ctor
s are s
atis
fi
ed that t
he su
bsidia
r
y
und
er
ta
kings h
ave suf
fic
ient fu
ture in
come s
tream
s to enab
le th
e liab
ili
tie
s to be rep
aid in f
ull in t
he fore
see
able f
uture
.
Infor
mati
on rel
atin
g to th
e fair val
ue mea
surem
ent of fi
nanci
al asse
ts c
an be fo
und in N
ote 18.
89
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
3
Risk managemen
t objectives and polic
ies
continued
Inte
res
t rate ri
sk
Th
e Grou
p is not exp
ose
d to any f
inanci
al lia
bil
itie
s wit
h an inter
est e
leme
nt aside f
rom th
e interes
t ele
ment int
rins
ic in lea
ses
.
At 31 De
cemb
er 202
1, ba
nk dep
osit
s an
d cash a
nd cash e
quiv
alent
s excee
ded b
orrow
ings by £2
2,8
87
,0
00 (20
20: £20,
176,0
00). If U
K interes
t rate
s incre
ased
by 2%
, net f
ina
nce inco
me would i
ncreas
e by app
roximately £
458
,00
0 with a co
rresp
ond
ing inc
rease to e
quit
y.
Liquidity risk
Cas
h bal
ance
s are man
aged i
ntern
ally by th
e Fina
ncial Co
ntrol
ler an
d amou
nts a
re pl
aced on sh
or
t
-ter
m dep
osit
s (curre
ntly not excee
ding six m
onth
s
) to
ensu
re that su
ff
ici
ent fun
ds are avail
abl
e at all t
imes t
o pay al
l liab
ili
ties a
s and wh
en th
ey fal
l due.
As at 3
1 De
cembe
r 202
1, th
e Grou
p’s and Com
pany
’s lia
bili
tie
s have contra
ct
ual matu
rit
ies (
inclu
ding inte
rest p
ayme
nts w
here ap
pl
icab
le) as
summarisedbelow:
Wi
thin 6
months
£’000
6
–1
2
mon
ths
£’000
1–5 ye
ars
£’000
Non-cash
items
*
£’000
To
t
a
l
£’000
Group
At 31 D
ecem
ber 20
21
T
r
ade an
d othe
r paya
ble
s
11,
535
182
743
12,
460
Insurance Contrac
t Liabili
ties
2
,1
8
8
899
3,08
7
T
otal liquidity risk
13,
723
182
1,6
42
15
,
5
47
At 31 D
ecem
ber 20
20
T
r
ade an
d othe
r paya
ble
s
14,356
83
1
87
1
4,626
Insurance Contrac
t Liabili
ties
2,
428
695
3,
123
T
otal liquidity risk
16
,78
4
83
882
1
7,
74
9
Company
At 31 D
ecem
ber 20
21
Am
ount
s owed to G
rou
p und
er
ta
king
s
257
257
T
otal liquidity risk
257
257
At 31 D
ecem
ber 20
20
249
24
9
Am
ount
s owed to s
ubsi
diar
y u
nde
rt
ak
ings
249
24
9
*
N
on
-c
ash it
ems r
el
ate to u
ne
arn
ed p
rem
iums o
r un
ear
ne
d reve
nue a
cros
s th
e dif
fe
ren
t busi
ne
ss se
gm
ent
s
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
90
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Currency risk
Th
e Grou
p is not exp
ose
d to any cur
renc
y risk as a
ll busi
ness i
s condu
cte
d in
GB
P and al
l ban
k account
s were he
ld in GB
P in both 2
021 a
nd 2020.
Insurance
claim and related risks
Dur
ing t
he year
, P
ers
onal A
ssur
ance Pl
c (P
A
) unde
rw
rote two c
ateg
ori
es of
busi
ness a
nd Per
so
nal A
ssura
nce (Gu
erns
ey) Ltd (PA
G
L) a th
ird, wh
ich are
des
crib
ed in d
eta
il below
:
Hos
pit
al cas
h pl
ans an
d oth
er pe
rson
al acci
dent a
nd sic
knes
s pol
icie
s
Th
ese have b
een PA
’s core p
rodu
ct
s since 1
98
4 and, at 3
1 De
cemb
er 202
1,
repre
sent 9
8.8
% (2020: 98.
8%) of PA
’s g
ross pr
emium
s writ
te
n. Th
e vast
majo
rit
y of t
hes
e pol
icie
s are sol
d to indi
vidu
al
s at the
ir pl
ace of wor
k as
par
t of a
n empl
oyee ben
ef
it
s pack
age int
rodu
ced by PG
H on be
half of th
e
emp
loyer
. Th
e gross lo
ss rat
io (excludi
ng cla
ims han
dli
ng cost
s) on th
ese
pol
icie
s at 31 D
ecemb
er 202
1 was 1
9.2% (2020: 1
9.2%). Th
e loss r
atio h
as
rema
ined re
lat
ively consis
tent over t
he pe
rio
d of tim
e that t
hes
e pol
icie
s
have be
en und
er
wri
tt
en and t
here
fore th
e Bo
ard has t
aken th
e decis
ion to
accept t
he und
er
wr
itin
g risk in f
ull an
d not to use re
insur
ance as a way of
managing insurance c
laim risk.
At prese
nt the m
axim
um paya
ble on any o
ne sing
le cl
aim is £91
,375 (2020:
£91
,375) a
nd would o
nly be paya
ble af
te
r a per
iod of ho
spit
al conf
ine
ment
of t
wo years
. The tot
al num
ber of t
hes
e indi
vidu
al pol
icie
s in force at 3
1
De
cembe
r 202
1 was 172
,829 (202
0: 193,465
) and t
he tot
al annu
alis
ed
prem
ium val
ue of th
ese p
oli
cies was £
19,2
27
,00
0 (2020: £2
1,33
6,00
0). Th
e
averag
e amo
unt paid p
er cl
aim in 20
21 was £
205 (2019: £1
91).
V
oluntary Group Income Prot
ection policies (VGIP)
In July 20
12 PA c
omm
ence
d the un
der
wr
it
ing of VGIP p
oli
cies
. In orde
r to
mana
ge th
is insur
ance ri
sk, t
he Bo
ard too
k out a qu
ota sha
re reinsu
rance
pol
ic
y to exclusi
vely cover this p
ar
t of th
e busin
ess. U
nde
r this rei
nsura
nce
pol
ic
y 90
% of the va
lue of ea
ch cla
im is recover
able f
rom th
e reinsure
r
.
At 31 De
cemb
er 202
1 the
se po
lici
es rep
rese
nt 1.2
% (2020: 1.
2%) of P
A
’s gr
oss
prem
iums wr
it
ten
. The g
ross los
s rati
o (excluding cl
ai
ms hand
ling co
st
s) on
th
ese p
oli
cies at 3
1 Dece
mbe
r 2021 wa
s 50.8% (20
20: 38.
1%). T
he tot
al
num
ber of t
hes
e indiv
idua
l pol
icie
s in force at 31 D
ece
mber 2
021 wa
s 692
(2020: 86
0) and t
he avera
ge amo
unt pai
d per cl
aim i
n 2021 wa
s £11,
1
16
(2020: £9,9
10).
Death
benefit polici
es
Deat
h be
nef
it po
lici
es have be
en und
er
wr
it
ten by PA
GL si
nce March 2
015.
Th
ese p
oli
cies are s
old p
rima
rily to ind
ivid
ual
s at th
eir pl
ace of wor
k in th
e
sa
me way as t
he hosp
it
al cash p
lan
s.
Th
e gross lo
ss rat
io (excludi
ng cla
ims han
dli
ng cost
s) on th
ese p
ol
icies at 3
1
De
cembe
r 202
1 was 32.6% (2020: 3
0.7%). A sto
p loss re
insur
ance po
lic
y is in
pl
ace to cover cl
aims over £
3,00
0,00
0 at any give
n locat
ion
. The tot
al
num
ber of t
hes
e indiv
idua
l pol
icie
s in force at 31 D
ece
mber 2
021 wa
s
62,4
82 (2020: 66
,
143) and t
he averag
e amo
unt paid p
er de
ath in 20
21 was
£9,518 (202
0: £9,50
4).
Emplo
yee
default
polici
es
In Feb
rua
r
y 2020 PA
GL com
men
ced th
e unde
r
writ
ing of e
mployee d
efault
pol
icie
s in rel
ati
on to sa
la
r
y sacr
if
ice sa
les ma
de by Let’s C
onne
ct
. Th
ese
pol
icie
s provid
ed cover to Let
’s Conn
ec
t’s l
arge
st cus
tome
r in th
e event
that e
mploye
es lef
t owi
ng sal
ar
y s
acr
if
ice ded
uct
ion
s to the
ir empl
oyer
and t
hes
e mon
ies were un
able to b
e recovere
d by alter
native m
eans.
At 31 De
cemb
er 202
1 the
se po
lici
es rep
rese
nt 11.0% (202
0: 7
.0
%) of P
AGL
’s
gros
s premi
ums wr
it
ten. T
he gros
s loss r
atio (exclu
ding cl
aims h
andl
ing
cost
s) on t
hese p
ol
icies at 3
1 De
cemb
er 202
1 was 82.
3% (2020: 78
.8%) and
th
e average a
mount p
aid p
er indi
vidu
al def
ault in 202
1 was £7
50
(202
0:£792)
.
Group loss ratio
For t
he year en
ded 3
1 De
cembe
r 202
1 the gro
ss cl
aims r
atio of t
he Gro
up
was 24.9
% (2020: 24.0%). A 2% in
crease i
n the cl
aim
s rati
o would in
crease
cl
aims in
curre
d by approx
imately £5
01,0
00.
Th
ere are no m
ater
ial indi
vidu
al cl
aims an
d ope
n clai
ms over 12 mo
nths old
are al
so i
mmate
rial
. A
s a result
, the G
roup h
as elec
te
d to not discl
ose cl
aims
development
tables.
4
Capital m
anagement and requirement
s
Th
e Grou
p’s capi
tal m
anag
ement o
bjec
ti
ve is to maint
ain su
ff
ici
ent cap
ita
l
to sa
fegua
rd the G
roup’s a
bili
ty t
o contin
ue as a goi
ng conce
rn and t
o
prote
ct t
he intere
st
s of al
l of it
s custo
mer
s, inves
tor
s, reg
ulat
or and
tr
ading p
ar
tn
ers w
hile al
s
o ef
fi
ciently d
eployi
ng cap
ita
l and ma
nagin
g risk
to sus
tai
n ongo
ing bus
ines
s develop
ment
. Th
e Grou
p manag
es it
s ca
pit
al
res
ources in l
ine w
ith t
he G
roup’s ca
pit
al man
agem
ent Pol
ic
y
, wh
ich is
revie
wed on an a
nnual b
asis. T
he G
roup’s ca
pit
al po
siti
on is kept unde
r
cons
tant rev
iew an
d is repo
r
ted mo
nthly to t
he Bo
ard.
Since 1 Ja
nuar
y 20
16, P
ers
onal A
ssu
rance P
lc (PA) has bee
n subje
ct to t
he
requ
ireme
nts of t
he S
olvenc
y II (SII) Di
rect
ive an
d must h
old suf
f
icie
nt
cap
it
al to cover it
s Solven
cy C
apit
al Re
quire
ment (SCR). In a
ddit
ion
, P
A
maint
ains a b
uf
fer in e
xcess of th
is capi
tal re
quire
ment
, spe
cif
ied in l
ine
wit
h the c
api
tal r
isk app
eti
te agre
ed by th
e Boa
rd. Th
e SCR is ca
lcul
ated in
accord
ance wi
th th
e Stand
ard For
mul
a spe
cif
ied in t
he SII l
egisl
ati
on.
At leas
t annua
lly
, t
he Gro
up und
er
ta
kes the O
wn Risk a
nd So
lv
enc
y
As
ses
sment (OR
SA). T
his pro
cess en
able
s the G
roup to as
ses
s how well t
he
Stan
dard Fo
rmul
a SCR re
fle
ct
s th
e Grou
p’s ac
tual r
isk prof
ile, an
d
comp
rise
s all t
he ac
tiv
iti
es by whi
ch P
A es
tab
lish
es th
e level of ca
pit
al
requ
ired to m
eet it
s so
lvency n
eed
s over the p
lan
ning p
erio
d given t
he
Com
pany’s s
tr
ategy a
nd ris
k appe
tite
. The co
nclusi
ons fro
m the
se ac
tiv
iti
es
are sum
mar
ised in t
he O
RSA Re
por
t wh
ich is revi
ewed by th
e Risk
Com
mit
tee, a
pproved by t
he Bo
ard an
d submi
tt
ed to th
e Pru
dent
ial
Reg
ulat
ion Au
tho
rit
y (PR
A) at le
ast an
nual
ly
.
PA
’s unau
dite
d Eligi
ble Ow
n Funds, d
eter
mine
d in accord
ance wi
th th
e SII
valu
ation r
ule
s, were £1
2.6m (2020: £1
2.4m) wh
ich was in e
xcess of th
e
es
timat
ed SCR of £3
.5m (20
20: £4
.0m). This re
pres
ented a
n est
imate
d
solven
cy covera
ge rat
io of 357
% (2020: 3
08%). Th
e moveme
nt year on yea
r
rema
ins consis
tent an
d is in li
ne wit
h th
e Boa
rd’s risk a
ppe
tite of h
oldin
g
greate
r tha
n 200
% of the re
quire
ment
.
Ot
her t
han dis
close
d above t
here have b
een no c
hange
s to what is
mana
ged as c
api
tal o
r the G
roup’s c
apit
al ma
nagem
ent obj
ec
tive
s, pol
ici
es
or pro
cedu
res dur
ing t
he year
.
91
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
4
Capital m
anagement and requirement
s
c
ontinued
At 31 De
cemb
er 202
1, th
e requ
ireme
nts of t
he Gr
oup’s reg
ulat
ed comp
anie
s were as fol
lows:
Relevant
regulatory
body
Capital
resources
requirement
unaudited
£’000
Capital
resources
unaudited
£’000
Surplus
over c
api
tal
resources
requirement
unaudited
£’000
Company
Pe
rso
nal A
ssur
ance P
lc
FCA
, PR
A
3,
52
1
12,
588
9,06
7
Pe
rso
nal A
ssur
ance S
er
vi
ces L
imite
d
FCA
46
3,908
3,862
Personal Group
Benef
its Limited
FCA
155
292
137
Berkeley Morgan
Limited
FCA
25
3
48
323
Pe
rso
nal A
ssur
ance (G
ue
rns
ey) Lim
ite
d
GFSC
911
2,0
10
1
,099
In ord
er to mai
ntai
n it
s capi
tal re
sou
rces requ
ireme
nt, P
ers
onal A
ssur
ance Pl
c maint
ains t
he maj
ori
ty of i
ts as
set
s in c
ash and sh
or
t
-term f
ixe
d interes
t
rated
epo
sit
s.
Th
e capi
tal re
sou
rces and co
rresp
ond
ing ca
pit
al res
ource req
uirem
ent for ea
ch PR
A reg
ulat
ed ent
it
y is calcu
late
d in accord
ance wi
th PR
A re
gul
atio
ns.
Th
e capi
tal re
sou
rces and co
rresp
ond
ing ca
pit
al res
ource req
uirem
ent for ea
ch FCA re
gul
ated e
ntit
y is ca
lcul
ated in a
ccordan
ce with F
CA reg
ulat
ions
.
Th
e Grou
p’s capi
tal co
mpr
ises al
l comp
onent
s of e
quit
y
.
Th
e Grou
p’s regul
ated e
ntit
ies have com
pli
ed wi
th al
l ex
tern
ally imp
ose
d cap
ita
l requi
rement
s du
ring t
he year
.
5
Segment an
aly
si
s
As n
oted on p
age 3
4, t
he for
mat of th
e segm
ent
al analysi
s has be
en chan
ged in 20
21
. The s
egm
ents u
sed by m
anage
ment to rev
iew th
e ope
rati
ons of th
e
busi
ness a
re disclo
sed b
elow
.
1) A
ffordable Insurance
Per
so
nal As
sura
nce Plc (PA), a subsi
diar
y wi
thin t
he G
roup, is a PR
A reg
ulat
ed ge
nera
l insur
ance Com
pany an
d is aut
hor
ised t
o tra
nsac
t acci
dent an
d sickn
ess
insur
ance. I
t was es
tab
lish
ed in 19
84 a
nd has b
een un
der
wr
it
ing busi
ness s
ince 19
85. In 19
97 Pers
onal G
roup H
oldin
gs Plc (P
GH) was cre
ated an
d bec
ame t
he
ulti
mate pa
rent und
er
ta
king of t
he G
roup.
Per
so
nal As
sura
nce (Gue
rns
ey) Lim
ited (PAGL), a sub
sidia
r
y with
in th
e Group, is re
gul
ated by t
he Gu
erns
ey Fin
ancia
l Ser
vi
ces Com
missio
n and ha
s bee
n
und
er
wri
tin
g death b
ene
fi
t pol
icie
s since Ma
rch 2015.
Th
is oper
atin
g segm
ent de
rives t
he ma
jori
t
y of it
s revenue f
rom th
e unde
r
wri
ting by PA and PAGL of insur
ance p
oli
cies t
hat have be
en bou
ght by emp
loyees
of hos
t comp
anie
s via b
espo
ke benef
it p
rogr
amme
s. Du
ring 2
020 PA
G
L be
gan un
der
wr
itin
g empl
oyee def
ault insur
ance fo
r a prop
or
ti
on of LC custo
mer
s.
2) Other
Owned Benefits
Th
is segm
ent cons
tit
utes a
ny goo
ds or se
r
vices i
n the b
enef
it
s pl
at
form s
upply cha
in whi
ch are owne
d by the G
roup. At pre
sent t
his is mad
e up of a
tech
nolo
gy s
ala
r
y sac
rif
ice bus
ines
s tra
ding as P
G Let’s C
onne
ct
, purch
ased by t
he G
roup in 20
14.
3) Ben
efit
s and P
latf
orm
Revenu
e in thi
s segm
ent rel
ates to t
he an
nual su
bscr
iptio
n incom
e and oth
er rel
ated i
ncome a
risin
g from t
he li
censing of H
api, t
he Gr
oup’s emp
loyee
ben
ef
it pl
at
form
. This i
nclud
es sa
les to b
oth th
e la
rge cor
porat
e and SM
E sec
tor
s.
4) Pay and Rewa
rd
Pay and R
eward refe
rs to t
he tr
ade of I
nnec
to, a pay a
nd reward co
nsult
anc
y Comp
any purc
hase
d in 2019. Reve
nue in t
his se
gment re
late
s to consu
ltan
cy
and l
icens
e incom
e der
ived fr
om sel
lin
g Inne
cto d
igit
al pl
at
form su
bscr
iptio
ns.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
92
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
5) Ot
her
Th
e other o
per
ating s
egm
ent consis
t
s exclusive
ly of revenue ge
ner
ated by Be
rkeley M
organ G
roup (B
MG) an
d it
s subsi
diar
y un
der
t
akin
gs alon
g wit
h any
inves
tme
nt and rent
al inco
me obt
aine
d by the G
roup. T
his se
gment a
ls
o inclu
des reve
nue ge
ner
ated fro
m the re
sal
e of vouche
rs (N
ote 2.2
2).
2021
£’000
Res
tated
2020
£’000
Revenue
by segment
Affordable Insuranc
e
24,6
70
28,
830
Other Owned Benefits
18,2
14
1
6
,420
Benefit
s Platform
6,0
51
4,901
Be
nef
it
s Pl
atf
orm – G
rou
p Elim
inat
ion
(2
,
74
8
)
(2
,
5
47
)
Pay & Rew
ard
1,236
875
Other Income
Voucher resal
e
26
,852
22
,73
5
Other
215
236
Inv
es
tment
income
23
74
Gr
oup Re
venue
74,
513
7
1
,524
Adjusted EBITDA
* contribution by segment
Affordable Insuranc
e
11,012
15,0
82
Other Owned Benefits
730
4
69
Benefit
s Platform
2,09
8
2,092
Pay & Rew
ard
303
(2
55
)
Other
279
(2
12)
Admi
n and ce
ntra
l cost
s*
*
(8,
228)
(6
,9
65)
Charitable Donations
(10
0)
(1
00)
Adjuste
d EBITDA
*
6,0
94
10,
111
Dep
reciation**
(96
6)
(1
,0
03)
Amortisation
**
(585)
(47
0)
Inter
est
(32)
(7
3)
Sha
re Bas
ed Pay
ment
s E
xpe
nse
s
(16
9)
(8)
Profit before tax
4,34
2
8,
557
*
A
dju
ste
d EBI
TDA i
s def
in
ed as e
ar
nin
gs be
for
e inte
res
t, t
ax
, de
pre
cia
tio
n, am
or
t
isa
tio
n of in
ta
ngib
le as
se
ts
, go
odw
il
l imp
air
me
nt, s
har
e-b
as
ed pa
yme
nt ex
pen
se
s, co
rpo
rat
e acq
uis
iti
on co
st
s,
res
tr
uc
tu
rin
g cos
t
s and r
ele
ase of t
a
x prov
isio
n
**
Th
es
e cons
ti
tu
te Gr
oup a
dmi
nis
tr
ati
on e
xpe
nse
s on t
he fa
ce of t
he Co
ns
oli
dat
ed In
com
e Stat
em
ent
93
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
5
Segment an
aly
si
s
c
ontinued
Segmental asset
s and liabilities
2021
2020
Asset
s
£’000
Liabilitie
s
£’000
Asset
s
£’000
Liabilitie
s
£’000
Insurance
28,
205
8,
168
26,
218
7,
5
6
4
Other Owned Benefits
10,910
6
,1
7
6
1
1
,
74
8
6,
937
Benefit
s Platform
2,055
1,400
2,
526
1
,27
1
Pay & Rew
ard
47
1
-
5
43
-
Other
15,963
579
1
7,
8
8
5
2
,
3
74
T
o
tal s
egm
ent as
set
s an
d lia
bili
tie
s
5
7,
6
0
4
16,
323
58,920
1
8
,1
4
6
5a
Furthe
r segmental analysis
Th
e follow
ing note p
rovide
s addi
tio
nal ana
lysis on Gr
oup se
gment
al in
come an
d exp
endi
ture.
Emp
loyee be
nef
it
s and se
r
vices i
ncom
e
2021
£’000
2020
£’000
IT S
al
ar
y Sa
cri
fice
1
8,214
1
6,
420
Other Owned Benefits
6,0
51
4,901
Be
nef
it
s Pl
atf
orm G
rou
p eli
minat
ion*
(2
,
74
8
)
(2
,
5
47
)
Pay & Rew
ard
1,236
875
T
o
tal e
mpl
oyee be
nef
it
s and s
er
vice i
ncom
e
22,753
19,649
Insurance operating
expenses
2021
£’000
2020
£’000
Operating
expenses
7,
6
0
8
6,7
18
Group elimination*
(2
,
74
8
)
(2
,
5
47
)
T
otal income operating expenses
4,860
4
,1
7
1
*
I
n ord
er to p
rop
er
ly ass
es
s the s
eg
men
ts i
ndi
vid
ual
ly, this G
ro
up el
imi
nat
ion a
pp
or
ti
ons a
n ar
m’s le
ngt
h va
lue t
o pl
atf
or
m sal
es of
fe
red a
t a dis
coun
t in ret
ur
n for in
sur
an
ce se
ll
ing o
ppo
r
tun
it
ies a
t
cor
po
rat
e cli
ent
s. T
hi
s valu
e is t
hen a
dd
ed to B
ene
f
it
s Pl
atf
or
m inco
me a
nd In
sur
anc
e Ope
rat
in
g exp
ens
es b
efo
re be
ing e
li
min
ate
d out
.
Emplo
yee
benefits and services
expenses
2021
2020
Cos
t of
sales
£’000
Operating
expenses
£’000
To
t
a
l
expenses
£’000
Cos
t of
sales
£’000
Operating
expenses
£’000
To
t
a
l
expenses
£’000
IT S
al
ar
y Sa
cri
fice
15,818
1,666
1
7,
4
8
4
14,
325
1,640
15,9
65
Benefit
s Platform
1
,1
0
6
2
,
8
47
3
,953
416
2,
393
2,809
Pay & Rew
ard
933
93
3
4
1
,1
2
6
1
,1
3
0
T
o
tal e
mpl
oyee be
nef
it
s and s
er
vice
s
expenses
16,924
5,446
22,
370
14
,
74
5
5
,1
5
9
19,90
4
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
94
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Gross transac
tional value
Gro
ss tr
ansa
ct
iona
l value re
pres
ent
s the tot
al val
ue of revenu
e gene
rate
d from b
oth pr
incip
al and a
genc
y ar
rang
ement
s. G
ross t
ran
sac
ti
onal va
lue fro
m
th
e sale of g
ood
s and vou
cher
s is recog
nise
d at the n
et value w
hen si
gnif
ica
nt risk
s and rew
ards of owne
rsh
ip of the g
ood
s and vou
cher
s have bee
n pass
ed
to th
e buyer
, u
sually o
n the di
spatch of t
he go
ods an
d vouch
ers
. The Co
mpa
ny is consid
ered to b
e an age
nt for vouch
er s
ales of £
6,668
,00
0 (2020:
£3,69
2,00
0) of th
e total t
rans
ac
tio
n value of £
33,09
6,00
0 (2020: £26,
1
43,00
0).
2021
£’000
2020
£’000
Vouche
r reven
ue re
cogni
sed a
s prin
cip
al
26
,42
8
22
,463
Vouche
r res
ale f
or reven
ue re
cogni
sed a
s agen
cy
6,668
3
,692
Gross transactional value
33,0
96
26,155
6
I
nves
t
me
nt
inc
om
e
2021
£’000
2020
£’000
Inte
res
t incom
e fro
m cash o
n dep
osi
t
23
74
T
o
tal i
nvest
men
t incom
e
23
74
7
Claims incu
rred
2021
£’000
2020
£’000
Claims paid
5,884
5,588
Reinsurers’ share
of claims paid
(63)
(90)
Claims handling expe
nses paid
5
42
7
31
6,
363
6,229
Increase in c
laims provision
(275
)
767
Rei
nsure
rs’ sh
are of m
oveme
nts i
n cla
ims pr
ovisi
on
(39)
35
(358)
802
T
otal claims incurred
6,04
9
7,
0
3
1
8 Insurance operating expe
nses
2021
£’000
Res
tated
2020
£’000
Inc
urre
d acqu
isit
ion co
st
s
3
,47
2
2,915
Administration expenses
1,388
1,256
T
ot
al Insuranc
e Operating Expenses
4,
860
4
,1
7
1
T
ota
l commis
sion in
curre
d dur
ing th
e year in re
spec
t of dire
ct in
suran
ce was £762,0
00 (2020: £
879,00
0).
95
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
9
Directors’ and empl
o
yees’ remuneration
a) Staff co
sts (excl
uding N
on-
Execut
ive Dire
cto
rs’ fee
s) during t
he year wer
e as fol
lows:
202
1
£’000
2020
£’000
Wages
and salaries
1
1
,1
5
1
9,
976
Sha
re-ba
sed p
ayme
nt
s exp
ense
1
69
8
So
cial s
ecur
it
y cos
ts
1,278
1,0
03
Ot
her p
ensi
on cos
ts
504
489
T
o
tal s
taf
f cos
ts
1
3
,1
0
2
1
1,
476
Dur
ing t
he year t
he Gro
up recei
ved £126
,00
0 from t
he job re
tenti
on sch
eme (2020: £
595,00
0). Th
ese g
overnm
ent gra
nts h
ave been of
f
set aga
inst t
he
sa
lar
y co
st
s in th
e ta
ble ab
ove.
Average nu
mbe
r of empl
oyees th
rough t
he year w
as as fol
lows:
2021
Number
2020
Number
Administration
160
13
9
Sales and marketing
73
89
T
o
tal n
umb
er of e
mpl
oyees
233
228
b)
Directors’ remuneration
:
2021
£’000
2020
£’000
Emolumen
ts
1,
024
1
,002
Am
ount
s pa
id to th
ird pa
r
tie
s in res
pec
t of Di
rec
tor
s’ se
r
vices
12
42
Pe
nsion co
ntr
ibut
ion
s to Gro
up an
d self
-inves
ted p
er
sona
l pen
sion s
chem
es
26
22
T
otal Director’s remuneration
1,0
62
1,06
6
Dur
ing t
he year
, t
hree D
irec
tor
s (2020: four D
irec
tor
s) par
ti
cipate
d in Gro
up and s
elf
-
investe
d per
so
nal pe
nsion s
chem
es.
Th
e amou
nts s
et out a
bove inclu
de rem
uner
atio
n in resp
ec
t of the hi
ghes
t pa
id Dire
cto
r as foll
ows. Al
l emol
ument
s rel
ate to p
ayme
nts m
ade by sub
sidia
r
y
under
takings.
2021
£’000
2020
£’000
Emolumen
ts
41
6
300
Sha
re-ba
sed p
ayme
nt
s gains o
n exer
cise of o
ptio
ns
Pe
nsion co
ntr
ibut
ion
s to Gro
up an
d self
-inves
ted p
er
sona
l pen
sion s
chem
es
10
10
T
otal
426
310
Det
ail
s of in
divi
dual D
irec
tor
’s remun
erat
ion are g
iven in t
he Rem
uner
atio
n Repo
r
t on pag
es 60
-
63. Th
e Comp
any do
es not in
cur emp
loyee rem
uner
atio
n.
Key mana
gem
ent of the G
roup a
re the D
irec
tor
s of Per
son
al Gro
up Hold
ings Plc t
oget
her w
ith t
he me
mbe
rs of th
e Sen
ior Lea
der
ship T
e
am. Key
management
p
ersonnel remunera
t
ion i
ncludes the f
ollowing
expenses:
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
96
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
2021
£’000
2020
£’000
Short-term emplo
yee
benefits:
Sal
aries including bonuses
2,0
52
1
,638
So
cial s
ecur
it
y cos
ts
283
2
26
Share
-based paym
ents expen
se
2,
335
1,864
Post-employm
ent benefi
ts:
Defined contribution
pension plans
66
47
T
otal remuneration
2,401
1,911
10
Profit before
tax
2021
£’000
2020
£’000
Prof
it b
efo
re ta
x is st
ate
d aft
er
:
Auditor’s
remuneration (inclus
ive
of non
-rec
overable V
A
T):
Audi
t ser
v
ices:
Audi
t of Com
pany f
in
ancia
l st
atem
ent
s – Cur
rent Y
e
ar
172
1
24
Audi
t of Com
pany f
in
ancia
l st
atem
ent
s – Pri
or Y
e
ar
40
Audit of
subsidiary under
takings
120
122
Non-audit services
Depreciati
on of
proper
ty
, plant and equ
ipment
966
1
,0
03
Amor
tisation of intangibles
585
47
0
Rent
al in
come r
ecei
vabl
e
101
97
97
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
1
1
Ta
x
Th
e rel
ation
ship be
twe
en th
e expe
ct
ed ta
x exp
ense b
ase
d on th
e ef
fec
tive t
ax rat
e of Per
sona
l Grou
p Hold
ings Plc at 20
% (2020: 19
%) and th
e ta
x expe
nse
recog
nise
d in the i
ncome s
t
ateme
nt can be r
econci
led as fo
llows:
2021
£’000
2020
£’000
Prof
it b
efo
re ta
x
4,34
2
8
,557
Prof
it b
efo
re ta
x exclu
ding e
quit
y-acco
unted i
nvest
ee
4,342
8,
557
Ta
x
r
a
t
e
19%
19%
Expected tax expen
se
825
1,6
26
Adjustment
for non
-deductible expenses
68
251
Adjustment
for tax exemp
t revenu
es
(101)
(5
8)
Other adjustments
Effe
ct o
f tax r
ate cha
nge
s on de
fer
red t
ax
67
-
T
ax c
redi
t in res
pec
t of pr
ior ye
ars
(
10
9)
(151
)
Adjustment
for pre
viously non-deductible
expenses
(5
)
(5)
Ac
tual t
ax e
xpe
nse
74
5
1,6
63
Continuing operations
74
5
1,6
63
Curren
t tax expense
775
1
,71
7
In re
spe
ct of p
rio
r year
s
(10
9)
(1
51)
Deferred tax
Or
igin
atio
n and re
vers
al of te
mpo
rar
y d
if
fere
nces
12
97
Effe
ct o
f tax r
ate cha
nge
s
67
-
T
otal tax
74
5
1,6
63
During
the 3
rd
March 2
021 B
udge
t, it w
as anno
unced t
hat th
e rate of cor
po
ratio
n ta
x will i
ncreas
ed to 2
5% from A
pril 2
023 wh
ich has b
een su
bst
ant
ively
enacted.
12
Earnings per share
2021
2020
Earnings
£’000
We
ig
ht
e
d
aver
age
number of
shares
Pen
ce per
share
Earnings
£’000
We
ig
ht
e
d
averag
e num
ber
of
shares
Pen
ce per
share
Basic
3
,5
97
31,205,37
5
11.5
6,894
31,
16
4,809
2
2
.1
Dil
uti
ve ef
fec
t of sha
res in E
mploye
e
Share-bas
ed schem
es
8
,1
6
2
0.0
7,
9
1
1
0.0
Diluted
3,
597
31,213,53
7
11.
5
6,894
31,
172,72
0
2
2
.1
Th
e weighte
d average n
umbe
r of share
s shown a
bove exclud
es unal
loc
ated own C
omp
any share
s held by P
ers
onal G
roup T
r
ust
ees Ltd
.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
98
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
13 Dividends
2021
Pen
ce per
share
2020
Pen
ce per
share
2021
£’000
2020
£’000
Equity dividends
Ord
inar
y s
hare
s pai
d in year
March
-
5.900
1,
8
42
June
5
.1
0
0
1.500
1
,
591
469
September
-
5.9
00
1
,8
42
December
5.300
-
1,6
54
10.
400
13
.3
00
3
,
245
4
,1
5
3
Les
s: amo
unt
s pai
d on own s
hare
s
(1)
(6)
T
otal dividends
10.
40
0
13
.300
3,244
4
,1
4
7
Th
e divi
dend
s lis
ted ab
ove were pai
d in the c
alen
dar year
. D
ivi
dend
s of 18.4
p per sh
are were p
aid rel
atin
g to th
e 2020 f
inan
cial pe
rio
d and an int
erim
paym
ent of 5.
3p has b
een p
aid rel
atin
g to the 2
021 f
ina
ncial p
eri
od.
14 Goodwill
Th
e car
r
ying am
ount of go
odw
ill w
hich has b
een a
lloc
ated to t
hos
e cash
-ge
nerat
ing un
it
s can b
e analys
ed as fol
lows:
PG L
et’s
Connect
£’000s
Inne
cto
£’000s
To
t
a
l
£’000s
Cost
At 1 Janu
ar
y 202
1
10,
575
2
,1
2
1
12,6
96
Add
itio
ns in t
he year
Dispos
al
At 31 D
ecem
ber 20
21
1
0,5
75
2
,1
2
1
12
,69
6
Impairme
nt
charged
At 1 Janu
ar
y 202
1
Imp
air
ment c
harg
e for yea
r
At 31 D
ecem
ber 20
21
Ne
t boo
k valu
e at 31 D
ecem
ber 2
021
10,
575
2
,1
2
1
12
,696
99
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
14 Goodwill
c
ontinued
PG L
et’s
Connect
£’000s
Inne
cto
£’000s
To
t
a
l
£’000s
Cost
At 1 Janu
ar
y 2020
10,
575
2
,1
2
1
12,6
96
Add
itio
ns in t
he year
Dispos
al
At 31 D
ecem
ber 20
20
10,
57
5
2
,1
2
1
12,6
96
Impairme
nt
charged
At 1 Janu
ar
y 2020
Imp
air
ment c
harg
e for yea
r
At 31 D
ecem
ber 20
20
Ne
t boo
k valu
e at 31 D
ecem
ber 2
020
10,
575
2
,1
2
1
12
,696
Th
e net ca
rr
yin
g value
s at 31 D
ecemb
er 202
1 have be
en revie
wed for im
pair
ment
.
PG Let’s Connect
Th
e fir
st c
ash ge
nerat
ing un
it (CGU) cons
idere
d was th
e PG Let
’s Conn
ec
t busin
ess as a w
hole a
nd it
s recovera
ble am
ount was b
ase
d on valu
e in use
,
dete
rmi
ned by dis
counti
ng th
e futu
re cash f
lows to b
e gene
rate
d from cont
inue
d tra
ding of P
G Let’s C
onne
ct
. As t
he val
ue in us
e was foun
d to be in e
xcess
of th
e car
r
ying am
ount of £1
0,5
75,0
00, n
o impa
irme
nt was reco
rded in t
he year
.
For t
he pur
pos
e of the v
alue in u
se mo
del
, th
e CGU value is co
mpr
ised of t
he G
ood
will a
lloc
ated
, the c
arr
y
ing valu
e of the i
ntan
gible a
sset re
cognis
ed on
acqu
isiti
on and t
he ass
et
s of the CG
U such th
at the c
arr
y
ing am
ount of th
e CGU has be
en de
term
ined o
n a basis co
nsist
ent wit
h the w
ay the re
coverabl
e
amo
unt of th
e CGU is dete
rmin
ed.
Five yea
rs of fu
ture c
ash flow
s were incl
ude
d in the d
iscount
ed cash f
low mo
del
. Th
e long
-term grow
t
h rate into p
erp
etui
ty wa
s deter
min
ed as 2.
5%
(30
-year aver
age of UK co
nsume
r pri
ce index). T
he c
ash fl
ows were th
en dis
counted u
sing a po
st
-ta
x disco
unt rate of 13% (202
0; 13%) base
d on PG L
et’s
Conn
ec
t weighte
d averag
e cost of c
apit
al
, using t
he ca
pit
al ass
et pri
cing mo
del
.
In l
ine wi
th prev
ious yea
rs, a
n expe
ct
ed cash f
low ap
proa
ch, ba
sed o
n fi
ve dif
ferent s
cenar
ios, w
as used
, as man
agem
ent bel
ieve t
his met
hod to m
ost
app
ropr
iately ad
dress t
he fa
ct t
hat the t
imin
g and sc
ale of Le
t’s Conn
ec
t’s fu
ture grow
th c
urre
ntly remai
ns uncer
t
ain
. Each of t
he scen
ari
os was gi
ven a
prob
abil
it
y ex
pec
tat
ion
, bas
ed on ma
nage
ment’s b
es
t view an
d histo
ric p
er
for
mance
, and t
he weighte
d averag
e net pre
sent va
lue (NP
V) d
eri
ved from t
he
se
cal
cul
ation
s was th
en dete
rmi
ned as t
he valu
e in use
. Budg
eted EB
ITDA was b
ase
d on exp
ec
tat
ions of f
uture o
utcom
es consi
der
ing pas
t exp
er
ience as we
ll
as exi
sti
ng contr
ac
ts in p
la
ce.
Key
assumptions
Give
n that N
PV is sens
iti
ve to severa
l key assumpt
ions w
hich have b
een us
ed, t
he fol
lowing h
ave been h
ighl
ighted a
s bein
g the m
ost s
ensit
ive wit
h
sensitivities per
formed.
Dis
count rat
e
Mana
gem
ent’s ap
proa
ch to dete
rmi
ning th
e 13% dis
count rate to a
pply to t
he valu
e in use m
odel i
s expl
ain
ed ab
ove.
Cash flow re
venue projections
Mana
gem
ent app
lie
d an exp
ec
ted c
ash flow a
ppro
ach to t
he valu
e in use m
odel f
or revenu
e forec
ast
ing, u
sing t
he weighte
d averag
e of a numb
er of
scen
ario
s to dete
rmin
e the e
xpe
cte
d fut
ure revenu
es of Let
’s Conne
ct
. Th
e scen
ario
s used
, and t
he pro
babi
lit
ies ap
pli
ed, t
ake into accou
nt the cu
rrent
mar
ket condit
ion
s, incl
uding g
loba
l supply ch
ain inte
rru
ption
s, and re
pres
ent th
e poss
ible fu
ture ou
tcome
s and ma
nage
ment’s b
es
t est
imate a
s to the
ir
likelihoo
d.
In ass
essi
ng the s
ensi
tiv
it
y of this as
sumpt
ion, i
t was foun
d that w
hen gro
ss inco
me was as
sume
d to be £2m lowe
r than t
he weig
hted avera
ge inco
me of
th
e scena
rios
, an imp
air
ment was s
til
l not req
uired
. Manag
eme
nt conside
rs t
he cash f
low sce
nar
ios use
d suf
f
icient to a
ddre
ss th
e risk
s surro
undi
ng the
busi
ness c
urrent
ly and th
at this s
ensit
ivi
ty f
ur
th
er sup
por
t
s th
e valuat
ion of t
he CGU.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
100
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Gross profit margin
Mana
gem
ent app
lie
d an exp
ec
ted gro
ss marg
in of 13% on it
s f
uture reve
nue pro
jec
tio
ns, an i
ncreas
e on ac
tual re
sult
s for t
he year en
ded 3
1 De
cembe
r 2021
whe
re sto
ck avail
abil
it
y li
mit
atio
ns have contin
ued to h
ave an impa
ct o
n cost of s
ale
s.
Th
e recovera
ble am
ount was b
ased o
n valu
e in use, d
eter
mine
d by discou
nting t
he fu
ture ca
sh flow
s to be ge
ner
ated fro
m contin
ued t
radi
ng of Let’s
Conn
ec
t. A
s th
e car
r
ying am
ount of £1
0,5
75,0
00 was l
ower tha
n the re
coverabl
e amo
unt, n
o impa
irme
nt was de
eme
d neces
sar
y.
As t
he eco
nomy s
ta
rt
s to re
cover pos
t COVID
-
1
9, and s
tock avail
ab
ilit
y l
imit
ati
ons s
tar
t to re
duce, t
here i
s an exp
ec
tat
ion t
hat fut
ure cash p
rojec
ti
ons wi
ll
ref
lec
t imp
roved gross p
rofi
t margi
ns in li
ne wit
h pre
-COVID le
vel
s.
Bel
ow is a tab
le showi
ng th
e sensi
tiv
it
y of the key as
sumpti
ons an
d the im
pac
t of cha
nges i
n vari
ous key assum
ptio
ns (in b
ase pe
rcent
age po
int ter
ms) have
on t
he hea
droo
m. Th
e Bas
e column re
fer
s to the h
eadro
om on t
he imp
air
ment rev
iew mo
del comp
lete
d by manag
eme
nt.
Se
nsiti
vit
y Ana
lysis – Imp
ac
t on He
adro
om
- %
£’000s
Base
£’000s
+ %
£’000s
Discount
Rate
( +
/
- 2%)
6,019
2,
531
198
Gross Income
( +/
- 2%)
688
2,
531
5,
136
Gross Profit Margin
( +/
- 2%)
102
2
,531
4,9
40
Innecto
Th
e secon
d cash g
ene
ratin
g unit (CGU) co
nside
red was t
he Inn
ec
to busin
ess as a w
hole
. For th
e pur
pos
e of the va
lue in us
e mod
el
, the CGU v
alue is
comp
rise
d of the g
ood
wil
l allo
cated
, the c
arr
ying v
alue of t
he int
angib
le ass
et
s recogn
ised o
n acquisi
tio
n and t
he ass
ets of t
he CGU su
ch that t
he c
arr
yi
ng
amo
unt of th
e CGU has be
en det
ermi
ned o
n a basis con
siste
nt wit
h the way t
he recover
able a
mount of t
he CGU is d
eter
mine
d.
An ex
pec
ted c
ash f
low app
roach
, simil
ar to t
hat app
lie
d to PG Le
t’s Con
nec
t, wa
s used a
pplyin
g multi
ple sce
nari
os and af
f
ixed p
roba
bili
tie
s that were
dee
med t
o be app
ropr
iate und
er man
agem
ent’s b
est u
nde
rst
an
ding of t
he busi
ness
.
Key
assumptions
Five yea
rs of fu
ture c
ash flow
s were incl
ude
d in the d
iscount
ed cash f
low mo
del in
clud
ing a lon
g-term g
rowt
h rate of 2.
5% (3
0-year ave
rage of U
K
consu
mer pr
ice ind
ex), ide
ntic
al to th
e rate us
ed in P
G Let’s Co
nnec
t wor
kings
. Th
ese c
ash fl
ows were th
en dis
counted u
sing a ris
k miti
gatin
g pos
t
-t
ax
disco
unt rate of 2
2.4% (2020: 25
.2%) ba
sed o
n Inne
cto’s wei
ghted aver
age cos
t of cap
ita
l, us
ing th
e capi
tal a
sset p
ricin
g mod
el wit
h a risk p
remiu
m in lin
e
wit
h the r
isk
s asso
ciated w
ith t
he un
cer
ta
intie
s aroun
d the fo
reca
ste
d grow
th. T
he de
creas
e in the d
iscount r
ate year on ye
ar ref
lec
ts t
he ad
dit
ional
cer
t
aint
y wit
hin th
e Grou
p aroun
d the o
per
atio
ns of Inne
cto a
s well as t
he sign
ifi
cant d
ecreas
e in th
e risk
s incor
por
ated int
o the f
uture c
ash fl
ows
mo
dell
ed wh
en cal
cul
ating t
he val
ue in use of t
he CGU.
Sens
itivit
y
Whi
le mana
gem
ent are conf
ide
nt that In
nec
to wil
l gen
erate fo
rec
aste
d incom
e, it is reco
gnis
ed th
at ther
e is an inhe
rent unce
r
tai
nty w
ith
in the fo
rec
aste
d
cash f
lows us
ed in t
he imp
air
ment m
odel d
ue to th
e exp
ec
ted grow
th
.
Bel
ow is a tab
le showi
ng th
e sensi
tiv
it
y of the key as
sumpti
ons an
d the im
pac
t of var
ious c
hange
s (in b
ase p
ercent
age po
int ter
ms) has on th
e hea
droom
.
Th
e Bas
e column re
fer
s to the h
eadro
om on t
he imp
air
ment rev
iew mo
del com
plete
d by manag
eme
nt.
Se
nsiti
vit
y Ana
lysis – Imp
ac
t on He
adro
om
- %
£’000s
Base
£’000s
+ %
£’000s
Discount
Rate
(+/-
2
.
5
%
)
1,
492
904
450
Variable P
roportion of Costs
(
+/
- 10%)
916
904
893
T
e
rmi
nal G
row
th Ra
te
(+
/-
1
%
)
787
904
1
,033
Mana
gem
ent is conf
ide
nt that t
here is no c
aus
e for an im
pair
ment in e
ith
er PG L
et’s Con
nec
t or In
nec
to. In add
iti
on to th
e fut
ure ben
ef
it
s built into e
ach
CGU, the
re are be
nef
it
s of eac
h to the w
ider G
roup a
s a result of im
proved mar
ket pen
etr
ation
, mar
keting e
xper
t
ise an
d addi
tio
nal cros
s-sell
ing
oppor
tunities made available.
101
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
15
Intangibl
e asset
s
For the yea
r end
ed 31 De
cemb
er 202
1
Customer
value
£’000
Innecto Custo
mer
value and
tradename
£’000
Inn
ect
o
T
echnology
£’000
Computer software
and dev
elopment
£’000
Interna
lly
Generated
Computer Software
£’000
WIP
£’000
To
t
a
l
£’000
Cost
At 1 Janu
ar
y 202
1
1,6
4
8
726
298
1,
52
0
506
4,69
8
Additions
783
198
981
Dispos
als
(16)
(1
6)
At 31 D
ecem
ber 20
21
1,6
48
726
298
2,287
50
6
198
5,6
63
Dep
reciation
At 1 Janu
ar
y 202
1
1,6
4
8
26
6
110
923
498
3,4
45
Prov
ided i
n the ye
ar
1
45
60
3
74
6
585
Dispos
al
(4)
(4)
At 31 D
ecem
ber 20
21
1,6
48
411
170
1
,
293
504
4
,026
Ne
t boo
k amo
unt at
31D
ecem
ber 2
021
3
15
128
994
2
198
1,63
7
Net b
oo
k amou
nt at
31D
ecem
ber 2
020
460
188
59
8
8
1,254
For the yea
r end
ed 31 De
cemb
er 2020
Customer
value
£’000
Innecto Custo
mer
value and
tradename
£’000
Inn
ect
o
T
echnology
£’000
Computer software
and dev
elopment
£’000
Interna
lly
Generated
Computer Software
£’000
WIP
£’000
To
t
a
l
£’000
Cost
At 1 Janu
ar
y 2020
1,6
4
8
726
298
97
3
506
124
4
,275
Acquisition
259
(2
59)
Additions
28
8
135
424
Dispos
als
At 31 D
ecem
ber 20
20
1
,64
8
726
298
1
,
520
506
4
,698
Dep
reciation
At 1 Janu
ar
y 2020
1,6
4
8
121
50
688
467
2
,
9
74
Prov
ided i
n the ye
ar
1
45
60
23
4
31
47
0
Dispos
al
At 31 D
ecem
ber 20
20
1
,64
8
266
110
923
498
3,
444
Ne
t boo
k amou
nt at
31D
ecem
ber 2
020
4
60
188
598
8
1,254
Net b
oo
k amou
nt at
31D
ecem
ber 2
019
605
24
8
285
39
1
24
1,301
Th
e Inne
cto c
usto
mer val
ues
, tra
dema
rk an
d techn
olog
ies are b
eing a
mor
t
ised t
hroug
h the co
nsol
idate
d incom
e st
ateme
nt over a fi
ve-year p
erio
d. T
he net
car
r
ying v
alue o
n 31 De
cemb
er 202
1 has be
en ass
ess
ed for i
mpai
rme
nt and no im
pai
rme
nt was dee
med n
ecess
ar
y. The ass
et
s were ass
esse
d in conj
unc
tio
n
wit
h the g
oo
dwil
l value i
n Note 15. T
he tot
al valu
e of amor
t
isat
ion rel
at
ing to acq
uired int
ang
ible
s was £205k (2020
:£205k).
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
102
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
16
Propert
y
, pl
ant a
nd equipmen
t
For the yea
r end
ed 31 De
cemb
er 202
1
Free
hol
d la
nd
and properties
£’000
Moto
r
vehi
cles
£’000
Computer
equipment
£’000
Furniture
fix
tur
es &
fitting
s
£’000
Lease
Imp
rovem
ent
s
£’000
Rig
ht of us
e
assets
£’000
To
t
a
l
£’000
Cost
At 1 Janu
ar
y 202
1
5,03
7
157
1
,085
2
,3
03
38
1
,459
10,
079
Additions
209
27
307
5
43
Dispos
als
(
182)
(2
0)
(
562)
(
76
4)
At 31 D
ecem
ber 2
021
5
,037
157
1
,1
1
2
2,310
38
1,
204
9,8
58
Dep
reciation
At 1 Janu
ar
y 2020
1
,
742
102
7
74
1
,06
4
34
9
07
4,62
3
Prov
ided i
n the ye
ar
86
23
194
221
3
43
9
9
66
Eliminated on disposal
s
(
182)
(20)
(562)
(
76
4)
At 31 D
ecem
ber 2
021
1,
828
125
786
1,
265
37
78
4
4,825
Ne
t boo
k amo
unt at
31D
ecem
ber 2
021
3,209
32
32
6
1,0
45
1
420
5,03
3
Net b
oo
k amou
nt at
31D
ecem
ber 2
020
3,295
55
311
1,239
4
552
5,456
For the yea
r end
ed 31 De
cemb
er 2020
Free
hol
d la
nd
and properties
£’000
Moto
r
vehi
cles
£’000
Computer
equipment
£’000
Furniture
fix
tur
es &
fitting
s
£’000
Lease
Imp
rovem
ent
s
£’000
Rig
ht of us
e
assets
£’000
To
t
a
l
£’000
Cost
At 1 Janu
ar
y 2020
5,290
102
831
2,
357
38
1,
432
1
0,050
Additions
55
26
0
26
367
70
8
Dispos
als
(253
)
(6)
(8
0)
(3
40)
(679)
At 31 D
ecem
ber 2
020
5,037
157
1,0
85
2,
303
38
1,459
1
0,07
9
Dep
reciation
At 1 Janu
ar
y 2020
1
,713
77
612
881
29
754
4,06
6
Prov
ided i
n the ye
ar
87
25
166
251
5
469
1
,003
Eliminated on disposal
s
(58)
(4)
(6
8)
(
316)
(4
4
6)
At 31 D
ecem
ber 2
020
1
,
742
102
7
74
1
,06
4
34
9
07
4,62
3
Net b
oo
k amou
nt at
31 D
ecem
ber 2
020
3,295
55
311
1,239
4
552
5,456
Net b
oo
k amou
nt at
31 D
ecem
ber 2
019
3,57
7
25
219
1
,
476
9
678
5,984
In l
ine wi
th IFR
S 16, r
ight of us
e (ROU) as
set
s rel
ate to m
otor vehicl
es and b
uildi
ng leas
es, a b
reakdown fo
r whic
h can be f
ound i
n Note 30.
103
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
17
Financial investment
s
Group
Company
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Bank deposits
2,
596
2,
587
T
otal financial investments
2,
596
2
,587
IFR
S 13 F
air Value M
easure
ment e
st
abl
ishes a f
air val
ue hier
archy t
hat cate
gor
ises int
o thre
e level
s th
e input
s to v
aluat
ion te
chniqu
es us
ed to me
asure fai
r
valu
e. Th
e fair val
ue hie
rarchy gi
ves th
e highe
st pr
ior
it
y to quot
ed pr
ices (unad
just
ed) in a
ct
ive mar
kets fo
r ident
ica
l asset
s or l
iab
ilit
ies (L
evel 1 inpu
t
s
) and
the lo
west priority to u
nobservable inputs (Lev
el 3 inputs
).
Level 1: qu
oted pr
ices (una
djus
ted) i
n act
ive mar
kets f
or ide
ntic
al asse
ts o
r lia
bili
tie
s.
Level 2: i
nput
s oth
er th
an quote
d pri
ces incl
uded w
ith
in Level 1 t
hat are ob
ser
vab
le for t
he ass
et or l
iabil
it
y
, e
ith
er dire
ctly (
i.e. as pr
ices) or ind
irec
tly
(i.e.
derived from pric
es).
Level 3: in
put
s for t
he ass
et or l
iabil
it
y th
at are not ba
sed on o
bse
r
vable m
arket dat
a (unob
ser
va
ble inp
ut).
Ba
nk dep
osit
s, h
eld at am
or
tis
ed cos
t, ar
e due wi
thin si
x mont
hs and t
he am
or
tis
ed cos
t is a reaso
nabl
e approxi
matio
n of the f
air val
ue. Th
ese wo
uld be
incl
uded w
ith
in Level 2 of t
he fair v
alue hi
erarc
hy
.
18
Inve
nto
ri
e
s
Inventor
ies in t
he G
roup rel
ate pr
ima
rily to sa
la
r
y sacr
if
ice tec
hnolo
gy pro
duc
t
s held f
or sal
e as par
t of t
he P
G Let’s Co
nne
ct IT s
acr
if
ice busi
ness a
nd
vouch
ers (
both di
git
al and p
hysica
l) held f
or sa
le in th
e Saa
S divisi
on of th
e busin
ess
.
Inventor
ies h
eld are cl
assi
fi
ed as th
e below
:
2021
£’000
2020
£’000
Fin
ishe
d Go
ods – I
T Sal
ar
y S
acr
if
ice
835
820
V
oucher
s f
or resale
63
41
T
otal
898
861
19
T
rade and other receivables
Group
Company
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Loans and rec
ei
vables:
Insurance r
eceivables
1,6
65
2,295
Ot
her r
ecei
vabl
es due w
ith
in on
e year
10,
592
14,7
12
Amounts due from subsidiary under
takings
21
1
,1
0
7
Accrued intere
st
10
6
Other prepaymen
ts and acc
r
ued inc
ome
1,76
8
1
,333
17
1
171
T
otal trade and
other receivables
14,035
18,346
192
1,278
All of t
he Gr
oup’s insu
rance re
ceiva
bles a
nd othe
r recei
vable
s due w
ithi
n one year h
ave been rev
iewed fo
r indi
cator
s of imp
air
ment
. IFRS 9 co
mpl
iant cred
it
loss p
rovisio
ns have bee
n mad
e where a
ppl
icab
le and t
he val
ues sh
own above ar
e net of th
ose p
rovision
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
104
Personal Group Holdings
Plc
· A
nnu
al Re
por
t an
d Accoun
ts 20
21
Personal Group Holdings
Plc
· Ann
ual Re
po
rt a
nd Accou
nt
s 202
1
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
A weighte
d averag
e agei
ng of the e
xpe
cte
d loss p
rovisio
n is shown b
elow:
2021
2020
Tr
a
d
e
/
Insurance
Deb
tor
£’000
We
ig
ht
e
d
Ave
ra
ge
Provision
Credit Loss
Provision
£’000
Tr
a
d
e
/
Insurance
Deb
tor
£’000
We
ig
ht
e
d
Ave
ra
ge
Provision
Credit Loss
Provision
£’000
Not Invo
iced
6,633
0.
3%
16
7,
8
5
1
0.
3%
19
Current
4,35
7
0
.1
%
4
6
,9
83
0.0%
2
30 Day
s
723
1
.0%
8
1,6
91
1.0%
17
60 Day
s
257
2
.1
%
5
17
7
2
.1
%
4
90 D
ays
1
53
7.
8
%
12
2
07
5.7
%
12
150 D
ays
217
1
7.
9
%
39
212
2
8
.4%
60
T
otal
12
,34
0
0.7%
84
1
7,1
2
1
0.7
%
114
Credit Loss Provision
2021
£’000
2020
£’000
St
age
1
St
age
2
84
91
St
age
3
23
T
otal
84
114
Set o
ut be
low is the m
ovement in t
he al
lowance f
or exp
ec
ted cre
dit los
ses of t
rad
e recei
vable
s and cont
rac
ted a
sset
s:
2021
£’000
2020
£’000
At
1 January
114
62
Pro
visio
n for
expected cred
it lo
sses
84
1
14
Provision r
elease
(1
14)
(62)
At
3
1 De
cember
84
114
Insur
ance re
ceiva
bles an
d othe
r receiv
able
s are al
so he
ld at amo
r
tise
d cost a
nd th
e car
r
ying a
mount is a re
ason
able ap
proximat
ion of f
air val
ue whi
ch in the
cas
e of the i
nsura
nce recei
vabl
es cont
ains a l
aps
e provisio
n of £16
0,00
0 (2020: £120,0
00).
In th
e pas
t, t
he Gro
up has n
ot incur
red sign
if
icant b
ad de
bt writ
e off
s and co
nseq
uently w
hil
st t
he ab
ove may be overdue
, the r
isk of cred
it def
ault is
consid
ered t
o be low
. Th
e Group h
as no cha
rges o
r other s
ecur
it
y over any of t
hese a
sset
s.
20
Reinsurance asset
s
2021
£’000
2020
£’000
Reinsurers share of c
laims incurred
57
18
Reinsurers share o
f unearned premiums
51
60
T
otal reinsurance assets
108
78
105
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
21
Cash and cash equivalents
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Ca
sh at ba
nk and i
n hand
14,
945
1
3
,1
8
3
119
92
Short
-
term deposits
5,346
4,406
T
o
tal c
ash a
nd ca
sh eq
uiv
ale
nts
20,2
91
1
7,
5
8
9
119
92
22
Share capital
2021
£’000
2020
£’000
Aut
hor
ise
d 200,0
00,0
00 or
dina
r
y shar
es of 5p e
ach
10
,000
10,000
All
otte
d, c
alle
d up an
d ful
ly pai
d 31,
21
9,207 (2020
: 31,
21
9,207
) or
dina
ry s
hare
s of 5p ea
ch
1,
561
1
,561
Share Premiu
m
1
,1
3
4
1
,1
3
4
Each o
rdina
r
y share is ent
itl
ed to on
e vote in any circu
mst
ance.
Th
e total n
umbe
r of own share
s held by t
he Emp
loyee Be
nef
it T
r
ust at 3
1 De
cembe
r 202
1 was 87
,28
8 (2020: 87
,3
66). O
f this am
ount
, the
re are 76,
135
(2020: 80,78
1) SIP sha
res th
at have bee
n uncon
diti
onal
ly allo
cate
d to empl
oyees.
As at 3
1 De
cembe
r 202
1, th
e Grou
p maint
aine
d two sh
are-b
ase
d paym
ent sch
emes f
or emp
loyee comp
ens
atio
n.
a)
Company
Share Ownership Plan (
CSOP) and
unapprov
ed options
For t
he opti
ons gr
anted to ve
st t
here are n
o per
fo
rman
ce crit
eria o
bli
gatio
ns to be f
ulf
ille
d other t
han cont
inuo
us emp
loyme
nt duri
ng the t
hree
-year
per
iod
, except for e
arly ter
minat
ion of e
mploym
ent by at
tai
ning no
rma
l retire
ment ag
e, ill h
ealth o
r redun
danc
y
.
All sh
are-b
ase
d empl
oyee comp
ensat
ion w
ill b
e set
tle
d in equ
it
y
. T
he Gro
up has no l
egal o
r const
ru
ct
ive obl
igati
on to rep
urchas
e or set
t
le the o
ptio
ns.
Share o
ptio
n and weig
hted avera
ge exercis
e pr
ice are as fol
lows fo
r the re
por
t
ing pe
rio
ds pres
ented:
2021
2020
Number
We
ig
ht
e
d
aver
age
exercise
price
Pen
ce
Number
We
ig
ht
e
d
aver
age
exercise
price
Pen
ce
Outs
tanding at
1 January
205,
559
394.5
161
,657
4
46.0
Opt
ions g
rant
ed in yea
r
69,
96
8
3
43.
0
43,
90
2
205.0
0
Opt
ions e
xerci
sed i
n year
Opt
ions c
ance
lle
d or l
aps
ed
(48
,7
8
4)
368.
9
Out
st
an
ding a
t 31 De
cemb
er
226,743
3
8
4
.1
205,559
394.
5
Th
e weighte
d average e
xercise p
rice of 95
,29
4 (2020: 120,87
3) sha
re optio
ns exercis
abl
e at 31 De
cemb
er 202
1 was 472.35 p
ence p
er share (202
0: 4
7
1
.83).
Th
e fair val
ues of o
ption
s which we
re grante
d dur
ing 202
1 were de
term
ined by us
ing th
e Bl
ack-
S
chol
es val
uatio
n mod
el. T
he fa
ir valu
e of the
se opt
ions wa
s
45 pen
ce per sh
are. Sign
if
icant in
put
s into t
he ca
lcul
atio
n inclu
de a weight
ed averag
e share p
rice of 3
43p and e
xercise pr
ices a
s illus
tr
ated ab
ove.
Fur
th
ermo
re, th
e calc
ulat
ion t
akes into a
ccount fu
ture div
iden
ds of 4.2
% and a vo
lat
ili
ty r
ate of 29%
, b
ased o
n exp
ec
ted sha
re price
. Risk-
f
ree inte
rest r
ate
was de
term
ined at 0.
1%
. T
he opt
ions are e
xercis
able b
etwe
en th
ree an
d ten year
s af
ter th
e date of t
he gra
nt and have an e
xercise pr
ice of 3
43 pence
pers
hare.
Th
e weighte
d average re
main
ing contr
ac
ted l
ife of ou
ts
ta
nding o
ptio
ns at 31 D
ecemb
er 202
1 was six ye
ars an
d thre
e mont
hs (2020: f
ive year
s and
tenm
onths).
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
106
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t and A
ccount
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Th
e unde
rlying e
xpe
cte
d vol
atil
it
y was det
ermi
ned by ref
erence t
o histo
ric
al dat
a. No sp
ecial f
eature
s imman
ent to th
e opti
ons gr
anted were i
ncor
porat
ed
into th
e meas
ureme
nt of fair va
lue.
In tot
al, £
11,0
00 of e
mployee co
mpen
sat
ion by way of sha
re-b
ased p
ayme
nt expe
nse ha
s bee
n inclu
ded in t
he cons
oli
dated i
ncome s
tat
ement f
or 202
1
(2020: £5
,00
0). The co
rresp
ond
ing cred
it is t
aken to equ
it
y
. No l
iab
ilit
ies we
re recogn
ised d
ue to sha
re-b
ased t
rans
ac
tio
ns.
b) Long Term In
centive P
lan (LTIP)
L
TIP 2021
Th
e Remun
erat
ion Co
mmit
te
e approve
d a new L
T
IP on 6 Ap
ril 202
1. U
nder t
he sc
heme s
hare opt
ions of P
ers
onal G
roup H
oldin
gs Plc are gr
anted t
o seni
or
execu
tive
s wit
h an Exerc
ise Pr
ice of 5p (nom
inal val
ue of th
e shares). T
he share o
ptio
ns have vari
ous mar
ket and n
on-ma
rket pe
rf
orma
nce cond
itio
ns whi
ch
are req
uired t
o be ach
ieved for t
he opt
ions to ve
st
. The o
ptio
ns al
so cont
ain s
er
vice con
dit
ions t
hat requ
ire opti
on hol
der
s to remai
n in emp
loyment of
th
eGroup.
T
otal shareholder return (
market condition
)
50% of t
he awar
ds vest u
nder t
his con
diti
on. Su
bjec
t to Com
pou
nd Ann
ual Grow
t
h Rate (CAGR) of t
he T
ot
al Sha
rehol
der Ret
urn (
TS
R) over the
Per
fo
rma
ncePer
iod
.
EBITDA
t
argets (non-mark
et condition)
35% of th
e awards ves
t und
er th
is condi
tion
. Subje
ct t
o cumul
ati
ve EBIT
DA ov
er t
he Per
fo
rma
nce Per
iod
.
Environmental, social and go
vernance targets (ESG) (
non-market condition
)
Up to 15% of t
he award
s vest un
der t
his cond
iti
on. T
he awards sh
all ves
t upo
n the R
emun
erat
ion Co
mmit
te
e deter
mini
ng that a
ll ES
G tar
get
s have
be
enmet
.
Th
e fair val
ue of th
e share o
ption
s is est
imate
d at the g
rant date u
sing a Mo
nte-
Ca
rlo bin
omia
l optio
n pri
cing mo
del fo
r the m
arket cond
iti
ons, a
nd a
Bl
ack-Schole
s pri
cing mo
del fo
r non-
market co
ndit
ions
. However
, th
e above p
er
form
ance con
dit
ion is on
ly conside
red in de
term
ining t
he num
ber of
ins
tru
ment
s th
at will u
ltimate
ly vest
.
Th
ere are no c
ash se
tt
leme
nts a
ltern
atives
. Th
e Group d
oes n
ot have a pas
t prac
ti
ce of cash s
et
tlem
ent for t
hes
e share opt
ions
. Th
e Group a
ccount
s for t
he
L
TI
P as an eq
uit
y-set
tle
d pl
an.
As n
oted in t
he 2020 f
ina
ncial s
tat
ement
s
, the 29,615 s
hare opt
ions gr
anted t
o Deb
orah Fro
st in l
ieu of an L
TIP i
n previo
us year
s were al
so an
noun
ced in A
pril
202
1. Th
ere are n
o per
fo
rman
ce condi
tio
ns att
ach
ed to th
ese o
ptio
ns other t
han co
ntinu
ed emp
loyme
nt to the e
xercise dat
e.
In tot
al, £
158,0
00 of e
mploye
e share-
bas
ed comp
ens
atio
n has be
en incl
uded i
n the co
nsol
idate
d incom
e st
ateme
nt to 31 D
ecem
ber 202
1 (2020: £n
il). Th
e
corre
spo
nding cr
edit is t
aken to e
quit
y
. N
o lia
bil
itie
s were reco
gnise
d from s
hare-
base
d tra
nsa
ct
ions
.
23
Deferred tax
2021
2020
Deferred T
ax
Asset
s
£’000
Deferred T
ax
Liabilitie
s
£’000
Deferred T
ax
Asset
s
£’000
Deferred T
ax
Liabilitie
s
£’000
Non-current assets and liabilities
Proper
ty
, plant and equipment
17
42
9
20
3
14
Intangible Assets
66
105
17
49
5
20
41
9
Of
fset
(17)
(17)
(20)
(20)
T
o
tal d
efe
rre
d tax
47
8
399
107
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
23
Deferred tax
c
ontinued
2021
£’000
2020
£’000
At 1 Janu
ar
y
(3
99)
(30
2)
Curren
t y
ear mo
vement
(12)
(92)
Movem
ent in p
rovis
ions d
ue to t
ax rat
e chan
ges
(67
)
At 31 D
ecem
ber
(47
8)
(399)
At 31 De
cemb
er 202
1 the G
roup ha
d ta
x loss
es of £945
,00
0 (2020: £950,0
00) avail
ab
le to ca
rr
y for
wa
rd to of
fse
t agains
t fu
ture prof
it
s of t
he sa
me tr
ade
s.
A defe
rre
d tax a
sset ha
s not bee
n recog
nise
d in resp
ect of t
he c
arr
ied fo
rw
ard ta
x loss
es as t
here is un
cer
t
aint
y as to whe
the
r they w
ill b
e util
ise
d given t
he
tr
ade is no l
onge
r a signi
fic
ant comp
one
nt of the G
roup.
24
T
rade and other pay
ables
Group
Company
Current
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Fin
anci
al li
abil
iti
es me
asure
d at am
or
tis
ed cos
t:
Am
ount
s owed to s
ubsi
diar
y u
nde
rt
ak
ings
257
249
Oth
er creditor
s
8,099
1
0,062
26
38
Rig
ht of use c
redi
tor
72
304
Accr
ual
s
3,290
3
,1
0
3
214
28
8
Deferred inc
ome
895
8
05
T
o
tal t
rade a
nd ot
her p
ayab
les
12,35
6
1
4
,
2
74
4
97
575
Group
Company
Non-
Curre
nt
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Rig
ht of use c
redi
tor
402
3
52
T
otal
4
02
352
Th
ese l
iabi
lit
ies are n
ot secu
red aga
inst a
ny asset
s of t
he Gro
up.
25
Insurance contract liabilities
2021
£’000
2020
£’000
Provision f
or claims
2,0
61
2,
336
Claims settlement
expenses
127
92
Unearned premiums
899
695
T
otal insurance contract liabilities
3,0
87
3,
123
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
108
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t an
d Account
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Th
e provisio
n for cl
aims re
pres
ent
s the g
ross es
tim
ated l
iabil
it
y ar
ising fro
m cla
im epis
ode
s in th
e curre
nt and pre
cedin
g fi
nancia
l years w
hich have not
given r
ise to cl
aim
s paid
. It is es
tim
ated ba
sed o
n curre
nt infor
matio
n, and t
he ult
imate l
iabi
lit
y may va
r
y as a result of s
ubse
que
nt inform
atio
n and event
s.
Adjus
tm
ent
s to the a
mount of cl
ai
ms provisi
on for p
rior yea
rs are i
nclud
ed in t
he Inco
me State
ment in t
he f
inan
cial year i
n which t
he cha
nge is ma
de.
Th
e valuat
ion of t
he provi
sion fo
r clai
ms out
s
tan
ding in t
he G
roup’s sub
sidiar
y
, P
ers
onal A
ssur
ance Pl
c, of £1
,
12
1,0
00 (2020
: £1,
485,0
00) is e
st
imate
d by
using a C
hain L
add
er met
hod a
nd th
e main as
sumpti
on und
erlyi
ng this t
echni
que is t
hat th
e Comp
any’s p
ast cl
aims d
evelop
ment ex
per
ien
ce can be u
sed to
proj
ec
t futu
re cla
ims develo
pme
nt and he
nce ulti
mate cl
aims cos
t
s. A cha
nge of 5% in t
he pa
st cl
aims d
evelopm
ent ex
per
ience wo
uld resu
lt in a chang
e of
£56
,00
0 (2020: £7
4
,00
0) in th
e provisio
n of out
s
tan
ding cl
aim
s for Pe
rso
nal A
ssura
nce Plc
.
Du
e to the COVID
-19 pan
demi
c the G
roup ha
s adjus
ted i
ts cl
ai
ms provisi
ons to in
clude a
n upl
if
t asso
ciated w
ith t
he inc
rease in b
oth ho
spit
al
isat
ions an
d
deat
h cla
ims ex
per
ience
d by the co
untr
y in t
he l
att
er par
t of 2
020.
It is es
tim
ated t
hat the m
ajor
it
y of all c
lai
ms will b
e pai
d wit
hin 12 mo
nths an
d the
refore cl
aim
s develo
pment i
nform
atio
n is not discl
osed
.
In se
tt
ing th
e provisi
on for cl
aim
s out
st
and
ing, a b
est e
st
imate is d
eter
mine
d on an un
discou
nted ba
sis and t
hen a ma
rgin of pr
ude
nce is ad
ded su
ch that
there i
s c
onfidence tha
t future claims
will be met fr
om the pr
ovisions.
The lev
el of prudence
s
et
is one
that pro
vides an
appropria
te degr
e
e o
f confidence.
a) Cl
a
im
s
2021
2020
Gross
£’000
Reinsurance
£’000
Net
£’000
Gross
£’000
Reinsurance
£’000
Net
£’000
Prov
ision f
or cl
aim
s at 1 Janu
ar
y
2,
336
(18)
2,318
1,569
(53)
1,
51
6
Claims paid during the finan
cial y
ear
(5
,8
8
4)
63
(5
,821)
(5,588)
132
(5,
456)
Increas
e/(
d
ecrease) in liabil
ities:
Ar
ising f
rom cu
rre
nt year cl
aim
s
6,469
(43
)
6,
426
6,
325
(9)
6,316
Ar
ising f
rom p
rio
r year cl
aim
s
(860)
(59)
(91
9)
30
(8
8)
(58)
T
otal mo
vement
(275
)
(39)
(
3
14)
767
35
8
02
Prov
isi
on fo
r cla
ims at 3
1 De
cemb
er
2
,061
(57)
2
,00
4
2
,336
(18)
2,
318
b)
Unearned premiums
2021
2020
Gross
£’000
Reinsurance
£’000
Net
£’000
Gross
£’000
Reinsurance
£’000
Net
£’000
At
1 January
695
(60)
635
450
(68)
382
Inc
reas
e in th
e fin
anci
al year
25
,050
(1
63)
24,887
2
9,265
(1
82)
2
9,083
Release in the financial year
(2
4,8
46)
172
(2
4
,
6
74)
(29,0
20)
190
(28,
830)
Movem
ent in t
he f
ina
ncial ye
ar
204
9
2
13
245
8
253
At
3
1 De
cember
899
(51)
848
695
(60)
635
109
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
26
Company inv
es
tment in subsidiar
y unde
rt
akings and joint venture
Shares in subsidiary under
takings
2021
£’000
2020
£’000
Cost
At
1 January
3
7,
9
4
3
3
7,
9
3
9
Acqui
red in t
he yea
r
Share
-based expenses
158
4
At 31 D
ecem
ber
38,
101
3
7,
9
4
3
Amounts written o
ff
At
1 January
12,898
12,
898
Impairment provision in
year
At 31 D
ecem
ber
12,898
12,898
Ne
t boo
k amo
unt at 3
1 Dece
mbe
r
25,2
03
25,0
45
At 31 De
cemb
er 202
1 the Co
mpa
ny held 1
00% of t
he al
lott
ed sha
re capi
tal of t
he fol
lowin
g tra
ding com
pan
ies, a
ll of whi
ch were inco
rpo
rate
d in Engl
and
and Wale
s, wi
th th
e excepti
on of Per
so
nal As
sura
nce (Gue
rns
ey) Lim
ited w
hich is in
corp
orate
d in Gu
erns
ey
, an
d have bee
n conso
lid
ated in t
he Gro
up
f
inanc
ial st
atem
ent
s. Th
e regis
tere
d addre
ss of al
l Grou
p entit
ies is J
ohn O
rmo
nd Hou
se, 89
9 Silb
ur
y Bo
ulevard
, Cent
ral Milto
n Keyne
s, MK9 3X
L, wi
th t
he
excepti
on of Pe
rso
nal A
ssur
ance (Gu
erns
ey) Lim
ited w
hos
e regis
tere
d addre
ss is Level 5
, Mill Co
ur
t, L
a Cha
rroter
ie, St Pet
er Por
t
, Gu
erns
ey
, GY1 1
EJ.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
110
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t and A
ccount
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Nature of
business
Personal
Group
Limited
Inter
med
iate hol
ding Co
mpa
ny
Pers
onal Assuran
ce
Plc*
Gene
ral insurance
Personal
Assuranc
e Services
Limited
*
#
Administ
ration ser
vices
Personal Group Benefits Limited*#
Employ
e
e benefit
s sales and mark
et
ing
Personal
Group
T
r
ustees
Limited*
T
ru
ste
e for emp
loyee sha
re optio
ns Per
son
al
Management Solutions Limited*
Emp
loyee be
nef
it
s sa
les an
d market
ing
Berkeley Morgan
Group Limited*
#
Berkele
y Morgan Group
Holding Company
Berkeley Morgan
Limited+
Independent
f
inancial
adviser
s
Personal
Assuranc
e (
G
uernse
y)
L
imit
ed*
Deat
h insu
rance u
nder
w
rit
ing se
r
vices
Let’s C
onne
ct I
T Solu
tio
ns Lim
ited*
Employe
e ben
efi
t
s sal
ar
y s
acri
fi
ce techn
olog
y prod
uc
ts
Innecto People Consulting Limited*
HR
consultancy and
technology
pro
viders
Multiplelisting Limited
Dormant
Mutual Benefit Limited
Dormant
Part
ake
Ser
vices Limited
Dormant
Pers
onal Assuran
ce
Financial Ser
vices Plc
Dormant
Berkeley Morgan
Healthcare Limited+
Dormant
B M Agen
cy Se
r
vices L
imi
ted+
Dormant
Berkeley Morgan
Proper
ty Limited+
Dormant
Summit Financial Solutions Limited+
D
ormant
Summit Financial Holdin
gs Plc
+
D
ormant
Berkeley Morgan
T
rustees Limited+
Dormant
Per
so
nal Gro
up Mob
ile Li
mite
d*
Dormant
Universal Provident Limited+
Dormant
*
I
nd
irec
t
ly owne
d by P
ers
on
al Gr
oup H
old
ing
s Plc v
ia Pe
rs
ona
l Gro
up L
imi
ted
+
In
dir
ec
tly ow
ned b
y Per
so
nal G
rou
p Ho
ldi
ngs Pl
c via P
er
so
nal G
rou
p Lim
ite
d an
d Be
rkel
ey Mo
rga
n Gro
up L
imi
ted
#
E
xem
pt fro
m aud
it u
nde
r pa
rent
al g
uar
ante
e
Th
e follow
ing sub
sidia
ries o
f the G
roup are e
xempt fro
m the re
quire
ment
s of th
e Comp
anie
s Act 20
06 (“
th
e Act
”) rel
ati
ng to th
e audi
t of indiv
idua
l account
s
by vir
tu
e of s479A
. The p
arent u
nder
t
aki
ng, P
ers
onal G
roup Ho
lding
s Plc, gi
ves a gua
rante
e to the
se sub
sidia
ries u
nder s
ec
tio
n 4
79C i
n respe
ct of t
he year
ending 31 Dec
ember 2021.
Per
so
nal As
sura
nce Se
rv
ices L
imit
ed – 31
94988
.
Per
so
nal Gro
up Ben
ef
it
s Lim
ited – 3
195037
.
Ber
keley Mo
rgan G
roup L
imite
d – 345
6258
.
27
C
apital
commitment
s
Th
e Grou
p has no c
apit
al comm
itm
ent
s at 31 D
ecemb
er 202
1 and 3
1 De
cembe
r 2020.
28
Conting
ent liab
ilities
Th
ere were no co
nting
ent li
abil
iti
es at 31 D
ecem
ber 202
1 and 3
1 De
cemb
er 2020.
111
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
29 Pensions
Group and sel
f-inv
ested personal pension schemes
Th
e Grou
p oper
ates a d
ef
ined co
ntrib
uti
on Gro
up pe
rso
nal pe
nsion s
chem
e for th
e ben
ef
it of cer
t
ain Di
rec
tors a
nd emp
loyees
. The s
chem
e is adm
inist
ered
by Aego
n UK plc a
nd th
e fund
s are hel
d inde
pen
dent of th
e Grou
p. In add
itio
n, th
e Grou
p makes cont
rib
utio
ns to cer
t
ain Di
rec
tors’ s
elf
-inves
ted p
ers
onal
pensio
n schemes
.
Th
ese s
chem
es are ad
minis
tere
d by inde
pend
ent th
ird-p
ar
t
y admin
ist
rator
s and t
he fu
nds are h
eld ind
epe
ndent of t
he G
roup.
30
Leasing commitments and rental income receivable
Amo
unt
s recog
nised i
n the ba
lan
ce shee
t
Fol
lowing t
he ad
optio
n of IFRS 1
6 th
e bal
ance sh
eet at 3
1 Dece
mber 2
021 in
clud
es ass
et
s and l
iabil
iti
es rel
atin
g to Right of Us
e (ROU
) asset
s as
det
aile
dbelow
:
202
1 – Righ
t of use a
sse
ts & l
ease l
iabi
liti
es
Net B
ook Val
ue
of A
sse
ts
£000’s
Lease
Liabilit
y
£000’s
Motor V
ehicles
178
222
Buildings
242
252
T
otal
420
474
2020 – R
ight o
f use as
set
s & lea
se li
abil
itie
s
Net B
ook Val
ue
of A
sse
ts
£000’s
Lease
Liabilit
y
£000’s
Motor V
ehicles
224
327
Buildings
328
329
T
otal
552
656
Th
e init
ial valu
atio
n of the as
set is e
qual to t
he dis
counted l
ease l
iabi
lit
y on t
he in
ceptio
n of the l
ease a
nd this i
s depre
ciated ove
r the sh
or
ter of e
ith
er th
e
li
fe of the as
set o
r the le
ase te
rm.
Am
ount
s reco
gnis
ed in th
e cons
olid
ated s
tate
ment o
f pro
fit or l
oss
Depre
ciation
Charge
£000’s
Inte
res
t
Expen
se
£000’s
Motor V
ehicles
353
27
Buildings
86
5
T
otal
439
32
T
ota
l ope
ratin
g leas
e payme
nts d
ue unt
il the e
nd of th
e leas
e, or th
e fi
rs
t break cl
aus
e, tota
l £38
8,00
0 (2020: £
418,00
0).
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
112
Per
sonal
Group Holdings
Plc
· A
nnua
l Rep
or
t and A
ccount
s 20
21
Personal Group Holdings
Plc
· A
nnu
al Rep
or
t and A
ccount
s 20
21
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
An an
alysis of th
ese p
ayment
s du
e is as fol
lows:
2021
£’000
2020
£’000
T
ot
al le
ase p
aymen
ts fa
ll
ing du
e:
Wi
thi
n one yea
r
193
2
11
Wi
thi
n one to t
wo year
s
79
102
Wi
thi
n two to f
ive yea
rs
116
105
T
otal
388
418
T
ota
l ope
ratin
g rent recei
vabl
e payme
nts d
ue unt
il the e
nd of th
e leas
e or th
e fir
st b
reak cl
aus
e, total £
13,00
0 (2020: £1
4,00
0). An an
alysis of th
ese
receivable pa
yments due is as
follows:
2021
£’000
2020
£’000
Future
minimum lease payments:
Wi
thi
n one yea
r
13
14
Wi
thi
n one to t
wo year
s
_
Wi
thi
n two to f
ive yea
rs
T
otal
13
14
Bel
ow is a reconc
iliat
ion of ch
ange
s in lia
bil
itie
s aris
ing from f
in
ancin
g act
ivi
tie
s:
1 January
2021
£’000
Ca
sh Fl
ows
£’000
New leases
£’000
Other
£’000
31 D
ecemb
er
2021
£’000
Current lease
l
iabilities
304
(427
)
2
51
94
222
Non-current lea
se liabilities
352
-
-
(10
0)
2
52
T
otal liabilities from financing activ
ities
656
(42
7
)
251
(6)
474
Th
e “Ot
her
” colum
n inclu
des t
he ef
fec
t of recl
ass
ifi
cati
on of no
n-cur
rent le
ases to c
urre
nt due to t
he pas
sag
e of tim
e, the e
ff
ec
t of the di
spos
al of lea
se
ass
ets w
ith t
hei
r relat
ed cred
itor
s and t
he ef
fec
t of th
e unwin
ding of t
he disco
unted R
OU cred
itor
s over tim
e.
113
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
31
Rel
at
ed par
ty
transactions
Per
so
nal Gro
up Hol
dings Pl
c holds a b
ank a
ccount wit
h Lloyds B
ank PLC wh
ich it us
es for p
ayment
s to G
roup com
pany sp
ecif
ic cre
dito
rs. D
uri
ng 202
1 and
2020 t
he Com
pany p
aid it
s own di
vide
nds an
d exp
ense
s.
A lis
t of inter
compa
ny bal
ance
s that are o
ut
st
and
ing at th
e bal
ance sh
eet dat
e wit
h subsid
iar
y un
der
t
akin
gs is as fol
lows:
2021
2020
Receivable
£’000
Payable
£’000
Receivable
£’000
Payable
£’000
Pe
rso
nal A
ssur
ance P
lc
10
Pe
rso
nal A
ssur
ance S
er
vi
ces L
imite
d
5
Pe
rso
nal A
ssur
ance F
ina
ncial S
er
vi
ces Plc
137
137
Multiplelist
ing Limited
100
100
Mutual Benefit Limited
12
12
Part
ak
e Services Limited
3
-
3
Perso
nal Group Limited
-
-
1
,1
0
3
Berkeley Morgan
Group Limited
4
-
-
-
Inn
ec
to Pe
ople G
rou
p Cons
ultin
g Lim
ited
4
-
-
-
T
otal
21
254
1
,1
0
6
249
All b
al
ances a
re repaya
ble on d
eman
d. No
ne of th
e bal
ance
s are se
cured
. All ba
lan
ces rel
ate to int
ercomp
any fun
ding b
al
ances
.
T
ransac
tions with Directors
Dur
ing t
he year
, n
o tran
sac
ti
ons were u
nder
t
aken wi
th Di
rec
tors
, or comp
ani
es in whi
ch Dire
cto
rs were key d
ecisio
n makers
.
32
Post balanc
e sheet ev
ents
Th
ere have be
en no p
ost b
al
ance she
et event
s.
Personal Group
Holdings P
lc
· An
nual R
epo
rt a
nd Acco
unt
s 202
1
114
Personal Group Holdings
Plc
· A
nnu
al Re
por
t an
d Accoun
ts 20
21
Personal Group Holdings
Plc
· Ann
ual Re
po
rt a
nd Accou
nt
s 202
1
NOTE
S TO THE
FINANCIAL
ST
A
TEMENTS
c
ontinued
Company registration number:
3194991
Reg
iste
red of
fi
ce:
Per
so
nal Gro
up Hol
dings Pl
c
John Ormond House
899 Si
lbu
r
y Boul
evard
Cent
ral Milt
on Keyne
s
MK9 3XL
T
elephone:
019
08 60
5000
ww
w
.p
ersonalgroup.
com
Dire
ctor
s:
D Frost – Ch
ief E
xecut
ive
M Ben
net
t – Non
-E
xecut
ive Dire
cto
r
S Mace – Ch
ief Fi
nanci
al Of
f
icer
B Hea
d – Non-
Exe
cuti
ve Direc
tor
L McG
rat
h – Chief O
per
atin
g Of
fi
cer
M Dar
by-
Wal
ker – Sen
ior No
n-E
xecut
ive Di
rec
tor
A Lothi
an – Non
-Exe
cuti
ve Dire
cto
r
Secretar
y:
D Kan
e
Solicitor:
SNR D
enton U
K LLP
The Pinnacle
170 Mid
summe
r Bou
levard
Milton Keynes
MK9 1FE
COMP
ANY
INFORMA
TION
Banker:
Th
e Lloyds B
ank plc
25 G
resha
m Street
London
EC2
V 7
HN
Audito
r:
EY LLP
25 Ch
urchil
l Pl
ace
Canar
y Wharf
London
E14 5E
Y
Nominated
B
rok
er and Adviser:
Cenkos Securiti
es
6 7 8 T
okenh
ous
e Y
ard
London
EC2R 7
A
S
115
Strategic Report
Governance
Financial Statements
Strategic Report
Governance
Financial Statements
Overview
Strategic Report
Governance
Financial Statements
Overview
Personal Group H
oldings Plc
John Ormond House
899 Si
lbu
r
y Boul
evard
Cent
ral Milt
on Keyne
s
MK9 3XL
ww
w
.p
ersonalgroup.
com
Personal Group Holdings Plc
Annual R
eport and A
ccounts 2021