Personal Group Holdings PLC on Tuesday said it swung to profit in 2023 on reduced costs, and said its consulting arm won a deal from a major airline firm.

Shares in Personal Group rose 6.1% to 175.00 pence each in London on Tuesday midday.

The Milton Keynes-based employee benefits and services provider reported that it swung to a pretax profit of £5.3 million in 2023 from a £6.8 million pretax loss the year before.

This was because the firm did not have to pay any goodwill impairments in 2023, compared to

an expense of £10.6 million a year ago, which related to its Let’s Connect business.

Full-year revenue remained stable at £49.7 million, compared to £49.8 million the year before.

However, Personal Group noted that Let’s Connect saw its sales plunge by 34%, reflected by the loss of its largest customer, the firm explained.

Earnings before interest, tax, depreciation and amortisation, meanwhile, grew 35% to £8.1 million from £6.0 million a year ago.

Basic earnings per share were 13.8 pence, compared to a 23.2p loss in 2022.

Personal Group declared a final dividend of 5.85p per share, up 10% from a dividend of 5.30p, making a full year dividend for 2023 of 11.7p, up 10% from 10.6p a year ago.

Looking ahead, the firm said confidence is ‘high’ for 2024, as it remains ‘well-placed to deliver further growth with an increasing proportion of recurring revenue.’ It added that trading has continued positively into the first quarter of the current year.

Commenting on the firm’s results, Chief Executive Officer Paula Constant said: ‘This has been a year of positive change for Personal Group. The financial performance delivered in the year speaks to the quality of both the offerings and the team, whose efforts have driven a record year of insurance sales and increased overall levels of recurring revenue, despite a testing trading environment.

The first phase of the strategy review is now complete. The results of this have confirmed the strong alignment of the Group’s product offering with existing and target markets but importantly outlined the scale of the opportunity for Personal Group. We are now focusing on building the detail of our strategy and product portfolio, in addition to simplifying the business’ processes to deliver more effectively for customers, capitalise on our opportunities and maximise value for shareholders. I look forward to updating the market on our progress in due course.’

Personal Group also announced on Tuesday its Pay & Reward division, Innecto, has secured a three-year contract, worth around £650,000, with an unnamed airline.

‘The project includes reward consultancy, the implementation of Innecto’s job evaluation tool and the development of a career pathway interface, which will be implemented across the entirety of the customers’ global operations,’ Personal Group explained.

The contract includes £100,000 per year in annual recurring revenue.

Constant commented: ‘A contract of this size with one of the world’s leading airlines demonstrates the quality not only of our Innecto team, but also our flexible digital-led offering. Organisations across sectors are looking for more effective ways to reward, retain and develop their employees. Through the combination of digital tools and expert consultancy, we are well-placed to help them succeed in this mission.’

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