Employee services provider Personal Group (LON:PGH) saw profits fall in 2017, in direct correlation with the delayed roll-out of a salary sacrifice offering to Royal Mail Group and other customers.
Pre-tax profit fell to 9.6 percent to £9.51 million, reporting an Ebitda “marginally ahead” of expectations at £10.8 million. The company increased its dividend by 3.2 percent to 22.7p.
The group saw a 77 percent rise in software-as-a-service (SaaS) revenue to £2.7 million from £1.5 million the year before.
“As we continue in the current financial year, the company is better placed than ever to realise the significant opportunity presented by the employee services market,” chief executive Mark Scanlon said.
“This performance again demonstrates the strength of the underlying business and was despite the transient issue of the HMRC review into Salary Sacrifice, which delayed sales at our PG Let’s Connect business into 2018.
“As we continue in the current financial year, the company is better placed than ever to realise the significant opportunity presented by the employee services market, which is being driven by increasing competition for staff in a tight labour market and recognition of the commercial value of investing in and retaining staff. This issue is common to organisations big and small, public and private all of which we are now very able to serve,” Scanlon added.
Shares in Personal Group are currently up 3.13 percent at 388.80 (0933GMT).