# Personal Group equity research: Canaccord hails “superior earnings growth trajectory”

- Link: https://www.directorstalkinterviews.com/personal-group-equity-research-canaccord-hails-superior-earnings-growth-trajectory/4121269701
- Published: 2026-11-13T07:56:55+00:00
- Author: Anthony Fox

**Personal Group Holdings plc **(LON:PGH) has delivered strong half-year results,
with double-digit revenue growth, improving profitability and a rising dividend,
prompting Canaccord Genuity to reiterate its BUY recommendation and 465p share price
target.

The latest research note from Canaccord Genuity, highlights the employee benefits
and insurance provider’s continued operational progress, with the broker pointing
to an increasingly impressive earnings record and encouraging prospects for the 
second half.

Research analyst Hayley Palmer, alongside Kai Korschelt and Tom Like, identifies
strong insurance sales, improving profit margins and growing recurring revenues 
as important factors supporting the company’s outlook.

With Personal Group shares priced at 403p at the time of the report, Canaccord’s
unchanged 465p target represents approximately 15.4% potential upside, excluding
dividends.

## Personal Group Half-Year Results Show Strong Earnings Growth

Personal Group reported revenue of £25.7 million for the first half of 2026, an 
increase of 10% compared with the corresponding period last year.

The improvement was supported by growth across both its Affordable Insurance and
Benefits & Reward divisions.

Adjusted EBITDA increased 22% to £6.7 million, while the adjusted EBITDA margin 
expanded by more than 250 basis points to 26%.

Adjusted diluted earnings per share rose 32% to 12.7p, reflecting stronger profitability.

Commenting on the company’s valuation and earnings prospects, Canaccord Genuity 
analyst Hayley Palmer and her fellow analysts write:

> “to reflect Personal Group’s superior earnings growth trajectory (FY25-27E CAGR
> 11% vs peer average 6%).”

The comment forms part of Canaccord’s explanation for valuing Personal Group at 
a premium to its insurance peers.

## Personal Group Half-Year 2026 Financial Highlights

The company’s interim figures demonstrate progress across several key financial 
and operational measures.

 * **Revenue:** £25.7 million, up 10% year on year.
 * **Adjusted EBITDA:** £6.7 million, up 22%.
 * **Adjusted EBITDA margin:** 26%, an improvement of more than 250 basis points.
 * **Adjusted profit before tax:** £4.9 million, up 24%.
 * **Adjusted diluted earnings per share:** 12.7p, up 32%.
 * **Interim dividend:** 9p per share, an increase of 10%.
 * **Affordable Insurance revenue:** £19.4 million, up 11%.
 * **Benefits & Reward revenue:** £5.7 million, up 9%.
 * **Cash and bank deposits:** £29.4 million, including £26 million of cash.
 * **Annual recurring revenue:** £50.2 million, up 10%.

Personal Group remained debt-free at the half-year stage, with Canaccord estimating
approximately £17.4 million of available cash above regulatory requirements and 
management’s cash buffer.

The group’s adjusted return on tangible equity also reached approximately 30%, compared
with less than 20% three years earlier.

## Affordable Insurance Delivers Another Record Sales Period

Personal Group’s Affordable Insurance division was a particularly important contributor
to the interim performance.

Revenue increased 11% to £19.4 million, representing approximately three-quarters
of group revenue.

New annualised insurance sales reached a half-year record of £8.1 million, an increase
of 9%.

The division benefited from increased field sales activity and investment in its
face-to-face distribution model.

Personal Group expanded its insurance sales workforce by 21%, with further investment
planned for the second half.

Customer penetration also improved to 14.7%, compared with 13.7% in the first half
of 2025.

Despite the additional investment, adjusted EBITDA increased by approximately 21%
to £8 million, with margins improving to around 41%.

Annualised premium income increased by approximately 12% to more than £42 million,
providing visibility over future insurance revenues.

Canaccord believes the division’s recurring income characteristics and improving
productivity offer a solid foundation for continued growth.

## Benefits & Reward Positioned for Stronger Second Half

Personal Group’s Benefits & Reward division also made progress, generating revenue
of £5.7 million, up 9%.

Adjusted EBITDA increased approximately 8% to £3.1 million, while divisional margins
remained broadly stable at around 54%.

The division includes Personal Group’s Hapi employee benefits platform, which helps
employers provide workplace benefits and reward services.

Although lead generation through the company’s Sage partnership started slowly in
the first quarter, activity improved during the second quarter and continued strengthening
into the third.

Canaccord expects this momentum to support stronger divisional growth during the
second half.

Another encouraging development is the extension of Personal Group’s partnership
with Simplyhealth.

The expanded arrangement will integrate Simplyhealth’s On Demand services into Hapi,
while allowing Simplyhealth to offer the Hapi platform to its own clients.

This broadens the potential market for both companies and creates additional opportunities
for customer acquisition.

## Canaccord Forecasts Further Revenue and Profit Growth

Following the interim results, Canaccord Genuity left its financial forecasts unchanged,
reflecting management’s confidence in meeting full-year expectations.

The broker’s projections include:

 * **2026 revenue:** £54.4 million, rising to £60.7 million in 2027.
 * **2026 adjusted EBITDA:** £14.1 million, increasing to £16.2 million in 2027.
 * **2026 adjusted profit before tax:** £10.2 million, rising to £12.1 million in
   2027.
 * **2026 adjusted diluted EPS:** 24.3p, increasing to approximately 29p in 2027.
 * **2026 forecast dividend:** 24.3p per share.
 * **2027 forecast dividend:** Approximately 29p per share.
 * **2027 forecast dividend yield:** 7.2%, based on the 403p share price used in
   the research.

These forecasts suggest continued growth in earnings and shareholder distributions,
although actual results will depend on trading performance.

Canaccord also notes that Personal Group’s £50.2 million annual recurring revenue
provides substantial visibility into the remainder of 2026 and beyond.

## Could Personal Group More Than Double Its Earnings by 2030?

One of the more interesting aspects of Canaccord’s research concerns Personal Group’s
medium-term growth ambitions.

Management has outlined aspirations to achieve at least £100 million in annual revenue,
£30 million in adjusted EBITDA and £20 million in software-as-a-service annual recurring
revenue by 2030.

These ambitions are based on organic growth, with potential acquisitions offering
an opportunity to accelerate progress.

If Personal Group achieves these objectives, Canaccord estimates that adjusted diluted
earnings per share could exceed 50p by 2030, compared with 23.3p in 2025.

The broker’s illustrative scenario suggests adjusted diluted EPS of approximately
52.1p in 2030.

Applying a price-to-earnings multiple of 17 times produces an illustrative future
share price of 885p.

Discounting that valuation to the research date gives an estimated present value
of approximately 550p per share, representing around 36% upside to the 403p reference
price.

This scenario is conditional on management achieving its ambitions and is not Canaccord’s
formal share price target.

## Canaccord Reiterates BUY Rating and 465p Target Price

Canaccord Genuity has maintained its BUY recommendation and 465p target price for
Personal Group Holdings.

The target is based on approximately 16 times forecast 2027 earnings, reflecting
the broker’s expectation that Personal Group can grow earnings faster than its listed
insurance peers.

At the 403p share price recorded on 14 September 2026, the target implied approximately
15% capital upside.

Including forecast dividend income, Canaccord estimated a potential total shareholder
return of approximately 23%.

The broker’s positive assessment reflects Personal Group’s combination of recurring
revenues, improving insurance profitability, increasing dividend payments and opportunities
to expand its employee benefits business.

Nevertheless, risks include higher insurance claims, slower customer penetration,
loss of key client relationships, delays to platform partnerships and regulatory
intervention.

## Final Thoughts

Personal Group Holdings’ half-year results provide evidence of continued progress,
with revenue increasing 10%, adjusted EBITDA rising 22% and adjusted diluted earnings
per share advancing 32%.

The Affordable Insurance division continues to deliver growth, while the Benefits&
Reward business could benefit from improving Sage lead generation and the expanded
Simplyhealth partnership.

A debt-free balance sheet, substantial recurring revenues and growing dividends 
provide additional support for the company’s financial position.

With Canaccord Genuity reiterating its BUY recommendation and 465p target price,
the research presents a positive outlook for Personal Group, while its longer-term
ambitions suggest scope for further earnings growth if management delivers on its
strategy.

Share on: