LONDON: Personal Group Holdings Plc (AIM: PGH), the workforce benefits and services provider, announced the disposal of the entire issued share capital of the company’s technology salary sacrifice division, Lets Connect IT Solutions Limited, to SME HCI Limited (trading as The Perkbox Vivup Group).

Lets Connect is sold for a total up front cash consideration of £2.0m on a cash-free, debt-free basis.

Detailed market analysis, undertaken as part of the ongoing strategy review, has provided the Group with a clear sense of positioning and identified the areas of the business with the greatest opportunities to drive sustainable long-term growth and maximise shareholder value.

The analysis has validated the strength of the Company’s combined insurance and Benefits platform offerings and the Board believes that the disposal of Let’s Connect will simplify the Group’s structure and product set and allow for a greater focus on these core offerings, where they believe the greatest opportunities for the Group exist.

As previously announced, Let’s Connect has had a challenging period with the cessation of a long-term scheme with a major client in March 2023 and, whilst the business has performed resiliently and in line with management’s expectations, the Board believes that its long-term performance will be optimised under the ownership of the Acquiror and that its customers will be provided with an increased breadth of offerings. Let’s Connect employees will transition into the Acquiror’s operating structure which will ensure continuity and stability for both the workforce and business operations.

For the year ended 31 December 2023, Let’s Connect delivered turnover of £11.1m and £0.3m of profit before tax to the Group. The value of net assets on disposal was c£0.7m (excluding cash balances).

The proceeds of the disposal will further strengthen the Group’s balance sheet, providing additional support to ensure the Group has the offerings and focus to exploit what is a considerable opportunity ahead.

Paula Constant, Chief Executive of Personal Group, commented: “As previously announced, our strategy review has validated the strength of our insurance and benefits platform offerings. This deal enables a greater focus on these core areas of our business and we are committed to the execution of our strategy for accelerated growth. We are delighted to have secured such a well-suited home for the Let’s Connect team and customers.”