PGH: The Painful Past Three Years for Investors

Ladies and gentlemen, buckle up! We're diving into the rollercoaster ride that has been the past three years for Personal Group Holdings (LON:PGH) investors. It's been a bumpy road, to say the least, and today we're going to break down why this stock has been a headache for so many.

First things first, let's talk about the elephant in the room: REVENUE GROWTH. Or lack thereof. PGH's revenue has been as stagnant as a pond in winter. The year ending December 31, 2023, saw revenue at £49.7 million, barely a blip from the previous year's £49.8 million. That's right, folks, we're talking about a company that's been treading water while the market swims laps around it.

But it's not just the top line that's been a problem. EARNINGS PER SHARE (EPS) has been all over the place. The adjusted EPS for 2023 was 13.8p, up from 10.6p the year before. But let's not forget the statutory loss of 23.2p in 2022. That's a rollercoaster ride no investor wants to be on.

And what about EBITDA? The adjusted EBITDA for 2023 was £8.1 million, a 35% increase from the previous year. Sounds good, right? Wrong! The previous year's EBITDA was £6.0 million, which means the company is still playing catch-up.

Now, let's talk about DIVIDENDS. The final dividend for 2023 was 5.85p per share, making a full-year dividend of 11.7p. That's an increase from the previous year's 10.6p, but the dividend yield of 6.30% suggests the company is paying out a significant portion of its earnings. That's not a recipe for growth, folks.

And the FINANCIAL HEALTH? The current ratio is 2.71, and the debt-to-equity ratio is 0.02. That's a strong liquidity position, but minimal debt means the company might be missing out on growth opportunities. The return on equity (ROE) is 14.44%, which is strong, but it's not enough to make up for the lack of growth.



So, what's the verdict? The past three years for PGH investors have been a nightmare. The company has struggled with revenue growth, volatile EPS, and a conservative financial approach that limits its ability to leverage debt for growth. But don't despair, folks. There's always a light at the end of the tunnel. Stay tuned for more updates on PGH and other hot stocks. BOO-YAH!