REG - PensionBee Group plc - 1Q 2023 Results Announcement

PensionbeeAnnouncement

20/04/2023 07:00

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RNS Number : 8250W  PensionBee Group plc  20 April 2023

 PensionBee Group plc
 Incorporated in England and Wales
 Registration Number: 13172844
 LEI: 2138008663P5FHPGZV74
 ISIN: GB00BNDRLN84

 20 April 2023

 PensionBee Group plc
 Trading Update for the quarter ended 31 March 2023

 Continued Growth across all Key Metrics
 Ongoing Adjusted EBITDA Profitability by end of 2023

 PensionBee Group plc ('PensionBee' or the 'Company'), a leading online pension
 provider, today announces a trading update for the quarter ended 31 March
 2023.

 Highlights

 

 ●            Continued strong customer growth, with Invested Customers having increased by
              44% year on year to 198,000 (March 2022: 138,000).
 ●            Assets under Administration increased by 23% year on year to £3,379m (March
              2022: £2,747m), demonstrating PensionBee's resilience to global market
              volatility.
 ●            Successfully launched the Impact Plan.
 ●            Commitment to continuous product innovation and outstanding customer service
              resulted in a high Customer Retention Rate of c.97%.
 ●            LTM Revenue increased by 30% to £19m (March 2022: £14m) and for the quarter
              Revenue increased by 28% to £5m (March 2022: £4m).
 ●            Adjusted EBITDA increased by 48% to £(5)m and Adjusted EBITDA Margin
              increased by 141ppt to (98)%, reflecting the Company's focus on both growth
              and operating leverage.

 

 PensionBee delivered strong growth across all its key performance indicators
 in the first quarter of the year, with Assets under Administration ('AUA')
 increasing by 23% to £3,379m. The Company has seen excellent momentum in the
 growth of the customer base, adding c.14,000 new Invested Customers in the
 first quarter, taking the overall Invested Customer base to 198,000. This
 demonstrates the continued success of its data-led, multi-channel customer
 acquisition approach and the clear demand for its customer-focused
 proposition. Revenue for the quarter also grew by 28% year on year to £5m as
 a result of strong Net Inflows from new and existing customers, with LTM
 Revenue reaching £19m. The Company's high Customer Retention Rate and AUA
 Retention Rate, both c.97%, have continued to drive recurring revenue.

 As previously reported, the Company achieved prompted brand awareness of
 c.50%, allowing for further reduction of the Cost per Invested Customer. Its
 scalable, secure technology platform has continued to generate operating
 leverage and margin improvement.

 PensionBee continuously innovates and adapts its products to suit the evolving
 needs of its customers. This was reflected in the successful launch of its
 Impact Plan early this year, which invests exclusively in companies that seek
 to solve the world's great social and environmental problems, aligning with
 PensionBee's focus on using its influence to build a better world. Over the
 quarter, it also rolled out enhanced help functionality for customers, an
 online tax relief calculator to enable customers to make the most of their
 pension contributions ahead of the tax year-end, and additional automation
 projects to reduce manual processing. The Company's focus on outstanding
 customer service, evidenced through the maintenance of an Excellent Trustpilot
 rating, was delivered through rapid response times on the phone and on live
 chat.

 Outlook

 The Board remains confident in PensionBee's potential for continued growth and
 profitability, due to its ability to attract new customers that generate
 growth in recurring revenue through its scalable technology platform.

 The Company is pleased to reiterate the guidance previously provided at the
 time of the 2022 full year results. Its strong cash balance of £17m leaves it
 well-placed to pursue a c.2% market share target of the substantial £700bn UK
 transferable pensions market over the next 5-10 years.

 The Company remains on track to further reduce the Cost per Invested Customer,
 expecting to achieve ongoing Adjusted EBITDA profitability by the end of 2023
 and profitability for the full year 2024.

 Analyst and Investor Presentation

 There will be a presentation for analysts and investors this morning at 8:30am
 via webcast. Please contact pensionbee@teneo.com if you would like to
 attend.

 Romi Savova, CEO of PensionBee, commented:

 "We are delighted to report a strong start to the year, with significant
 increases in Revenue and Assets Under Administration driven by substantial
 growth in our Invested Customer base. We have continued to invest in our
 technology platform, making pensions simple for more and more people across
 the country.

 The market opportunity for PensionBee is vast and our strong cash balance
 leaves us well-positioned to capture market share. Our focus is on supporting
 our customers and colleagues during these uncertain times, while we work
 towards our mission of making pensions simple so that everyone can look
 forward to a happy retirement."

 Financial Summary

 

                                        For the 3 or 12 month Period Ending
                                        Mar-2022   Dec-2022   Mar-2023   YoY change

 AUA (£m)(1)                            2,747      3,025      3,379      23%
 AUA Retention Rate (% of AUA)(2)       >95%       >95%       >95%       Stable
 Invested Customers (thousands)(3)      138        183        198        44%
 Customer Retention Rate (% of IC)(4)   >95%       >95%       >95%       Stable
 Cost per Invested Customer (£)(5)      268        248        252        As guided
 Realised Revenue Margin (% of AUA)(6)  0.64%      0.63%      0.64%      Stable

 

 

                                           For the 3 or 12 month Period Ending
                                           Mar-2022   Dec-2022   Mar-2023   YoY change

 Revenue (£m)(7)                           4          18         5          28%
 LTM Revenue                               14         18         19         30%
 Adjusted EBITDA (£m)(8)                   (10)       (20)       (5)        48%
 Adjusted EBITDA Margin (% of Revenue)(9)  (238)%     (110)%     (98)%      141ppt
 LTM Adjusted EBITDA                       (22)       (24)       (15)       (32)%
 LTM Adjusted EBITDA Margin                (151)%     (110)%     (79)%      72 ppt

 

 

 

                                     For the 3 or 12 month Period Ending
                                     Mar-2022   Dec-2022   Mar-2023   YoY change

 Opening AUA (£m)(1)                 2,587      2,587      3,025      17%
    Gross Inflows (£m)               284        1,060      297        4%
    Gross Outflows (£m)              (47)       (197)      (64)       36%
 Net Inflows (£m)                    237        863        233        -2%
    Market Growth and Other (£m)     (78)       (424)      121        n/a
 Closing AUA (£m)(1)                 2,747      3,025      3,379      23%

 

 1  Assets under Administration ('AUA') is the total invested value of pension
    assets within PensionBee Invested Customers' pensions. It measures the new
    inflows less the outflows and records a change in the market value of the
    assets. AUA is a measurement of the growth of the business and is the primary
    driver of Revenue.
 2  AUA Retention measures the percentage of retained PensionBee AUA from Transfer
    Outs over the average of the trailing twelve months. High AUA retention
    provides more certainty of future Revenue. This measure can also be used to
    monitor customer satisfaction.
 3  Invested Customers ('IC') means those customers who have transferred pension
    assets or made contributions into one of PensionBee's investment plans.
 4  Customer Retention Rate measures the percentage of retained PensionBee
    Invested Customers over the average of the trailing twelve months. High
    customer retention provides more certainty of future Revenue. This measure can
    also be used to monitor customer satisfaction.
 5  Cost per Invested Customer ('CPIC') means the cumulative advertising and
    marketing costs incurred since PensionBee commenced trading up until the
    relevant point in time divided by the cumulative number of Invested Customers
    at that point in time. This measure monitors cost discipline of customer
    acquisition. PensionBee's desired CPIC threshold is £200-£250.
 6  Realised Revenue Margin is calculated by using the last twelve months of
    Recurring Revenue over the average quarterly AUA held in PensionBee's
    investment plans over the period.
 7  Revenue means the income generated from the asset base of PensionBee's
    customers, essentially annual management fees charged on the AUA, together
    with a minor revenue contribution from other services.
 8  Adjusted EBITDA is the profit or loss for the period before taxation, finance
    costs, depreciation, share based compensation and transaction costs.
 9  Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of Revenue for
    the relevant period.

 

 Contacts
 Teneo               pensionbee@teneo.com

 James Macey White   +44 (0)20 7353 4200

 Laura Marshall
 PensionBee          press@pensionbee.com

 Rachael Oku

 Laura Dunn-Sims

 About PensionBee

 PensionBee is a leading online pension provider, making pension management
 easy for its customers while they save for a happy retirement.

 PensionBee helps its customers combine their old pension pots, make flexible
 contributions, invest in line with their goals and values and make withdrawals
 from the age of 55 (increasing to 57 in 2028). PensionBee offers a range of
 investment plans, including fossil fuel free options, from some of the world's
 largest asset managers.

 Operating in the £1 trillion market of Defined Contribution pension assets,
 PensionBee has grown rapidly through its direct-to-consumer marketing
 activities, creating a household brand name for the mass market.

 The Company has £3,379m in Assets Under Administration and 198,000 Invested
 Customers as at 31 March 2023. PensionBee has consistently maintained a
 Customer Retention Rate in excess of 95% and an Excellent Trustpilot rating,
 reflecting its commitment to outstanding customer service.

.

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