REG - XPS Pensions Group - Post-close trading update

XPS PensionsAnnouncement

17/10/2023 07:00

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RNS Number : 2975Q  XPS Pensions Group PLC  17 October 2023

17 October 2023

 

 

XPS Pensions Group plc

 

 

Post-close trading update

 

 

XPS Pensions Group plc ("XPS" or the "Group") is pleased to provide its
post-close trading update (unaudited) for the six months ended 30 September
2023 ahead of its interim results expected to be released on 23 November.

 

Trading update

 

The strong trading momentum from H2 last year has continued in the six months
ended 30 September 2023 and Group revenues have grown 23% year on year to
£94.5 million (HY 23: £77.0 million), 19% organically.

Strong demand across all our services, new clients, and the inflation-linkage
of our contracts across the business has contributed to the growth.

Advisory revenues grew 28% year on year (23% organic) comprising Pensions
Actuarial & Consulting growth of 29% year on year (22% organic) and 26%
year on year growth in our Pensions Investment Consulting business.  The
growth reflects continued high levels of client activity, driven in part by
continued regulatory changes and demand for advice in response to volatility
in financial markets and changes in pension scheme funding levels.  Our
clients continue to seek lots of support as they update their long-term
strategies in response to rising long term interest rates and the changed
inflationary environment, both of which can have profound impacts on pension
scheme assets and liabilities.

Pensions Administration revenues grew 16% year on year driven by new client
wins coming on stream as well as strong demand for project work.  The outlook
for Pensions Administration is strong with significant project work with
public sector clients stemming from regulatory changes as well as continued
success in the first-time outsourcing market.

Across all of our Pensions businesses we have been targeting new business
activity in enlisting insurance companies as clients.  There has been some
immediate success and we will continue to focus on this market.

SIP revenues grew 23% year on year; driven by strong underlying sales and the
impact of the increase in the bank base rate.  The National Pensions Trust
(NPT) business has seen AUM at 30 September 2023 increase 7% to over £1.5
billion since 31 March 2023.  Revenues were flat year on year impacted by
competitive price pressures.  We announced the sale of the NPT business to
SEI in July 2023 pending regulatory approvals.  We continue to have positive
engagement with The Pensions Regulator and currently expect to complete the
sale by end of the calendar year.

The Group has continued to invest as anticipated in people and technology to
support future growth whilst continuing to deliver operational gearing. The
Board is pleased with the Group's performance in the first half of the year
and, notwithstanding a tougher comparative period in H2, is confident of
achieving full year results ahead of its previous expectations.

Paul Cuff, Co-CEO commented:

"We are pleased to confirm continued strong performance across all our lines
of business, sustaining the momentum we have built in recent years.  We have
been building the breadth and depth of our capability for some time now, and
this has enabled us to provide excellent support to our clients in all the
varied areas where they need support.  I continue to be immensely proud of
our people who have continued to look after our clients and each other very
well, and I would like to thank all of them for their dedication."

 

-Ends-

 

For further information, contact:

 

Enquiries:

 XPS Pensions Group
 Snehal Shah, Chief Financial Officer  +44 (0)20 3978 8626

 Canaccord Genuity (Joint Broker)      +44 (0) 20 7523 8000
 Adam James
 Alex Orr

 RBC Capital Markets (Joint Broker)     +44 (0)20 7653 4000
 James Agnew
 Jamil Miah

 Media Enquiries
 Camarco
 Gordon Poole                          +44 (0)20 3757 4997
 Rosie Driscoll                        +44 (0)20 3757 4981

 

 

Notes to Editors:

 

XPS Pensions Group is a leading independent pension consulting and
administration business focussed on UK pension schemes. XPS combines
expertise, insight and technology to address the needs of over 1,500 pension
schemes and their sponsoring employers on an ongoing and project basis. We
undertake pensions administration for over one million members and provide
advisory services to schemes and corporate sponsors in respect of schemes of
all sizes, including 81 with assets over £1bn.

 

 

 

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