REG - XPS Pensions Group - Post-close trading update

XPS PensionsAnnouncement

11/04/2024 07:00

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RNS Number : 1053K  XPS Pensions Group PLC  11 April 2024

11 April 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

 

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 year ending 31 March 2024 ahead
of its full year results expected to be released on 20 June 2024.

 

Trading update

 

The Group has continued to perform strongly with revenues from continuing
operations((1)) growing 20% year on year.

Within this, Pensions Actuarial Consulting revenues grew 20% year on year,
Pensions Investment Consulting revenues grew 13%, Administration revenues grew
24% whilst SIP revenues grew 17% year on year.

High levels of demand for our services from continued regulatory change, new
clients, and the inflation-linkage of our contracts, combined with the
resilience and predictability of our business model has driven the robust
performance for the year.  Growth drivers in the year include GMP
equalisation, rectification projects following the McCloud judgement, and the
impact of new business wins in the Risk Transfer market.  We expect work in
each of these areas to provide a strong underpin for growth in FY25.  We will
also have some new client wins coming on stream in FY25, including most
notably our appointment to provide pensions administration to the John Lewis
Partnership pension scheme.  There are further regulatory tailwinds to come
with the introduction of the new General Code of Practice (effective end of
March 2024) and the new Funding Code of Practice (likely effective September
2024) both of which will impact all our defined benefit clients driving demand
for our services.

Costs have been managed well and the Board expects operational gearing to have
improved, and thus is confident of achieving full year results ahead of its
own previously upgraded expectations.

Paul Cuff, Co-CEO commented:

"We are pleased to be on course for a strong financial performance for the
year.  We have seen good growth across all our lines of business, as we have
responded to strong client demand including in areas that we have invested in
over recent years such as our risk transfer advisory capability.  We grew
strongly in the prior year too, so to achieve further like-for-like growth of
20% on top of that is very pleasing.  We have achieved this with a strong
culture and I would like to thank all our people for the way they support each
other and our clients."

((1)       ) Excluding the National Pension Trust (NPT) which was sold
in November 2023.  Group revenue including NPT grew 19% year on year.

 

-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

The person responsible for making this announcement is Zoe Adlam (Company
Secretary)

 

Notes to Editors:

 

XPS Pensions Group is a leading 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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