REG - XPS Pensions Group - Post-close trading update

XPS PensionsAnnouncement

16/10/2024 07:00

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RNS Number : 3221I  XPS Pensions Group PLC  16 October 2024

16 October 2024

 

 

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
2024 ahead of its interim results on 21 November 2024.

 

Trading update

 

The Group has continued to perform strongly with revenues from continuing
operations ((1)) growing 23% year on year.

Within Advisory, client demand, expansion of services and the lagged impact of
annual price increases implemented at times of higher inflation continued to
drive growth in Pensions Actuarial Consulting, where revenues grew 17% year on
year.  Trading in the Pensions Investment Consulting division has been
broadly in line with the previous year (revenues 2% down) as demand normalised
following growth of 48% in the previous two years. Overall, year on year
growth in Advisory revenue was 14%.

Pensions Administration has also seen strong growth, with revenue up 40% year
on year driven by significant project work particularly for public sector
clients, on-boarding of recent client wins as well as inflationary price
increases. We continue to successfully transition clients on to Aurora, our
proprietary administration platform which is expected to drive further
operational leverage in the future.  GMP equalisation work has remained a
strong underpin for client demand in both the Pensions Actuarial Consulting
and Pensions Administration divisions.

The SIP business has continued double digit revenue growth resulting from
increased sales of SIP plans as well as client deposits.  Revenue in SIP grew
13% year on year.

Regulatory change continues to support client demand.  A new funding regime
for defined benefit schemes came into force on 22 September 2024. Many pension
scheme sponsors and trustees are considering their long-term strategy, with
the option of "run on for surplus" gaining increasing traction particularly
for larger schemes.  Against this backdrop we expect to see continued demand
for the Group's advisory services. We see continued opportunities for growth
in Pensions Administration with the onboarding of recent large new client wins
and high demand for project work in both the private and public sectors.

The Board is pleased with the Group's performance in the first half of the
year and, notwithstanding an even 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 be on course for another strong financial performance for
the year.  We have seen good growth as we have responded to high client
demand, including in areas that we have invested in over recent years such as
our risk transfer advisory capability and in public sector administration.
We grew strongly in the two prior years, so to achieve further like-for-like
growth of over 20% in addition to that is very pleasing.  We have achieved
this with an award-winning 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
 George Grainger

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

 Media Enquiries
 Camarco                               +44 (0)20 3757 4980, xps@camarco.co.uk
 Gordon Poole
 Rosie Driscoll

 Phoebe Pugh

 

 

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 1,400 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
88 with assets over £1bn.

 

 

 

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