REG - XPS Pensions Group - Post-close trading update

XPS PensionsAnnouncement

16/04/2025 07:00

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RNS Number : 1807F  XPS Pensions Group PLC  16 April 2025

16 April 2025

 

 

XPS Pensions Group plc

 

Post-close trading update

 

Third consecutive year of double-digit revenue growth

 

XPS Pensions Group plc ("XPS" or the "Group") is pleased to provide its
post-close trading update (unaudited) for the year ending 31 March 2025 ahead
of its full year results on 19 June 2025.

 

Trading update

 

The Group has continued to perform strongly with revenues growing 18% year on
year.

Within this, Advisory revenues grew 10% year on year.  Advisory comprises
Actuarial Consulting where revenues grew 14% and Investment Consulting where
revenues were down 4% year on year having grown 46% in the previous two years.
 Administration revenues grew 30% whilst SIP revenues grew 15% year on year.
 

As in previous years, ongoing regulatory change, new client wins, and the
inflation-linkage of our contracts, combined with the resilience and
predictability of our business model, has driven our robust financial
performance.

Rectification projects following the McCloud judgement have provided an
additional growth lever within Administration in the last 18 months.
Importantly, the underlying Administration business has nevertheless continued
to grow double digit % excluding McCloud remedy projects.  There was a
statutory deadline of 31 March 2025 for the majority of this work to be
completed and therefore we will be lapping very strong comparators next
year.  Notwithstanding that, we see a strong underpin for growth for the
Group in FY26 and beyond thanks to multiple drivers including GMP
equalisation, Risk Transfer and further opportunities for Administration in
both the private and public sector.

The Group completed the acquisition of Polaris Actuaries and Consultants
Limited ("Polaris") on 28 February 2025.  The acquisition will materially
accelerate the Group's strategy of becoming a leading player in the fragmented
UK Insurance Consulting market.

With strong revenue growth and disciplined cost management, the Board is
confident of achieving full year results in line with previously upgraded
expectations.

Capital Markets Event

The Group will be hosting a Capital Markets Event for institutional investors
and analysts on Tuesday, 13 May 2025. The event will commence at 2.30 pm
UK-time at the offices of Deutsche Numis in London: 45 Gresham Street, London,
EC2V 7BF.

Hosted by XPS's Executive Team, the event will principally cover presentations
from the wider Management Team on the topics of the Risk Transfer market; the
Life Insurance Consulting market; and our Investment in Technology.

If you wish to enquire about registering for the event, please contact
xps@camarco.co.uk (mailto:xps@camarco.co.uk)

Paul Cuff, Co-CEO commented:

"We are pleased to deliver another year of double digit % revenue growth.
There has been strong demand for our services, as clients have needed support
to respond to market and regulatory changes.  A highlight of the year was
entry into the FTSE 250 last summer, which was a milestone to be proud of, and
since then we have gone from strength to strength.  Recently we welcomed new
colleagues from Polaris and we are delighted to see them settling in well.
As always, at XPS our culture is at the heart of what we do, and I would like
to thank all our people for the way they support each other and our clients."

 

-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
 Deutsche Numis (Joint Broker)          +44 (0)20 7260 1000
 Stuart Skinner
 Kevin Cruickshank
 Media Enquiries
 Camarco
 Gordon Poole                          +44 (0)20 3757 4980; xps@camarco.co.uk
 Rosie Driscoll

 Phoebe Pugh

 

Notes to Editors:

 

XPS Group is a leading UK consulting and administration business specialising
in the pensions and insurance sectors. A FTSE 250 company, XPS combines
expertise and insight with advanced technology and analytics 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 83 with assets over
£1bn. We also provide wider ranging support to insurance companies in the
life and bulk annuities sector.

 

 

 

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