REG - XPS Pensions Group - Pre-close Trading Update

XPS PensionsAnnouncement

20/10/2022 07:01

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RNS Number : 4734D  XPS Pensions Group PLC  20 October 2022

20 October 2022

 

XPS Pensions Group plc

Delivering strong and sustainable growth

 

Pre-close trading update

 

XPS Pensions Group plc ("XPS" or the "Group") is pleased to provide its
pre-close trading update for the six months ended 30 September 2022.

 

The performance of the Group was strong with revenues growing 14% year on
year.  Excluding the bolt on acquisitions, the Group achieved robust organic
revenue growth of 13% year on year.

Advisory revenues grew 15% year on year, comprising Pensions Actuarial &
Consulting growth of 14% year on year and 19% year on year growth in our
Pensions Investment Consulting business. The growth reflects high activity
levels as we supported our clients in the face of continued regulatory change
and significant changes in the financial markets which impacted the funding of
pension liabilities.  Pensions Administration grew by 11% year on year, while
revenues in the SIPP business grew 57% year on year, reflecting the recent
acquisition of the business of Michael J Field Consulting Actuaries which
completed in February 2022, as well as the increase in the bank base rate.
Across the Group, growth rates also reflect the benefit of inflation-linked
increases in some of our fees.

Revenues in the National Pensions Trust ('NPT') business were flat year on
year due to the significant decline in asset prices, however we were pleased
to add new clients to the platform with the result that assets under
management within the NPT business remain at circa £1.3 billion.

The period has been a successful one for the Group more widely.  XPS became
the first firm to win all three awards outright: 'Actuarial and Pensions
Consulting Firm of the Year', 'Investment Consulting Firm of the Year' and
'Third Party Administrator of the Year' at the recent UK Pensions Awards,
whilst also being highly commended in 'The Technology Innovation of the Year'
category. Finally, in October 2022, XPS Investment Limited retained its
position as a signatory to the FRC's UK Stewardship Code.

While we are only halfway through the financial year, the continued resilience
and predictability of the XPS business model (including inflation-linked
revenues) alongside the strong pipeline of activity for both longstanding and
new clients is very encouraging. Combined with recent bolt-on acquisitions as
announced on 21 September 2022, the Board are confident of achieving full year
results slightly ahead of their previous expectations of the year.

Paul Cuff, Co CEO commented:

"The first half of the year has been pleasing, with strong performances across
all our divisions.  Throughout the period we have been very busy helping our
clients, both longstanding and recent additions, to deal with an extremely
challenging market backdrop and lots of regulatory change.  This has driven
healthy growth in revenues, with 13% organic growth demonstrating the real
momentum we are carrying, building as it does on the strong organic growth
achieved last year.

We have seen the innovative and high-quality ways we support clients get
recognition in the market.  It was fantastic to win all three of the big
categories at the recent UK Pension Awards, being named firm of the year in
each of Pensions Administration, Investment Consulting and Actuarial
Consulting.  We are delighted to be the first firm ever to win all three in
one go.

Against this backdrop we continue to see growth in new business
opportunities.  Our pipeline is the strongest it has ever been, and we hope
to add more new clients during the second half of the year and beyond.

We also announced the acquisition of Penfida in mid-September, to strengthen
our already successful covenant advisory business, and over the last few weeks
it has been a pleasure to welcome new colleagues and clients to the Group.

I would like to thank our people for their hard work during the period, and
together we look forward to a successful second half of the year."

 

-Ends-

 

For further information, contact:

 

Enquiries:

 XPS Pensions Group                  +44 (0)20 3978 8626
 Snehal Shah

 Chief Financial Officer

 Canaccord Genuity (Joint Broker)    +44 (0) 20 7523 8000
 Adam James
 RBC Capital Markets (Joint Broker)   +44 (0)20 7653 4000
 James Agnew
 Jonathan Hardy
 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 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 968,000 members and provide advisory services to
schemes and corporate sponsors in respect of schemes of all sizes, including
51 with assets over £1bn.

 

 

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