Xps Pensions Share Price (XPS)

As per the annual report;

Pension Administration revenues rose 10% to £57.5 million (FY 2022: £52.3 million) helped by new client wins including Peugeot and BAA and a full year of our outsourced

contract with IBM. The wins saw the number of members we have under administration surpass the one million mark for the first time."

Yesterday's RNS;

"The Scheme covers nearly one hundred and sixty-five thousand members."

Assuming 1m members at the start of FY24, that worked out at revenue of £57.5 per member. Based on that yesterday's contract was worth ~£9.5m per annum.

Looks odds on to result in a further upgrade to FY24 expectations...

XPS Pension plc issued a post close trading update for the HY ended 30th September this morning. Strong trading momentum from H2 last year has continued and HY Group revenues have grown 23% year on year to £94.5 million, 19% organically. Strong demand across all the Group’s services, new clients, and the inflation-linkage of contracts across the business all contributed to the growth. Guidance was positive, valuation is average with forward PE ratio at 14.5x, while the share price remains in a solid uptrend. The balance sheet is also reasonably healthy. A pretty solid investment case. BUY...

...from WealthOracle

wealthoracle.co.uk/detailed-result-full/XPS/819

What

WhRNS 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 c

Pretax profit more than doubled, revenue grows 10% year-on-year on new client wins in both Pension Actuarial and Pension Investment, interim dividend up 4% from a year prior. Looking ahead, expects annual results to meet management expectations. With it's circa 5% divi and fairly stable price this share is a very easy long term hold for me with buys on dips as and when.

Well done XPS Pensions Group for, after a competitive tender process, being appointed as pensions advisory partner to BT Group Plc who have one of the UK's largest occupational pension schemes with 280,000 members and assets of over £50 billon.
Going from strength to strength.