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(Alliance News) - XPS Pensions Group PLC swung to profit in the first half of its financial year and achieved higher revenue on the back of strong growth from its pensions administration and investment businesses.
In the six months to September 30, the pension consultancy swung to a pretax profit of GBP4.4 million compared to a GBP1.1 million loss the year before. XPS recorded GBP11.3 million in exceptional and non-trading costs last year, this fell to GBP5.9 million this year.
Total revenue increased 7.9% to GBP56.3 million from GBP52.2 million. This was driven by a 19% rise in Pensions Administration revenue to GBP20.3 million and an 11% jump in Pensions Investment Consulting to GBP4.2 million.
"During the first half we saw a significant amount of new business activity. We won new clients worth a net incremental about GBP2 million per annum of recurring revenue in the period. These wins were across the group, and pleasingly we won a number of new large mandate appointments in the Pensions Actuarial and Consulting business. We are increasingly seeing the benefits of the market dynamic of pressure on the 'Big 3' and the larger administration firms; over 60% of our new business opportunities came from these sources during the period," XPS explained.
XPS declared an interim dividend of 2.3 pence, flat on the year before.
Chief Executive Paul Cuff said: "We are pleased with our overall progress, including in the Pensions Actuarial and Consulting business where we have achieved a number of new client wins. With increased resourcing levels and key strategic hires, this business unit is well placed to return to growth in the second half of the year."
"The good progress we have made on operational integration puts us in a strong position to take advantage of the market opportunities before us. Our new business pipeline across the Group remains healthy and our industry profile combined with our expertise means we are well placed to convert these opportunities," Cuff added.
Shares in XPS Pensions were 4.2% lower in London on Thursday at 121.20 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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