Last checked at 11 Apr 2024 07:00
11 April 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
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 year ending 31 March 2024 ahead of its full year results expected to be released on 20 June 2024.
Trading update
The Group has continued to perform strongly with revenues from continuing operations(1) growing 20% year on year.
Within this, Pensions Actuarial Consulting revenues grew 20% year on year, Pensions Investment Consulting revenues grew 13%, Administration revenues grew 24% whilst SIP revenues grew 17% year on year.
High levels of demand for our services from continued regulatory change, new clients, and the inflation-linkage of our contracts, combined with the resilience and predictability of our business model has driven the robust performance for the year. Growth drivers in the year include GMP equalisation, rectification projects following the McCloud judgement, and the impact of new business wins in the Risk Transfer market. We expect work in each of these areas to provide a strong underpin for growth in FY25. We will also have some new client wins coming on stream in FY25, including most notably our appointment to provide pensions administration to the John Lewis Partnership pension scheme. There are further regulatory tailwinds to come with the introduction of the new General Code of Practice (effective end of March 2024) and the new Funding Code of Practice (likely effective September 2024) both of which will impact all our defined benefit clients driving demand for our services.
Costs have been managed well and the Board expects operational gearing to have improved, and thus is confident of achieving full year results ahead of its own previously upgraded expectations.
Paul Cuff, Co-CEO commented:
"We are pleased to be on course for a strong financial performance for the year. We have seen good growth across all our lines of business, as we have responded to strong client demand including in areas that we have invested in over recent years such as our risk transfer advisory capability. We grew strongly in the prior year too, so to achieve further like-for-like growth of 20% on top of that is very pleasing. We have achieved this with a strong 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 | |
Alex Orr | |
RBC Capital Markets (Joint Broker) | +44 (0)20 7653 4000 |
James Agnew | |
Jamil Miah | |
| |
Media Enquiries | |
Camarco | |
Gordon Poole | +44 (0)20 3757 4997 |
Rosie Driscoll | +44 (0)20 3757 4981 |
The person responsible for making this announcement is Zoe Adlam (Company Secretary)
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 one million members and provide advisory services to schemes and corporate sponsors in respect of schemes of all sizes, including 81 with assets over £1bn.