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
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Snehal Shah, Chief Financial
Officer
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+44 (0)20 3978 8626
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Canaccord Genuity (Joint Broker)
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+44 (0) 20 7523 8000
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Adam James
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Alex Orr
|
|
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RBC
Capital Markets (Joint Broker)
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+44 (0)20 7653
4000
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James Agnew
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Jamil Miah
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|
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Media Enquiries
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Camarco
|
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Gordon Poole
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+44 (0)20 3757 4997
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Rosie Driscoll
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+44 (0)20 3757 4981
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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.