PensionBee Group plc Q1 2024 Trading Update
24 Abril 2024 - 10:30AM
RNS Regulatory News
RNS Number : 9124L
PensionBee Group plc
24 April 2024
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PensionBee Group plc
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Incorporated in England and
Wales
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Registration Number:
13172844
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LEI: 2138008663P5FHPGZV74
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ISIN: GB00BNDRLN84
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PensionBee Group
plc
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Q1 2024 Trading Update
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Successful strategy drives
strong performance for Q1 2024
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UK on track to achieve
Adjusted EBITDA Profitability for FY 2024
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PensionBee Group plc ('PensionBee'
or the 'Company'), a leading online pension provider, today
announces a Q1 trading update (unaudited) for the three months
ended 31 March 2024.
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Highlights
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Assets under Administration increased
by 44% year on year to £4.9bn (March 2023: £3.4bn), underpinned by
strong Net Flows from new and existing customers and supportive
markets.
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Invested Customers increased by 22%
year on year to 240,000 (March 2023: 198,000), demonstrating strong
continued growth.
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Net Flows per £ of Marketing
Spend1 increased by 24% year on year to £66, driven by
effective deployment of marketing expenditure.
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Customer Retention Rate remained
>95%, driven by continued strong customer satisfaction and
ongoing product innovation.
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Revenue increased by 42% to £7m (Q1
2023: £5m), with Annual Run Rate Revenue having increased by 41% to
£31m (Q1 2023: £22m).2
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Adjusted EBITDA improved by 59% year
on year to £(2)m (Q1 2023: £(5)m), driven by strong Revenue growth
and cost efficiencies across the business. UK on track to achieve
Adjusted EBITDA Profitability for FY 2024.
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Continued Advancement of Strategic Goals
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The Company has continued to grow
its brand and acquire customers efficiently, investing £3.6m in
marketing across the first quarter of the year, bringing the
cumulative marketing investment since inception to £59m.
PensionBee's brand awareness activities for the quarter have been
centred on cost-effective channels such as radio, television and
sports sponsorship and partnerships. This approach has been
accompanied by continued investment in performance channels such as
search and social media, with data-led insights driving
decision-making. Cost per Invested Customer ('CPIC') has continued
to demonstrate a downward trajectory of 3% year on year to £244,
highlighting the strength of the Company's marketing capability and
efficiency of spend, while brand awareness has increased to 55%
from 50% in the previous quarter.3
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PensionBee has continued to
innovate, to meet the needs of its customers and support their
engagement. It has continued to provide customers with helpful
tools they need to plan for their retirement, such as its tax
relief, state pension and inflation calculators and the
introduction of in-app withdrawals. The new checklist feature helps
customers to identify and complete all the required steps to manage
their pensions.
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The Company has continued to
prioritise the delivery of excellent customer service, evidenced
through the achievement of a 4.6★
Excellent Trustpilot rating from approximately
10,500 Trustpilot reviews, and consistently rapid response times on
phones and live chat.
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PensionBee has continued with its
ongoing investment in the scalability of its technology platform
through internal automation, efficiency, security and pension
transfer improvements to support productivity, as demonstrated by
the achievement of an 18% improvement in
productivity.4
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The Board remains confident in
PensionBee's potential for continued growth and profitability, due
to a combination of the strength and stability of its existing
customer base, together with its ability to attract new customers
that generate growth in recurring Revenue through its scalable
technology platform.
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The Company is pleased to reiterate
the guidance previously provided for the UK: aiming to deliver
sustained and high Revenue growth, pursuing c.2% market share of
the £1.2 trillion transferable pensions market over the next 5-10
years, and looking to onboard 1 million Invested Customers,
creating a long-term Revenue ambition of c.£150m.
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Given its historical investment in
its brand and technology over many years, and the achievement of
ongoing Adjusted EBITDA profitability in the final quarter of 2023,
the Company is poised to deliver Adjusted EBITDA profitability for
the full year 2024, with an ambition to achieve long-term EBITDA
margins of over 50%.
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The recently announced proposed US
expansion in partnership with a large, US-based global financial
institution will see the US-based partner providing its expertise
and substantial marketing funding to the US business.
Correspondingly, PensionBee's financial contribution will be
financed from the existing resources of PensionBee Group plc, and
as a result the US business does not change the existing guidance
in the UK.
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Romi Savova, CEO of PensionBee,
commented:
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"We are pleased to have grown substantially over the first
quarter, with Assets under Administration reaching approximately £5
billion, now helping 240,000 Invested Customers across the UK
prioritise and engage with their retirements.
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Looking forward, as we continue to execute on our strategy, we
remain confident in the continued growth of the business and the
delivery of profitability across the UK business for the full year
2024, as we continue to help more and more consumers become Pension
Confident."
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Analyst, Investor and Press Presentation
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A copy of the Q1 2024 Trading Update
and the Q1 2024 Results Presentation will be made available
post-market close on 24 April 2024 for download at: pensionbee.com/investor-relations/results-and-reports.
A recording of the presentation will follow.
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There will be a webcast presentation
for analysts, investors and press on Wednesday 24 April at 5:00pm
UK (BST) / 12:00pm US (EST). Please contact press@pensionbee.com if you would like to
attend.
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Alternatively you can register and
access the webcast with the following links:
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Webcast Link: Webcast for video presentation
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Conference Call Link: Conference call for Q&A
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As at
Period End
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Mar-2023
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Mar-2024
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YoY
change
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AUA
(£m)5
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3,379
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4,857
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44%
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AUA Retention Rate (% of
AUA)6
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>95%
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>95%
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Stable
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Invested Customers
(thousands)7
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198
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240
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22%
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Customer Retention Rate (% of
IC)8
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>95%
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>95%
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Stable
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Cost per Invested Customer
(£)9
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252
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244
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(3)%
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Revenue Margin (% of
AUA)10
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0.64%
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0.64%
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Stable
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Over the
3-month Period Ending
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Mar-2023
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Mar-2024
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YoY
change
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Opening AUA (£m)5
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3,025
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4,350
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44%
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Gross Inflows
(£m)
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297
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336
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13%
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Gross Outflows
(£m)
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(64)
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(101)
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59%
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Net
Flows (£m)
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233
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235
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1%
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Market Growth and Other
(£m)
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121
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272
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124%
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Closing AUA (£m)5
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3,379
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4,857
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44%
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Over the
3-month Period Ending
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Mar-2023
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Mar-2024
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YoY
change
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Revenue (£m)11
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5
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7
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42%
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Cost Base (£m)
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(10)
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(9)
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(7)%
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Adjusted EBITDA
(£m)12
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(5)
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(2)
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59%
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Adjusted EBITDA Margin (% of
Revenue)13
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(98)%
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(28)%
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69ppt
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For the
Trailing 12-month Period Ending
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Mar-2023
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Mar-2024
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YoY change
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LTM
Revenue (£m)
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19
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26
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38%
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LTM Adjusted EBITDA (£m)
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(15)
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(5)
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65%
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LTM Adjusted EBITDA Margin (% of
Revenue)
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(79)%
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(20)%
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59ppt
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Notes
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*
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A ppt is a percentage point. A
percentage point is the unit for the arithmetic difference of two
percentages.
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1
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Net Flows per £ of Marketing Spend
is calculated as cumulative net flows divided by the marketing
spend over the period.
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2
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Annual Run Rate ("ARR") Revenue is
calculated using the Recurring Revenue for the relevant month
multiplied by 12.
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3
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PensionBee prompted brand awareness
tracker, April 2024. Prompted brand awareness measured through a
consumer survey asking 'Which of the following have you heard of?'
with respect to UK financial services brands.
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4
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Productivity, measured using
Invested Customers per Staff Member, is calculated using LTM
average for total workforce. Management information as at 31 March
2024.
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5
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Assets under Administration ('AUA')
is the total invested value of pension assets within PensionBee
Invested Customers' pensions. It measures the new inflows less the
outflows and records a change in the market value of the assets.
AUA is a measurement of the growth of the business and is the
primary driver of Revenue.
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AUA Retention measures the
percentage of retained PensionBee AUA from Transfer Outs over the
average of the trailing twelve months. High AUA retention provides
more certainty of future Revenue. This measure can also be used to
monitor customer satisfaction.
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7
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Invested Customers ('IC') means
those customers who have transferred pension assets or made
contributions into one of PensionBee's investment plans.
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8
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Customer Retention Rate measures the
percentage of retained PensionBee Invested Customers over the
average of the trailing twelve months. High customer retention
provides more certainty of future Revenue. This measure can also be
used to monitor customer satisfaction.
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9
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Cost per Invested Customer ('CPIC')
means the cumulative advertising and marketing costs incurred since
PensionBee commenced trading up until the relevant point in time
divided by the cumulative number of Invested Customers at that
point in time. This measure monitors cost discipline of customer
acquisition. PensionBee's desired CPIC threshold is
£200-£250.
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10
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Revenue Margin is calculated by
using the last twelve months of Recurring Revenue over the average
quarterly AUA held in PensionBee's investment plans over the
period.
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11
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Revenue means the income generated
from the asset base of PensionBee's customers, essentially annual
management fees charged on the AUA, together with a minor revenue
contribution from other services.
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12
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Adjusted EBITDA is the profit or
loss for the period before taxation, finance costs, depreciation,
share based compensation and transaction costs.
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13
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Adjusted EBITDA Margin means
Adjusted EBITDA as a percentage of Revenue for the relevant
period.
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Press
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press@pensionbee.com
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+44 20 3557 8444
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Becky O'Connor
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Laura Dunn-Sims
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Steven Kennedy
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Analysts and Investors
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investor@pensionbee.com
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PensionBee is a leading online
pension provider, making pension management easy for its customers
while they save for a happy retirement.
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PensionBee helps its customers
combine their old pension pots, make flexible contributions, invest
in line with their goals and values and make withdrawals from the
age of 55 (increasing to 57 in 2028). PensionBee offers a range of
investment plans, including fossil fuel free and impact investing
options, from some of the world's largest asset
managers.
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Operating in the UK Defined
Contribution market which exceeds £1 trillion of pension assets,
PensionBee has grown rapidly through its direct-to-consumer
marketing activities, creating a household brand name for the mass
market.
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The Company has £4.9bn in Assets
Under Administration and 240,000 Invested Customers as at 31 March
2024. PensionBee has consistently maintained a Customer Retention
Rate in excess of 95% and an Excellent Trustpilot rating from more
than 10,500 customers, reflecting its commitment to outstanding
customer service.
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PensionBee is admitted to trading on
the Premium Segment of the London Stock Exchange's Main Market
(LON:PBEE).
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Forward Looking Statements
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Statements that are not historical
facts, including statements about PensionBee's or management's
beliefs and expectations, are forward-looking statements. The
results contain forward-looking statements, which by their nature
involve substantial risks and uncertainties as they relate to
events and depend on circumstances which will occur in the future
and actual results and developments may differ materially from
those expressly stated or otherwise implied by these
statements.
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These forward-looking statements are
statements regarding PensionBee's intentions, beliefs or current
expectations concerning, among other things, its results of
operations, financial condition, prospects, growth, strategies and
the industry and markets within which it operates.
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These forward-looking statements
relate to the date of these results and PensionBee does not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of the results.
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END
TSTQKQBKPBKDOQB
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