16 October 2024

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 2024 ahead of its interim results on 21 November 2024.

Trading update

The Group has continued to perform strongly with revenues from continuing operations ⁽¹⁾ growing 23% year on year.

Within Advisory, client demand, expansion of services and the lagged impact of annual price increases implemented at times of higher inflation continued to drive growth in Pensions Actuarial Consulting, where revenues grew 17% year on year.  Trading in the Pensions Investment Consulting division has been broadly in line with the previous year (revenues 2% down) as demand normalised following growth of 48% in the previous two years. Overall, year on year growth in Advisory revenue was 14%.

Pensions Administration has also seen strong growth, with revenue up 40% year on year driven by significant project work particularly for public sector clients, on-boarding of recent client wins as well as inflationary price increases. We continue to successfully transition clients on to Aurora, our proprietary administration platform which is expected to drive further operational leverage in the future.  GMP equalisation work has remained a strong underpin for client demand in both the Pensions Actuarial Consulting and Pensions Administration divisions.

The SIP business has continued double digit revenue growth resulting from increased sales of SIP plans as well as client deposits.  Revenue in SIP grew 13% year on year.

Regulatory change continues to support client demand.  A new funding regime for defined benefit schemes came into force on 22 September 2024. Many pension scheme sponsors and trustees are considering their long-term strategy, with the option of "run on for surplus" gaining increasing traction particularly for larger schemes.  Against this backdrop we expect to see continued demand for the Group's advisory services. We see continued opportunities for growth in Pensions Administration with the onboarding of recent large new client wins and high demand for project work in both the private and public sectors.

The Board is pleased with the Group's performance in the first half of the year and, notwithstanding an even 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 be on course for another strong financial performance for the year.  We have seen good growth as we have responded to high client demand, including in areas that we have invested in over recent years such as our risk transfer advisory capability and in public sector administration.  We grew strongly in the two prior years, so to achieve further like-for-like growth of over 20% in addition to that is very pleasing.  We have achieved this with an award-winning 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:

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 1,400 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 88 with assets over £1bn.