20 October 2022

XPS Pensions Group plc

Delivering strong and sustainable growth

Pre-close trading update

XPS Pensions Group plc ("XPS" or the "Group") is pleased to provide its pre-close trading update for the six months ended 30 September 2022.

The performance of the Group was strong with revenues growing 14% year on year.  Excluding the bolt on acquisitions, the Group achieved robust organic revenue growth of 13% year on year.   

Advisory revenues grew 15% year on year, comprising Pensions Actuarial & Consulting growth of 14% year on year and 19% year on year growth in our Pensions Investment Consulting business. The growth reflects high activity levels as we supported our clients in the face of continued regulatory change and significant changes in the financial markets which impacted the funding of pension liabilities.  Pensions Administration grew by 11% year on year, while revenues in the SIPP business grew 57% year on year, reflecting the recent acquisition of the business of Michael J Field Consulting Actuaries which completed in February 2022, as well as the increase in the bank base rate.  Across the Group, growth rates also reflect the benefit of inflation-linked increases in some of our fees.

Revenues in the National Pensions Trust ('NPT') business were flat year on year due to the significant decline in asset prices, however we were pleased to add new clients to the platform with the result that assets under management within the NPT business remain at circa £1.3 billion.

The period has been a successful one for the Group more widely.  XPS became the first firm to win all three awards outright: 'Actuarial and Pensions Consulting Firm of the Year', 'Investment Consulting Firm of the Year' and 'Third Party Administrator of the Year' at the recent UK Pensions Awards, whilst also being highly commended in 'The Technology Innovation of the Year' category. Finally, in October 2022, XPS Investment Limited retained its position as a signatory to the FRC's UK Stewardship Code.

While we are only halfway through the financial year, the continued resilience and predictability of the XPS business model (including inflation-linked revenues) alongside the strong pipeline of activity for both longstanding and new clients is very encouraging. Combined with recent bolt-on acquisitions as announced on 21 September 2022, the Board are confident of achieving full year results slightly ahead of their previous expectations of the year.

Paul Cuff, Co CEO commented:

"The first half of the year has been pleasing, with strong performances across all our divisions.  Throughout the period we have been very busy helping our clients, both longstanding and recent additions, to deal with an extremely challenging market backdrop and lots of regulatory change.  This has driven healthy growth in revenues, with 13% organic growth demonstrating the real momentum we are carrying, building as it does on the strong organic growth achieved last year.

We have seen the innovative and high-quality ways we support clients get recognition in the market.  It was fantastic to win all three of the big categories at the recent UK Pension Awards, being named firm of the year in each of Pensions Administration, Investment Consulting and Actuarial Consulting.  We are delighted to be the first firm ever to win all three in one go.

Against this backdrop we continue to see growth in new business opportunities.  Our pipeline is the strongest it has ever been, and we hope to add more new clients during the second half of the year and beyond.

We also announced the acquisition of Penfida in mid-September, to strengthen our already successful covenant advisory business, and over the last few weeks it has been a pleasure to welcome new colleagues and clients to the Group.

I would like to thank our people for their hard work during the period, and together we look forward to a successful second half of the year."

-Ends-

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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 968,000 members and provide advisory services to schemes and corporate sponsors in respect of schemes of all sizes, including 51 with assets over £1bn.