XPS Pensions celebrates rising earnings in "really pleasing" year

(Alliance News) - XPS Pensions Group PLC shares rose on Thursday after it announced "another year ...

Alliance News 20 June, 2024 | 11:33AM
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(Alliance News) - XPS Pensions Group PLC shares rose on Thursday after it announced "another year of record growth", and increased its annual dividend.

Shares in XPS Pensions traded 8.8% higher at 293.80 pence early on Thursday afternoon in London.

The Reading, England-based pensions consulting and administration services provider said that, for the financial year that ended March 31, pretax profit more than tripled to GBP62.5 million from GBP19.1 million the previous year. Earnings per share likewise surged to 26.2 pence from 7.7p.

Revenue rose 20% to GBP199.4 million from GBP166.6 million. Advisory revenue increased 19% to GBP113.7 million, and pensions administration revenue jumped 25% to GBP71.9 million.

XPS however noted its disposal of the National Pension Trust, to SEI for initial consideration of GBP35.0 million in November.

Excluding NPT, adjusted pretax profit rose 37% to GBP44.5 million. Revenue excluding NPT rose 21% to GBP196.6 million.

XPS Pensions increased its total dividend for the year by 19% to 10.0p per share from 8.4p. This includes a proposed final dividend of 7.0p, up from 5.7p the year before.

"We are delighted to announce another year of record growth, encompassing multiple financial upgrades during the period," commented Co-Chief Executive Officer Paul Cuff. "Our prior year was strong too, so to carry on our positive momentum and achieve total group revenue growth of 21% is really pleasing.

"It is also great that this was achieved with double digit growth in every one of our core divisions - actuarial, investment consulting, administration, and our SIP business."

He added: "Earlier this month, we were delighted to learn that XPS will be joining the FTSE 250. It is a very proud milestone for us, achieved through the hard work of our colleagues and the support of our clients and shareholders.

"There is much yet to come and we remain very excited about the next stage of our journey."

XPS will join the index of London mid-cap stocks on Monday next week as part of the quarterly index review by FTSE Russell.

Looking ahead, XPS has "seen continued strong demand of our services since the beginning of the year" and maintained an "active" pipeline of new business.

The company said it remains confident "in delivering against our expectations for the current year", too.

XPS Pensions also noted that it is "making a small change to our brand identity to trade as XPS Group", in order to "better reflect the growing overlap between the pensions and insurance industries and the expanding opportunity set ahead of us".

There will, however, be no change to its legal registered company name.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
XPS Pensions Group PLC 324.00 GBX -1.22 -

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