XPS Pensions Group PLC Pre-close trading update (8418C)
October 22 2020 - 1:00AM
UK Regulatory
TIDMXPS
RNS Number : 8418C
XPS Pensions Group PLC
22 October 2020
22 October 2020
XPS Pensions Group plc
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 2020.
The performance of the Group in the first half of the year was
in line with the Board's expectations with total revenues growing
9% year on year. Excluding the contribution from acquisitions,
revenues grew by 6% in the period, with revenue growth for the full
year likely to be slightly more weighted towards the first half
than normal.
The Pensions Actuarial & Consulting business grew by 4% year
on year, Pensions Administration business grew by 13% and the
Pensions Investment Consulting business grew by 29%. Pensions
Investment Consulting has been buoyed by project work as a direct
result of COVID 19 related market volatility. As expected, revenue
in the SIPP business was down 7% year on year, reflecting the
reduction in bank base rate.
The National Pensions Trust ('NPT') business has performed well
with revenue growing 27% year on year with a faster-than-expected
recovery in asset prices, as well as additional asset transfers in
H1, contributing to the growth. Earlier this month, assets under
management within the NPT business crossed the GBP1 billion
threshold, an important milestone in the master trust market.
The Group has adapted well to working from home in response to
the COVID 19 crisis and continued to serve clients very well across
all divisions . As previously guided, new business pitches within
the Pensions Actuarial & Consulting business have slowed as a
result of the pandemic which will translate in to modestly slower
organic revenue growth in the second half of the year. Despite
that, all our client SLAs have held up very well and our Pensions
Administration business won Third Party Administrator of the year
for the second year running at the UK Professional Pensions Awards.
The Group also won Employee Engagement firm of the Year at the UK
Employee Engagement Awards, in recognition of the strong culture we
have built at XPS.
The Board is pleased with the Group's first half performance and
anticipates that the results for the full year will be in line with
its expectations.
Paul Cuff, Co CEO commented:
"The first half of the year was spent in some form of lockdown,
with our people having to adapt to a model of almost entirely
remote working. I am extremely proud of the resilience we have
shown and the way that we have continued to serve our clients very
well throughout the period, and I would like to thank all of our
staff for the incredible support they have shown both to clients
and each other.
Our results bear testament to the resilience of our business
model. The organic growth across all of our Pensions divisions is
particularly pleasing, with this in part due to clients won in the
second half of last year coming on stream. As previously
highlighted, we saw a slowdown in new business opportunities in
Pensions Actuarial and Consulting during the early months of
lockdown as tender processes were put on hold, although more
recently there are signs that they are starting to pick up again
and our other divisions continue to perform well.
The NPT trading performance in the first half of the year and
the passing of GBP1bn of assets in recent weeks is also pleasing -
this is an important milestone in the master trust market and we
will continue to invest in this platform for the future."
Analyst and Investor Presentation
XPS Pensions Group plc expects to report its half-year results
to 30 September 2020 on 26 November 2020.
A presentation will be held for equity analysts and investors at
9:30 a.m. on 26 November 2020 via a Zoom webinar. Those analysts
and investors wishing to attend are asked to contact Nick Hennis at
Camarco on +44 (0)20 3781 8330 or at nick.hennis@camarco.co.uk
-Ends-
For further information, contact:
Enquiries:
XPS Pensions Group +44 (0)20 3725 7024
Charlotte West
Head of Corporate Communications
Liberum (Joint Broker) +44 (0) 20 3100 2222
Richard Crawley
Robert Morton
Cameron Duncan
RBC Capital Markets (Joint Broker) +44 (0)20 7653 4000
James Agnew
Jonathan Hardy
Jamil Miah
Media Enquiries
Camarco
Gordon Poole +44 (0)20 3757 4997
Nick Hennis +44 (0)20 3781 8330
Notes to Editors:
XPS Pensions Group plc is the largest pure pensions consultancy
in the UK, specialising in pensions actuarial & consulting,
investment consulting and pensions administration. The XPS Pensions
Group business combines expertise, insight and technology to
address the needs of both pension trustees and sponsoring companies
for over 1,500 pension schemes on an ongoing and project basis.
These clients include 25 schemes with over GBP1bn of assets, and we
undertake pensions administration for over 900,000 scheme
members.
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