XPS co-chief executive Paul Cuff
XPS Pensions Group has posted year on year revenue growth of 14% - noting organic growth, excluding bolt-on acquisitions was 13%.
In a pre-close trading update for the six months ended 30 September 2022, the consultant said advisory revenues grew 15% year on year - comprising pensions actuarial & consulting growth of 14% year-on-year and 19% year-on-year growth in its pensions investment consulting business.
It said the growth reflected high activity levels as it supported its clients in the face of continued regulatory change and significant changes in the financial markets which impacted the funding of pension liabilities.
XPS said its pensions administration grew by 11% year on year, while revenues in its 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.
It said revenues in the National Pensions Trust (NPT) business were flat year-on-year due to the significant decline in asset prices, however XPS said it was pleased to add new clients to the platform with the result that assets under management within the NPT business remain at around £1.3bn.
XPS said, while it was only halfway through the financial year, the continued resilience and predictability of its business model, including inflation-linked revenues, alongside the strong pipeline of activity for both longstanding and new clients was "very encouraging".
It said combined with recent bolt-on acquisitions, the board was confident of achieving full year results slightly ahead of their previous expectations of the year.
XPS co-chief executive Paul Cuff said: "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.
Cuff said XPS continued to see growth in new business opportunities.
He said: "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."
