Paul Cuff: Continued strong performance across all our lines of business
XPS Pensions Group has reported a rise in revenue of 23% to £94.5m in the six months to 30 September this year.
In its unaudited post-close trading update, the consultancy said strong demand across all its services, new clients, and the inflation-linkage of our contracts across the business had contributed to the growth.
It said advisory revenues grew 28% year on year (23% on an organic basis) - comprising pensions actuarial and consulting growth of 29% year on year (22% organic) and 26% year on year growth in its pensions investment consulting business.
It said the growth reflects continued high levels of client activity, driven in part by continued regulatory changes and demand for advice in response to volatility in financial markets and changes in pension scheme funding levels.
It said its clients continue to seek lots of support as they update their long-term strategies in response to rising long term interest rates and the changed inflationary environment, both of which it said can have profound impacts on pension scheme assets and liabilities.
XPS said its pensions administration revenues grew 16% year on year driven by new client wins coming on stream as well as strong demand for project work - noting the outlook for pensions administration was strong with significant project work with public sector clients stemming from regulatory changes as well as continued success in the first-time outsourcing market.
The firm said it had also been targeting new business activity in the insurance sector - noting there had been some "immediate success" and it would continue to focus on this market.
XPS concluded by saying it was "confident of achieving full year results ahead of its previous expectations".
It added: "The group has continued to invest as anticipated in people and technology to support future growth whilst continuing to deliver operational gearing. The board is pleased with the group's performance in the first half of the year and, notwithstanding a tougher comparative period in H2, is confident of achieving full year results ahead of its previous expectations."
XPS Pensions Group co-chief executive Paul Cuff said: "We are pleased to confirm continued strong performance across all our lines of business, sustaining the momentum we have built in recent years.
"We have been building the breadth and depth of our capability for some time now, and this has enabled us to provide excellent support to our clients in all the varied areas where they need support. I continue to be immensely proud of our people who have continued to look after our clients and each other very well, and I would like to thank all of them for their dedication."
XPS also updated the market on the sale of its National Pensions Trust (NPT) master trust business to SEI in July 2023. It said assets in the master trust had increased by 7% from 31 March to 30 September to over £1.5bn - adding it continued to have positive engagement with The Pensions Regulator regarding NPT's sale to SEI and currently expected to complete the sale by the end of the calendar year.
