Pre-close trading update and notice of FY results

23 April 2021

XPS Pensions Group plc

Pre-close trading update and notice of full year results

XPS Pensions Group plc ("XPS" or the "Group") is pleased to provide its pre-close trading update (unaudited) for the year ended 31 March 2021 ahead of its full year results which are expected to be released on 24 June 2021.

Trading update

The Group adapted well and we dealt with all the challenges that the pandemic presented throughout the year to produce a robust financial performance, demonstrating the resilience of the Group's business model and strong client base. At a Group level, total revenues grew 7% year on year.  Excluding the contribution from acquisitions, revenues grew by 6% in the year.

Underlying this, revenues within Pensions Advisory grew by 6% year on year.  The component parts of Pensions Advisory each grew, with Pensions Actuarial & Consulting growing by 3% and Pensions Investment Consulting by 21%.  The Pensions Administration business grew by 9%.  As expected, revenue in the SIPP business was down 8% year on year mainly due to the reduction in the bank base rate. 

The National Pensions Trust ('NPT') business has performed well with revenue growing 35% year on year with a faster-than-expected recovery in asset prices, as well as additional asset transfers, with total assets under management now over £1 billion. 

Whilst new business activity slowed as a consequence of the pandemic, the results were supported by strong client activity as we helped our clients deal with the economic challenges and wider regulatory changes.

The Board is pleased with the Group's performance and anticipates that the financial performance will be in line with market expectations.

Paul Cuff, Co CEO commented:

"The entire year unfolded against the backdrop of the pandemic and all the challenges it created, so the financial performance is testament to the resilience of our business.  A key challenge at the start of the pandemic was adapting the business to enable 100% remote working and we are enormously proud of how our staff rose to this challenge. Our focus throughout has been on their well-being - not only making sure they had the right technology to do their job but also on supporting their morale and mental health.

"We have continued to adapt our working practices and invest in the business through the recent launch of 'My XPS My Choice', a framework to provide our people with more choice around how they work going forward.  We believe this will enhance our reputation as a great place to work, enabling us to continue to attract and retain talent in our industry.  Our staff have responded really positively, and as lockdown eases there is a sense of excitement building as we look forward to society opening up again.  For us this is happening against a backdrop of both market and regulatory opportunities for the business, and we are excited about what the future holds."

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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 £1bn of assets, and we undertake pensions administration for over 900,000 scheme members.