19th Jun 2025 09:32
(Alliance News) - XPS Pensions Group PLC on Thursday said it expects continued high demand for its services after reporting a third consecutive year of double-digit annual revenue growth.
The Reading, England-based pensions consulting and administration company said pretax profit fell 35% to GBP40.8 million in the financial year that ended March 31 from GBP62.5 million the year prior.
The prior year figure includes a GBP32.5 million net gain on the disposal of the National Pensions Trust business.
Excluding this, and adjusting for amortisation, share-based payments and exceptional costs, pretax profit rose 34% to GBP59.5 million from GBP44.5 million a year ago.
Earnings before interest, tax, amortisation and depreciation increased by 27% to GBP69.7 million year-on-year from GBP54.8 million, benefitting from "efficient" use of technology such as Aurora and some one-off impact of higher-margin project work.
Revenue increased 18% to GBP231.8 million from GBP196.6 million with total advisory sales up 10%, administration sales up 30%, and SIP sales up 15%.
XPS noted financial 2025 was the third consecutive year of double-digit sales growth, driven by continued strong client demand.
In response, shares in XPS Pensions rose 5.1% to 395.00 pence each in London on Thursday.
Looking ahead, XPS expects "market and regulatory changes will continue to generate high demand for our services".
Although the new financial year faces "tough comparators", XPS said it still anticipates continued growth, in line with expectations.
"With workplace pensions high on the [UK] political agenda and the recent tabling of the pensions schemes bill to Parliament, we are also positive on the outlook for the pension fee market and continue to see a considerable runway of growth in the years ahead," the company said.
Reflecting the strong results and upbeat outlook, XPS raised its annual dividend by 19% to 11.9p per share from 10p. This includes a final payout of 8.2p, up 17% from 7.0p a year ago.
In addition, XPS said Alan Bannatyne will step down as chair after the company's annual general meeting on September 4.
Martin Sutherland, a non-executive director who joined the board in December 2023, will be appointed as independent non-executive chair following the AGM.
XPS explained Bannatyne will soon reach nine years tenure as a director and therefore will no longer be considered independent of the group under the UK corporate governance code.
By Jeremy Cutler, Alliance News reporter
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