XPS Pensions Group PLC
LSE:XPS
XPS Pensions Group PLC
XPS Pensions Group Plc engages in the provision of employee benefit consultancy, and related business services. The company is headquartered in Reading, Berkshire and currently employs 1,315 full-time employees. The company went IPO on 2017-02-16. The firm is specializing in pensions actuarial & consulting, investment consulting and pensions administration. The Company’s Pensions Advisory and Administration business provides advisory services to the trustees or sponsoring employers of approximately 450 defined benefit (DB) schemes in the United Kingdom, covering actuarial, investment and pensions advice, including in respect of defined contribution (DC) schemes in the United Kingdom. The company administers, advises and acts as investment consultant to its DC Master Trust platform called the National Pension Trust (NPT). The company provides, operates and administers Small Self-Administered Schemes (SSAS) and Self-Invested Personal Pensions (SIPP). The Company’s services include XPS Pensions, XPS Investment, XPS Administration, XPS Corporate, XPS Covenant, XPS DC and XPS Arena.
XPS Pensions Group Plc engages in the provision of employee benefit consultancy, and related business services. The company is headquartered in Reading, Berkshire and currently employs 1,315 full-time employees. The company went IPO on 2017-02-16. The firm is specializing in pensions actuarial & consulting, investment consulting and pensions administration. The Company’s Pensions Advisory and Administration business provides advisory services to the trustees or sponsoring employers of approximately 450 defined benefit (DB) schemes in the United Kingdom, covering actuarial, investment and pensions advice, including in respect of defined contribution (DC) schemes in the United Kingdom. The company administers, advises and acts as investment consultant to its DC Master Trust platform called the National Pension Trust (NPT). The company provides, operates and administers Small Self-Administered Schemes (SSAS) and Self-Invested Personal Pensions (SIPP). The Company’s services include XPS Pensions, XPS Investment, XPS Administration, XPS Corporate, XPS Covenant, XPS DC and XPS Arena.
Strong Revenue Growth: XPS delivered 13% revenue growth in the first half, with 8% organic and the rest driven by the Polaris acquisition.
Profitability: Adjusted EBITDA increased by 8% and adjusted diluted EPS rose by 9% year-on-year, despite tough comparators from last year's McCloud project.
Margins & Costs: Reported EBITDA margin fell 1.2 points to 26% due to one-offs and NI increases, but underlying margin improved to 26.3% when normalized.
Cash & Leverage: Operating cash inflow was £22.8 million (68% conversion), and leverage remains low at 0.88x after the Polaris deal.
Dividend: Interim dividend raised by 11% to 4.1p per share, reflecting management confidence.
Market Backdrop: Significant pension market change is driving high demand for XPS services, with a healthy pipeline and strong client wins, including the Metropolitan Police.
Outlook: Full-year expectations maintained, with further margin improvements anticipated through technology and operational efficiencies. XPS sees lasting opportunities in both pensions and insurance markets.
