‘Market and regulatory tailwinds’ boost XPS Pensions amid Hunt’s reforms
London-listed firm XPS Pensions reported strong organic growth on Thursday morning as Chancellor Jeremy Hunt prepared to shake up the pension market.
The pension consulting and administration business reported growth across all of its core divisions in the first half of the financial year, with revenues increasing organically by 19 per cent compared to the same period last year.
The firm said “high levels of client activity, new wins, inflationary fee increases and bolt on M&A” pushed revenues up 23 per cent to £94.5m.
The results mark the eighth consecutive half year of year-on-year revenue growth across the company’s advisory and administration divisions.
Organic revenue for the firm’s pensions actuarial and consulting business surged 22 per cent year-on-year.
Investment consulting saw 26 per cent growth, while pensions administration saw revenue growth of 16 per cent.
Adjusted diluted earnings per share rose 11 per cent year-on-year despite higher interest and corporation tax.
Co-chief executive Paul Cuff said: “We made progress in many areas during the half year, as we continued to invest in our business, welcoming new people and new clients, and successfully implementing new technology.
“The future for XPS looks very exciting. There is much discussion of the need for change in our industry, and we are pleased to be at the heart of the debate as it develops, with wide ranging capabilities to help our clients with all their needs.”
Chancellor Jeremy Hunt yesterday announced sweeping plans to consolidate the UK’s fragmented pension sector in a bid to channel potentially billions of pounds of capital into start-ups and listed companies.
In his Autumn Statement, Hunt said that by 2030 the “majority of workplace [defined contribution] savers will have their pension pots managed in schemes of over £30bn” and by 2040 sprawling local government pension funds will be invested consolidated in pools of “£200bn or more.”
“We expect the demand for our services to remain high underpinned by both market and regulatory tailwinds as well as the strength of our brand,” XPS said in its results today.