XPS Pensions Group has seen a year of record growth across its business, with pre-tax profits up by 227 per cent year on year.
Publishing its annuals results it said a significant portion of these profits were generated from the sale of its National Pension Trust master trust to SEI for £35m. The sale went through in November last year.
But excluding the sums generated from this sale XPS still saw pre-tax profits rise 57 per cent year on year.
Overall group revenues across the business were up by 21 per cent, as a result of strong client demand and inflationary fees increase.
XPS says its pensions administration business saw a 25 per cent growth in revenue, driven by new client wins — which include the John Lewis pension scheme — fee increases and increased levels of project work in areas such as GMP and the McCloud remedy.
Alongside this it saw 21 per cent revenue growth in its pensions actuarial consulting business and a 13 per cent growth in revenues in its pensions investment consulting businesses. In both cases XPS says there was increased demand for these services amid continued market and regulatory changes.
Earlier this month it was announced that XPS Pensions Group would be joining the FTSE 250.
XPS says this is the seventh consecutive year of revenue growth since listing in 2017. It says this performance underscores the non-cyclical, predictable and resilient nature of the business, with an established brand, and the benefits of investments made in services in prior years.
XPS Pensions Group co-CEO Paul Cuff says: “We have seen continued growth in areas that we have invested in, such as our risk transfer team, and in services that we provide directly to insurers.
“We have also enjoyed playing an active role in the debate about the future of our industry in the new age of better funded defined benefit schemes; we look forward to continuing to advise our clients on the full range of strategic options available to them against the backdrop of changing regulations that are coming their way.”
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