XPS Pensions Group (LSE:XPS) on Thursday told investors that the board is confident of delivering full-year results slightly ahead of its expectations, citing strong revenue growth and continued cost discipline.
The pensions consulting and administration specialist said group revenue grew 12% in the six months to 30 September, with organic growth accounting for 11 percentage points of that increase. Advisory revenues, the largest contributor, rose 14% year-on-year, including 12% organic growth, while administration revenue grew 10% and SIP revenue rose 7%.
XPS pointed to demand driven by regulatory change, including pension schemes seeking advice on running on for surplus extraction, alongside high activity in risk transfer work for both pension schemes and insurers, and growing demand across its insurance consulting division.
Austin Professional Resourcing (APR), the actuarial consultancy XPS acquired for up to £16.3m in a deal completed on 31 July, is "integrating well and performing in line with expectations", the company said, with its resources already being deployed to support insurance opportunities across the group.
"The acquisition of APR means we now have a business of real scale with wide ranging capabilities," said Paul Cuff, XPS co-chief executive, adding that the group is "really well placed" to help clients navigate new surplus release regulations due from April 2027.
XPS noted that the Pensions Act 2025, which received Royal Assent in April, will allow defined benefit schemes to begin releasing surplus from 6 April 2027, a change it expects to drive further demand for advice as well-funded schemes weigh running on against pursuing an insurer buyout.
The group will report its half-year results on 19 November.