XPS Pensions Group (LSE:XPS) reported another year of strong expansion, marking its fourth consecutive year of double-digit revenue growth as demand for pension advisory, administration and self-invested pension services continued to increase across its core markets.
Total revenue for the year rose 13% to £262.7 million, supported by growth across all major business segments and continued investment in technology, administration capabilities and specialist consulting services.
The performance enabled the company to increase its total dividend per share by 11%, reflecting confidence in the group’s earnings and cash generation.
Advisory Division Drives Growth
Advisory services remained the largest contributor to growth, with revenue increasing 20% during the year as pension schemes and sponsoring employers sought greater support on funding, risk management, governance and regulatory matters.
The company also continued to benefit from expanding demand for administration services. Administration revenue increased 5% overall and 18% when excluding the impact of the one-off McCloud project completed in the prior year.
Meanwhile, self-invested pension (SIP) revenue rose 10%, reflecting continued growth in client activity and assets under administration.
Profitability and Cash Generation Improve
The group’s strong revenue performance translated into higher earnings, with adjusted EBITDA increasing 9% and adjusted profit before tax rising 8%.
XPS continued to operate a capital-light business model that generated strong cash flows throughout the year.
Net debt stood at 0.64 times adjusted EBITDA at year-end, remaining comfortably below the company’s target leverage range and providing flexibility for future investment opportunities and acquisitions.
Investing for Future Expansion
During the year, XPS continued to invest in technology and operational efficiency, including the development of scalable administration platforms and artificial intelligence-enabled solutions designed to enhance service delivery.
The company also expanded its insurance consulting activities following the acquisition and integration of Polaris, strengthening its presence within a growing area of the pensions and insurance market.
Management believes these investments will support future growth while increasing operational efficiency across the business.
New Mandates and Industry Recognition
Operational momentum remained strong, with XPS securing several new client wins during the year, including a significant appointment involving the Metropolitan Police pension scheme.
The group also received multiple industry awards, further enhancing its profile within the pensions sector and reinforcing its reputation across advisory, administration and consulting services.
Management said these achievements support its confidence in continued growth opportunities within an addressable market estimated at approximately £4.5 billion annually.
Positioned for Continued Growth
XPS believes its combination of advisory expertise, administration capabilities and technology investment leaves it well positioned to capture further market share as pension schemes increasingly seek specialist support.
With a strong balance sheet, recurring revenues and expanding service offerings, the company remains focused on delivering sustainable growth while continuing to invest in both organic expansion and selective acquisitions.
More about XPS Pensions Group
XPS Pensions Group is a UK-based pensions consulting and administration business serving occupational pension schemes, insurers and sponsoring employers. The company provides actuarial, investment, administration and advisory services to more than 1,300 pension schemes and administers benefits for approximately 1.2 million members. XPS advises pension arrangements of all sizes, including dozens with assets exceeding £1 billion, and continues to expand its technology-enabled service offering across the UK pensions market.
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