XPS Pensions Group (XPS) H1 2025 earnings summary

Executive summary

• Achieved record half-year performance with 23% organic revenue growth and 37% higher adjusted EBITDA, driven by strong client demand, new business wins, and operational efficiencies.

• Adjusted EPS increased 53% due to lower debt after the NPT sale; operational gearing remains positive.

• Entered the FTSE 250, enhancing brand credibility and market presence, and received multiple industry and culture awards.

• Continued investment in proprietary Aurora platform and expansion into insurance consulting.

• Four-year revenue up 66%, adjusted EBITDA up 83%, and profit before tax up 88%.

Financial highlights

• Group revenue rose 23% YoY to £113.4m, all organic; adjusted EBITDA up 37% to £30.9m with a 27.2% margin (+2.8 pts YoY).

• Adjusted diluted EPS up 53% to 8.9p; interim dividend up 23% to 3.7p per share.

• Net debt reduced 67% YoY to £22.4m; leverage at 0.37x (down from 1.55x); £68m undrawn facility.

• Operating cash flow conversion improved to 84%; adjusted operating cash inflow of £26.1m.

• CapEx of just over £4m, with full-year guidance of £8–9m.

Outlook and guidance

• Board confident of achieving full-year results in line with upgraded expectations, with further margin improvement and strong demand expected.

• On track to be cash positive by end of FY26, absent M&A; OCF conversion guidance remains 90–95%.

• Ongoing investment in technology and insurance consulting to drive future growth.

• Margin expected to improve by at least 0.5 percentage points annually post-FY27 as Aurora rollout completes.

• Regulatory changes and market evolution continue to support strong client demand.