XPS Pensions Group (XPS) H1 2025 earnings summary

Executive summary

• Achieved record half-year results with 23% organic revenue growth to £113.4m and adjusted EBITDA up 37% year-over-year, driven by strong client demand, new business wins, and operational efficiencies.

• Adjusted EPS rose 53% to 8.9p, supported by lower debt after the NPT sale and positive operational gearing.

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

• Continued investment in technology, notably the Aurora platform, and expansion into insurance consulting.

• Advisory and Administration now account for 95% of group revenues, marking the tenth consecutive half-year of YoY growth in these segments.

Financial highlights

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

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

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

• Adjusted profit before tax up 55% YoY to £26.5m; statutory profit before tax up 125% YoY to £18.2m.

• Operating cash flow conversion improved to 84%; £14.6m paid in dividends.

Outlook and guidance

• Expect continued strong demand due to regulatory changes and market activity, with a healthy pipeline and ongoing investment in technology and insurance consulting.

• Margin expected to improve further as Aurora rollout completes and operational efficiencies are realized.

• Board confident of achieving full-year results in line with upgraded expectations.

• Full-year CapEx guidance between £8m and £9m.