XPS Pensions Group (XPS) H2 2024 earnings summary

Executive summary

• Achieved record growth in FY24 with group revenue up 21% year-over-year to £196.6m, driven by strong client demand, new client wins, and growth in risk transfer and areas of prior investment.

• All four core divisions posted double-digit revenue growth; operational gearing improved with efficiencies from the Aurora platform and adjusted EBITDA up 32%.

• Entered the FTSE 250 in June 2024, reflecting market recognition and a significant milestone.

• Multiple industry awards for client service, diversity, administration excellence, and named in Sunday Times Best Places to Work.

• Sold National Pension Trust (NPT) in November 2023 for £35m, resulting in a £32.5m gain and a strengthened balance sheet.

Financial highlights

• Group revenues rose to £196.6m (+21% YoY; +20% organic), with all business lines showing double-digit growth.

• Adjusted EBITDA increased 32% to £54.8m; statutory EBITDA up 127% to £79.8m; adjusted diluted EPS up 24% to 15.1p.

• Leverage reduced to 0.27x (from 1.38x); net debt fell to £14.0m (from £55.3m), a 75% reduction.

• Operating cash flow conversion at 104%; progressive dividend up 19% to 10.0p per share.

• Statutory profit after tax was £54.2m, including a £32.5m gain from the NPT sale.

Outlook and guidance

• Double-digit revenue growth targeted for FY25, supported by regulatory tailwinds, cross-sell opportunities, and new growth avenues in insurance.

• Margin improvement expected to continue, with full Aurora platform benefits from FY27.

• OCF conversion expected at 90-95%; company aims to be debt free in FY26 (excluding M&A).

• Progressive dividend policy maintained; disciplined approach to M&A.

• Market share under 10% leaves significant room for further growth.