(Alliance News) - XPS Pensions Group PLC on Thursday reported strong revenue growth in the first half but expects it second half to be "more challenging".
In the six months to September 30, the Reading-based pensions actuarial, consulting and administration firm recorded pretax profit of GBP2.8 million, down 36% from the GBP4.4 million reported the year before.
The firm saw its exceptional and non-trading items grow to GBP8.3 million from GBP5.9 million.
Revenue improved 9% year on year to GBP61.4 million from GBP56.3 million. Pensions Actuarial & Consulting revenue rose 5% to GBP29.0 million, while Pensions Administration increased 12% to GBP22.7 million. Pensions Investment Consulting revenue grew 29% to GBP5.4 million.
"Our results bear testament to the resilience of our business model. The organic growth across all of our Pensions divisions is particularly pleasing to see, with this in part due to clients won in the second half of the prior year coming on stream as well as more capacity with colleagues taking less holiday in the first half of the year. Inevitably we saw a slow-down in new business opportunities during the early months of lockdown as tender processes were put on hold, and this will reduce the number of new clients coming on stream in the second half, but we are seeing our pipeline gradually pick up again," Co-Chief Executive Paul Cuff said.
XPS declared an interim dividend of 2.3 pence, unchanged from the year before.
XPS expects a "more challenging" environment in the second half, but anticipates its full-year results will be in line with its internal expectations.
Cuff added: "Although the business has traded well, Covid-19 presents some challenges to us in terms of our efficiency and client appetite to pursue discretionary projects, and the second lockdown we are now in will prolong these effects. We will undoubtedly benefit from a return to a more normal working environment which we hope will be possible early next year, and more widely are very excited about the future opportunities we have."
Shares in XPS Pensions were 4.1% higher in London on Thursday at 126.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Xps Pensions (XPS)