Half Year 2025 XPS Pensions Group PLC Earnings Call Transcript
Key Points
- XPS Pensions Group PLC (LSE:XPS) reported a strong half-year with a 23% revenue growth, driven by high client demand and regulatory changes.
- The company achieved a 37% increase in adjusted EBITDA and a 53% rise in adjusted EPS, benefiting from lower debt levels.
- XPS Pensions Group PLC has been recognized for its strong brand and culture, winning multiple awards and achieving entry into the FTSE 250.
- The company has made significant progress in transitioning administration clients onto its new Aurora platform, enhancing operational efficiency.
- XPS Pensions Group PLC has a strong focus on organic growth and has been successful in expanding its service offerings, particularly in high-margin areas like risk transfer work.
- Higher inflation has contributed to growth, but it also presents challenges in managing costs and maintaining margins.
- The company faces potential impacts from the national insurance increase, estimated to add GBP2.5 million in costs annually from FY26.
- There is a reliance on project work for revenue growth, which may not be sustainable in the long term as some projects, like McCloud remedy work, are one-off.
- The competitive landscape remains intense, with ongoing consolidation in the industry potentially affecting market dynamics.
- XPS Pensions Group PLC's expansion into the insurance consulting market is still in its early stages and may require significant investment and time to become a substantial revenue stream.
Good day, ladies and gentlemen, and welcome to XPS Pensions Group plc interim results presentation (Operator Instructions) I would like to remind all participants that this call is being recorded.
I will now hand over to Paul Cuff to start the presentation.
Good morning, everybody and welcome to this presentation of our results for the half year ending on the September 30, 2024. And we're going to run through a quick presentation of a few slides covering the results and then there's plenty of time for Q&A as well.
Now, in terms of the results, we're delighted to be reporting on another really strong half year. We of course have already reported our revenue growth, which was 23% and we've been delighted that we're continuing to deliver positive operational gearing with adjusted EBITDA being up 37% versus the same period last year.
Now adjusted EPS growth is even stronger at 53% because we're now carrying lower debt following the sale of NPT last
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