The consultancy firm – which will officially release its full-year results on 20 June 2024 – said it has continued to perform strongly with revenues from continuing operations growing 20% year-on-year.
Within this, it said pensions actuarial consulting revenues grew 20% year-on-year, investment consulting revenues grew 13% and administration revenues grew 24%.
It said high levels of demand for its services from continued regulatory change, new clients and the inflation-linkage of its contracts, combined with the resilience and predictability of its business model, had driven the robust performance for the year.
It said growth drivers in the year included GMP equalisation, rectification projects following the McCloud judgement, and the impact of new business wins in the risk transfer market.
The firm said it expected work in each of these areas to provide a strong underpin for growth in the 2025 year – adding it will also have some new client wins coming on stream in the next financial year, including its appointment to provide pensions administration to the John Lewis Partnership pension scheme.
XPS Pensions Group said there were “regulatory tailwinds” to come with the introduction of the new general code of practice, which was effective from the end of March, and the new funding code of practice, which is likely to be effective from September, both of which it said would impact all its defined benefit clients and drive demand for its services.
It added it had managed costs well and expected operational gearing to have improved. As such, it said it was “confident” of achieving full year results ahead of its own previously upgraded expectations.
XPS Pensions Group co-chief executive Paul Cuff said: “We are pleased to be on course for a strong financial performance for the year. We have seen good growth across all our lines of business, as we have responded to strong client demand including in areas that we have invested in over recent years such as our risk transfer advisory capability. We grew strongly in the prior year too, so to achieve further like-for-like growth of 20% on top of that is very pleasing. We have achieved this with a strong culture and I would like to thank all our people for the way they support each other and our clients.”
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