XPS Pensions Group plc Results for the half year ended 30 September 2019 28 November 2019
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Welcome and introductions Ben Bramhall Paul Cuff Snehal Shah Co-Chief Executive Co-Chief Executive Chief Financial Officer Officer Officer 3
Highlights & Overview 4
Highlights Trading in line with expectations Pensions Actuarial & Consulting issues addressed - Revenue growth of 8% versus H1 2019 - Resourcing levels increased and key strategic hires made - Pensions Actuarial & Consulting returning to growth - ‘Streamlined’ structure yielding results - Robust performance in other business units - Growing momentum going in to H2 - Adj. EPS flat versus H1 2019 (1) in line with expectations Continuing to build our brand Completed operational integration - Winner of ‘Actuarial / Pensions Consultancy of the Year’ and - Exit completed from IT Transitional Services Agreement ‘Administrator of the Year’ in the UK Pensions Awards - Key central functions all transitioned ‘in - house’ - NPT achieves master trust authorisation Strong client retention rate and new wins Bolt-on acquisition strategy continuing well - Transitions on key PS accounts successfully completed - Integration of Royal London progressing well - Continued access to bigger mandates, strong win rate - Acquisition of Trigon Pensions (October 2019) - Net ‘annuity’ new business wins during H1 of c.£2m 5 (1) Excluding the impact of IFRS 16
Market update Continued regulatory changes… Overhaul of defined benefit pension funding > New guidance on funding due to be issued by the Pensions Regulator. GMP Equalisation > Growing client appetite to move forward as barriers increasingly removed CMA Review > Continued market fallout creating opportunities on fiduciary management oversight Master Trust Authorisation regime > Significant reduction in master trusts in the market – from over 85 to 37 Competitive landscape is creating opportunities to win clients and hire people… Good source of opportunities received in H1 2020 > Trustee opportunities excluding admin only : 65% (by value) from Big 3 > For administration only opportunities, vast majority from large outsourcing firms 6
Operational Progress Progress in the Pensions Actuarial & Consulting business > New Head of Pensions, Patrick McCoy, in role since 1 April > Progress on resourcing – increased graduate intake from 20 to 30, success in other hires > Streamlining of the business – increasing focus on getting solutions to clients The end of the Transitional Services Agreement > Up-scaled Finance and HR completed their first six months post-TSA successfully > Exit from IT TSA achieved in September > Only remaining aspect of the TSA is Facilities, anticipate completing exit by end of 2019 > Cost of increased central functions broadly in line with expectations (albeit earlier, and higher than significantly discounted cost of TSA) Royal London acquisition > All clients and staff successfully transitioned > New Edinburgh office, merged with existing XPS to one location > Transition to XPS administration systems during 2020 7
Financials 8
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