XPS Pensions shares jump on punchy full-year guidance

Shares in XPS Pensions continued their march higher on Tuesday after the UK pensions consulting and administration business delivered an impressive first half and guided to a stronger-than-expected full-year result.

XPS said, notwithstanding a tougher comparative period in the second half, it is confident of achieving full-year results ahead of previous expectations.

The stock was up over 6% at 215p by 1034 BST, taking the year-to-date rise to 53%.

Revenues in the six months to 30 September totalled £94.5m, up 23% from £77m during the same period last year.

The company said that volatility in financial markets and rising interest rates drove demand for its advisory services, with revenues in that division up 28%.

"Our clients continue to seek lots of support as they update their long-term strategies in response to rising long term interest rates and the changed inflationary environment, both of which can have profound impacts on pension scheme assets and liabilities," XPS said in a statement.

Pensions administration revenues were up 16% helped by new client wins and strong demand for project work. Self-invested pension revenues were up 23%, helped by the increase in interest rates.

"We are pleased to confirm continued strong performance across all our lines of business, sustaining the momentum we have built in recent years," said co-chief executive Paul Cuff.