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Investing.com -- XPS Pensions Group PLC (LSE:XPS) on Thursday reported solid financial results for the fiscal year ending March 31, 2025, with earnings in line with expectations on an underlying basis and dividend growth exceeding forecasts.
The pensions advisory firm posted an 18% year-over-year revenue increase to £231.8 million, consistent with its April 16 trading update.
Adjusted EBITDA grew 27% to £69.7 million, surpassing the consensus estimate of £67.3 million, while EBITDA margin improved by 2.2 percentage points to 30.1%.
Adjusted diluted earnings per share reached 20.6p, approximately 6% ahead of consensus, though this figure includes positive one-off items such as tax benefits and accelerated McCloud remedy project work that was brought forward from FY26.
The company’s share count was lower than expected due to share buybacks.
XPS increased its dividend by 19% to 11.9p, about 5% higher than market expectations.
Looking ahead, the company maintained its recently upgraded outlook for FY26 despite facing tough comparators as the one-off McCloud project work is now largely complete. Management continues to see strong demand driven by market and regulatory changes.
The firm also announced plans to expand its addressable insurance consulting market to £4.0 billion from its current core £2.5 billion pension fee market.
In a leadership change, Chair Alan Bannatyne will step down following the company’s Annual General Meeting in September 2025 after approaching nine years of service. Martin Sutherland, who joined the board in December 2023, will succeed him.
XPS Pensions Group currently trades at a FY27 estimated P/E ratio of 17x with an approximate 4% yield.
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