Pension consulting and administration group XPS Pensions (XPS) has been on a tear over the last year with the shares almost doubling, reflecting double-digit growth in the business.

An unscheduled trading update on 14 February sent the shares to yet another new all-time high as the FTSE 250 company revealed full year results will be ‘materially’ above previously ungraded expectations.

The board expects full year revenue growth to March 2025 of between 15% and 16% to £226 million to £229 million, while consensus estimates are pegged at the bottom end of the range.

Analysts have had a tough time keeping up with underlying growth, resulting in strong and persistent upward earnings revisions over the last year.

Co-CEO Paul Cuff attributes the strong growth down to client demand for its services as they have needed support responding to market and regulatory changes.

Key drivers include work around the McCloud remedy which removes age discrimination in NHS pension schemes, the guaranteed minimum pension and new business wins in the Risk Transfer market.

Following the trading update analysts at Canaccord Genuity increased their 2025 EPS (earnings per share) forecast by 6% implying 27% growth on the prior year.

They noted the upgrade was largely the result of XPS Pensions delivering McCloud remedy work more efficiently that they previously expected. 

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