XPS Pensions, a leading provider of pension administration and advisory services, has reported a stronger-than-expected profit for 2023. The company's revenue rose by 12% in 2023, compared to the previous year, driven by growth in its advisory business. XPS Pensions' profit exceeded analyst estimates, with the company's pre-tax profit reaching £55.6m. This represents a 15% increase from the previous year, when the company reported a pre-tax profit of £48.2m.
The company's advisory business, which provides guidance to pension schemes and their trustees, has been a key driver of growth for XPS Pensions. The firm has seen an increase in demand for its advisory services, as pension schemes seek to navigate the complexities of pension regulation and investment management. XPS Pensions' advisory business now accounts for 40% of the company's total revenue.
XPS Pensions' strong performance is a welcome boost to the UK pension sector, which has faced challenges in recent years. The company's success is also a reflection of the growing importance of pension administration and advisory services in the UK.