Xps Pensions Share Discussion Threads

[johnrxx99] 21/4/2024 05:19

Yes, it may not rise rapidly but to my mind a solid investment case for the moment. Companies will always want to offer key staff a credible pension but without the management hassle.

[melody9999] 18/4/2024 16:22

Just added a few more at 243p. Good chart support around 240 on the chart...

From last TU, Canaccord increased TP to 298p from 280p. "We forecast 11% and 7% revenue growth in FY25E and FY26E, respectively. Given strong management of the cost base, we expect incremental revenues to drop through to profitability, resulting in 5-6% upgrades to our adj.dil EPS forecasts"

And this is on top of earlier upgrades. happy days.

[johnrxx99] 11/4/2024 07:08

Excellent trading update.

"High levels of demand for our services from continued regulatory change, new clients, and the inflation-linkage of our contracts, combined with the resilience and predictability of our business model has driven the robust performance for the year. Growth drivers in the year include GMP equalisation, rectification projects following the McCloud judgement, and the impact of new business wins in the Risk Transfer market. We expect work in each of these areas to provide a strong underpin for growth in FY25. We will also have some new client wins coming on stream in FY25, including most notably our appointment to provide pensions administration to the John Lewis Partnership pension scheme. There are further regulatory tailwinds to come with the introduction of the new General Code of Practice (effective end of March 2024) and the new Funding Code of Practice (likely effective September 2024) both of which will impact all our defined benefit clients driving demand for our services.

Costs have been managed well and the Board expects operational gearing to have improved, and thus is confident of achieving full year results ahead of its own previously upgraded expectations.

[johnrxx99] 10/4/2024 15:35

Blackrock have increased to over 5%.

[johnrxx99] 23/3/2024 03:02

Institutional holdings remain strong and another attempt at a breakout from it's repaet record high. Continuing talk of allowing Pension Funds to invest in riskier asset should help.

[johnrxx99] 15/3/2024 07:50

I picked it up on the GAMA news thread I was looking at. I quite fancy it now, having been stung two years ago.

[robsy2] 15/3/2024 06:49

Indeed!
Thanks for sharing, sums up the attractions of XPS nicely. XPS has plenty of scope to make more takeovers as well.

[johnrxx99] 15/3/2024 05:43

From Abrbn Smaller Co annual report on 27 Feb 2024 regarding new holdings to the fund:-

XPS Pensions is one of the largest pensions consultancy and advisory businesses in the UK. The nature of its services means its business is highly recurring and should be non-cyclical. Whilst the company has demonstrated its ability to grow organically in a lacklustre market, regulatory changes and pension market volatility have caused an acceleration in activity and demand from clients. XPS has been taking market share and the supportive end markets give it additional support to grow revenues, but also to gain new customers. There is potential for margin expansion from a combination of a more attractive mix shift in services, control of lower profitability accounts, implementation of IT administration systems and wage inflation under control; all providing the business potential for operational leverage.

Better late than never :-)

[johnrxx99] 08/3/2024 09:00

Just what's happening in the pensions market:

Record profits for Just Group

Pensions business Just Group reported record profits as higher interest rates had a “positive effect” on its main business arms.

The business made a £172 million profit, after a £494 million loss the year before.

CEO David Richardson said: “We are delighted with our financial performance in 2023, a record year for the Group, and are confident of exceeding our medium term profit growth pledge. As such, we now expect to achieve our target of doubling profits in three years instead of the originally intended five.

“Given the multiple opportunities available and strong structural growth drivers in our chosen markets, we have never been more confident in our ability to deliver sustainable and compounding growth.”

[johnrxx99] 20/2/2024 07:30

Well if the forecasts are anything to go by should be a very nice breeze indeed. Consensus eps growth for 2024/26 is 60.6%; 15.8% and 12%. That's 100% over 3 years by my calculation.

Include the dividend and I'm looking at a bagger at leasy. DYOR of course.

[tightfist] 20/2/2024 07:22

FT Corporate Bond article quote this morning: “Overall given the stepped change in funding position for many . . . 2024 has the potential to be the busiest year ever in the (pension) de-risking markets,” said Jenny Neale, director in the WTW’s pensions transactions team, in a recent note”. Tailwind anyone?

[johnrxx99] 19/2/2024 16:06

Well that will do me for today.

[johndoe23] 16/2/2024 12:06

Some bit sells going through. Tempted to take a maiden position but appears to be a large seller at play

[johndoe23] 16/2/2024 09:05

I would say to my untrained eye, could be an inverse h&s

[johnrxx99] 16/2/2024 08:37

Oh well, can but hope!

[eeza] 16/2/2024 07:49

Looks more like 'double head and shoulders (aka Batman formation'.

H & S chart patterns are usually bearish. Inverted H&S patterns are usually bullish.

[johnrxx99] 16/2/2024 07:21

I like to think there's a head and shoulders but probably isn't :-)

[robsy2] 15/2/2024 16:29

A very reassuring update that emphasizes the the progress being made and the predictability of earnings for the next couple of years . Price target 280p.

[johnrxx99] 15/2/2024 08:42

Buying looks strong, in for a nibble.

[johnrxx99] 15/2/2024 08:25

I'm going to see how today plays out b4 I take my first step in.

[eeza] 15/2/2024 07:39

RNS - TU

Continue to 'hint' at a beat - "at least in line with upgraded expectations".

[johnrxx99] 15/2/2024 07:34

An excellent Trading update:-

The positive momentum from 2023 has continued into the new calendar year and January was a strong month. Given the drivers of demand commented on below, coupled with new business success such as the win in Pensions Administration of the John Lewis Partnership contract, the Group continues to be well positioned for growth in FY25 and beyond. The Group remains confident of achieving full year results for the year ending 31 March 2024 at least in line with its previously upgraded expectations and expects to carry good momentum into the next financial year.

We are continuing to see high levels of client demand for our services. In our Pensions Actuarial and Consulting business, this is in part driven by regulatory reform, including the introduction of the new General Code of Practice for pension schemes which will come into force on 27 March 2024.

We are also continuing to work through GMP rectification projects for clients, which drives demand for services in both our Pensions Actuarial and Consulting business and in our Pensions Administration business. In Pensions Administration we are also busy supporting public sector clients through pensions rectification projects following the McCloud judgement.

We expect these drivers of demand to continue into FY25 and beyond. For example, there will be further material regulatory change with the introduction of new rules regarding how actuarial valuations should be carried out, which will affect all our defined benefit pension scheme clients. We expect these new regulations to be introduced no later than 30 September 2024.

All of this is happening against a backdrop of continued Government consultation on a wider agenda of change that could result in more pension scheme assets being invested in 'productive finance' to benefit the growth agenda in the UK. Any changes that arise from these consultations would also likely drive high demand for consulting advice from our clients.

[johnrxx99] 13/2/2024 01:52

Director sale not helping the retrace. I'll keep on watching though.