Pensions business Xafinity boosted by listing

Pensions business Xafinity boosted by listing

Xafinity, the pensions actuarial, consultant and administrator, has announced a positive full-year set of results, buoyed by the success of its stock market listing.

Revenue for the 12 months to March 2017 reached £52.04m, up 1 per cent on 2016.

Earnings before interest, taxes, depreciation and amortisation rose 5 per cent to £17.46m, representing a 33.5 per cent margin.

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A successful initial public offering on the London Stock Exchange in February 2017 played a significant contributing role, according to the company.

The 139p per ordinary share offer price was fully subscribed by a base of long-term investors, and the £50m raised was used by Xafinity to repay existing debts, leading to a £53m debt reduction to £33m.

Tom Cross Brown, chairman of Xafinity, said: “The Group’s performance since  31 March 2017 has remained in line with the Board’s expectations and, notwithstanding the prevailing macroeconomic uncertainties, we believe Xafinity’s core markets and pipeline of business opportunities continue to offer the potential for real growth. 

“Management remains focused on implementing the strategy for market penetration and organic revenue growth across the pensions business, resulting in a healthy momentum of new client wins and commissioning of de-risking projects, and the Board remains confident about the future prospects of the Group.”

Over the reporting period Xafinity enjoyed growth in recently-added services, such as trivial commutation and its National Pension Trust.

Assets under management in the NPT increased by around 67 per cent, while the firm was awarded a trivial commutation mandate on a FTSE client with a £11bn scheme. 

Xafinity also gained eight long-term contracts, as well as investing in new technologies, developing Radar, its proprietary pensions modelling software, which will be rolled out to clients over the next year. 

Paul Cuff, co-CEO of Xafinity, said: “We are also investing in our people and technology to bring insight to trustees and sponsors and help them achieve better outcomes.  

"This, together with building relationships with the Independent Trustee community, has generated some fantastic new client wins and we have some real momentum in this area."