Pensions  

PensionBee losses climb 30%

PensionBee losses climb 30%

Pensionbee’s loss before tax reached £16.9mn in the first six months of this year, up 32 per cent on its £12.8mn loss for the same period last year.

The online pension provider’s cash position has also shrunk to £29mn, from £55mn a year earlier, according to its interim results published last week (September 22).

Despite growing losses, chief executive Romi Savova said the company is well-positioned to continue growing its market share. 

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She expects the firm to achieve high double-digit revenue growth “in the short-term”, as well as reach profitable adjusted pre-tax earnings by the end of 2023.

“We remain confident in our ability to achieve our medium-term objectives as set out at the time of the IPO [initial public offering],” Savova added.

“Loss before tax reflect[ed] planned increased investment in marketing, the technology platform and our people to drive rapid growth.”

Back in July, the firm published its adjusted pre-tax loss for the first six months of this year. At £14.9mn, it was down a further 97 per cent on its mid-year £7.9mn loss last year.

The firm also published its revenue, which increased by 53 per cent from £5.4mn in June 2021 to £8.3mn in June 2022.

In March, Pensionbee said it expected its revenue in 2022 to reach £20mn after a ‘milestone’ year. Its annual run rate revenue now sits at £16.8mn, up 37 per cent from £12.3mn last year. The firm doubled its annual run rate revenue between 2020 and 2021.

Assets under administration sit at £2.676mn, up from £1.987mn, with some 246,000 customers actively using PensionBee’s service.

The listed company, which was founded in 2014 and joined the stock exchange in April last year, has been tagged as a potential takeover target.

Jefferies analysts have said competitors may have to buy the platform to stop it dominating the defined contribution market.

“If it remains independent, it could take a significant share of the UK DC pension market,” they wrote, valuing the unconsolidated market at £1tn. “To beat them, competitors might have to buy them.”

At the end of last year, the group’s pre-tax loss rose to £25mn, from £13.5mn in 2020.

ruby.hinchliffe@ft.com