XPS Pensions Group PLC: Strategic acquisition

Research evidence excerpt

XPS Pensions Group PLC: Strategic acquisition

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy XPS Pensions 26 June 2026

Company Update

Europe Group PLC

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 25 Jun 2026 (GBP) 301.00

XPS.L XPS LN LSE XPS

Price Target (GBP) 485.00

Business Services

384.00 -

Professional Services 52-week range (GBP) 283.00

Strategic acquisition

Valuation & Risks

Steve Woolf

Acquisition of APR Research Analyst

XPS has acquired APR, an established UK-based specialist actuarial consultancy to +44-20-754-54604

leading insurance and financial sector clients. The acquisition accelerates

James Beard

management's strategy to further diversify into the insurance and general Research Analyst

insurance markets. APR was established in 2006 and has worked with in excess of +44-20-754-56765

45 insurers and financial sector clients. It also has expertise in the general insurance

David Brockton

consulting market which has an estimated market value of c.£1.5bn and has

Research Analyst

relationships with over 20 general insurers with an overall client NPS of +70. APR

+44-20-754-11721

has an established team of more than 70 client-facing employees.

Bharat Rajesh, CFA

Research Associate

Financials

XPS will pay an initial consideration of £3.3m upon completion with an additional

payment of £3.0m payable by March 2027. Further contingent total consideration Key changes

of up to £10.0m will be payable in years 2 and 3 depending on performance. In the DB EPS (GBP) 22.91 to 22.89 ↓ -0.1%

FY to April-26, APR reported revenue of £10.7m implying an initial revenue multiple

Revenue (GBPm) 278 to 285 ↑ 2.6%

of less than 1x. We assume future growth of c.6-7% in our forecasts consistent with

Source: Deutsche Bank