Company Update

Research evidence excerpt

Company Update

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy XPS Pensions 18 June 2026

Europe Group PLC

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 17 Jun 2026 (GBP) 317.00

XPS.L XPS LN LSE XPS

Price Target (GBP) 485.00

Business Services

384.00 -

Professional Services 52-week range (GBP) 283.00

Regulatory and structural growth

Valuation & Risks

Steve Woolf

EBITDA slightly ahead Research Analyst

+44-20-754-54604

Revenue growth of 13% (organic +8%) or 18% (13% organic) excluding non

repeating McCloud activity represents a fourth year of double-digit growth. James Beard

Research Analyst

Advisory revenue increased by 8% on an underlying basis while Administration

+44-20-754-56765

increased by 18%. Growth benefited from new mandates and an expansion of work

with existing clients. Adjusted EBITDA of £75.7m is c.2% ahead of expectations and David Brockton

represents growth of c.9%. An adjusted margin of 28.8% represents a 70bps Research Analyst

increase as earlier costs efficiencies offset greater administration activity and the +44-20-754-11721

impact of higher employee national insurance costs. EPS increased by 8%. Bharat Rajesh, CFA

Covenant net debt/EBITDA of 0.6x provides scope for further organic and inorganic Research Associate

investment.

Key changes

Positive outlook

DB EPS (GBP) 22.67 to 22.91 ↑ 1.1%

The outlook is indicated in-line with expectations supported by high visibility

including risk transfer, surplus extraction management, GMP, the onboarding of the Revenue (GBPm) - ↓ -0.1%

Metropolitan Police and SEI administration contracts. Additionally we believe XPS Source: Deutsche Bank

has developed a significant pipeline of opportunities in public sector Price/price relative

administration.