PensionBee losses narrow as group says it’s ‘well on track’ to hit a profit

PensionBee saw its pre-tax loss narrow from £16.9million to £9.2million in the six months to 30 June.

The online-based pension provider saw revenue jump by 32 per cent to £10.9million during the period, up from £8.3million a year ago. 

It saw net flows of £469million coming into its business in the first half from new and existing customers.

Narrowed loss: PensionBee saw its pre-tax loss narrow from £16.9m to £9.2m in the six months to 30 June

The group has been keen on seeing a return to adjusted profitability this year and looks on the way to achieving that, with adjusted barnings before interest, taxes, depreciation, and amortisation (EBITDA) narrowing to £7.9million, down from £14.9million. 

It saw assets under management rise to £3.7billion during the period, up from £2.7billion a year ago. 

It had a cash stash of £14million as of 30 June, compared to £29million at the same point a year ago.

The group said: ‘We have also sought to balance our growth ambition with our expectations of achieving monthly adjusted EBITDA profitability by the end of 2023.’ 

PensionBee, which gives people the opportunity to transfer all their old pensions into its digital platform and reinvest them, said it added 28,000 invested customers to its business in the first half, against 41,000 added over the same stretch last year.

The company said its total number of invested customers was 211,000 by the end of the first half, up from 159,00 at the same point in 2022.

It spent £6.8million on marketing during the period, taking its cumulative marketing expenditure to over £50million.

The cumulative cost per invested customer continued to fall, sliding from £260 to £247.

PensionBee shares rose today and were up 2.31 per cent or 1.6p to 71.00p this morning, having risen over 30 per cent in the year to date.

On the dividend front, the group, said: ‘In line with our stated dividend policy, the Company does not intend to pay any dividends as we continue to invest in growth and execute our strategy. 

‘Whilst the Company has not paid dividends since incorporation, it intends to revisit its dividend policy in future years and may revise its dividend policy from time to time.’

It added: ‘We remain confident in our potential for continued growth and profitability, due to our ability to attract new customers that generate growth in recurring revenue through our scalable technology platform.’ 

PensionBee said it was on track to securing a circa 2 per cent market share target of the ‘substantial £700billion UK transferable pensions market over the next 5-10 years.’ It also expects to be able to achieve long-term EBITDA margins ‘in excess of 50 per cent.’

Romi Savova, the group’s chief executive, said: ‘PensionBee’s strong results and ongoing growth have positioned us well on track to deliver monthly Adjusted EBITDA profitability by the end of the year. 

‘The scalability of our technology platform drives margin improvement, and we are looking forward to further innovating and evolving with our customers as we champion their voices in the industry. 

‘We are confident that our focus on serving and delighting customers will allow us to continue to grow and capture market share.’

This post first appeared on Dailymail.co.uk