PensionBee Reaches Monthly Profitability and £4bn in Assets

Published 3 months ago
  PensionBee

PensionBee, a leading digital pension provider, has reported a significant financial milestone, announcing that it has achieved monthly profitability. The company’s shares experienced an over eight percent increase following the news.

Financial Growth and Market Performance

The update revealed that PensionBee expects to declare an adjusted EBITDA profit for the final quarter of 2023. Additionally, the company is positioned for a full-year profit in 2024. This positive trajectory is attributed to PensionBee’s assets under administration rising to £4 billion, a substantial increase from the £3 billion reported in November 2022. The growth reflects a larger customer base, robust net inflows, and strict cost management.

Leadership Commentary

Romi Savova, CEO of PensionBee, expressed satisfaction with the company’s performance, stating that it aligns with the commitments made to investors during the initial public offering in April 2021. Savova highlighted the company’s expanding market share within the UK’s £1 trillion Defined Contribution pension market and credited their scalable technology and exceptional customer service for the increased patronage and savings management.

Financial Resilience Amid Challenges

Despite facing a tough year in 2022 with continuous losses and investor concerns due to high marketing expenses in an unpredictable market, 2023 has seen PensionBee recover and conclude the year positively. The company has maintained a healthy cash balance, reporting over £12 million on its books.

Market Reaction

Investor confidence surged as the news about PensionBee’s profitability broke, causing a notable rise in the company’s share price. The shares climbed from roughly 65p to over 73p, which, while still below the IPO price of 165p, marks a recovery from previous downturns. This financial update suggests a more stable and prosperous future for PensionBee as it moves into the new year.