Online pension provider PensionBee is approaching sustainable profitability on an adjusted earnings basis, having moved into the black in October with assets under administration of almost £4 billion.
Based on current market conditions, the company expects to be adjusted Ebitda profitable across the fourth quarter of 2023 and for FY2024.
The direct-to-consumer firm, which maintains a robust cash balance of over £12 million, says the growth metrics have been driven by a combination of a growing customer base, strong net inflows from new and existing customers, the inherent scalability of its technology platform and sustainable cost discipline.
PensionBee helps its 226,000 customers combine their old pension pots, make flexible contributions, invest in line with their goals and values and make withdrawals from the age of 55
Romi Savova, chief executive officer of PensionBee, says: "We are delighted to have achieved sustainable adjusted Ebitda profitability, which delivers on the guidance we gave investors at the time of our listing in April 2021.
"We continue to grow our market share of the vast, addressable £1 trillion UK Defined Contribution pension market as we leverage our scalable technology platform and excellent customer service capability to rapidly grow our customer base and their savings with us. With nearly a quarter of a million customers entrusting us with their pension savings, we are continuing to make progress."
The firm's stock price moved up 11% on the news to 74.2 pence, still some way off its 52-week high of 115 pence.