PensionBee’s net worth exceeds £3bn as post-IP growth continues, but pensions app still unprofitable
- PensionBee managed around £1.65 billion in assets when it first went public last year
- The company was founded by friends Romi Savova and Jonathan Lister Parsons
- People can use the service to merge their pension plans into one pot
The PensionBee Group’s assets under administration have risen to over £3 billion, almost double the amount the company was under management when it went public last year.
The online pension provider said the milestone was achieved through a mix of steady net inflows and high customer retention, against a backdrop of increasing economic unpredictability.
When shares of the financial services company were trading on the London Stock Exchange in April 2021 at 165p each, valued at £365m, it held around £1.65bn in assets.
Performance: PensionBee said the milestone was achieved through a mix of steady net inflows and high customer retention levels against a backdrop of increasing economic volatility
Proceeds from PensionBee’s IPO, which raised £55 million, went towards financing the expansion, mainly through spending on marketing and improving the technology platform.
In a trading update published last month, the London-based company revealed that the invested value of its pension assets had risen by just under a quarter to £2.8 billion in the year ended September.
This was because the number of active customers increased by 70 percent to 265,000, many of whom are older people with above-average pensions, and customer retention remained high at 97 percent.
Romi Savova, co-founder and chief executive of the group, said this achievement is “the result of our commitment to delivering outstanding customer service and helping more people prepare for a happy retirement.”
She added: “We are growing the business in line with our ambitions while helping to meet the nation’s growing need for long-term retirement planning and preparation.”
Bulgarian-born Savova, 36, started the retirement savings app in 2015 with boyfriend Jonathan Lister Parsons after experiencing difficulties transferring her company pension to a new provider.
PensionBee allows people to consolidate their various retirement plans into one pot, which is then managed by major financial services firms such as BlackRock, HSBC, and Legal & General.
Customers with pension schemes up to £100,000 pay an annual fee of between 0.5 and 0.95 per cent to PensionBee, with anything above that amount being paid a lower percentage.
Despite healthy customer and asset growth since the IPO, the group’s recent nine-month results showed adjusted underlying losses that increased by more than half to £18 million.
It does predict that it will achieve “pre-marketing profitability” this year, before reaching positive underlying earnings in late 2023.
PensionBee Group shares were up 1.05 percent to 58 pence in the early afternoon on Monday, though their value has fallen by more than half in the past six months.