Romi Savova / PensionBee
PensionBee shares jump as key profitability milestone reached
The digital pension provider said it has also now reached £4bn in assets under administration
Shares in listed digital pension provider PensionBee jumped more than eight per cent on Friday after the company announced that it has reached monthly profitability.
In a trading update, PensionBee said it expects to announce an adjusted EBITDA profit for the fourth quarter of 2023, and is now on track for a full-year profit in 2024.
The milestone comes from PensionBee’s assets under administration which now total £4bn — up from £3bn in November 2022 — with a growing customer base, strong net inflows and ongoing cost discipline.
PensionBee CEO Romi Savova said the news "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.”
PensionBee says it maintains a cash balance of over £12m on its books.
While 2022 was a challenging year for the company, with ongoing losses and concerns over high marketing costs in an already volatile market sending the fintech’s share price tumbling nearly 60 per cent, 2023 has seen the company stabilise and now end the year on a high.
News of the company’s profitability was warmly received by investors on Friday, sending PensionBee’s share price on Friday from around 65p to over 73p, still well below the company’s 2021 IPO price of 165p.