Xafinity
(XAF) 187.75p

Gain to date: 15.2%
Original entry point:
Buy at 163p, 31 August 2017

Reading-based Xafinity (XAF) is to become the largest pure-play consultant in the UK pension market after striking a deal to buy Punter Southall’s actuarial, administration and consulting business for up to £153m.

This will give Xafinity greater scale with defined benefit pension schemes. It advises pension trustees on whether there is enough money to pay pension members over the long term and where the money should be invested. Administration tasks include making sure the right people are paid the right amount of money at the right time.

Co-CEO Paul Cuff says Xafinity’s strategy is to undercut the big investment consultants in the market and offer a more focused service. He says the operations being acquired from Punter Southall are ‘very good’ at large scale administration and M&A advice whereby pensions are big issues to consider during takeovers.

Over the last nine months Xafinity has won 13 new clients and only lost one. ‘It takes a while for new work to start; you’ll see the benefits of these contract wins start to show in the second half of the financial year,’ says Cuff. ‘If we keep winning that amount of new business, we will be doing fantastically well.’

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