MyCSP reports 31% growth in 2013
4 Jul 2014
MyCSP, the first mutual joint venture to spin out of UK central government in 2012, which provides pensions administration for the country’s best known public sector organisations, has reported a 31% increase in turnover in its second year of trading to £42.1 million. Combined with efficiencies and cost measures this has resulted in a 131% increase in profit before tax.
- Revenue growth of 31%
- Profit before tax growth of 131% to £5.2m
- Employee Partners receive an average of 13% of salaries as shareholder bonus
- New contracts including first private sector clients
- Transformation programme on track to deliver new system and enhanced capability
- New services launched to support employers and members in relation to pensions taxation changes
- Developments to operational controls and structure delivered target service levels.
New business activity in the year has been strong with eight new clients; significantly, MyCSP commenced services to a number of private sector clients. Additionally, MyCSP expanded its services to existing clients, most notably the provision of support to employers in relation to changes in pensions related tax legislation.
Employee productivity has improved by 15% year on year and technical training has also been provided to 25% of the workforce. A new performance management process has been introduced alongside a new all-employee bonus scheme.
In addition to the financial results, there has been a significant improvement in service delivery since vesting two years ago, despite undertaking a major change programme which is still in progress.
The MyCSP employee partner dividend was also announced today and has increased from £680 last year to £2,600 this year which is an average of 13% of salaries.
Tax payers will also benefit as the Government owns a 35% stake in the business.
Nicky Hurst, CEO, MyCSP, said: “MyCSP has achieved extensive improvements in its second year and it is important to recognise and thank everyone who helped achieve them. Significant investment was made in our people and processes and this is already delivering the returns that we had predicted. However, the process of transformation is far from complete and the focus over the next year will be the implementation of new pensions administration software and bringing in-house pension payroll services that are currently outsourced. We will also be ensuring that MyCSP can meet and benefit from the pension reform changes in 2015 in addition to growing our client base and expanding the range of services that we offer.”
Minister for the Cabinet Office Francis Maude said: “As part of our long term economic plan we are supporting 1000s of entrepreneurial frontline staff to spin out from the public sector. That way they can innovate and control the services they deliver. Today on Employee Ownership Day, we are celebrating the huge achievements of the nearly 100 public sector mutuals.”
“MyCSP is a shining example of how we are transforming public services. Since spinning out, it has grown to be a pioneering and ambitious enterprise that is on track to roughly halve the cost of administering the Civil Service Pension Scheme within a decade of spinning out.”
Guy Wakeley, Chief executive of Equiniti and Non-Executive Director of MyCSP said “The MyCSP team deserve to be very proud of the transformation they have achieved. The quality of service is unrecognisably improved, tax payers have experienced significant cost benefits and employees delivering the hard work have justly earned a share of the profits. The mutual model harnesses the best of private sector expertise to help public services transform, and is a blueprint for further partnership”.Back to news