UK Financial Sector – Positioned to Drive Economic Expansion and Manage Systemic Risk

Section 1.0. UK Financial Services Sector Landscape, Trends & SWOT Analysis

The financial sector—encompassing banking, asset management, fintech, insurance, and accounting—will provide critical economic resilience during an expected recession. It will offer support through measures like debt deferrals and affordable credit, while also driving the investment needed for recovery once macroeconomic conditions stabilize.

Kalkine’s Sector Report covers the Sector Landscape, Trends & SWOT Analysis, Risks, Recent Business Updates along with the Valuation, Target Price, and Recommendation on the stock.

Section 2.0. Sector Risks & Opportunities

The UK financial services sector is demonstrating a period of deliberate and strategic evolution. It is successfully balancing its vital role in fostering economic growth with a necessary reassessment of risk and compliance frameworks. Driven by recent regulatory shifts and accelerated technology adoption, firms are becoming more agile, allowing them to respond effectively to changing market dynamics and client expectations. Notable and continued investment in digital infrastructure and robust compliance functions underscores a sector proactively building resilience for the long term. Although not immune to external economic pressures, the overarching trajectory indicates a move toward a more stable, efficient, and forward-looking industry.

Section1: Company Overview

XPS Pensions Group PLC

XPS Pensions Group PLC (LSE: XPS) is an FTSE 250 index-listed pension consultancy firm in the United Kingdom. It provides advice in more than 1500 pension schemes and operates across 15 locations in the United Kingdom.

This Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section2:  Financial Highlights –  FY25

Section 3:  Stock Recommendation Summary

Valuation Methodology: Price to Earnings Multiple Relative Valuation (Illustrative):

The stock has witnessed a downside of ~0.05% and of ~5.82% over the 1 week and 3 months respectively. It is trading below the average of 52-week high price of GBX 426.00 and 52-week low price of GBX 282.00, providing an opportunity to accumulate the stock.

One-Year Technical Price Chart (as of October 01, 2025). Source: REFINITIV, Analysis: Kalkine Group

Section4: Company Overview

Liontrust Asset Management PLC

Liontrust Asset Management PLC (LSE: LIO) is an FTSE All-Share listed UK-based holding company specializing in fund management. Through its subsidiaries, Liontrust Fund Partners LLP manages unit trusts, while Liontrust Investment Partners LLP and Liontrust Portfolio Management Limited offer investment management services to professional investors, either directly, via investment consultants, or through other advisers.

This Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section5:  Financial Highlights – FY25

Section 6:  Stock Recommendation Summary

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative):

The stock has witnessed an upside of ~2.24% and a downside of ~15.80% over the 1 week and 3 months respectively. It is trading below the average of 52-week high price of GBX 600.00 and 52-week low price of GBX 291.50, providing an opportunity to accumulate the stock.

One-Year Technical Price Chart (as of October 01, 2025). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 01 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/ or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.