Record New Business Wins Drive Strong Half Year Results for JTC

It has been announced today (13 September 2022), JTC has had another strong set of interim results with impressive growth in revenue and profit reported for the first half of 2022.

The financials show that JTC recorded growth in revenue of 38.8% to £93m for the period ending 30 June 2022, reflecting continued strong net organic growth of 9.5% and inorganic growth of 29.3%.

Underlying profit (EBITDA) was also up 40.1% to £30.7m, with an improved underlying profit margin of 33% compared to the same time last year, whilst new business wins were up 22% to £12.6m – a Group record for a six-month period. In addition, robust cash conversion allowed the Group to substantially reduce its leverage, bringing it down by 0.7x in the period to 1.6x underlying EBITDA, which is towards the bottom end of JTC’s guidance range of 1.5x to 2.0x.

Other strategic highlights include a focus on delivering the integration of seven acquisitions made in 2021, good revenue growth from the company’s fast growing banking and international tax compliance service lines and the post period acquisition of New York Private Trust Company (NYPTC) in Delaware, USA, which remains subject to regulatory approval.

Looking forward, the interims highlight how the momentum seen in 2021 has continued into 2022 and point to confidence that the Group will deliver revenue and underlying profit ahead of market expectations and net organic growth above its medium-term guidance range, more than offsetting higher interest costs and cost inflation. JTC’s inorganic growth ambitions remain fully supported, with a healthy pipeline of merger and acquisition opportunities spanning both its Divisions.

Commenting on the half year results, Nigel Le Quesne, Chief Executive Officer of JTC PLC, said:

“JTC’s exceptional resilience and entrepreneurial growth capabilities have been reflected in a strong financial performance, meeting all our guidance metrics, including a substantial reduction in leverage. The ICS Division was the star performer, with excellent growth and continued margin progression. The PCS Division maintained strong margins as it continued with planned investments that will drive future growth and is poised to benefit in H2 from the on-boarding efforts undertaken in H1.

“Our inorganic efforts in the period focused on integration of the seven deals completed in 2021. We maintain our disciplined approach to selecting new targets and we were delighted to announce the acquisition of NYPTC in Delaware post period end. The business carries good momentum into H2 and we are excited by the progress we anticipate in the remainder of the second year of our Galaxy era plan. We see tremendous opportunities for the Group moving forward. As always, my thanks go to the outstanding JTC global team for their hard work and dedication to our culture and success.”