JTC reports accelerating momentum after robust first-half

The FTSE 250 company said it anticipated delivering full-year results at least in line with market expectations at the current stage of the year.

It said its net organic growth showed significant acceleration, surpassing its medium-term guidance range of 8% to 10%.

At full year 2022, net organic growth stood at 12%, but the firm said its current figures had outperformed that, with both divisions contributing.

JTC said it secured record new business wins in the first half, amounting to £14.6m, representing a 15.9% increase compared to the same period in 2022.

Its underlying EBITDA margin was said to be at the lower end of the established medium-term guidance range of 33% to 38%, however.

The board put the slight dip down to the group's ongoing investments to fuel further growth.

In line with its inorganic growth strategy, JTC recently announced the acquisition of South Dakota Trust Company (SDTC) for up to $270m.

The firm said the strategic move would position JTC as a leading independent provider of administration services to the US personal trust sector.

It said the acquisition was expected to be finalised before the end of August, as previously announced.

Additionally, the integration of New York Private Trust Company (NYPTC), completed in November last year, was said to be progressing well and aligning with expectations.

The company said it had maintained a healthy cash conversion rate, in line with typical first-half levels, adding that it expected to achieve its full-year guidance range of 85% to 90%.

As of June, JTC's leverage stood below the guidance range of 1.5 to 2.0 times underlying EBITDA, primarily due to the timing of the SDTC equity fund raise during the period.

Following the completion of the SDTC deal, the company projected its leverage to remain below 2.0 times reported underlying EBITDA by the end of the year.

Finally, as part of its ambitious bid to double in size from 2020, JTC said it was aiming to achieve its ‘Galaxy era’ business plan two years ahead of schedule.

The company said it foresaw significant growth potential in its markets in the short, medium, and long term.

It said it would unveil its next multi-year business plan era, ‘Cosmos’, during its interim results announcement in September.

“I am delighted to report that JTC's growth momentum continues to accelerate,” said chief executive officer Nigel Le Quesne.

“Net organic growth is excellent, well ahead of our medium-term guidance, and, as highlighted by our acquisition of SDTC, we continue to realise the significant inorganic growth potential that exists in our global marketplace, particularly in the US.

“It is a testament to the quality and commitment of our employees, all of whom are owners of the company, that JTC continues to raise the bar.”

Le Quesne noted that by 2020, JTC had doubled in size since listing in 2018, and by the end of this year, it was projected to have doubled again.

“Based on our current strong performance and the very considerable potential for further significant organic growth in our business as well as in our merger and acquisition pipeline, we look forward to sharing highlights of our Cosmos era business plan for JTC's next stage of growth at our results in September.”

JTC said it would announce its interim results for the period ended 30 June on 12 September.

Reporting by Josh White for Sharecast.com.