(Alliance News) - JTC PLC on Thursday said it expects full-year results consistent with both management and market expectations, after a "good" performance in the first half of 2021.
The Jersey-based provider of fund, corporate and private client services maintained its medium-term guidance for 2021 in a trading update. It expects net organic revenue growth of 8% to 10% and an underlying earnings before interest, tax, depreciation and amortisation margin of 33% to 38%.
For the full year, JTC said it expects net debt of 1.5 to 2.0 times underlying Ebitda and cash conversion between 85% and 90%.
Shares in JTC were trading up 1.8% at 627.00 pence each in London on Thursday afternoon.
The professional services firm said it "performed well" in the first half, with momentum picking up into the second quarter.
"The positive momentum seen in new business wins, combined with incremental operational improvements, give us confidence for the remainder of the year...Our acquisition pipeline remains strong and we expect to continue to act as a key consolidator in the sector while remaining disciplined in terms of quality and pricing," noted Chief Executive Nigel Le Quesne.
JTC won GBP10.3 million in new business in the first half, up 20% year-on-year from GBP8.6 million and 75% higher than the GBP5.9 million won by that point in 2019.
Cash conversion was strong through the first half, the company said, exceeding the 85% to 90% guided range.
By June 30, net debt stood at GBP23.6 million, down considerably from GBP75.8 million at the end of 2020.
In the first half, JTC acquired RBC cees Ltd - rebranded as JTC Employer Solutions - and fund oversight provider Indos Financial. "Both businesses are integrating well," the company added.
For the second half, the company said its "acquisition pipeline remains healthy, with a number of value accretive opportunities across both divisions, ranging in size from bolt-ons to larger deals."
JTC said it plans to announce its half-year results on September 21.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Jtc Plc (JTC)