(Alliance News) - Professional services firm JTC PLC on Tuesday reported rising profit and revenue during its first half, while also announcing the acquisition of Irish asset manager Ballybunion Capital Ltd.
Shares in JTC were trading up 2.2% at 822.00 pence each in London on Tuesday morning.
Pretax profit multiplied to GBP36.8 million in the six months ended June 30, compared to GBP10.4 million a year ago and GBP9.0 million two years ago.
Revenue hit GBP67.0 million, up 25% from GBP53.7 million the previous year and 44% above the GBP46.6 million taken in the first half of 2019.
The FTSE 250-constituent said its increased revenue reflected good net organic growth through the first half.
The company's Institutional Client Services division saw a 31% increase in revenue to GBP39.8 million from GBP30.3 million, while its private Client Services segment noted a 17% revenue rise to GBP27.2 million from GBP23.4 million.
Chief Executive Nigel Le Quesne said: "The core business performed strongly despite the ongoing market challenges, and it was particularly pleasing to see margin improvement in the [Institutional Client Services] Division, continued strong performance from the [Private Client Services] Division and a strong flow of new business wins, including our largest ever single mandate...These results demonstrate the continued resilience of our business, which I am delighted to report, continues to deliver profitable growth and consistent returns for all our shareholders."
Despite rising revenue, the company's underlying earnings before interest, tax, depreciation and amortisation margin slipped slightly to 32.7% from 33.3% a year earlier.
JTC declared an interim dividend of 2.6 pence, up from 2.4p in 2020 and 1.7p in 2019.
As momentum from the second quarter continues into the second half, the company said it expects to deliver full-year results in line with management and market expectations.
JTC maintained its medium-term outlook, guiding annual net organic revenue growth between 8% and 10%, with an underlying earnings before interest, tax, depreciation and amortisation margin of 33% to 38% per year.
The provider of fund management services said it would continue to focus on integrating recent acquisitions, including employee benefits platform RBC cees Ltd and financial oversight services provider Indos. Both businesses are expected to perform in line with management expectations, JTC added.
Also on Tuesday, the Birmingham-based company said it has acquired the Dublin-based boutique asset manager Ballybunion Capital for an undisclosed sum.
JTC said the initial consideration will be paid in a mix of cash and JTC shares, with a deferred consideration available, pending the achievement of certain performance milestones.
JTC said it expects the acquisition to be accretive to earnings. Ballybunion's revenue reached EUR1.8 million in financial 2020, up 26% from the year before, the company said. Ballybunion's underlying Ebitda margin is in line with JTC's goal of between 33% and 38%.
"Ballybunion will substantially enhance JTC's fund services presence in Ireland, providing ManCo and governance services for Irish domiciled funds, giving access to new clients and providing a platform from which to drive future growth in the strategically important Irish funds services market," JTC added.
The asset manager was purchased from its founder, Patrick O'Sullivan, who will take on a leadership role at JTC, the company said. O'Sullivan will focus on the development of JTC's Irish funds business internationally, particularly in North America.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Jtc Plc (JTC)