Fund management services group JTC posted a sharp rise in full-year sales and profits thanks to both organic growth and acquisitions.
On an underlying basis, full-year revenues were ahead by 15.9% at £115.1bn, alongside an 8.3% increase in profits before tax to £21.4m, for earnings per share of 22.49p.
The company’s bottom line on an as reported basis on the other hand was hammered by the need to revalue the equity settled financial liability resulting from the contingent consideration for the acquisition of the NESF fund services business in the US.
Commenting on the firm’s outlook, chief executive officer, Nigel Le Quesne, said: “scale, our diversification, our infrastructure and our people, we believe that JTC is well equipped to continue to succeed and grow both now and in the future.”
He also highlighted the contribution to JTC’s full-year results from both organic and non-organic growth, as well as the strong growth from both of its main business units, institutional and private client services.
Net debt reduced 16.5% to -75.8m.
Aside from the acquisition of the fund services business NESF in the US, JTC acquired the Sanne Private Clients business in Jersey and the RBC CEES employee benefits business in the Channel Islands and UK.
Also on the outlook, management reiterated its medium-term guidance for net organic revenue growth of 8.0-10.0%, an underlying EBITDA margin of 33.0% and a net debt-to-EBITDA ratio of 1.5-2.0.
The company’s board approved a 1.45p per share increase in the full-year dividend to reach 6.75p.
That equated to 30% of profits after tax, up from 25% previously.
