(Alliance News) – JTC PLC on Tuesday said its full-year outlook is ahead of market expectations after six months of strong revenue and earnings growth, and it expects to complete its “Galaxy era” growth strategy two years ahead of schedule.
The Jersey-based fund management company said its reported pretax profit for the first half of 2023 was GBP11.9 million, down 43% from GBP21.0 million the previous year. However underlying pretax profit, adding non-underlying items, reevaluation and foreign exchange gains, was up 16% to GBP19.7 million from GBP16.9 million.
Reported and underlying revenue increased 31% over the same periods, to GBP121.5 million from GBP93.0 million. Reported earnings before interest, tax, depreciation and amortisation increased 44% to GBP36.5 million from GBP25.3 million, and underlying Ebitda was up 31% to GBP40.2 million from GBP30.7 million.
JTC shares were up 6.3% at 717.00 pence on Tuesday morning in London.
Staff expenses increased 19% to GBP61.6 million, and other operating expenses jumped 45% to GBP22.0 million.
JTC said the “very strong” revenue growth was “driven by the highly successful implementation of the group’s growth strategies.” In particular it noted its USD270 million acquisition of South Dakota Trust Co, which it completed in early August. JTC said the deal made it the “leading independent provider” of administration services to US private trust customers.
JTC also increased its interim dividend by 13%, to 3.5p per share from 3.1p the prior year.
JTC said it expects its “strong growth momentum” to continue, with full-year results ahead of current market expectations. In late July it had said these included underlying Ebitda between GBP79.7 million and GBP80.7 million, up from GBP56.1 million.
JTC said its “Galaxy era” growth strategy will be completed by the end of 2023, two years earlier than planned, allowing it to start its “new Cosmos era growth ambition”.
“The momentum in the business, coupled with the long-term structural drivers in our sector, mean that we remain as ambitious for the group as ever and aim to once again double in size during the Cosmos era, which will commence in 2024 and is expected to run until 2027,” said Chief Executive Officer Nigel Le Quesne.
“We look forward to continuing to deliver strong, consistent results, with compounding revenues, for all of our shareholders year in and year out.”
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Read More: JTC proclaims “outstanding” first half as “Cosmos era” approaches