JTC confident after revenues, earnings jump

(Sharecast News) - JTC posted a jump in full-year sales and profits on Tuesday, as it reiterated plans to double the size of the business by 2027. The provider of fund administration services said revenues in the year to 31 December rose 18.6% to £305.4m, while underlying earnings before interest and amortisation was 18.4% stronger at £101.7m.

Pre-tax profits rose 17.8% to £71.6m on the same basis.

The performance was boosted by a near 16% jump in new business wins to £35.7m, as well as a raft of deals. A total of six acquisitions were announced or completed during the year.

Its institutional client services division reported net organic growth of 9.9%, while revenues surpassed £100m in the private client services unit for the first time.

2024 was the first year of JTC's long-term business plan, dubbed Cosmos, under which it is aiming to reach revenues of more than £500m and underlying EBITDA of more than £170m by the end of 2027.

Nigel Le Quesne, chief executive, said: "We have made a fast start towards our goal of doubling the size of the group for the third time since IPO. We delivered record new business wins, organic growth above our upgraded guidance and a strong margin, even as we continue to invest in growth."

Looking to the current year, JTC - which made its market debut in 2018 - said it had made a "good start, with strong organic growth trends set to continue".

Vivek Raja, analyst at Shore Capital, said the results were "broadly" in line with expectations.

He continued: "The trading outlook is confident and positive, as JTC has made a good start to the 2025 full year, with a strong new business pipeline.

"Having safely navigated several crises in the past, JTC has a globally diverse business with pockets of defence growth, so we are reasonably confident the company can successfully navigate changes which are currently carving through the world order."

Shore Capital has a 'buy' rating on the FTSE 250 stock.