Global fiduciary services provider, JTC, has reported a 25.2 percent increase in revenue from £28.2 million in the first half of 2017 to £35.3 million in its interim results for the six months ended 30 June 2018.
Underlying EBITDA increased by £3.8 million (56.7 percent) to £10.5 million in comparison to £6.7 million in H1 2017, whilst underlying EBIT also increased by £3.1 million (56 percent) to £8.6 million from £5.5 million in 2017.
These results have been achieved by a mixture of net organic growth of eight percent and the anticipated positive contribution of the two 2017 acquisitions; New Amsterdam Cititrust (NACT) in the Netherlands in the ICS Division and the Bank of America Merrill Lynch International Trust and Wealth Structuring (ITWS) business (US, Cayman, Geneva, Isle of Man and Singapore) in the private client services (PCS) division, the group stated.
PCS accounted for 44 percent of group turnover in the period, of which 21 percent comprised corporate services provided to private clients, which makes corporate services the group's biggest service line at 36 percent of total revenue.
The division posted a particularly strong set of numbers when compared with the same period in 2017 due to the full period effect of the acquisition of the ITWS business. As a result it achieved a 40.7 percent increase in total revenue from £11.0 million in H1 2017 to £15.4 million in H1 2018 and a 7.7 percent gross margin improvement from 57.2 percent to 64.9 percent over the same period.
The opportunity presented by the recent Minerva acquisition will add to both the senior management expertise and the geographical spread and offering of the group during the second half of the year and into the future, JTC said.
Alongside Minerva, JTC also entered into a conditional agreement to acquire Van Doorn, a specialist provider of corporate and related fiduciary services based in Amsterdam, the Netherlands from International Capital Group B.V.
This together with the launch of a more bespoke and exclusive JTC Private Office proposition introducing the proprietary Edge technology platform during the second half of the year is expected to a positive impetus for the division into 2019, the group added.
Nigel Le Quesne, chief executive, said: “We continue to see positive organic growth in both our institutional and private client divisions with a healthy ongoing pipeline from new and existing clients. As well as good progress with integrating the businesses acquired in 2017 we have also made two further acquisitions, post period end, with the recent Van Doorn (Netherlands) and Minerva (Jersey, London, Geneva, Dubai, Mauritius and Singapore) businesses, which are progressing well. In addition to these, we have several other potential targets where we are engaged in negotiations.”
JTC is a provider of fund, corporate and private wealth services to institutional and private clients. The firm has over 650 staff operating in more than 18 different jurisdictions and assets under administration totalling around $100 billion.
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