Asset manager services provider JTC (JTC) gained 3.2% to 596p, a new record high for the share price, as new business wins kept it on course to meet expectations.
The FTSE 250 firm, which looks after the administration of closed and open-ended funds, has now more than doubled on the 290p issue price from its March 2018 IPO.
In a pre-close full year trading update the company said it continued to ‘perform well’ in the second half of the year and expected annual results to meet management and consensus estimates following new business wins.
New business performance in the year was strong with the annualised value of new business won increasing about 20% on a year-on-year basis to an annualised value of £17.9 million in the year, compared with £14.9 million in 2019, with good momentum in its fourth quarter.
‘The group earnings before interest, taxes, depreciation and amortisation (EBITDA) margin remained stable in H2 and within guidance with the private client services division continuing to perform strongly,’ it added.
‘The outlook for further inorganic growth remains positive, with a well-developed pipeline of opportunities that support JTC’s strategy to strengthen and deepen its global footprint and service offering,’ the firm said.
The company maintained its medium-term guidance metrics of 8%-to-10% net organic revenue growth; underlying EBITDA margin of 33%-to-38%; net debt of 1.5x to 2.0x underlying EBITDA and cash conversion in the range 85%-to-90%.
Numis analyst David Brockton said: ‘Good progress was made integrating acquisitions and the pipeline for further deals is well-developed.
‘We believe JTC continues to offer excellent long-term growth potential serving rising demand for financial services, with increasing compliance requirement, and consolidating a large fragmented market.’