Shares in FTSE 250 provider of fund management services group JTC (JTC) fell by 6% to 762p despite the company announcing a strong set of results for the full year 2021.

Revenue moved ahead by 28% to £147.5 million and underlying EBITDA (earnings before interest, tax, depreciation and amortisation) rose 24% to £48.4 million.

The numbers were broadly in line with the pre-close update of 3 February, while medium term guidance was reaffirmed.

The dividend of 7.67p represents a 13.6% increase, while cash conversion was a healthy 87%. The balance sheet remains strong with £69 million undrawn of an available £225 million bank facility.


The Jersey-based provider of fund, corporate and private client services raised capital twice in 2021 including a £65.9 million share placing last April.

Together the two fund raises generated £145 million of gross proceeds that enabled the group to undertake seven acquisitions during last year.

A key objective of the acquisition strategy has been to add scale to the group’s US-based ICS business.

The acquisition of Essential Fund Services in December 2021 will enhance JTC’s fund presence in the US, adding scale and growth opportunities. It also complements the firm’s acquisition of SALI fund services.

Essential Fund Services is one of the leading independent providers of fund accounting services to the insurance dedicated fund market, where SALI is the established leader.

Management confirmed the outlook for recent acquisitions was positive with all seven on track.

Shore Capital analyst Vivek Raja believes JTC has 'high-quality growth reflecting its recurring revenue base, strong profitability and its high rate of converting cash.

'On our current estimates, JTC trades on a price to earnings ratio of 26.7 times for the year to December 2022 dropping to 22.5 times in full year 2023’, he adds.


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Issue Date: 19 Apr 2022