By ieyenews

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COSMOS ERA BUSINESS PLAN AHEAD OF SCHEDULE

Nigel Le Quesne

Global professional services business JTC reports a strong interim performance for the six months to 30 June 2025: another period of record business wins and strong net organic growth.

The Company announced a 17.3% increase in total revenue to £172.6m; a 15.1% rise in underlying EBITDA to £56.5m; and net organic revenue growth of 11.0%. New business wins for the period were a record £19.5m (H1 2024: £18.8m).

Private Capital Services (PCS) Division to benefit from recent acquisitions

PCS has performed exceptionally well over the period, with revenue increasing 14.8% to £68.4m with underlying EBITDA increasing by 13.2% to £25.2m. Recent strong performance has continued with net organic growth of 14.5% (H1 2024: 13.9%) and new business wins totalling £8.4m.

The Division is expected to benefit from the acquisition of Citi’s global fiduciary and trust administration business, formerly known as Citi Trust, completed in July 2025, with the margins expected to align with JTC Group levels by 2026 – 12 months ahead of initial expectations. It will also benefit from the proposed acquisition of Kleinwort Hambros Trust Company, announced in July 2025 and expected to complete in Q4 2025.

JTC is regarded as a reliable counterparty for bank carve-out deals as these institutions seek lighter operating models and renew focus on core banking capabilities. The business has now established itself as the largest independent provider of trust company services globally, a market which continues to provide a major opportunity for the business, and the additions of Citi Trust and KHT are highly complementary to JTC’s existing offering.

Resilient Institutional Capital Services (ICS) Division

JTC’s ICS division grew revenues by 19.1% to £104.2m, with underlying EBITDA up 16.6% to £31.3m, over the period. It achieved net organic growth of 9.2% (H1 2024: 11.9%) and new business wins totalling £11.1m. This is a good result in a market where macroeconomic headwinds led to a period of volatility and uncertainty, which lead to prolonged sales cycles.

Strong demand for alternative assets driving capital flows

JTC has strong exposure to both institutional and private capital and is well positioned to benefit from institutional capital seeking higher return illiquid strategies, and private wealth seeking diversification into alternative assets.

Around $16 trillion is currently allocated in global markets to alternatives across private equity, infrastructure, real estate, private debt and hedge strategies. Preqin* projects this figure to nearly double to $30 trillion by 2030, growing at c.9.5% CAGR. This backdrop is driving demand for sophisticated administration and governance solutions and will help the business benefit from multi-year tailwinds.

JTC expects to deliver full-year results for 2025 in line with existing management guidance and Board expectations.

Nigel Le Quesne, JTC’s CEO, said:

“We are pleased with the growth and momentum of the Group in the first half of 2025 – another record performance. Set against the backdrop of a challenging market, our highly diverse and international client base, paired with the benefit of our diversified and sustainable business model, is reaping rewards.

“Our shared ownership approach and the culture it instils is key to how we attract and retain our people and drive the excellent service we deliver to our clients. Last year, following the successful delivery of our Galaxy era business plan, we granted c.£50m of share awards to eligible employees and the second tranche of this award vested in July 2025. I extend my heartfelt thanks to all our employee-owners and recognise their outstanding work.

“The second half of our financial year has started well with good new business wins across both divisions, and the announcement of our proposed acquisition of KHT. We remain confident that we will deliver the Cosmos era business plan ahead of schedule, before the end of 2027.”