- Shares trade sideways following latest US purchase
- New York Trust deal builds on US market position
- Shares are down 18% year to date
Shares in FTSE 250 provider of fund management services group JTC (JTC) traded sideways despite the company announcing it had agreed to buy New York Private Trust Company, a non deposit trust company based in Delaware.
Strategically, the deal further validates the group’s strategy of making acquisitions to consolidate its position in the rapidly growing American market.
Nigel Le Quesne, chief executive officer of JTC, said: ‘We are delighted to announce the proposed acquisition of New York Private Trust Company, subject to final regulatory approvals.
‘It is a high-quality private client business that will expand our existing US footprint and support our ambitions to create a market-leading US domestic trust business’, he added.
The firm has a reputation for delivering high levels of client service and taking an innovative approach across a broad spectrum of asset classes.
BUY AND BUILD STRATEGY
Founded in 1987, JTC bought Merrill Lynch's international trust and wealth structuring business in May 2017 before coming to the market in March 2018.
The company made two major acquisitions in 2020, buying Sanne Group's private client business in March 2020 and NES Financial for $40 million in April 2020.
Today’s acquisition was made possible by two capital increases last year which raised a combined £145 million of gross proceeds, enabling the group to undertake seven acquisitions over the past year.
Bringing the New York Trust Company within the JTC fold builds on the acquisition of Essential Fund Services in December 2021 and will enhance JTC’s fund presence in the US, adding scale and growth opportunities.
Essential Fund Services is one of the leading independent US providers of fund accounting services to the insurance dedicated fund market.
STAYING POSITIVE
On 19 April the group announced 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.
More recently, at its pre-close interim update on 22 July the group confirmed its confidence in delivering full year results in line with market expectations and maintained its full year guidance.
Interim results for the period ended June 30 will be announced on 13 September 2022.
