JTC (JTC) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results with revenue up 21.1% to £147.1m and EBITDA up 22.3% to £49.1m, maintaining momentum from 2023 and marking the start of the Cosmos Era.

• Net organic revenue growth reached 12.5%, exceeding guidance, with record new business wins up 28.8% and significant M&A activity, including the transformational Citi Trust acquisition.

• US market growth was particularly strong, now representing 32% of revenue, driven by both organic expansion and strategic acquisitions.

• Awarded £50m in shares to employees, reinforcing the group's unique shared ownership culture and recognizing the doubling of group size in three years.

• Six acquisitions completed or announced, including FFP, Blackheath, Hanway, Buck, and Citi Trust, strengthening both divisions and expanding global reach.

Financial highlights

• Revenue increased 21.1% year-over-year to £147.1m; underlying EBITDA margin rose to 33.4%.

• Adjusted EPS increased 9.4% year-over-year; cash conversion remained robust at 104%.

• Interim dividend declared at 4.3p per share, up 22.9% from H1 2023.

• Net debt increased to £131.9m, mainly due to acquisition-related outflows and SDTC acquisition funding.

• ROIC improved to 13.0% (2023: 12.3%), well above cost of capital.

Outlook and guidance

• Confident in delivering full-year results in line with management guidance and market expectations.

• Medium-term guidance maintained: net organic revenue growth 10%+, EBITDA margin 33–38%, cash conversion 85–90%, net debt 1.5x–2.0x EBITDA.

• M&A expected to contribute 50%-60% of growth over the next 3-4 years, with a strong pipeline and focus on integration.