JTC (GB:JTC) posted its half-year results for 2022, last week. The company passed its midterm with flying colours as it reported record growth in its revenues with a target to exceed full-year revenue guidance.
The company saw a 38.8% growth in its revenues to £93 million, along with a net organic growth rate of 9.5%. JTC had its best half-yearly period in terms of new business unit wins, which increased by 22%.
The revenues were also strongly supported by its Institutional Client Services (ICS) division. ICS’ revenue grew by 60%, and it contributed 68% to the total turnover.
In terms of inorganic revenues, the growth of 29.3% was driven by seven acquisitions, which were completed and smoothly integrated in 2021.
JTC did feel the pressure of high inflation costs; however, it still delivered stronger margins with proper investment planning. As a result, it posted a 40% growth in its underlying profits of £30.7 million.
Moving into the shareholders’ corner, the company increased its interim dividend by 0.5p to 3.1p per share. The stock prices are also on a merry ride and have generated a return of 114% in the last three years. But lately, they have been quite volatile and have been trading down by 18% this year.
What does JTC do?
JTC is a fund services provider for institutional as well as private clients. Some of its services include fund administration, executive financial services, registrar services, and listings.
JTC Plc share price forecast
According to TipRanks’ analyst rating consensus, JTC stock has a Moderate Buy rating, based on two Buy and one Hold recommendations.
The JTC price target is 850p, which shows an increase of 13% from the current price level. The analyst price target has a high and low forecast of 880p and 820p, respectively.
Conclusion
The solid interim results have already set the wheels turning for this company’s full-year numbers. JTC is optimistic about achieving its full-year guidance numbers with ease, defeating the tough macro-economic environment.
The company also has another set of acquisitions in its pipeline, which will further boost growth opportunities.
