JTC PLC (LSE:JTC) shares rose 14% on Thursday, as investors welcomed a reassuring half-year trading update and news of another strategic acquisition.
The company, a provider of fund administration and corporate services, confirmed trading is on track for 2025, with organic revenue growth above 10%, right in line with its long-term ambitions.
JTC’s business centres on looking after assets, trusts and corporate structures for both private clients and institutions around the world.
It operates in a sector that is both highly regulated and fragmented, giving well-managed players like JTC plenty of room to expand through acquisitions.
This year’s integration of Citi Trust, plus the just-announced buyout of Kleinwort Hambros Trust Company, further boosts its footprint and earnings, with management expecting healthy returns from both deals sooner than expected.
While growth in new business has slowed slightly, JTC’s pipeline remains robust and the company’s underlying earnings visibility is strong.
Despite a challenging macro backdrop, Shore Capital believes the recent share price weakness was overdone and sees plenty of upside from here.
JTC trades at a significant discount to its long-term average, and management’s focus on profitable growth and consolidation looks set to reward patient shareholders.
The shares rose 119p to 941p.