Permira and Warburg circle JTC – why the bids and why now
JTC has confirmed it has received multiple non-binding offers for the entire share capital of the Company from Permira Advisers LLP and, separately, Warburg Pincus. Talks are early-stage and no terms have been disclosed. That last point matters – there is no certainty of a deal, price or timetable yet.
So why the interest? The numbers below tell a story of double-digit organic growth, sticky long-term clients and a busy M&A pipeline. In a consolidating industry that is benefiting from rising allocations to alternative assets, JTC looks like a high-quality platform with room to scale. Private equity loves that mix.
H1 2025 results – strong organic growth and record wins
Revenue rose 17.3% to £172.6 million with underlying EBITDA up 15.1% to £56.5 million. Organic revenue growth – growth from existing and newly won clients excluding acquisitions – came in at 11.0%, above JTC’s “Cosmos era” target of 10%+ per annum. New business wins hit a record £19.5 million and the pipeline stepped up to £60.0 million by 30 June.
Client relationships remain sticky. Revenue retention was 98.8% and average client lifespan stands at 14.2 years, supporting lifetime value of c. £267.8 million from work won in the period and more than £2.4 billion of future revenue from the current book. That visibility is a key part of the appeal here.
Key numbers at a glance
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | £172.6m | £147.1m | +17.3% |
| Underlying EBITDA (earnings before interest, tax, depreciation and amortisation) | £56.5m | £49.1m | +15.1% |
| Underlying EBITDA margin | 32.8% | 33.4% | -0.6pp |
| Reported profit | £6.9m | £18.5m | -62.6% |
| Underlying profit | £35.4m | £32.2m | +10.0% |
| Basic EPS | 4.16p | 11.41p | -63.6% |
| Underlying basic EPS | 21.28p | 19.87p | +7.1% |
| Underlying cash conversion | 86% | 104% | -18pp |
| Net debt (reported) | £250.7m | £150.5m | +£100.2m |
| Net debt – underlying | £225.1m | £131.9m | +£93.2m |
| Interim dividend per share | 5.0p | 4.3p | +16.3% |
Divisional performance – Institutional and Private Capital both deliver
JTC has renamed its divisions to better reflect how money flows through its platform: Institutional Capital Services (ICS) and Private Capital Services (PCS). Operating model and reporting are unchanged.
- ICS – Revenue up 19.1% to £104.2 million. Underlying EBITDA £31.3 million with a 30.1% margin. Net organic growth 9.2% as macro headwinds lengthened sales cycles, but win rates remained high.
- PCS – Revenue up 14.8% to £68.4 million. Underlying EBITDA £25.2 million with a 36.8% margin. Net organic growth 14.5%, with strong contributions from the US, Cayman and Jersey.
Both divisions are positioned for the long-term tailwind from rising allocations to alternative assets. Preqin projects alternatives to reach c. $30 trillion by 2030, and JTC continues to show win rates above 50% in a fragmented global market.
M&A momentum – Citi Trust completed, KHT proposed
M&A is central to the Cosmos plan. Post period end, JTC completed the acquisition of Citi Trust on 1 July 2025, cementing its position as the largest independent global trust company. Integration is progressing well and the Group aims to lift Citi’s margins to Group levels in 2026.
The proposed purchase of Kleinwort Hambros Trust Company for £20 million is due to complete in Q4 2025, funded from existing facilities, and is expected to be earnings accretive in 2026. Management expects a stronger return on invested capital in H2 2025 and a significant uplift in 2026 as recent deals contribute for a full year.
Margins, regulation and leverage – the caveats to note
While the growth is impressive, there are some pressure points. The underlying EBITDA margin dipped to 32.8% as JTC invested ahead of onboarding new clients and devoted more time to regulatory engagements, particularly in ICS. Management recorded approximately 90 regulatory engagements expected for 2025 versus 70 in 2024. This non-chargeable time dents margins in the short run but should strengthen the platform’s standing with regulators.
Underlying cash conversion was 86%, down from 104%, driven by timing differences at FFP and in Luxembourg billing. Management says that, adjusting for known timing, cash conversion would have been around 100% and keeps medium-term guidance at 85% – 90%.
Leverage ended the half at 2.06x underlying net debt to underlying LTM EBITDA, a touch above the 1.5x – 2.0x range. JTC has previously said it is comfortable up to 2.5x for short periods where deleveraging is visible – which is the case as recent acquisitions bed in. Debt structure is sensibly managed with £180 million swapped at c. 4.3% and $75 million of US private placement notes at 6.25%.
Why reported profit fell even as trading improved
Reported profit dropped to £6.9 million from £18.5 million. That headline fall is mainly due to £12.3 million of Employee Incentive Plan share-based payments, plus higher amortisation linked to acquisitions. These are classed as non-underlying. On the underlying view used by management to judge trading, profit rose 10.0% to £35.4 million and underlying EPS was up 7.1% to 21.28p.
Dividend, guidance and the Cosmos plan
The interim dividend is up 16.3% to 5.0p per share. Full-year expectations are unchanged and in line with management guidance. The Cosmos era plan – to more than double the business to over £500 million of revenue and £170 million+ of underlying EBITDA – is now expected to complete ahead of schedule, before the end of 2027.
What the bids could mean for shareholders
Multiple non-binding offers from two blue-chip private equity houses put a floor under sentiment and highlight strategic value. However, there is no disclosed price, structure or certainty. The Board is in early-stage discussions with both parties. Until terms are set, the core drivers for the share price will remain trading momentum, integration of Citi and progress on KHT and the H2 pipeline.
My take – the good, the less good and what to watch
Positives
- Organic growth of 11.0% with record new wins of £19.5 million and a £60.0 million pipeline.
- Very high client retention at 98.8% and average 14.2-year client life – excellent revenue visibility.
- Citi Trust completed and KHT proposed – both highly complementary to the PCS franchise.
- Dividend up 16.3% and guidance unchanged, suggesting confidence in H2 delivery.
Watchpoints
- Margins slightly softer at 32.8% as regulatory workload rises and investment continues.
- Leverage at 2.06x sits just above the preferred range, though management expects swift deleveraging as acquisitions contribute.
- Reported profit is noisy due to non-underlying items linked to EIP and acquisitions – understand the difference between reported and underlying metrics.
- Takeover proposals are non-binding and terms are not disclosed – outcome and price remain uncertain.
Bottom line for investors
JTC has delivered another half of robust organic growth, record new business and visible pipelines while scaling up its global trust footprint. The private equity interest is a vote of confidence in the model. Execution now shifts to integrating Citi, completing KHT, maintaining 10%+ organic growth and nudging margins higher as onboarding work normalises.
If the bids progress, shareholders could see a catalyst. If not, the standalone story remains attractive with long-duration, diversified revenue and a clear plan to deliver the Cosmos targets ahead of schedule. Either way, H2 2025 looks set to be eventful.
