Intertrust has published its results for the second quarter and half-year ended 30 June 2022.
Q2 highlights
• Continued growth in underlying revenue (+2.3%), driven by Rest of the World, US Fund Services and Luxembourg
• Solid pipeline – €86.6m (+8.6% year-on-year)
• Deals won – €18.4m in annual contract value
• Adjusted EBITA – €34.9m (Q2 2021: €39.9m) including one-off costs of €5.4m from remediation activities
• Adjusted EBITA margin – 22.9% (Q2 2021: 27.8%), primarily driven by increased staff expenses (+11.5% year-on-year)
• Full-year 2022 guidance on revenue growth maintained; EBITA margin expectation adjusted to 26%-28% to reflect increased investment in the workforce and one-off remediation costs
• Transaction progressing as planned and expected to close in H2 2022; AGM approved all offer-related resolutions; offer period extended until two weeks after all regulatory clearances obtained or waived; regulatory clearance obtained from Curaçao, Guernsey, Hong Kong, Jersey, UAE and UK
Shankar Iyer (pictured), CEO of Intertrust, commented: “Our pipeline stood at a record level at the end of the second quarter and the value of deals won remains robust. In addition, after several quarters of increasing working capital, we now see this stabilised compared with the previous quarter.
"We continue to position the group for long-term growth by further strengthening our foundations – investing in compliance and remediation and expanding our workforce."
More than 1,100 new staff joined Intertrust in the first half, resulting in higher staff expenses.
"In addition, we are seeking targeted price increases to partially offset the various inflationary pressures, which are impacting our cost base in the short term," he added.
"Taking all this into account, we reiterate our revenue guidance of 3%-5% underlying growth for the year and we adjust our EBITA margin guidance to 26%-28%."
On CSC's offer for Intertrust, he said: "We are preparing for integration once the transaction has closed. We are on track with the regulatory approval processes and expect the transaction to close in the second half of this year.”