Jersey-based asset management services provider MJ Hudson Group has published a trading update for the 12 months ended 30 June 2021.
The business reports a marked improvement in trading in the second half as the general recovery in activity in private markets has accelerated and momentum continued in outsourced regulation, ESG, data and analytics.
Despite disruption from the pandemic in the first half to December 2020, the group expects to deliver full-year results broadly in line with market expectations.
Highlights
• Strong second half: Underlying revenue grew more than 25% in the 12 months ended 30 June, compared with 14.4% in the first half to end of December 2020. This includes contributions from recent acquisitions PERACS and Bridge.
• Organic growth: Organic revenue growth (excluding acquisitions) in H2 exceeded 25% compared with 3.6% in H1. This highlights the impact of the return of new fund launch activity in the advisory division, the annuity aspects of the outsourcing division and the strength of the more secular growth drivers in the data and analytics division.
• Client wins: Following client wins during H1 for the fund services team in Luxembourg and the ESG services team in Amsterdam, the group's investment advisory business saw several client successes. Elsewhere, the group's new digital ESG and sustainability technology platform is attracting blue-chip clients and prospects remain strong.
• M&A integration: Three acquisitions in the year included PE analytics specialist PERACs, Irish firm Bridge Consulting, and risk analytics business Clarus. The integration of PERACS, now known as MJ Hudson Performance Analytics, and Bridge, now known as MJ Hudson Bridge, is said to be well under way. The acquisition of SCFL, a Guernsey-based fund administration business, was announced after the year end, with completion subject to regulatory approval.
• Investment in technology and innovation: The group continued to invest in technology and launch software-driven products. This included upgrading its CRM, enterprise accounting and HR software as well as cyber security technology. It also expanded its team of application developers and programmers, which now includes an offshore hub in Sri Lanka and quant developers in Barcelona.
• Dividend payments: The company expects to announce its maiden dividend with its preliminary results.
CEO Matthew Hudson (pictured) commented: "Having seen signs of recovery among our clients in our interim results to end December 2020, I am delighted to see this translate into our financial results for the second half.
"Our three major growth trends – increased AUM in private markets, increased regulation (especially in ESG) and the growth of outsourcing in asset management operations – are all accelerating out of the pandemic dip."
The group intends to release its preliminary financial results in late October.