- Fund management services company JTC reported a fall in annual profit as higher costs related to its NESF acquisition offset a rise in revenue.

For the year ended 31 December 2020, pre-tax profit fell to £11.2 million from £17.6 million year-on-year while revenue was up 15.9% to £115.1 million.

The fall in profit was driven by higher costs - of about £6.5 million - from the earn-out provision linked to the NESF acquisition owing to the increase in the company's share price.

'The improvement in the JTC share price since the date of the acquisition has ultimately resulted in an increase of the fair value of the contingent consideration [owed to NESF] and a subsequent charge of £6.5 million has been recognised in the income statement,' the company said.

Underlying pre-tax profit was up 8.3% to £21.4 million.

Looking ahead, the current financial year had 'started well with momentum in new business wins and the group is trading in line with management guidance/consensus expectations,' the company said.

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