Intertrust sees continued growth and short-term margin pressure in Q2
Amsterdam, the Netherlands – 28 July 2022 – Intertrust N.V. (“Intertrust” or “Company”) [Euronext: INTER], a global leader in providing tech-enabled corporate and fund solutions to clients operating and investing in international business, today publishes its results for the second quarter and half year ended 30 June 2022.
Q2 2022 Highlights
- Continued growth in underlying revenue (+2.3%), driven by Rest of the World, US Fund Services and Luxembourg
- Solid pipeline at EUR 86.6m (+8.6% y-o-y); deals won with EUR 18.4 million in annual contract value
- Adjusted EBITA of EUR 34.9 million (Q2 2021: EUR 39.9 million) including one-off costs of EUR 5.4 million from remediation activities. Adjusted EBITA margin of 22.9% (Q2 2021: 27.8%), primarily driven by increased staff expenses (+11.5% y-o-y)
- FY 2022 guidance on revenue growth maintained; EBITA margin expectation adjusted to 26-28% to reflect increased investments in the workforce and one-off remediation costs; medium-term ambitions reiterated
- 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 have been obtained or waived; Regulatory Clearance obtained from Curaçao, Guernsey, Hong Kong, Jersey, UAE and UK
Shankar Iyer, CEO of Intertrust, commented:
“We continue to see solid underlying revenue growth in Luxembourg, US Fund Services and Rest of the World. 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 to the previous quarter.
As we support our clients to navigate through the current challenging macroeconomic and geopolitical environment, we continue to position the Group for long-term growth. This is achieved by further strengthening our foundations and hence we’re investing in compliance & remediation and expanding our talented workforce. As employee attrition remained elevated, we have welcomed more than 1,100 new colleagues to our offices across the globe in the first half which, in the current tight labour market, resulted in markedly higher staff expenses. In addition, we are seeking targeted price increases to partially offset the various inflationary pressures which are inevitably impacting our cost base in the short term.
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%. Our medium-term ambitions, which aim for accelerated revenue growth and margin expansion, remain unchanged and reflect our commitment to long-term growth and solid cash generation.
We value our shareholders’ support in the transaction with CSC as evidenced during the AGM last May. Together with CSC we are preparing for the 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.”