1 February 2024
JTC
PLC
(the
"Company" and together with its
subsidiaries "JTC" or
the "Group")
Pre-close
Full Year Trading Update
Excellent
organic growth and record new business in 2023
JTC, the global professional
services business, today issues the following trading update in
advance of its full year results for the year ended 31 December
2023.
2023 was another very successful
year for the Company and one that saw it complete its Galaxy era
goal of doubling the business a full two years earlier than
anticipated. Notable achievements in 2023 included the completion
of the acquisition of South Dakota Trust Company ("SDTC") and
accompanying equity placing to new and existing shareholders, the
growth and contribution from Treasury and Tax Compliance services
and the securing of increased debt facilities to support delivery
of the Cosmos business plan.
The strong momentum in net organic
revenue growth reported at the interim results in September 2023
continued to the year-end, remaining significantly above the
medium-term guidance range of 8% - 10% and 2022 performance of 12%.
This was driven by record new business wins of £30.8m, representing
a 25.2% increase on the prior year figure of £24.6m, with
particularly strong growth from existing clients.
The Group's underlying EBITDA for
the full year will be in line with market expectations and as
expected the EBITDA margin will be at the lower end of the guidance
range of 33% - 38%, reflecting the Group's continued investment in
driving organic growth. Cash conversion was strong and the Company
will deliver in excess of 90% for the full year. Leverage will also
be towards the lower end of the guidance range of 1.5x to 2.0x
underlying EBITDA.
The Group's inorganic efforts were
primarily focused on the acquisition of SDTC, which completed on 3
August 2023. This made JTC the leading independent provider of
services to the US personal trust sector. Post acquisition trading
for SDTC is in line with expectations and the integration is
underway and going well. The Company will evaluate further
greenfield expansion opportunities in the US in the PCS market, and
more broadly continues to appraise a varied pipeline of attractive
acquisition opportunities capable of delivering strong returns for
the Group. Post period end, the final earnout payment in relation
to the acquisition of SALI Fund Management, LLC and SALI GP
Holdings, LLC (together "SALI") was paid in full from internally
generated cash following the attainment of the financial targets
set upon acquisition in November 2021. JTC is pleased with the
performance of the SALI business and how it has integrated into the
Group, with particularly strong cultural alignment, and it
continues to provide highly predictable, long-term revenue streams
with further growth opportunities.
Nigel Le Quesne, CEO of JTC PLC,
said:
"In a little under six years since
our IPO in March 2018, we have quadrupled the size of the Group by
delivering the goals and strategies set out in our Odyssey and
Galaxy era business plans, with the latest, Galaxy, being completed
two years ahead of schedule. Whilst growth is important in our
rapidly consolidating market it is vital that this growth does not
come at the cost of diluting our unique culture. Growth must be
sustainable and make our business better. Having made two
strategically important acquisitions in the US in the last two
years our immediate priority is to deliver on our plans for growth
for both the ICS and PCS Divisions in the US. We will continue to
supplement organic growth with accretive and value-enhancing
M&A.
Our business combines excellent
resilience with strong organic and inorganic growth and this was
demonstrated in the year with outstanding net organic growth and
the further development of our platform in the US market across
both Divisions. We remain extremely ambitious for the Group and
thank all of our employee owners for their strong contributions in
2023 and in particular the achievement of our Galaxy era
plan."
The Company will announce its full
year results for the year ended 31 December 2023 on Tuesday 9 April
2024. An analyst briefing will be given by Nigel Le Quesne, Chief
Executive Officer, and Martin Fotheringham, Chief Financial
Officer, at 09:30 BST via video / audio conference.
Enquiries:
JTC
PLC
+44 (0) 1534 700 000
Nigel Le Quesne, Chief Executive
Officer
Martin Fotheringham, Chief Financial
Officer
David Vieira, Chief Communications
Officer
Camarco +44
(0) 20 3757 4985
Geoffrey
Pelham-Lane
Sam Morris
About JTC
JTC is a publicly listed, global
professional services business with deep expertise in fund,
corporate and private client services. Every JTC person is an owner
of the business and this fundamental part of our culture aligns us
with the best interests of all of our stakeholders. Our purpose is
to maximise potential and our success is built on service
excellence, long-term relationships and technology capabilities
that drive efficiency and add value.
www.jtcgroup.com