REG - JTC PLC - Pre-close Full Year Trading Update

JTCAnnouncement

03/02/2022 07:00

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RNS Number : 5190A  JTC PLC  03 February 2022

3 February 2022

 

 

JTC PLC

(the "Company" and together with its subsidiaries "JTC" or the "Group")

 

 
              Pre-close Full Year Trading Update

 

Continued strong new business growth and trading in line with expectations

 

 

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 2021.

 

2021 was a successful year for the Company which included our largest ever new
client win, the first 'Shared Ownership' (Employee Incentive Plan)
distribution since IPO, seven completed acquisitions, two oversubscribed fund
raises and a refinancing of our debt facilities. The Board expects that the
full year results will be in line with market expectations.

 

Despite the continuing effects of Covid, new business performance in the year
was strong, with the annualised value of new business won increasing c.16% on
a YoY basis to £20.9m (2020: £17.9m). These wins included the largest
single new business mandate ever secured by JTC, a significant outsourcing
mandate from a blue-chip global bank, which will be delivered by the Private
Client Services Division. The contract was secured in Q2 2021 and following an
extensive on-boarding process revenues will be recognised from H2 2022
onwards.

 

The Group is pleased with the acquisitions made during the year and progress
with integration. Both INDOS and RBC cees have been fully integrated onto the
JTC platform, with the RBC cees business rebranded to JTC Employer Solutions
and now running at typical JTC profitability margins. The focus for 2022 and
beyond is the growth of these propositions, including the Irish fund solutions
business and development of JTC's Institutional Client Services (ICS) brand.
 

 

The acquisitions of SALI Fund Services, Segue Partners and EFS in the second
half of 2021 significantly enhanced JTC's ICS business in the US. While the
completion of the SALI transaction came approximately one month later in Q4
than expected due to change of control consents, we have been pleased with the
performance of the business since acquisition. Additionally, a plan is being
developed to maximise the opportunity to internalise the fund accounting work
currently outsourced by SALI. Greater detail on this project will be provided
when the full year results are presented in April.

 

The Group underlying EBITDA margin was consistent with management guidance
relating to the short-term impact of bringing acquisitions onto the JTC
platform and continues to trend towards medium term guidance levels of 33% -
38%.

 

The Company maintains its medium-term guidance metrics of 8%-10% net organic
revenue growth; underlying EBITDA margin of 33%-38%; net debt of 1.5x to 2.0x
underlying EBITDA and cash conversion in the range 85%-90%.

 

Nigel Le Quesne, CEO of JTC PLC, said:

 

"2021 was the first year of our latest multi-year business plan, the Galaxy
Era, in which we are aiming to double the size of the Group relative to where
we ended FY20. We have made an excellent start with strong new business wins,
good organic growth and a highly engaged and motivated global workforce that
is bound together by our culture of shared ownership. Our inorganic growth
ambitions have been particularly successful with a record seven acquisitions
completed in the year, three of which were in the high growth US institutional
services market.

 

"2022 will see us build upon the progress made in 2021, while continuing to
focus on delivering client service excellence, maintaining strong organic
growth within the core business and capturing high quality opportunities in a
consolidating market."

 

The Company will announce its full year results for the year ended 31 December
2021 on Tuesday 19 April 2022. An analyst briefing will be given by Nigel Le
Quesne, Chief Executive Officer, and Martin Fotheringham, Chief Financial
Officer, at 09:30 BST via 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

Monique Perks

Emily Shea-Simonds

 

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 (http://www.jtcgroup.com/)

 

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