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

JTCAnnouncement

01/02/2024 07:00

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RNS Number : 6051B  JTC PLC  01 February 2024

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

 

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